T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 22, 2008, Vol. 11, No. 79 Headlines A U S T R A L I A CARCONE PTY: Members to Receive Wind-Up Report on April 30 CENTRO PROPERTIES: No Bulk Buyer Available on Assets for Sale CITIGROUP PTY: Moody's Changes Outlook to Negative from Stable GCH REALISATIONS: To Declare Dividend on June 3 JAMES HARDIE: Stays Mum on Transfer of Parent Company to U.S. JSD INTERNATIONAL: Creditors Opt to Liquidate Business LAKEMBA RETURNED: Placed Under Voluntary Liquidation MSP HOLDINGS: Inability to Pay Debts Prompts Wind-Up OPES PRIME: Trader Dealer Clients Unharmed by Collapse OPES PRIME: Court Mulls Over ANZ, Beconwood Case RETORNY PTY: Undergoes Liquidation Proceedings SHOALHAVEN FRAMES: Final Meeting Slated for April 30 WILLIAM M. MERCER: Members' Final Meeting Set for April 29 C H I N A & H O N G K O N G & T A I W A N AGRICULTURAL BANK: Inks Comprehensive Pact with Benxi Iron ALERIS INTERNATIONAL: S&P Puts 'B+' Rating Under Negative Watch CHINA CONSTRUCTION: BofA Mulls Sale of 9% Stake in the Bank CHINA SOUTHERN: Earns RMB796 Million in First Quarter 2008 OASIS AIRLINES: Founder Apologizes for Business Collapse PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta I N D I A GENERAL MOTORS: Delta Township Plant Workers Rally, Talks Resume GENERAL MOTORS: Plastech Complains About Tooling Repossession GENERAL MOTOR: Delta Township Factory Workers Walk Off from Jobs ICICI BANK: Hikes Auto Loan Rates Effective April 15 TATA MOTORS: Increased Competition Cues Firm to Bring Ace Abroad TATA STEEL: MMTC's Board Approves Joint Venture With Firm I N D O N E S I A ANEKA TAMBANG: Shareholders Okay Flexible Bid for Herald BANK CENTRAL: Optimistic on Meeting IDR14-MIl. Loan Target BANK MANDIRI: Sees 2008 Loan Growth to Exceed 22% GARUDA INDONESIA: To Fly Jakarta-Pontianak Route Thrice Daily PERUSAHAAN LISTRIK: Losses to Continue Due to High Oil Prices J A P A N AMPEX CORP: Earns US$904,000 in Year Ended Dec. 31, 2007 AMPEX CORP: Discloses Terms of Chapter 11 Reorganization Plan CITIBANK JAPAN: Moody's Affirms “B” Financial Strength Rating DELPHI: Plastech Wants to Return Tooling to Delphi Automotive JAPAN AIRLINES: In Discussions With MUFG on JALCard Sale K O R E A HYNIX SEMI: Sees DRAM Market Improvement in Second Half of 2008 KRISPY KREME: Posts Fourth Quarter Net Loss of US$31.8 Million M A L A Y S I A FOAMEX INT'L: David J. Lyon Joins Board of Directors IDAMAN UNGGUL: BNM Okays Disposal of Equity Interest in Tahan MANGIUM INDUSTRIES: Inks Share Sale Agreement with Tekun Teguh SHAW GROUP: Earns US$8.9 Million in Quarter Ended February 29 N E W Z E A L A N D BROADBEACH GROUP: Placed Under Voluntary Liquidation CLEAR CHANNEL: Extends Offer's Expiration Date to April 25 EMBEDDEDFUSION LTD: Fixes April 25 as Last Day to File Claims IJ CONTRACTORS: Subject to Steel & Tube's Wind-Up Petition JOLLY ENGINEER: Taps Whittfield and van Delden as Liquidators LONDON TRADERS: Commences Liquidation Proceedings MACRON HOLDINGS: Taps John Chapman as Liquidator PURSUIT PROPERTY: Appoints Taylor as Liquidator SAWGRASS DEVELOPMENTS: Wind-Up Petition Hearing Set for April 24 SHIRE DEVELOPMENTS: Court to Hear Wind-Up Petition on April 24 W.SCOTT/MORRIS AUTO: Fixes May 9 as Last Day to File Claims P H I L I P P I N E S PRC LLC: Files Supplement Site Consolidation Incentive Plan PRC LLC: Committee Wants to Employ Halperin as Conflicts Counsel PRC LLC: Inks Stipulation Resolving Pact With Spirit Airlines S I N G A P O R E ADVANCED MICRO: Posts US$358MM Net Loss in First Quarter of 2008 FABLESS INVESTMENTS: Creditors' Proofs of Debt Due on May 5 J MORITA: Court Enters Wind-Up Order NOVO NORDISK: Requires Creditors to File Claims by May 5 TEO BROS.: Court Enters Wind-Up Order T H A I L A N D BLOCKBUSTER: CEO Keyes' US$5.6MM Pay Lower than Predecessor's DOLE: S&P Lifts Debt Rating to B- and Puts '4' Recovery Rating * BOND PRICING: For the Week 21 April to 25 April 2008 - - - - - ================= A U S T R A L I A ================= CARCONE PTY: Members to Receive Wind-Up Report on April 30 ---------------------------------------------------------- Andrew Blevin, Carcon Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on April 30, 2008, to provide them with property disposal and winding-up reports. Carcon Pty. Ltd. is a dealer of new and used car. The company is located at Ferntree Gully, in Victoria, Australia. CENTRO PROPERTIES: No Bulk Buyer Available on Assets for Sale ------------------------------------------------------------- With its deadline to pay off a $4.9 billion short-term debt just days away, Centro Properties Group may be forced to sell the 25 properties in its Australian wholesale fund on a piecemeal basis due to the unavailability of buyers who can buy the entire fund. However, until now, Centro Properties is still looking to sell its assets including the $2.3 billion fund in bulk, Turi Condon of The Australian relates. The company is facing pressure from lenders to speed up the sale of its key assets to bring down its liabilities as it fast approaches its debt refinancing deadline, a report by Carolyn Cummins and Danny John of The Sydney Morning Herald said, as cited by the Troubled Company Reporter-Asia Pacific last month. On March 31, 2008, the Troubled Company Reporter-Asia Pacific, citing an emailed statement to Laura Cochrane of Bloomberg News, reported that Centro Properties spokesman, Jim Kelly, said that negotiation has been initiated by the company with its Australian bankers to extend the April 30, 2008 debt payment deadline by five months until September 30. Should no agreement extending the due date is reached, Centro chief executive Glenn Rufrano told Kris Hudson at The Wall Street Journal that the company would need to file for the Australian equivalent of bankruptcy. Centro's lenders, according to Bloomberg, include Commonwealth Bank of Australia, Australia & New Zealand Banking Grouop Ltd., National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and BNP Paribas. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property Trust and its entities, which are engaged in property investment, property management, property development and funds management. The company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CITIGROUP PTY: Moody's Changes Outlook to Negative from Stable -------------------------------------------------------------- Moody's Investors Service changed to negative, from stable, the outlook for Citigroup Pty Ltd's Aa3 deposit and debt ratings. The bank financial strength rating of C+ was not affected. The rating action follows a similar change of outlook to negative for Citigroup Inc.'s Aa3 debt ratings. The deposit and debt ratings of Citigroup Pty Ltd are higher at Aa3 than its baseline credit assessment of A2, which is derived from the BFSR of C+ and addresses the bank's stand-alone credit profile. This is because its debt and deposit ratings reflect the high degree of integration of Citigroup Pty Ltd's with the broader group, and Moody's expectation that a high degree of parental support will be forthcoming, in case of need. Consequently, a rating action on the parent's ratings has a flow-on effect on the supported deposit and debt ratings of Citigroup Pty Ltd. Citigroup Pty Ltd is the Australian retail banking subsidiary of Citigroup Inc. It is headquartered in Sydney, New South Wales, Australia and reported total assets of AUD18 billion at FYE 2007. GCH REALISATIONS: To Declare Dividend on June 3 ----------------------------------------------- GCH Realisations Pty. Limited will declare first and final dividend for its priority creditors on June 3, 2008. Only creditors who were able to file their proofs of debt by April 15, 2008, will be included in the company's dividend distribution. The company's deed administrator is: Martin J. Green GHK Green Krejci 1 Castlereagh Street, Level 13 Sydney, New South Wales 2000 Australia About GCH Realisations Gch Realisations Pty. Limited provides management services. The company is located at Stanmore, in New South Wales, Australia. JAMES HARDIE: Stays Mum on Transfer of Parent Company to U.S. ------------------------------------------------------------- Ean Higgins of The Australian writes that James Hardie Industries Ltd. plans to liquidate its parent company in the Netherlands to the United States. The Australian, which was able to obtain secret company documents relates that James Hardie would "liquidate" its Dutch company and become effectively an American company registered in Delaware, although some operations might officially be based in obscure European legal havens to avoid tax. James Hardie's Australian and New Zealand operations would be separated from the US company, either to be sold off or incorporated as independent local companies, writes Mr. Higgins. Peter Baker, James Hardie's Asia-Pacific vice-president told Mr. Higgins he did not know the specifics of the plan, but understood that a review of domicile and tax options was being undertaken by Netherlands and US-based executives. Mr. Higgins states that this plan of the company is likely to cause deep concerns to Australian asbestos victims, unions and the New South Wales Government, which secured a AU$4 billion deal in which James Hardie will pay compensation to thousands of people over the next 40 years. ABC News relates that the Australian Council of Trade Unions (ACTU) president Sharan Burrow says workers and asbestos campaigners need assurances that their jobs and claims for compensation will be safe. The Australian Associated Press relates that Ms. Burrow has "two primary concerns: * to know James Hardie's intentions about their Australian operations; and * hear from James Hardie that this is not about any of the commitments that they've made in regards to victims' compensation." ABC News reports that a James Hardie spokesman said its compensation agreement with asbestos victims is legally binding and allows for a change in country and parent company. The Australian Associated Press quotes James Hardie vice president of investor relations Steve Ashe as saying, "The company has no official comment to make." James Hardie has not commented about its intentions or what impact a sale would have on its Australian operations and commitments, relates AAP. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. The company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. As reported by Asbestos Litigation on Feb. 16, 2007, the Australian Securities & Investments Commission has sued James Hardie Industries NV, claiming the Company misled investors over the cost of compensating people sickened by asbestos. The ASIC said that Chairman Meredith Hellicar, former Chief Executive Officer Peter MacDonald and eight other officials face bans from running a public company and fines of more than AU$200,000 or US$160,000. The suit centers on a Feb. 16, 2001 press release when the Company said a newly created AUD293 million fund was "sufficient" to compensate victims of asbestos poisoning. A government inquiry later found the fund would have run out of money in three years and the Company was forced to set up a new AU$1.6 billion compensation fund. JSD INTERNATIONAL: Creditors Opt to Liquidate Business ------------------------------------------------------ JSD International Consultants Pty. Ltd.'s members agreed on March 11, 2008, to voluntarily liquidate the company's business. The company has appointed Michael Dwyer to facilitate the sale of its assets. The liquidator can be reached at: Michael Dwyer Dwyer Corporate 455 Bourke Street, Level 6 Melbourne, Victoria 3000 Australia About JSD International JSD International Consultants Pty. Ltd. is involved with highway and street construction, except elevated highways. The company is located at Alice Springs, in NT, Australia. LAKEMBA RETURNED: Placed Under Voluntary Liquidation ---------------------------------------------------- Lakemba Returned Soldiers' Club Ltd.'s members agreed on March 7, 2008, to voluntarily liquidate the company's business. The company has appointed Peter Murray Walker to facilitate the sale of its assets. The liquidator can be reached at: Peter Murray Walker Ferrier Hodgson Grosvenor Place, Level 13 225 George Street Sydney, New South Wales 2000 Australia About Lakemba Returned Lakemba Returned Soldiers' Club Ltd. is into deals with civic, social, and fraternal associations. The company is located at Lakemba, in New South Wales, Australia. MSP HOLDINGS: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------- During a general meeting held on March 29, 2008, the members of MSP Holdings Pty Limited resolved to voluntarily wind up the company's operations due to its inability to pay its debts. The company's liquidator is: Blair Pleash c/o Hall Chadwick 31 Market Street, Level 29 Sydney, New South Wales 2000 Australia About MSP Holdings MSP Holdings Pty. Limited operates meat and fish markets. The company is located at Brookvale, in New South Wales, Australia. OPES PRIME: Trader Dealer Clients Unharmed by Collapse ------------------------------------------------------ Opes Prime Group Ltd.'s online trading service clients have emerged relatively unscathed by the collapse of the firm, Mahesh Sharma writes for The Australian. The Australian reports that Opes' Trader Dealer clients were able to access their accounts for the first time since the Opes collapse, after the platform was revived by the financial adviser MDS Financial Group and corporate advisory firm Box Red. It has been rebranded as Trader Dealer Online, says the report. According to The Australian, the relaunch of the business was possible because the majority of Trader Dealer's operations were separate from Opes Prime, with accounts and stock held by Berndale Securities, and cash management trust accounts held by Macquarie Bank and Adelaide Bank. MDS chief executive of online broking David Wylie told The Australian that "a fairly large amount of the clients actually did avoid the harder end of the stick...purely because the way accounts were structured, the bank accounts and holdings were structured in the clients' names. There's a fairly large percentage that have missed out on a few areas of problems that other Opes clients may not have." Mr. Wylie, relates The Australian, said a large percentage of clients were sticking around because they wanted to. The Australian states that Mr. Wylie did not not comment on the terms of the acquisition and wouldn't give an exact figure but he said the number of clients MDS acquired was "certainly in the thousands." About Opes Prime Group Ltd Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group's wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi- professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008, that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPES PRIME: Court Mulls Over ANZ, Beconwood Case ------------------------------------------------ The Federal Court of Victoria has reserved its decision in a legal bout between ANZ Banking Group Ltd. and stock broker Beconwood Securities over who owns shares placed with Opes Prime Group Ltd., reports The Australian Associated Press. According to AAP, the court is trying to determine if Opes Prime clients are entitled to have ANZ return to them equivalent securities to shares originally pledged with Opes Prime in return for loans. Melbourne businessman Paul Choiselat's Beconwood Securities went to the Federal Court seeking orders that ANZ return equivalent securities to the shares of Beconwood placed with Opes Prime. Beconwood, notes AAP, placed its Destra Corp. Ltd., Q Ltd. and Jumbuck Entertainment Ltd. shares with Opes Prime. AAP relates that Beconwood pledged AU$7 million worth of shares to Opes Prime in return for a AU$1.3 million loan. Michael Garner, counsel for Beconwood, said his client had entered into what it thought was a margin lending agreement involving a mortgage of shares, states AAP. Mr. Garners said it was important to consider what retail investors thought they were getting into when they entered into agreements with Opes Prime -- and that they did not believe they would lose title to their shares. Mr. Garner told the court a true securities lending agreement required the borrower of the shares to pay a margin and provide collateral, in this case cash, says AAP. Mr. Garner argues that this contrasted with the deal between Opes Prime and Beconwood. Mr. Garner argued that Beconwood had entered into an equity financing agreement, where the client lends securities as collateral against cash. The intention was that the lender retained beneficial ownership of the shares, relates AAP. AAP reports that counsel for ANZ, Alan Archibald QC told the court that Opes Prime clients had entered into a securities lending arrangement with Opes Prime under, under which they transferred title to their shares to Opes. Mr. Archibald, relays AAP, said provisions in the agreement between Opes Prime and its clients referred to a transfer of the shares without any encumbrance. Mr. Archibald said that the difference between what Beconwood was loaned by Opes Prime, and the value of the shares placed with Opes, reflected the quality of those shares, adds AAP. 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. RETORNY PTY: Undergoes Liquidation Proceedings ---------------------------------------------- Retorny Pty Limited's members agreed on March 10, 2008, to voluntarily liquidate the company's business. The company has appointed Morgan James Chubb to facilitate the sale of its assets. The liquidator can be reached at: Morgan James Chubb Clout & Associates 144-148 West High Street, Level 1 Coffs Harbour New South Wales Australia About Retorny Pty. Retorny Pty. Limited provides business services. The company is located at Coffs Harbour, in New South Wales, Australia. SHOALHAVEN FRAMES: Final Meeting Slated for April 30 ---------------------------------------------------- Shoalhaven Frames & Trusses Pty. Limited will hold a final meeting for its members and creditors on April 30, 2008, at 10:00 a.m. During the meeting, the company's liquidator, Gavin Thomas at Gavin Thomas & Partners, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Gavin Thomas & Partners 31 Market Street, Level 9 Sydney, New South Wales Australia About Shoalhaven Frames Shoalhaven Frames & Trusses Pty. Limited is a distributor of structural wood members. The company is located at Nowra South, in New South Wales, Australia. WILLIAM M. MERCER: Members' Final Meeting Set for April 29 ---------------------------------------------------------- Richard G. Mansell, William M. Mercer Retirement Plan Pty. Ltd.'s appointed estate liquidator, will meet with the company's members on April 29, 2008, at 10:30 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Richard G. Mansell R.G. Mansell & Associates Level 3, 118 Queen St. Melbourne Australia About William M. Mercer Located at Melbourne, in Victoria, Australia, William M. Mercer Retirement Plan Pty. Ltd. is an investor relation company. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== AGRICULTURAL BANK: Inks Comprehensive Pact with Benxi Iron ---------------------------------------------------------- Agricultural Bank of China and Benxi Iron and Steel Group have signed a comprehensive cooperation agreement, Steelguru.com reports. The agreement provides that the Agricultural Bank will provide CNY10 billion intention credits to Benxi Steel, and the two sides will carry out full cooperation in traditional credit business and financing advisers, investment in bank and other fields. Mr. Yang Kun, vice-president of Agricultural Bank, told Steelguru.com his bank is a large-scale state-owned commercial bank, it has been actively supporting the development of Chinese iron and steel industry, providing financial services for iron and steel enterprises’ adjustment of industrial structure, energy saving and emission reduction. According to the report, in recent years, Agricultural Bank established strategic cooperative partnerships with Ansteel, Wisco, Shougang etc large number of leading steel enterprises in China, Steelguru.com relates. At present, the total amount bank loans of Agricultural Bank in iron and steel industry has reached about CNY100 billion. About Agricultural Bank of China Agricultural Bank of China -- http://www.abchina.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. * * * Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. ALERIS INTERNATIONAL: S&P Puts 'B+' Rating Under Negative Watch --------------------------------------------------------------- On April 17, 2008, Standard & Poor's Ratings Services placed its ratings for Aleris International Inc., including the 'B+' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects our assessment that the weak end-market demand in the company's North American rolled and extruded products segment is likely to continue over the next several quarters," said Standard & Poor's credit analyst Maurice Austin, "primarily because of weaker demand for building and construction, distribution, and transportation products. This, combined with increased debt balances due to the company's aggressive growth strategy over the past few years, has resulted in credit measures that we would consider to be weak for the rating." In resolving the CreditWatch listing, S&P will review the company's near-term operating and financial strategy in light of the difficult operating conditions and evaluate its cash flow generation capability. About Aleris International Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE:ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company's international segment provides aluminum metal to customers through both tolling arrangements and product sales, and the types of scrap that it recycles are similar to those processed by Aleris’ U.S. recycling facilities. In 2004 its five plants have a rated annual capacity of 1.08 billion pounds. The operations include two aluminum recycling and foundry alloy plants in Germany as well as aluminum recycling facilities in Brazil, Mexico and Wales. The segment’s growth is largely a result of its development and use of efficient scrap preparation and recycling technologies that allow high recovery of metal and delivery of a top-quality product. In Asia, the company has subsidiaries in Hong Kong and China. CHINA CONSTRUCTION: BofA Mulls Sale of 9% Stake in the Bank ----------------------------------------------------------- Bank of America is considering a sale of its 9 percent stake in China Construction Bank and may also seek to exercise options it holds to buy more shares in the bank at levels that are now well below market rates, The Financial Times reports, citing unnamed sources. According to FT, BofA's plan is intended to support its balance sheet amid turmoil in the credit market. Due to rising losses on home-equity loans and credit cards, plus writedowns of $3.5 billion related to subprime mortgages, analysts surveyed by Bloomberg News see unchanged or lower profit for BofA this year. BofA Chief Executive Officer Kenneth Lewis targets 20 percent profit increase this year, Bloomberg relates. About Bank of America Bank of America (NYSE: BAC) -- http://www.bankofamerica.com/-- is a U.S.-based financial institution serving more than 59 million consumer and small business relationships. The company serves clients in 175 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Global Fortune 500. About China Construction The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954, under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. * * * The Troubled Company Reporter-Asia Pacific reported on Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D' individual rating. As of March 5, 2008, China Construction Bank carries Moody's "D-" bank financial strength rating. Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion of a bank's intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements that are addressed by Moody's Bank Deposit Ratings. CHINA SOUTHERN: Earns RMB796 Million in First Quarter 2008 ---------------------------------------------------------- China Southern Airlines Company Limited said net profit for the first quarter ended March 31, 2008, amounted to RMB796 million or earnings of RMB0.18 per share, RTT News reports. Net cash flow from operating activities declined 32.78% to RMB1,134 million or RMB0.26 per share. According to the report, the company's total assets increased 1.74% to RMB83,885 million from RMB82,453 million in the prior year period. Return on net assets increased 8.02 percentage point to 6.14%. Return on net assets, after deducting non- operating profits rose 7.85 percentage point amounted to 5.49%. China Southern said based on the share capital of 4,374,178,000 shares as at Dec. 31, 2007, the company proposes to issue an additional 2,187,089,000 shares to all of its shareholders by the conversion of capital reserve to share capital, on the basis of 5 new shares for every 10 existing shares held, and the share capital of the company will be 6,561,267,000 shares after the conversion, RTT News relates. The company said it proposes to issue short-term financing bills of RMB4 billion in two tranches, which will be primarily utilized to fund the business activities of the company. China Southern also disclosed that it approved the purchase of 20 Boeing 737 series aircraft by Xiamen Airlines Company Limited, a subsidiary of the company, from the Boeing company, RTT News says. The release said that Boeing has agreed to deliver all the 20 Boeing 737 series aircraft between April 2014 and October 2015. China Southern told RTT News that the internal resources of Xiamen Airlines and loan facilities from commercial banks will fund the consideration for the transaction. About China Southern Airlines Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. Fitch said the outlook on the ratings remains stable. OASIS AIRLINES: Founder Apologizes for Business Collapse -------------------------------------------------------- The founder of Oasis Hong Kong Airlines has apologized to passengers, staff and partners for the inconvenience caused by the business' collapse earlier this month, Monsters and Critics reports. The Reverend Raymond Lee Cho-min said he was very sorry and that he had not given up hope that the airline could be saved. When he founded the airline in October 2006, Mr. Lee, the former chairman, said that his dream had been to make it possible for Hong Kong's seven million people to fly the world, Monsters and Critics says. Oasis ceased operating after going into voluntary liquidation on April 9, with 700 employees laid off and more than 30,000 passengers left holding tickets valued at HK$300 million (US$38.5 million). According to the report, Oasis chief executive Steve Miller said he was initially "very confident" someone would come forward to take over the airline and save the jobs of its staff, Monsters and Critics relates. However, the airline's huge losses and debts to creditors along with the uncertain industry outlook due to high fuel prices appeared to have put off any potential saviours. Mr. Lee insisted that the model of the no-frills airline was not the cause of its collapse but that its failure was down to insufficient funding, Mosters and Critics reports, citing the South China Morning Post. "It needs at least eight planes to achieve the full potential of this operation model. Oasis had only four,' Mr. Lee told Monsters and Critics. "We are very sorry for our passengers and commercial partners, but we hope to turn grief into action and seek to continue Oasis' mission in the near future." 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%. PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects ---------------------------------------------------------------- Petroleos de Venezuela, S.A., through its affiliated company PDVSA Gas, has invested over VEF1,000,000 in six social projects that will benefit 3,500 residents of La Vaca sector (located in the Simon Bolivar municipality, in Maracaibo Lake’s Eastern Shore), as well as residents of the El Carmelo and Puerto Paez municipalities (located in the La Cañada de Urdaneta municipality). The latter two are the locations of the Ule and Bajo Grande gas processing plants, respectively, in Zulia state. Portions of these social projects have been completed thanks to the work done by professionals from the Engineering and Construction Management Division of the Gas Occidente Processing Organization. This progress includes paving of the main streets of La Vaca sector, a project requested by this town’s Community Council, as well as construction of a sports court named “Alvaro Polanco” in the same town. Most of the construction workers are residents of La Vaca sector and were selected by the town’s Community Council. Such Community Council gave a presentation to PDVSA Gas and to Pantersa, the company responsible for the social project to improve the Ule Plant (the selected town), which explained the selection process of the specialized personnel working in the construction projects. Such selection process included considering aspects like abilities, skills and the workers’ families’ socio-economic situation. Upholding Social Responsibility The New PDVSA Gas abides by the guidelines issued by the Bolivarian Government and continues to uphold social responsibility and carry out works to increase the welfare of communities across the nation. An example of this is the donation of computers and refurbishment of the computer room “Maria Moreno de Lopez” in the Lagunillas municipality. Also, a pre-school was built in the La Cañada municipality as part of the Puerto Paez Basic School. 80% of these works has already been completed, and responsibility over them will be handed to the community during the second and third quarter of this year, complying with the infrastructure and donation time table established for this period by the Engineering and Construction Management Division of the Gas Occidente Processing Organization. This way, PDVSA Gas is investing its resources to consolidate patriotic and revolutionary sovereignty throughout the country, thereby providing social benefit to Venezuelan communities and enhancing their quality of life. About Petroleos de Venezuela SA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts ------------------------------------------------------------- The Venezuelan government, which runs Petroleos de Venezuela SA, has signed three contracts for monthly supply of 1.48 million barrels of oil to Bolivia, Nicaragua, and Haiti, Prensa Latina reports. Prensa Latin relates that the signing of the contracts is made under Venezuela's Bolivarian Alternative for the Americas, an international cooperation organization based on the idea of social, political, and economic integration between the countries of Latin America and the Caribbean. The Venezuelan government initially proposed the initiative as an alternative to the US' Free Trade Area of the Americas. According to Bolivian daily Los Tiempos, the contracts establishes direct monthly supply of 250,000 barrels of oil and derivatives or their energy equivalents and special terms of payment like a 2% yearly interest rate. Prensa Latina notes that Petroleos de Venezuela's joint venture with Yacimientos Petroliferos Fiscales Bolivianos, Petroandina, will be responsible for the shipments. Petroleos de Venezuela also signed agreements with Yacimientos Petroliferos for the exploration of oil and gas in the north of La Paz and south east Bolivia, Prensa Latina adds. About Petroleos de Venezuela SA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta -------------------------------------------------------------- Petroleos de Venezuela S.A. will install nine diesel and lubricant pumps in several municipalities in the island state so as to guarantee fuel supply to artisan fishermen in Nueva Esparta state. Rafael Ramirez, People’s Minister of Energy and Petroleum and president of PDVSA, met with representatives from 64 fishermen organizations of Nueva Esparta state and informed them of PDVSA’s initiative. The meeting was held in Playa Valdez, Maneiro municipality, in Margarita Island. Minister Ramirez indicated that the first two fuel pumps will be located in the towns of Boca de Rio and Robledal (Macao municipality), and will begin operating in the next few days. These two pumps will benefit 282 fishermen located in this area of Margarita Island. The remaining infrastructure will be built in the towns of Manzanillo, La Isleta, La Guardia, Playa Moreno and Playa Valdez, located in the Antolin del Campo, Garcia, Diaz and Maneiro municipalities, respectively, as well as in Coche Island, located in Villalba municipality. PDVSA’s initiative allows fishermen to obtain fuel for their boats directly and efficiently, and is part of the policies implemented by the Bolivarian Government to empower communities. Furthermore, Minister Ramirez informed that the Venezuelan Food Producer and Distributor (PDVAL) will expand its services by offering artisan fishermen the opportunity to purchase, sell, store and distribute sea food at fair prices to the residents of Nueva Esparta state. PDVAL also will provide fishermen with fishing supplies and tools at reasonable prices, thereby protecting them from price speculation of such supplies and tools which directly influences fish prices. About Petroleos de Venezuela SA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. ========= I N D I A ========= GENERAL MOTORS: Delta Township Plant Workers Rally, Talks Resume ---------------------------------------------------------------- General Motors Corp. and United Auto Workers union representatives of a Delta Township plant in Lansing, Michigan, resumed talks on Friday, April 18, 2008, after workers went on strike after 10 a.m. on Thursday, after both parties failed to agree on plant-specific issues, various sources report. GM also disclosed that a planned rally at a key transmission plant in Warren, Michigan, was suppressed after GM and the UAW agreed to continue talks past the strike deadline, Terry Kosdrosky of Dow Jones Newswires relates. However, if talks fail, the UAW Local 909 will, then, issue a 12-hour strike notice. Mr. Kosdrosky also added that UAW Local 31 of a GM plant in Fairfax, Kansas, which makes the Chevrolet Malibu and Saturn Aura sedans, warned the automaker that union members will walk off the job in five days. As reported in the Troubled Company Reporter on April 11, 2008, UAW workers at three GM factories in Michigan had threatened to rally in five days if discussions on plant-specific issues, including work rules and seniority, would not be resolved. GM spokesman Dan Flores said that the automaker was doing its best to reach a new labor contract as soon as possible, pointing at a recent settlement between GM and a UAW local at a Parma, Ohio plant. The three plants are the Delta Township plant, which manufactures large crossover utility vehicles -- the Buick Enclave, GMC Acadia and Saturn Outlook; the Warren plant, which produces transmissions, and the Flint plant, produces pickup trucks and medium-duty commercial trucks, though pickup truck production is idled due to the strike at supplier American Axle & Manufacturing Holdings Inc. The strike will greatly affect auto production which is still reeling on the impact of the 6-week Axle strike. To date, 30 GM plants was shut down as Axle continues negotiations with the UAW. 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 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. GENERAL MOTORS: Plastech Complains About Tooling Repossession ------------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to deny the request of General Motors Corporation to lift the automatic stay to allow it to repossess tooling from the Debtors. General Motors seeks "contingent" relief from the automatic stay to allow it to repossess the Tooling only in the event that the Debtors reject a relevant purchase order, the Debtors close a relevant plant, the Debtors' financing expires, or the Debtors are unable to supply parts. Matthew P. Ward, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, states that General Motors' request is procedurally improper, as the relief must be sought only through an adversary proceeding, pursuant to Rule 7001 of the Federal Rules of Bankruptcy Procedure. Bankruptcy Rule 7001 provides that, "a proceeding to recover . . . property" and "a proceeding to determine the validity, priority, or extent of a lien or other interest in property" are adversary proceedings." Mr. Ward contends General Motors' request is improper because it seeks only prospective and "contingent" relief from the automatic stay based upon speculative future events. As these "speculative" events have not occurred, the motion is merely an advisory opinion rather than an actual case or controversy, and therefore the Court lacks jurisdiction because there does not presently exist any actual dispute that is ripe for adjudication, Mr. Ward relates. In addition, Mr. Ward says the standards applicable for modifying the automatic stay under Section 362(d)(1) of the Bankruptcy Code are not satisfied. He cites that General Motors has not afforded the Debtors with the breathing spell to which they are entitled. To the contrary, General Motors filed the Stay Relief Motion within six weeks of the Petition Date, a period when the Debtors' initial exclusivity period has not yet expired, and the Debtors have been engaged in negotiating restructuring proposals with their major creditor constituencies, Mr. Ward maintains. Mr. Ward tells the Court that General Motors has created issues for vendors, moldbuilders, and other major customers by sending a negative signal, such as the relief sought by Roush Manufacturing, Inc., to lift the automatic stay in order to exercise state law rights with respect to certain Tooling. Mr. Ward avers that relief from the automatic stay would be particularly inappropriate because General Motors is merely an unsecured creditor. He emphasizes ceding to GM's request would be detrimental to other unsecured creditors, and other creditors in general, and would put the collateral of the Debtors' secured lenders in jeopardy, particularly those claims senior in priority to General Motors, whose recovery depends on the Debtors' continuing operations. Mr. Ward maintains that lifting the stay would affect the Debtors' production of GM's parts and would, in turn, cause immediate shutdowns at GM's plants. To the Debtors' knowledge, Mr. Ward says there is no orderly transition plan in place, and any transition plan would take weeks, if not months, to implement procedures and protocols to identify any Tooling and to safely remove it without causing disruption to the Debtors' operations and its other customers' production lines. The Official Committee of Unsecured Creditors concurs with the Debtors' contentions. "The relief requested in the Motion is of a contingent nature and based upon speculation as to future events. The Motion essentially seeks an advisory opinion on a controversy that is not ripe for adjudication." Goldman Sachs Joins Objection Goldman Sachs Credit Partners L.P., the administrative and collateral agent for the Debtors' Prepetition First Lien Term Lenders, joins in the Debtors' objection to GM's request. According to Richard A. Levy, Esq., at Latham Watkins LLP, in Chicago, Illinois, Goldman Sachs asks the Court, in the event the Court grants GM's request, to make clear that nothing in the Court's order terminates or otherwise impairs any liens, claims or other interests the Prepetition First Lien Term Agent and the Prepetition First Lien Lenders may have in the Tooling under applicable law. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. GENERAL MOTOR: Delta Township Factory Workers Walk Off from Jobs ---------------------------------------------------------------- United Auto Workers Local 602 union workers at General Motors Corp.'s Delta Township plant in Lansing, Michigan, went on strike after 10 a.m. on April 17, 2008, after both parties failed to agree on plant-specific issues, David Bailey and Nick Carey of Reuters report. As reported in the Troubled Company Reporter on April 11, 2008, UAW workers at three GM factories in Michigan had threatened to rally in five days if discussions on plant-specific issues, including work rules and seniority, would not be resolved. GM spokesman Dan Flores said that the automaker was doing its best to reach a new labor contract as soon as possible, pointing at a recent settlement between GM and a UAW local at a Parma, Ohio plant. The three plants are the Delta Township plant, which manufactures large crossover utility vehicles -- the Buick Enclave, GMC Acadia and Saturn Outlook; the Warren plant, which produces transmissions, and the Flint plant, produces pickup trucks and medium-duty commercial trucks, though pickup truck production is idled due to the strike at supplier American Axle & Manufacturing Holdings Inc. The strike will greatly affect auto production which is still reeling on the impact of the 6-week Axle strike. To date, 30 GM plants was shut down as Axle continues negotiations with the UAW. 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 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. ICICI BANK: Hikes Auto Loan Rates Effective April 15 ---------------------------------------------------- ICICI Bank Limited has hiked its auto loan interest rates on the heels of the Reserve Bank of India's raising of cash reserve ratio. As previously reported by the Troubled Company Reporter-Asia Pacific, the bank said it will only decide on its lending rates after the RBI comes out with monetary policy for fiscal year 2009. RBI said on April 17 it would raise the cash reserve ratio to tackle inflation, Bloomberg News reports. The regulator reportedly will hike the CRR from 7.5% to 8% in two phases by May 10. The increase, the first in 2008, will drain as much as INR185 billion (US$4.6 billion) from the financial system, the news agency cited a statement made by RBI. ICICI Bank is likely to be the most impacted by the regulator's move, Bloomberg cited an analyst as saying. The bank's average cost of funds are higher than most state-run banks as it depends more on bulk deposits that come with higher interest rates, Bloomberg notes. In a report yesterday, The Hindu Business Line said ICICI Bank has increased interest rates on two- and four-wheelers between 50 and 75 basis points with effect from April 15. Other banks are expected to follow the lending rate move. “While there has been pressure on financing for quite some time, the recent CRR hike would further suck out liquidity from the market which is certainly not a good signal for the automobile industry,” Business Line quoted Hyundai Motor India Ltd. Sr. VP Sales and Marketing 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. TATA MOTORS: Increased Competition Cues Firm to Bring Ace Abroad ---------------------------------------------------------------- Tata Motors Ltd. plans to take its mini Truck, the Ace, to international market because of pressure from competitors in India, The Telegraph reports. The Ace's profit reportedly got affected when rivals Piaggio, Bajaj Auto and Force Motors rolled out similar models. Tata Motors eyes bringing the Ace, which is currently available in Bangladesh and Sri Lanka, to Africa, countries of the Association of South East Asian Nations, and Russia, among others, the Indian daily relates. For the international market, Ace will be launched with new features, including higher engine capacity and air conditioning, The Telegrapch cited P. Telang, executive director of Tata Motors, as saying. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero-coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA STEEL: MMTC's Board Approves Joint Venture With Firm --------------------------------------------------------- MMTC Ltd's board of directors has approved the joint venture with Tata Steel Ltd for mining exploration, the Press Trust of India reports. MMTC in a release said its board “approved the proposal for the JV with Tata Steel for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal on public-private partnership route." As reported by the Troubled Company Reporter-Asia Pacific on April 11, 2008, MMTC and Tata Steel agreed to form a joint venture to bid for mining projects abroad. Tata Steel will have a 74% stake in the new company while MMTC will hold the remaining 26% stake. Tata Steel's board has already approvedthe JV with proposal. According to The Financial Express, the venture will focus on African countries like Angola and Namibia and central Asian countries like Kazakhstan and Uzbekistan to bid for gold and diamond mines, besides acquiring coal and iron ore mines. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. * * * As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= ANEKA TAMBANG: Shareholders Okay Flexible Bid for Herald -------------------------------------------------------- PT Aneka Tambang Tbk's shareholders gave the company the privilege to modify, if necessary, its bid to acquire a controlling stake in Herald Resource Limited, various reports say. As reported by the Troubled Company Reporter - Asia Pacific on April 21, 2008, Antam and Chinese zinc producer Shenzhen Zhongjin Lingnan Nonfemet Co. joined together to submit an offer to acquire Herald Resources for AU$504.8 million. Antam also asked its shareholders to give the company the choice to adjust its offer price for Herald, the TCR-AP said. Dedi Aditya Sumanagar, Antam president director, told The Jakarta Post that the shareholders, after an extraordinary meeting, have agreed to give extensive flexibility to Antam's board of directors in setting the offer price as long as it is regarded proper. Antam, the TCR-AP related, is battling a AU$2.25-a-share offer from PT Bumi Resources to gain control of Herald's Dairi lead and zinc project in Indonesia. Reuters relates Herald Resources has recommended its shareholders accept Antam and Zhongjin's offer but would still subject it to a number of conditions, including a minimum 50.1% acceptance and approval from the Foreign Investment Review Board of Australia. Reportedly, Antam has already bought a 10.7% stake in Herald and also holds a 20% interest in Herald's 80% in the Dairi project. Mr. Sumanagara said that the company might increase the offer price as the bid price was lower than what they perceive as Herald's fair value, Reuters notes. "We will offer a reasonable and best price for our shareholders. The price that we have offered so far is AU$2.5, but we will be flexible. Our independent accountant put a fair price of AU$3.51," Mr. Sumanagara was quoted by Reuters as saying. However, there is still some uncertainty about the acquisition as Bumi plans to hold an extraordinary shareholders meeting on April 30 to seek approval to lift its offer price for Herald's shares, Reuters says. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 17, 2008, Moody's Investors Service upgraded PT Aneka Tambang (Persero) Tbk's corporate family rating to Ba3 from B1. The action concluded the review for possible upgrade which commenced on October 22, 2007. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. BANK CENTRAL: Optimistic on Meeting IDR14-MIl. Loan Target ---------------------------------------------------------- PT Bank Central Asia Tbk BBCA remained positive that it could reach its full-year target of increasing its outstanding loans by IDR14 trillion despite a slow first quarter, Reuters reports. According to the report, Jahja Setiaatmadja, bank vice president director, said its outstanding loans by the end of the first quarter were up by only about IDR2 trillion to IDR84 trillion. Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk -- http://www.klikbca.com/-- offers individual and business products and services. The bank's individual services consist of savings accounts, home loans and car loans, remittance, collection and safe deposit facilities. The bank's business services consist of working capital loans, investment loans and bank guarantee for small and medium-sized enterprises. In addition, it provides export import facilities such as letters of credit, negotiation and discounting. The bank's subsidiaries include PT BCA Finance, BCA Finance Limited and BCA Remittance Limited. It has 772 branches in Indonesia, Singapore and New York, 42,958 EDCs and operates 4,425 ATMs. The bank serves 6.6 million accounts throughout Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on March 5, 2008, that Fitch Ratings upgraded PT Bank Central Asia Tbk's long-term issuer default rating to BB with a stable outlook. At the same time, Fitch affirmed the company's B short-term issuer default rating, and AA+(IDN) national long term rating with stable outlook. BANK MANDIRI: Sees 2008 Loan Growth to Exceed 22% ------------------------------------------------- PT Bank Mandiri expects 2008 loan growth to exceed its 22% target, helped by a commodity boom and infrastructure projects, Reuters reports, citing Bank President Director Agus Martowardojo. According to Reuters, the new forecast beats a central bank forecast of around 20% loan growth. "Although global market conditions are not conducive they have some infrastructure projects that have not been fully realized and a booming commodity sector," Nury Sybli of Reuters cited Mr. Martowardojo as saying.. As reported by the Troubled Company Reporter - Asia Pacific on March 14, 2008, Bank Mandiri Tbk said it will stick to its loan growth target of 22% for this year, even though the government has lowered its economic growth forecast for 2008. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. * * * The Troubled Company Reporter- Asia Pacific reported on March 5, 2008, that Fitch Ratings has upgraded the local currency and long-term issuer default ratings of PT Bank Mandiri (Persero) Tbk to BB, with a stable outlook. At the same time, Fitch affirmed the B short-term issuer default rating and AA+(IDN) national long term rating. Also, Fitch raised the support rating floor to BB-. On Aug. 2, 2007, Moody's Investors Service has placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Mandiri on review for possible upgrade. The detailed ratings are: * Ba3/Ba3 foreign currency senior/subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected -- these ratings carry a stable outlook. The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. Fitch said the Outlook for the ratings was revised to positive from stable. GARUDA INDONESIA: To Fly Jakarta-Pontianak Route Thrice Daily ------------------------------------------------------------- PT Garuda Indonesia will now service the Jakarta-Pontianak route from once a day to thrice daily due to rising demand for air services, Antara News reports. Garuda District Manager Wempie Ohoiwutun told the news agency that load factor of the route has reached an average of 85% since we resumed it late October 2007." Mr. Ohoiwutun, the report notes, said Garuda had filed an application to the operator of Supadio Airport in Pontianak for an increase in the number of its flights from Jakarta to Pontianak or vice versa. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. * * * The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. PERUSAHAAN LISTRIK: Losses to Continue Due to High Oil Prices ------------------------------------------------------------- PT Perusahan Listrik Negara will continue to incur losses this year as high global oil prices continue to be high, Reuters reports. The report says oil prices hit a new historic high of US$117 on April 1, well above the US$95 mark assumed in the state budget. Ika Krismantari of The Post relates that the company uses oil- based fuels to generate power from most of its power plants, meaning it faces higher-than-assumed production costs while sales prices remain steady. This leaves the company a gaping margin to cover, making it impossible for the company to record a profit this year without government support, President Director Fahmi Mochtar told the news agency. According to Reuters, the average selling price for electricity this year has been pegged at IDR614 per kilowatt hour(KwH), while production costs are expected to averageIDR1,092 per KwH, which IDR658.4 will go toward fuel. "The revenue we gain from selling electricity will never be enough to cover those production costs," Mr. Fahmi was quoted as saying. In the 2008 state budget, the report notes, the government earmarked IDR60.28 trillion for electricity subsidies. Mr. Fahmi told Reuters that this is around IDR5 trillion less than what is needed to cover the widening deficit inflicted by ever- rising oil prices. The company has been recording losses for the past three years. It recorded IDR1.5 trillion in losses in 2007, after having previously managed to slash its losses to IDR1.08 trillion in 2006 from IDR4.92 trillion in 2005. Mr. Fahmi said the company would try to cut costs by using more coal and gas, instead of the more expensive oil-based fuels, to fire its power plants. Currently, Reuters notes, 34% of PLN power plants are fired by oil-based fuels. "It is most likely conditions will not change until 2009, because after that it is expected the newly elected government will raise the electricity prices to fix this situation," Mr. Fahmi said, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. * * * The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= AMPEX CORP: Earns US$904,000 in Year Ended Dec. 31, 2007 -------------------------------------------------------- Ampex Corp., on April 15, 2008, filed with the U.S. Securities and Exchange Commission its Annual Report for the year ended Dec. 31, 2007. For the year ended Dec. 31, 2007, the company reported net income of US$904,000 on revenues of US$41,476,000. For the year ended Dec. 31, 2006, the company reported a net loss of US$3,948,000 on total revenues of US$35,921,000. At Dec. 31, 2007, the company's balance sheet showed total assets of US$26,467,000 and total liabilities of US$133,602,000 resulting in a stockholders' deficit of US$107,135,000. This was an increase from a stockholders' deficit of US$104,403,000. The balance sheet further showed a working capital deficit with total current assets of US$25,578,000 and total current debts of US$65,099,000. Bankruptcy Filing On March 30, the company and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Prior to filing, the company says it negotiated with and obtained the support of the majority of its secured creditors and its largest unsecured creditor for the terms of a pre- negotiated plan of reorganization, as evidenced by the plan support agreement filed contemporaneously with the company's voluntary petitions for relief under Chapter 11. Concurrently with the filing of the petition, the company filed a motion for approval of the disclosure statement with respect to the Plan and related solicitation procedures. The company believes that it will emerge from Chapter 11 no later than fall 2008. During the Chapter 11 proceedings, the company will continue to operate its business without interruption as a debtor-in-possession. All of the company's employees will be retained, offices and manufacturing facilities will remain open and all customer support and warranty programs will continue as planned. Upon emergence from Chapter 11, Hillside Capital Incorporated , the company's largest secured and unsecured creditor, will provide new financing to the Company that will be used for working capital purposes, to repay certain long term obligations, including certain senior secured notes, and to fund future pension obligations. Ampex began to report in July 2007 that it might be forced to take this action in order to facilitate an orderly financial restructuring. Delisting Notice The company said that on April 11, 2008 it received notice from The Nasdaq Stock Market that, following the company’s filing of a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on March 30, 2008, the staff of Nasdaq’s Listing Qualifications Department has determined, using its discretionary authority under Marketplace Rule 4300 and IM-4300, that the Company’s Class A Common Stock will be delisted from Nasdaq unless the company requests an appeal of the determination. Nasdaq’s determination was based upon the Company’s Chapter 11 filing, associated public interest concerns raised by it, concerns regarding the residual equity interests of the Company’s existing Common Stockholders and its ability to sustain compliance with all of Nasdaq’s continued listing requirements. Unless Ampex appeals Nasdaq’s determination, trading in its Common Stock will be suspended at the opening of business on April 21, 2008, and a Form 25-NSE will be filed with the Commission, which will remove the Company’s Common Stock from listing and registration on Nasdaq. Ampex intends to appeal Nasdaq’s determination by requesting an oral hearing before a Nasdaq Listing Qualifications Panel. The Company’s hearing request will stay the suspension of its Common Stock and the filing of the Form 25-NSE pending the Panel’s decision, although there can be no assurance that the Panel will ultimately grant the Company’s appeal. A full-text copy of the company's annual report for the year ended Dec. 31, 2007 may be viewed for free at: http://ResearchArchives.com/t/s?2adf About Ampex Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represents the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of US$9,770,089 and total debts of US$$82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. AMPEX CORP: Discloses Terms of Chapter 11 Reorganization Plan ------------------------------------------------------------- Ampex Corporation and its debtor-affiliates delivered a Disclosure Statement dated March 31, 2008, explaining their Joint Chapter 11 Plan of Reorganization with the United States Bankruptcy Court for the Southern District of New York. Plan Overview The Plan intends to provide for the restructuring of the Debtors' liabilities designed to maximize recovery to all stakeholders and to enhance the financial viability of the reorganized debtors. Generally, the Plan provides for a balance sheet restructuring which swaps the Debtors' current debt including, but not limited to, debt evidenced by the senior secured notes and the Hillside Notes for cash, new notes and equity, as applicable. Other secured and unsecured creditors will receive cash or equity as applicable. All of the Debtors' existing common stock will have no value and will be canceled. Upon emergence, at least 80% of the reorganized Debtors' new common stock will be owned by Hillside Capital Incorporated and its affiliates. The new common stock will not be registered and will not trade on any public exchange. Holders of existing common stock that do not object to confirmation of the Plan will be eligible to receive distribution rights entitling such holder to receive certain future payments, if the net proceeds of future monetization of the Debtors' patents that are not currently revenue bearing produce proceeds sufficient to meet certain obligations and funding needs of reorganized Ampex. The resulting debt structure of the Reorganized Debtors will substantially deleverage the company and provide additional needed liquidity. Indebtedness As of March 30, 2008, the Debtors had approximately US$59.6 million of outstanding notes issued by the Debtors. Approximately US$6.9 million of such amount represents amounts due under an indenture dated as of Feb. 28, 2002. Pursuant to the indenture, the Debtors issued those certain 12% senior secured notes due 2008, which are secured by liens on the Debtors' future royalty receipts. Approximately US$52.7 million of the Debtors' outstanding indebtedness is represented by the Hillside notes that have been issued in connection with Hillside's satisfaction of required contribution obligations under the pension plans. As of Dec. 31, 2007, the media pension plan and the Ampex pension plan were underfunded by US$13.5 million and US$44.2 million, respectively. Treatment of Claims Under the Plan, these creditors are expected to get 100% recovery include: -- administrative expense claims; -- fee claims; -- priority tax claims; -- priority non-tax claims; -- other secured claims; and -- trade unsecured claims. Senior Secured Note Claims and Other Unsecured Claims will be entitled to receive their pro rata share of their respective claims. Each holder of Hillside Secured Claims, totaling US$11 million, will expect to receive in full of its secured claim. All equity interests will be canceled. Interests in these classes are impaired and deemed to have rejected the plan include: -- existing common stock; -- existing securities laws claims; and -- other existing interest. A full-text copy of Disclosure Statement is available for free at http://ResearchArchives.com/t/s?2a69 A full-text copy of Joint Chapter 11 Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?2a6a About Ampex Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represents the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of US$9,770,089 and total debts of US$$82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. CITIBANK JAPAN: Moody's Affirms “B” Financial Strength Rating ------------------------------------------------------------- Moody's Investors Service has affirmed the B bank financial strength rating and Aa3 long-term deposit rating of Citibank Japan Ltd. but changed the ratings outlooks to negative from stable. The outlooks for the A1 long-term ratings of Nikko Cordial Corporation, Nikko Cordial Securities Inc., and Nikko Citigroup Limited were also revised to negative from stable. The Prime-1 short-term ratings of Citibank Japan, NCS, and NCL were unaffected. These outlook changes have been prompted by Moody's outlook change for Citigroup on April 18, 2008, following its announcement that it had incurred a net loss of US$5.1 billion in the first quarter of 2008. Citibank Japan's BFSR reflects its strong link to the BFSR of Citibank N.A., given the integration of its businesses and operational platform into Citibank N.A. Moody's continues to incorporate a very high probability of parent support toward Citibank Japan from Citibank N.A. The ratings of NCC, NCS, and NCL reflect Moody's assessment of a very high probability of support from Citigroup in case of need, given their strategic importance to Citigroup as consolidated subsidiaries and key vehicles of securities business in Japan. The following ratings were affirmed, and the outlooks changed to negative from stable: Citibank Japan Ltd. -- Bank Financial Strength Rating of B, long-term deposit rating of Aa3 Nikko Cordial Corporation -- issuer rating of A1 Nikko Cordial Securities Inc. -- issuer rating of A1 Nikko Citigroup Limited -- issuer rating of A1, euro medium- term note program ratings of A1/A2, senior unsecured debt rating of A1, subordinated debt rating of A2 Nikko Citigroup Services Limited -- senior unsecured medium- term note program rating of A1 Citibank Japan Ltd., headquartered in Tokyo, is a wholly owned subsidiary bank of Citibank N.A. in Japan. Nikko Cordial Corporation, headquartered in Tokyo, is one of Japan's major securities companies, and a majority-owned subsidiary of Citigroup Inc. Nikko Cordial Securities Inc. is a 100% owned subsidiary of Nikko Cordial Corporation. Nikko Citigroup Limited is a joint venture between Nikko Cordial Corporation (which owns 51%) and Citigroup (which owns 49%). DELPHI: Plastech Wants to Return Tooling to Delphi Automotive ------------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Eastern District of Michigan to return certain tooling equipment to Delphi Automotive Systems LLC. Specifically, the Debtors seek authority to: (a) surrender certain tooling owned by Delphi Automotive Systems, LLC, that is in the Debtors' possession; (b) sell to Delphi certain de minimis finished goods inventory made with the Delphi tooling forUS$4,671, free and clear of liens; and (c) lift the automatic stay to effectuate the release of tooling and the sale of the de minimis inventory to Delphi. According to Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit, Michigan, the Debtors currently are in possession of certain tooling which is fully paid for and is owned by Delphi at a plant in Croswell, Michigan that was used to make service parts for Delphi's Powertrain Division that are no longer in production. Ms. Fish informs that the Inventory represents idle assets that are of little or no use or value to the Debtors' estates or restructuring efforts, as the Inventory consists of service parts that are no longer in production. The Debtors have determined in their sound business judgment that the sale of the Inventory to Delphi is the most efficient way to convert idle assets of de minimis value into cash, Ms. Fish relates. Pursuant to Section 363(b)(1) of the Bankruptcy Code, "[t]he trustee, after notice and a hearing, may use, sell or lease, other than in the ordinary course of business, property of the estate." However, Ms. Fish states that the Debtors acknowledge the Court's discretion in granting their request, giving due consideration to the Debtors' exercise of sound business judgment. Furthermore, Ms. Fish notes Section 363(f) permits a debtor to sell property free and clear of another party's interest in the property if: (a) applicable non-bankruptcy law permits such a free and clear sale; (b) the holder of the interest consents; (c) the interest in a lien and the sales price of the property exceeds the value of all Liens on the property; (d) the interest is in bona fide dispute; or (e) the holder of the interest could be compelled in a legal or equitable proceeding to accept a monetary satisfaction of its interest. The Debtors believe that the sale of the inventory to Delphi is commercially reasonable in light of the assets being sold and as a result, the value of the proceeds from the sale fairly reflects the value of the Inventory sold, Ms. Fish maintains. The Debtors propose that any party with a lien on the Inventory be given a corresponding security interest in the proceeds of the sale. In light of these, the requirements of Section 363(f) of the Bankruptcy Code would be satisfied for any proposed sales free and clear of liens, Ms. Fish says. Moreover, because the Debtors have no further need for the Delphi Tooling, the Debtors believe that the automatic stay should be lifted pursuant to Section 362(d) of the Bankruptcy Code to allow Delphi to take possession of the Delphi Tooling and to deem the applicable purchase orders between Delphi and the Debtors terminated upon the return of the Delphi Tooling and payment for the Inventory, Ms. Fish asserts. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell