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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Wednesday, April 23, 2008, Vol. 11, No. 80

                            Headlines

A U S T R A L I A

ABC LEARNING: Inks US$700 Mil. Sale Deal With Morgan Stanley
DARE GALLERY: Deloitte Intends to Sell Company as Going Concern
CHRYSLER LLC: Tentatively Rehires Laid-Off Workers, Report Says
HASBRO INC: Earns US$37.5 Million in First Quarter 2008
OPES PRIME: Ferrier Hopes on a Deed of Company Arrangement


C H I N A   &   H O N G  K O N G   &   T A I W A N

ASIA GLOBAL: Zhong Yi Expresses Going Concern Doubt
CHINA EASTERN: Not Paying Dividends for FY 2007, Reuters Says
CHINA SOUTHERN: Launches New Service to Iran
CULLIGAN INT'L: S&P Cuts Rating to B- on High Leverage
DANA CORP: Appoints Gary Convis as Chief Executive Officer

FERRO CORP: Revises First-Quarter 2008 Estimates
HECURLES INC: Earns US$32.4 Million in Quarter Ended March 31
HEXCEL CORP: Earns US$23.2 Million in First Quarter 2008
HEXCEL CORP: Annual Stockholders Meeting Scheduled on May 8
HOPSON DEVELOPMENT: S&P Puts BB Credit Rating on Negative Watch

NINGBO BIRD: Incurs CN7593.6 Million Second Annual Loss
SHIMAO PROPERTY: 2007 Profit Up 80% on Apartments Sales
YRC WORLDWIDE: Amended Credit Pact Continues US$950MM Facility
YRC WORLDWIDE: Renews Asset-Backed Securitization Facility
YRC WORLDWIDE: Fitch Holds Ratings on Amended & Restated Loans

ZTE CORPORATION: Licenses SPIRIT DSP's Voice Solution
* Fitch Says Taiwanese Securities Firm is Strong


I N D I A

DECCAN AVIATION: To Conclude Kingfisher Merger on June 1
TATA POWER: To Enter Memorandum of Understanding with Bhel


I N D O N E S I A

PERUSAHAAN LISTRIK: To Sign IDR7.3 Trillion Loan This Month


J A P A N

ALITALIA SPA: Air France-KLM Formally Withdraws Binding Offer
DELPHI: Names Ronald Pirtle as President of Delphi Powertrain
MITSUBISHI MOTORS: S&P Lifts Long-term Corp. Credit Rating to B+
XERIUM TECH: Ernst & Young Expresses Going Concern Doubt


K O R E A

AMKOR TECH: Eric Larson Named EVP for Product Management Group
AMKOR TECHNOLOGY: To Issue 1st Quarter 2008 Results on April 30
CITIBANK KOREA: Moody's C- BFSR Unaffected by Parent's 1Q Loss
EG SEMICON: Largest Shareholder Sells 7.53% Company Stake
GENEXEL-SEIN: Sets KRW1,030 Per Share Price on Rights Issue

KAFCO C&I: Changes Name to JeKang Holdings


M A L A Y S I A

GOLD BRIDGE: 18th Annual General Meeting Set for May 14
SOLUTIA INC: Court Approves Settlement Pact With Air Liquide
SOLUTIA INC: Nitro Residents File US$267,745 Tort Claims
SOLUTIA INC: Court OKs Payment of US$197 Mil. to Professionals
SOLUTIA INC: EOI Eyes Acquisition of Queeny Plant for US$1 Mil.

SUNWAY INFRASTRUCTURE: Appoints PM Securities as Adviser
WONDERFUL WIRE: Defaults on MYR61,346,641 Loan Obligations


N E W  Z E A L A N D

ALSTOM NEW ZEALAND: Liquidator Fixes April 24 Claims Bar Date
AMBITION WHOLESALERS: First Meeting of Creditors Held
BLACK ROCKS CAFE: Proofs of Claim Must Be Filed by May 26
CAPRICE ACQUISITIONS: Court to Hear Wind-Up Petition on April 28
GLASS EARTH: St. Andrew Sells 18.3MM Shares to Private Investors

HARVEST BUILDERS: Faces Bunnings' Wind-Up Petition
JAYTECH INTELLIGENT: Faces Security Merchants' Wind-Up Petition
MONTE CECILIA HOUSE TRUST: Faces Wind-Up Petition
OFFICE ELVES GROUP: Court to Hear Wind-Up Petition on June 4
PAPAKURA LIQUOR: Court to Hear Wind-Up Petition on May 30

PJM PROPERTIES: Commences Voluntary Liquidation
QUICK FREIGHT: Court to Hear Wind-Up Petition on April 28
RICHTER INVESTMENTS: Appoints Gillespie and Young as Liquidators
SKELLERUP HOLDINGS: Sells Non-Core Businesses for NZ$12.1 Mil.
TE UKI TAMARIKI OU COOK ISLAND: Appoints Liquidators

TRANSPREAD INTERNATIONAL: Court to Hear Wind-Up Petition June 6
WXY LIMITED: Creditors Must File Claims by April 28


P H I L I P P I N E S

LEPANTO CONSOLIDATED: Nine Individuals Named as Directors
PHIL. LONG DISTANCE: May Face Penalties Over Halted Services
SWIFT FOODS: Normal Operations at Risk on Huge Current Debts
* Philippine Debt Increased to PHP3.732 Trillion in 2008


S I N G A P O R E

E2O COMMUNICATIONS: Creditors' Proofs of Debt Due on May 5
FREESCALE SEMICON: SigmaTel's Stockholders Approve Merger Pact
PRIME AFRICA: Filing Proofs of Debt Due on May 5
SINGAPORE AFRICA: Requires Creditors to File Claims by May 5
SOUTHERN AFRICA: Creditors' Proofs of Debt Due on May 5


T H A I L A N D

FEDERAL-MOGUL: Asbestos Trust Wants Pneumo Claims Holders Barred


X X X X X X X X X

* Fitch Says Asian Banks Have Modest Exposure to CDOs & SIVs
* Upcoming Meetings, Conferences and Seminars


                         - - - - -


=================
A U S T R A L I A
=================

ABC LEARNING: Inks US$700 Mil. Sale Deal With Morgan Stanley
------------------------------------------------------------
A.B.C. Learning Centres Limited has signed a definitive
agreement with Morgan Stanley Private Equity for the sale of a
60% interest in its US business, Learning Care Group Inc., in a
transaction that values 100% of the US business at
US$700 million.

The transaction will reduce ABC’s net debt by AU$485 million,
with an additional US$30 million payable shortly after June 30,
2009 by way of an earn-out.  In addition to the net debt
reduction, ABC will retain US$185 million of ordinary equity and
US$20 million of preferred equity in the US joint venture.  ABC
has a call option to buy back Morgan Stanley Private Equity’s
interest three years after closing.

Eddy Groves, CEO of ABC, said, "The transaction represents an
excellent opportunity to crystallize the value of the US
business and reduce ABC’s gearing, while maintaining exposure to
the upside potential of the attractive US childcare market."

"Morgan Stanley Private Equity brings not only significant
financial firepower, but also a real commitment to growing the
business to a level that would not have been achievable by ABC
standalone within the same timeframe."

"We have undertaken a comprehensive process to realize the value
in our US business, achieving a price that compares favorably
with similar transactions that were completed in more conducive
market conditions."

"This transaction significantly de-risks our business, and
addresses concerns about the capital required to grow the US
business.  It also allows the management team to spend more time
focusing on the Australian and New Zealand operations."

ABC and Morgan Stanley Private Equity expect the transaction to
close within 90 days, following regulatory approval, funding of
the committed financing facility for the joint venture and
consent of ABC’s senior lenders.

                  Overview of Transaction

   * Represents an Enterprise Value of US$700 million (AU$753
     million), compared with US$775 million as per the
     announcement on March 5, 2008, reflecting the deterioration
     in credit markets since that time;

   * Sale price implies a multiple of 12.7 times EBITDA of the
     last twelve months, comparing favorably with recent
     transactions in the sector;

   * Will reduce net debt by AU$485 million, with an additional
     US$30 million payable at the end of FY09 by way of an earn-
  
     out;

   * ABC retains a 40% interest in the US business and has a
     call option to buy back Morgan Stanley Private Equity’s
     interest three years after closing;

   * Does not represent a trigger event which would allow the
     holders of ABC’s existing reset convertible notes to
     require an exchange of their notes

                 Funding of Joint Venture

The joint venture will be funded through an equity contribution
by the partners of US$432 million, comprising US$247 million
cash equity from Morgan Stanley Private Equity and a roll-over
of ABC’s 40% stake valued at US$185 million.  In addition, ABC
will retain US$20 million of preferred equity.

In addition, Barclays Capital, the investment banking division
of Barclays Bank PLC, has committed to provide US$215 million of
first lien facilities comprised of a US$40 million revolving
facility and a US$175 million term loan.  The revolving facility
will be undrawn at close.

Barclays Capital has also been engaged by ABC and Morgan Stanley
Private Equity to arrange up to US$55 million of potential
mezzanine financing which would reduce the partners’ equity
contribution and result in incremental cash proceeds to ABC of
approximately AU$24 million.

If the US joint venture is unsuccessful in securing mezzanine
financing with Barclays Capital, Morgan Stanley Private Equity
has the option to provide mezzanine financing of up to US$55
million resulting in incremental proceeds to ABC of
approximately AU$24 million as above, or decrease its equity
ownership in the joint venture to a minimum of 55% which would
result in a reduction in cash proceeds to ABC of approximately
AU$22 million (Under this scenario, Morgan Stanley Private
Equity would have an option to increase its stake back to 60%
within three years.)

           No Convertible Notes will be Issued

After carefully considering a number of factors including
current market conditions and the prevailing ABC share price,
the Company has decided not to issue any convertible notes to
Morgan Stanley Private Equity.

                    Reduction of Net Debt

The reduction of ABC’s net debt resulting from this transaction
will amount to AU$485 million (compared to approximately AU$600
million assumed in the announcement on March 5, 2008).  This
comprises Morgan Stanley Private Equity’s equity investment, the
new debt raised by the US joint venture and the transfer of
existing liabilities to the US joint venture.  In addition, ABC
will retain US$20 million of preferred equity in the US joint
venture.  The proceeds will increase by approximately AU$24
million (to AU$509 million) if the additional US$55 million of
mezzanine debt is raised by the joint venture.  They could also
decrease by about AU$22 million (to AU$463 million) if no
mezzanine debt is raised and MSPE elects to let ABC increase its
stake to 45%.3 (Under this scenario, Morgan Stanley Private
Equity would have an option to increase its stake back to 60%
within three years.)

ABC has initiated a dialog with its senior lending banks whose
consent will be required prior to the closing of the
transaction.

ABC’s net debt balance is expected to be reduced further
following the sale of the UK Vouchers business and of ABC’s
property portfolios.

ABC has received expressions of interest in relation to its UK
Vouchers business and has opened a data room to selected
parties.  The transaction is expected to close by end of FY08
and to generate a capital profit in excess of AU$100 million.

At the time of its 1H FY08 results presentation ABC announced
plans for the sale of property and related assets totaling
approximately AU$250 million.  Since then, ABC has received
proceeds for the sale of approximately AU$40 million of the
AU$50 million Australia and New Zealand property portfolio and
US Property #1 (value of approximately AU$50 million) will be
transferred to the US business following the successful
completion of the joint venture with Morgan Stanley Private
Equity.  ABC expects to sell the remaining property and related
assets of approximately AU$150-160 million in FY09.

ABC continues to be in compliance with all the financial
covenants under its existing banking facilities.

             Partnership for Growth and Returns

This transaction represents an excellent opportunity for ABC to
realize significant value for its US business at an attractive
price, whilst retaining a material ongoing stake in an important
growth market.  In addition, the transaction will significantly
reduce the Company’s net debt.

Eddy Groves said, "In Morgan Stanley Private Equity we have a
strong financial partner who shares our vision for the business
and backs the existing management team to deliver it."

William Davis, CEO of Learning Care Group, Inc., said, "This
marks the next chapter in Learning Care Group’s history as we
continue to work towards our vision of operating the highest
quality early education and childcare facilities across the
United States."

Steve Trevor, Co-Head of Morgan Stanley Private Equity, said,
"We are pleased to reach agreement on this transaction and are
excited to partner with ABC to jointly facilitate Learning Care
Group’s continued growth."

                Changes in Corporate Structure

Following the partial sale of its US business, ABC plans to
significantly simplify the Australian operations of the group by
unwinding the Regional Management Company  structure that is
currently in place.

The removal of the RMC structure will provide the benefits to
ABC:

   * Enables optimal allocation of relief staff between
     childcare centers (under the RMC structure, it was costly
     to ABC for the relief staff to work in multiple RMCs);

   * Significantly decreases labor costs through reduced
     reliance on contract and agency staff; and

   * Reduces administrative costs due to simplified corporate
     structure.

In order to realize these benefits, ABC expects to incur one-off
restructuring costs of approximately AU$30 million.

ABC also intends to review all current commercial arrangements
with suppliers and other service providers.

Financial Impact on ABC, Revised FY08 Guidance and FY09 Outlook

Whilst the financial impact of the US transaction cannot be
calculated precisely until closing, it is expected to result in
a book loss in the vicinity of AU$280 million including all
transaction expenses, based on preliminary estimates.  
Approximately AU$65 million of this expected book loss is
attributable to unfavorable exchange rate movements since the
acquisition of the US operations.

The partial sale of the US operations will be dilutive to
underlying EPS post completion due primarily to the
deconsolidation of EBITDA (which amounted to AU$59 million in
the last twelve months to December 2007) and a higher average
interest rate of approximately 7.5% due to the pay-down of US$
denominated debt.  This will be partially offset by interest
expense savings resulting from the debt reduction, the coupon on
ABC’s preferred equity in the US joint venture and ABC’s share
of the post-tax profits of the US joint venture.

Assuming the US transaction and the RMC restructure occur on
June 30, 2008, ABC’s reported EPS guidance for FY08 will reduce
to AU$(0.19) – (0.17) per share due to additional one-off losses
of AU$0.53 per share (net of taxes), relative to the guidance of
AU$0.34 – AU$0.36 provided on April 8, 2008.

In addition to non-recurring items such as the loss from
deconsolidation and RMC restructuring costs, there are a number
of factors which have negatively impacted ABC’s operating
performance in Australia and New Zealand in FY08, meaning that
the FY08E earnings guidance does not represent the full
annualized run-rate of potential earnings.  These factors
include:

   * Delayed center acquisitions in 2H FY08 (resulting in lower
     than expected earnings contribution from these centers);

   * Significant increases in wage and on-costs without
     corresponding fee increases;

   * Temporary costs of agency and contract staff due to staff
     allocation issues (to be significantly reduced following
     unwinding of RMC structure);

   * Wages inefficiency due to sub-optimal roster management;

   * Bi-annual fee reviews (vs. a single annual fee increase at
     the start of each fiscal year) and lower fee increases at
     the beginning of 2H FY08 than originally planned; and

   * Sub-optimal management of occupancy levels.

ABC’s financial performance in FY09 and beyond will now be
almost entirely driven by its Australian and New Zealand
childcare operations.  ABC expects strong underlying center
EBITDA growth by addressing the above factors and a number of
other key initiatives.

Key initiatives for ABC’s Australian and New Zealand centers in
FY09 include:

   * Like-for-like revenue growth from existing centers;

   * Improved occupancy management by optimizing waiting lists;

   * Increased number of multiple-day enrollments so children
     can benefit from the strong educational curriculum;

   * Maximizing existing contracts as a registered training
     provider;

   * Reduced wages inefficiency through improved roster
     management;

   * Lower administrative costs, optimized staff allocation and
     reduced use of outside staff agencies following RMC
     restructure;

   * Full-year contribution from centers acquired during FY08
     (including delayed center acquisitions added to the
     portfolio in June 2008); and

   * Contribution from non-material acquisitions/new
     developments during FY09.
Additional underlying EBITDA will be generated by the UK
Nurseries business and there will be further earnings
contribution from ABC’s 40% share of the post-tax profits of the
US joint venture.

                        Changes to Board

Sallyanne Atkinson, ABC’s Chairman since listing in 2001 has
advised the Company of her intention to stand down as Chairman
with effect from May 30, 2008.  She will be replaced by David
Ryan, currently a non-executive director of ABC and Chairman of
the Audit Committee.  Sallyanne will work closely with David
over the coming weeks to hand over her responsibilities and
ensure a smooth transition.

Sallyanne Atkinson said, "I feel proud to have been able to
guide ABC from its listing in 2001 through its growth into the
world’s leading private childcare provider.  I have always been
focused on and energized by the thousands of children and
families who have relied on ABC for the highest quality early
childhood education and care.  After seven years in this role, I
now believe that it’s time for a change.  I’m pleased to hand
over to David to lead the Board through the next chapter in
ABC’s development.  I have great faith and confidence in the
Company’s future."

Eddy Groves said, "On behalf of the Company, I would like to
thank Sallyanne for her years of commitment to ABC.  She has
made a substantial contribution as founding chairman and will be
missed."

Bill Bessemer, non-executive director and Martin Kemp, executive
director have also advised of their intention to stand down as
directors of ABC.  Bill will retire today and Martin will retire
at the next Board meeting on April 24, 2008.

ABC would like to thank Bill and Martin for their contributions
as Directors.

ABC is in advanced discussions with two candidates for
independent non-executive director positions and is targeting a
further one or two non-executive directors.  ABC will make
announcements in relation to non-executive director appointments
in due course.

The new Board will review the Company’s governance structures
and processes to ensure that these best represent the interests
of shareholders.  The Board is also committed to strengthening
the Company’s disclosure and market communications.

David Ryan said, "I am delighted to take on the role of Chairman
of ABC.  I am optimistic about the prospects for the Company
given our commitment to reduce leverage, the underlying quality
of ABC’s Australian and New Zealand businesses and the trends
underpinning the growth of the childcare sector."

                Changes to Senior Management

James Black, who joined ABC as Treasurer in March 2006 and has
served as ABC’s Chief Financial Officer since September 2006,
has informed the Company that he will leave for personal
reasons.  James had previously informed the Company of his
intention to retire as CFO, but agreed to stay on to support the
business through the last ten months.  ABC regrets that James is
leaving and would like to thank him for his contribution.

Eddy Groves said, "James has had a 20 year association with ABC,
and during that time has made a significant contribution to the
Company and been a tremendous support. On behalf of everyone at
ABC, I would like to sincerely thank James for his loyalty and
hard work and wish him well for the future."

John Gadsby, currently Group Financial Controller, will serve as
interim CFO.  John is a member of the Institute of Chartered
Accountants in Australia and prior to joining ABC spent 15 years
working with Deloitte Touche Tohmatsu, including 6 years as an
Audit Partner.  ABC has initiated an executive search for a
permanent replacement for James.

ABC recently appointed Matthew Horton as General Counsel/Company
Secretary.  Prior to joining ABC, Matthew held various senior
legal and commercial roles at Rio Tinto, most recently as
General Manager, Joint Ventures, Rio Tinto Coal Australia.  
Consistent with the Company’s commitment to improve market
communications, ABC has appointed Andrew Barber as Head of
Corporate Affairs/Investor Relations.  Andrew was previously a
Senior Research Analyst at QIC.

                       About ABC Learning

A.B.C. Learning Centres Limited provides childcare services and
education.  The company operates in Australia, New Zealand, the
United States and the United Kingdom.  The company's
subsidiaries include A.B.C. Developmental Learning Centres Pty
Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier
Early Learning Centres Pty Ltd, A.B.C.  Developmental Learning
Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land
Holdings (NZ) Limited and Child Care Centres Australia Ltd.

On September 25, 2006, the company acquired Hutchison Child Care
Services Ltd.  On September 7, 2006, it acquired The Children's
Courtyard LLP.  On December 18, 2006, it acquired Busy Bees
Group Ltd. On January 26, 2007, it acquired La Petite Holdings
Inc.  On February 2, 2007, it acquired Forward Steps Holdings
Ltd.  On March 23, 2007, it acquired Children's Gardens LLP. In
September 2007, the company purchased the Nursery division
(Leapfrog Nurseries) from Nord Anglia Education PLC.

As reported by the Troubled Company Reporter-Asia Pacific, the
company's Sydney trading on Feb. 26, 2008, plunged 43% after a
slump in earnings raised concerns it may struggle to repay debt.
The drop to AU$2.14 triggered margin calls on stakes held by
some directors.  Consequently, stock trading was halted as the
company entered talks on "indications of interest" for parts of
its business.  More than 96% of the remaining 21.9 million ABC
Learning shares owned by directors, equivalent to 4.6% of stock
outstanding, are held in margin lending arrangements that may
result in forced sales.


DARE GALLERY: Deloitte Intends to Sell Company as Going Concern
---------------------------------------------------------------
Deloitte Touche Tohmatsu, the voluntary administrator appointed
to Dare Gallery, disclosed the plans to market the company as a
going concern, My Small Business reports.  The plan was divulged
at a creditors' meeting.

According to Inside Retailing, citing Deloitte partner Tim
Norman, there is no plan to liquidate the furniture chain's
stocks while sale talks are in progress.

The company was placed in voluntary administration due to a rise
in interest rates and slow returns in the business, various
reports note.

Mr. Norman will provide an update at a May 2 creditors' meeting,
several reports say.

Dare Gallery is a furniture retailer.  Founded in 1996, the
company operates 13 stores including six in Victoria.  The
company was owned by Steve and Janet Sheppard and run from a
warehouse and logistics centre in Bayswater, in Melbourne's
east.  Mr. Sheppard, the company's founder and sole director,
had held a senior position at furniture retailer Freedom.


CHRYSLER LLC: Tentatively Rehires Laid-Off Workers, Report Says
---------------------------------------------------------------
Chrysler LLC has taken back some third shift employees it laid-
off in March 2008 under a 199-day Enhanced Temporary Employees
contract, Dani Maxwell of 13 News reports.  The workers will
begin work on May 5, with a starting pay of US$14 an hour with
no benefits or vacation time.

As reported in the Troubled Company Reporter on March 11, 2008,
around 1,100 workers were laid-off as Chrysler LLC formally
shuts down its plant in Belvidere, Illinois.  The closure of the
plant, which produces the company's line of Dodge Caliber, Jeep
Patriot, and Jeep Compass brands, is part of the automaker's
move to consolidate operations, streamline production, and
generally reduce costs.  Chrysler already took measures such as
tossing away duplicative car models, moving far-flung operations
to its headquarters, and made deals with Daimler AG to access
new technology.

The company's moves came after it lost its tooling battle with
Plastech Engineered Products Inc.  As previously reported, the
U.S. Bankruptcy Court for the Eastern District of Michigan
denied the company's request to pull out tooling equipment from
Plastech's plants.  However, the parties have agreed to
subsequent supply deals.

The Belvidere plant's third shift workers began work in July
2006 when Chrysler decided to turn off its robotic body shop.  
As their employment drew to a close, the company stationed extra
security at the plant to prevent rumored violence when the
workers went out.

                        About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 10, 2007,
Standard & Poor's Ratings Services revised its recovery rating
on Chrysler's US$2 billion senior secured second-lien term loan
due 2014.  The issue-level rating on this debt remains unchanged
at 'B', and the recovery rating was revised to '3', indicating  
an expectation for 50% to 70% recovery in the event of a payment
default, from '4'.

Both the issue-level and recovery ratings on Chrysler's
US$7 billion first-lien term loan due 2013 remain unchanged.  
The issue-level rating on this debt is 'BB-' with a recovery
rating of '1', indicating an expectation for 90% to 100%
recovery in the event of a payment default.


HASBRO INC: Earns US$37.5 Million in First Quarter 2008
-------------------------------------------------------
Hasbro, Inc. reported net earnings of US$37.5 million
or US$0.25 per diluted share, compared to US$32.9 million or
US$0.19 per diluted share in first quarter ended March 30, 2008.

The company has net revenues of US$704.2 million, an increase of
US$78.9 million or 13% compared to US$625.3 million a year ago,
or an increase of 9%, net of the favorable foreign exchange
impact of US$25.4 million.

    * Net revenues of US$704.2 million, an increase of US$78.9   
      million or 13% compared to US$625.3 million a year ago, or
      an increase of 9% absent the impact of foreign exchange;

    * Net earnings of US$37.5 million, or US$0.25 per diluted    
      share, compared to US$32.9 million, or US$0.19 per diluted
      share last year;

    * Growth driven primarily by TRANSFORMERS and LITTLEST PET   
      SHOP, as well as PLAYSKOOL, STAR WARS, BABY ALIVE, MY      
      LITTLE PONY and board games;

    * During the quarter, the Company spent a total of US$156.0  
      million to repurchase 6.1 million shares of common stock   
      at an average price of US$25.63 per share.

“We had a strong 2007 and the momentum continues in 2008, with
growth driven primarily by TRANSFORMERS and LITTLEST PET SHOP,
as well as PLAYSKOOL, STAR WARS, BABY ALIVE, MY LITTLE PONY and
board games,” said Alfred J. Verrecchia, President and Chief
Executive Officer.

“While it’s early in the year and there is still a lot of
business to be done, our first quarter performance reinforces
the confidence we have in achieving our full-year financial
goals,” Verrecchia concluded.

Effective at the beginning of fiscal 2008, the Company
reorganized the reporting structure of its operating segments.  
The Company’s Mexican operations have been transferred from the
North American segment to the International segment, and the
North American segment has been renamed the U.S. and Canada
segment.  The attached schedule provides a summary of 2007
segment results reclassified in the 2008 segment reporting
format.

Net revenues for the U.S. and Canada segment for the quarter
were US$428.5 million, an increase of 6% compared to
US$406.1 million in 2007, with strong performances from
TRANSFORMERS, LITTLEST PET SHOP, STAR WARS and board games.  The
U.S. and Canada segment reported an operating profit of US$37.3
million compared to US$45.8 million last year.  The decrease in
operating profit is primarily due to investments the Company is
making to grow its business, including the Wizards of the Coast
digital initiative and the CRANIUM acquisition.

Net revenues for the International segment for the quarter were
US$248.3 million, an increase of 22% compared to US$202.7
million in 2007, or an increase of 12%, net of the favorable
foreign exchange impact of US$21.9 million.  All major product
categories were up significantly, reflecting growth in core
brands including TRANSFORMERS, LITTLEST PET SHOP, PLAYSKOOL, MY
LITTLE PONY and board games.  The International segment reported
an operating profit of US$13.0 million compared to a (US$1.8)
million loss in 2007.  This improvement is primarily a
reflection of higher revenues.

“We are very pleased with the results we reported and we
continue to believe we should grow both revenues and earnings
per share in 2008.  Our balance sheet is strong and we continue
to generate good cash flow, which is being returned to
shareholders via our increased dividend and the share buyback
program,” said David Hargreaves, Executive Vice President and
Chief Financial Officer.

During the quarter, the Board of Directors increased the May
2008 quarterly dividend by US$0.04 per share, or 25%, to US$0.20
per share.  This is the fifth consecutive annual increase and
the highest it has been in the history of the Company.  
Additionally, the Company spent a total of US$156.0 million to
repurchase 6.1 million shares of common stock at an average
price of US$25.63 per share.

                         About Hasbro

Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. (NYSE:
HAS) -- http://www.hasbro.com/-- provides children's and family
leisure time entertainment products and services, including the
design, manufacture and marketing of games and toys ranging from
traditional to high-tech.  The company has operations in
Australia, France, Hong Kong, and Mexico, among others.

                         *     *     *

Moody's Investors Service affirmed the Baa3 long-term debt
rating of Hasbro, Inc., and changed the ratings outlook to
positive from stable to reflect the expectation for continued-
strong operating performance and cash flows, leading to further
debt reduction and credit metric improvement over the near-to-
intermediate-term.  Ratings affirmed include the Baa3 senior
unsecured debt rating and the (P)Ba1 rating for subordinated
debt.


OPES PRIME: Ferrier Hopes on a Deed of Company Arrangement
----------------------------------------------------------
The administrators of Opes Prime Group Ltd. said that a deed of
company arrangement was an alternative to liquidation, if Opes'
financiers agreed to it and if the administrators and Opes
creditors believed it to be a better option, reports the
Australian Associated Press.

AAP relates that John Lindholm of Ferrior Hodgson told reporters
that a deed of company arrangement could sometimes provide a
better outcome than liquidation as it could avoid "years of
litigation."

Mr. Lindholm is quoted by AAP as saying, "For that to happen, we
would have to make commercial arrangements with several
parties."

Mr. Lindholm added that if some Opes creditors were to oppose a
deed of company arrangement, Opes would have to be liquidated,
states AAP.

AAP reports that the Federal Court of Australia granted the
administrators an extension of the convening period for a second
meeting of creditors to Opes Prime and an associated company
called Leveraged Capital until June 23, 2008.

Robert Strong, counsel for the administrators told Justice Ray
Finkelstein that the administrators wanted the extension so they
could consider the outcome of Opes litigation currently before
the court when advising Opes creditors at their next meeting,
notes AAP.

Katherine Jimenez of The Australian writes Mr. Lindholm said
that the outcome of the Beconwood case would be "a large part of
what our strategy would be."

The Australian added that even if Ferrier Hodgson got an
extension, it would still be issuing an interim report on
creditors this week.

                     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.



==================================================
C H I N A   &   H O N G  K O N G   &   T A I W A N
==================================================

ASIA GLOBAL: Zhong Yi Expresses Going Concern Doubt
---------------------------------------------------
Zhong Yi (Hong Kong) C.P.A. Company Limited raised substantial
doubt about the ability of Asia Global Holdings Corp. to
continue as a going concern after it audited the company's
financial statements for the year ended Dec. 31, 2007.  The
auditor pointed to Asia Global’s substantial losses.

The management stated that as of Dec. 31, 2007, the company had
an accumulated deficit of $15,798,089.  Additionally, the
company has incurred losses over the past several years.  
Management has taken certain actions and continues to implement
changes designed to improve the company’s financial results and
operating cash flows.  The actions involve certain cost-saving
initiatives and growing strategies, including a business
expansion in Media & Advertising business by increasing number
of distributors and setup of a new direct sales office in China,
and cost-saving plan in TV Entertainment business and
distribution of new TV programs in China.  Management believes
that these actions will enable the company to improve future
profitability and cash flow in its continuing operations through
Dec. 31, 2008

The company posted a net loss of $5,908,545 on net revenues of
$10,783,574 for the year ended Dec. 31, 2007, as compared with a
net loss of $9,871,113 on net revenues of $5,179,174 in the
prior year.

At Dec. 31, 2007, the company's consolidated balance sheet
showed $5,348,259 in total assets, $3,189,056 in total
liabilities and $2,159,203 in total stockholders' equity.  

A full-text copy of the company's 2007 annual report is
available for free at: http://ResearchArchives.com/t/s?2ae6

                         About Asia Global

Headquartered in Hong Kong, China, Asia Global Holdings Corp.
(OTC BB: AAGH.OB) -- http://www.asiaglobalholdings.com/-- was
incorporated in the Nevada on Feb. 1, 2002, as Longbow Mining
Inc.  On May 12, 2004, Longbow Mining Inc. changed its name to
BonusAmerica Worldwide Corporation.  On June 6, 2006, the
company changed its name to Asia Global Holdings Corp.  AAGH is
focused on building businesses in China and other emerging
regions and markets in Asia and worldwide.  The company has
subsidiaries participating in media and advertising, marketing
services and internet commerce.  During 2007, AAGH entered the
television entertainment market, where it plans to sell
advertising slots that air during the broadcast of Who Wants To
Be A Millionaire? TV show in China.  The company also has
offices in the United States and in mainland China.


CHINA EASTERN: Not Paying Dividends for FY 2007, Reuters Says
-------------------------------------------------------------
China Eastern Airlines Corporation Limited will not pay
dividends for fiscal year 2007, Reuters reports.

According to Macau Daily Times, China Eastern Airlines posted a
net profit of CNY586.5 million for 2007, compared with a net
loss of CNY2.99 billion in 2006, on increased passengers and a
stronger domestic currency.

The company's revenue in 2007 rose by 14% from a year earlier to
CNY43.53 billion, the Times notes.

The airline, the Times relates, carried 39.2 million passengers
in 2007, up 11.8% from the previous year while cargo and mail
traffic was up 5.25% at 940.1 million tonnes.

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal  
activity is operation of domestic and international commercial
air transportation.  The Group also is involved in the common
aircraft industry.  Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training.  The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly.  Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.

On April 28, 2006, Fitch Ratings downgraded China Eastern's
foreign currency and local currency issuer default ratings to B+
from BB-.  Fitch said the outlook on the IDRs is stable.

Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating.


CHINA SOUTHERN: Launches New Service to Iran
--------------------------------------------
China Southern Airlines has launched its new service to Teheran,
Iran, offering Sky Pearl Club frequent flyers very special
mileage bonuses.

China Southern Airlines is also starting double daily service
between Beijing - Seoul and Beijing - Hong Kong.

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.

Major business and vacation destinations served in China
include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong,
Kunming, Shanghai, Shenzhen and Wuhan and as well as
International service, including: Amsterdam, Bangkok, Fukuoka,
Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta,
Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris,
Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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.


CULLIGAN INT'L: S&P Cuts Rating to B- on High Leverage
------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on water
services provider Culligan International Co., including the
corporate credit rating (to 'B-' from 'B') and the issue-level
and recovery ratings.  

S&P removed the ratings from CreditWatch, where they had been
placed with negative implications on Nov. 30, 2007, because of
fiscal 2007 operating results that were below our expectations.
The outlook is stable.  Total debt outstanding at the company
was about US$831 million as of Dec. 31, 2007.

"The downgrade primarily reflects a decline in financial
performance resulting from weak organic growth during the year,
and the company's high leverage," said Standard & Poor's credit
analyst Kenneth Shea.  For the full year 2007, adjusted EBITDA
declined 15%, reflecting a 1% decline in organic sales (total
sales increased a modest 3% due to favorable currency exchange
translations), narrowed gross margins, inventory
rationalization, and costs associated with the transition to a
new third-party distribution center.  These factors were
partially offset by the favorable impact of lower product costs
achieved from some manufacturing outsourcing initiatives.  

Culligan International Company is a U.S. operating subsidiary of
Culligan Holding S.ar.l., and the principal borrower under the
rated debt facilities.  Culligan is a global provider of water
treatment products and services for household and commercial
applications.

The company has operations in China, the United Kingdom, France,
Italy and Argentina, among others.


DANA CORP: Appoints Gary Convis as Chief Executive Officer
----------------------------------------------------------
Reorganized Dana Corp. named Gary L. Convis as its chief
executive officer.  Mr. Convis was appointed to Dana's new Board
of Directors in January 2008 after retiring from Toyota Motor
Corporation, where he had spent more than 20 years culminating
in his role as Chairman of Toyota Motor Manufacturing, Kentucky.

"We are delighted to welcome Gary as Chief Executive Officer,"
Dana Executive Chairman John Devine, who had served as the
company's acting CEO since January, said.  "Gary is widely
respected as one of the leading experts in lean manufacturing
and management systems, including the Toyota Production System.  
Along with his strong leadership and global industry experience,
we believe he is an ideal choice as our new Chief Executive."

"I am honored by the Board's confidence in me to lead Dana," Mr.
Convis said.  "I'm also eager to join with our people in
establishing world-class manufacturing systems and returning
this great company to the leadership ranks of the global
automotive supply industry."

Mr. Convis comes to Dana after more than four decades spent at
Toyota, General Motors Corporation, and Ford Motor Company.  He
became the first American president of Toyota's largest plant
outside Japan, Toyota Motor Manufacturing, Kentucky, in
2001.  He was named chairman of TMMK in 2006 and retired in
2007.    Prior to this, in 2003, he was the first American
manufacturing executive appointed by Toyota Motor Corporation to
be a managing officer of TMC, as well as Executive Vice
President of Toyota Motor Engineering & Manufacturing North
America, Inc.  Prior to serving in these roles, Convis spent 16
years at New United Motor Manufacturing, Inc., a joint venture
between GM and Toyota.  Previously, he spent more than 20 years
in various roles with GM and Ford Motor Company.

Mr. Convis earned a bachelors degree in mathematics with a minor
in physics from Michigan State University.  He will continue to
serve as a member of Dana's board.  He is also a board member of
Cooper-Standard Automotive Inc. and Compass Automotive Group,
Inc.

                         About Dana Corp.

Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/     
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies.  Dana
employs 46,000 people in 28 countries.  Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.

The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008.  Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.

(Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or      
215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Toledo, Ohio-based Dana Holding Corp. following
the company's emergence from Chapter 11 on Feb. 1, 2008.  The
outlook is negative.
           
At the same time, Standard & Poor's assigned Dana's
US$650 million asset-based loan revolving credit facility due
2013 a 'BB+' rating (two notches higher than the corporate
credit rating) with a recovery rating of '1', indicating an
expectation of very high recovery in the event of a payment
default.
     
In addition, S&P assigned a 'BB' bank loan rating to Dana's
US$1.43 billion senior secured term loan with a recovery rating
of '2', indicating an expectation of average recovery.


FERRO CORP: Revises First-Quarter 2008 Estimates
------------------------------------------------
Ferro Corporation said that earnings per share for the 2008
first quarter are now expected to be in the range of 16 to 18
cents, including approximately 10 cents per share in special
charges, or 26 to 28 cents excluding special charges.  As
reported by Thomson First Call, analysts expect first-quarter
earnings of 20 cents per share, excluding special charges.

Previously, the company had estimated that earnings for the
quarter would be in the range of 12 to 17 cents per share,
including 5 cents of special charges.  The Company now expects
net sales for the first quarter to be approximately US$600
million, exceeding its previous estimates of sales between
US$550 million and US$575 million.

The increased sales are due to better than expected sales
volume, product pricing actions and favorable changes in foreign
exchange rates.  The improved earnings outlook is primarily the
result of better than forecasted results from the Company’s
Inorganic Specialties Group and lower than anticipated selling,
general and administrative expenses.

The company’s revised first-quarter earnings estimate includes
pretax costs of approximately US$3.3 million related to a
previously announced manufacturing interruption at its
Bridgeport, New Jersey manufacturing location in December 2007.  
The manufacturing issues at the site have been corrected and are
not expected to impact future financial results.

“It is encouraging to announce improved performance estimates in
the midst of difficult macroeconomic conditions,” said Ferro
Chairman, President and Chief Executive Officer James F. Kirsch.
“The people of Ferro have been working hard to restructure our
business, reduce costs and manage the extraordinary volatility
in raw material costs.  We have built a strong foundation for
sustainable improvement in the business, and it is beginning to
translate into improved results for our shareholders.  We will
continue on the path we have established to complete our
restructuring programs and improve our business operations
across the entire company.”

                   About Ferro Corporation

Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a  
supplier of technology-based performance materials for
manufacturers.  Ferro materials enhance the performance of
products in a variety of end markets, including electronics,
solar energy, telecommunications, pharmaceuticals, building and
renovation, appliances, automotive, household furnishings, and
industrial products.  Headquartered in Cleveland, Ohio, the
company has approximately 6,300 employees globally and reported
2007 sales of US$2.2 billion.

The company has subsidiaries in Argentina, Australia, France,
Germany, Brazil, China, Spain , Hong Kong and Korea, among
others.

Ferro Corp. carries Moody's corporate family rating of B1 with a
positive outlook.  This ratings was assigne don May 2007.


HECURLES INC: Earns US$32.4 Million in Quarter Ended March 31
-------------------------------------------------------------
Hercules Incorporated reported net income for the quarter ended
March 31, 2008 of US$32.4 million, or US$0.29 per diluted share,
as compared to US$80.3 million, or US$0.70 per diluted share,
for the first quarter of 2007.  The first quarter of 2007
included approximately US$0.41 per diluted share from the
resolution of IRS audit items for the years 1993-2003.

Net income from ongoing operations for the first quarter of 2008
was US$38.9 million, or US$0.35 per diluted share, an increase
of 13% per diluted share compared to US$35.7 million, or US$0.31
per diluted share, in the first quarter of 2007.

Net sales in the first quarter of 2008 were US$558.3 million, an
increase of 11% from the same period last year.  Volume and
pricing increased by 7% and 1%, respectively.  Rates of exchange
increased sales by 5% during the quarter, while mix was 2%
unfavorable.

Net sales in the first quarter of 2008 increased in all major
regions of the world versus the prior year.  Sales increased 6%
in North America, 25% in Latin America, 15% in Europe (3%
excluding the impact of the Euro), and 15% in Asia Pacific.

Reported profit from operations in the first quarter of 2008 was
US$67.4 million, a decrease of 4% compared with US$70.2 million
for the same period in 2007.  Profit from ongoing operations in
the first quarter of 2008 was US$74.6 million, an increase of 3%
compared with US$72.2 million in the first quarter of 2007.

Cash flow from operations for the quarter ended March 31, 2008
was US$29.7 million as compared to US$25.8 million for the same
period last year.

"The first quarter results continue to demonstrate both the
strength of our global businesses and of our Company," said
Craig A. Rogerson, President and Chief Executive Officer.  "We
delivered another quarter of strong sales growth, solid earnings
and cash flow against the backdrop of a challenging U.S. economy
and elevated and escalating raw material costs."

Interest and debt expense was US$16.7 million in the first
quarter of 2008, down US$0.5 million or 3% compared with the
first quarter of 2007, reflecting lower outstanding debt
balances and improved debt mix, partially offset by losses on
cross currency interest rate swaps.

Total debt was US$807.6 million at March 31, 2008, an increase
of US$11.6 million from year-end 2007.  Cash and cash
equivalents were US$99.1 million at March 31, 2008, as compared
to US$116.5 million at year-end 2007.

Capital spending was US$22.1 million in the first quarter as
compared to US$24.2 million in the same period last year.  Cash
outflows for severance, restructuring and other exit costs were
US$6.1 million in the quarter.

The company purchased 1.3 million shares of common stock at a
cost of US$23.3 million during the first quarter of this year.  
The company has now purchased 4.1 million shares for
US$77.7 million under its US$200 million authorization.

                Segment Results – Ongoing Basis

In the Aqualon Group, net sales increased 17% while profit from
ongoing operations was flat in the first quarter as compared
with the first quarter of 2007.  All business units had
increased sales in the first quarter as compared to the prior
year.  In the aggregate, the sales increase was driven by 14%
higher volume, including 2% from the 2007 specialty surfactants
acquisition, 1% higher prices and 5% favorable rates of
exchange, partially offset by 3% unfavorable product mix.

Coatings and construction sales increased 19% in the first
quarter of 2008 as compared to the same period of last year, due
to 15% higher volume, 1% increased pricing and 7% favorable
rates of exchange, partially offset by 4% negative mix. Sales
into the coatings markets were up 19% in the first quarter of
2008 as compared to the same period of last year.  Strong volume
growth in China, the Middle East, South America and Eastern
Europe, offset a soft North American market.  Construction
market sales increased 19% as compared to the first quarter of
last year. Strong growth was achieved in Asia, the Middle East
and Eastern Europe, whereas other regions were lower.  Pricing
improvements were achieved in both the coatings and construction
markets.

Regulated industry sales increased 14% in the first quarter of
2008 as compared to the same period of last year, primarily due
to 5% higher volume, 3% improved product mix, 2% increased
pricing and 4% favorable rates of exchange.  Sales were higher
in all segments. Sales increased in the pharmaceutical, personal
care and food markets by 29%, 14% and 6%, respectively, as
compared to the first quarter of last year.  Growth was achieved
in all major regions of the world.

Energy and specialties sales increased 15% in the first quarter
of 2008 as compared to the same period of last year.  The
increase was due to 19% higher volumes, 1% higher prices, and 3%
favorable rates of exchange, partially offset by 8% unfavorable
product mix.  Energy sales increased 12% and specialties
increased 18%, as compared to the prior year.  Sales of both
energy and specialty businesses grew in most major regions of
the world. Price increases were achieved across all product
families.

Profit from ongoing operations was flat, primarily as a result
of the higher volume and the associated contribution margin,
increased selling prices, lower pension expenses and favorable
rates of exchange, offset by higher raw material, transportation
and utility costs and planned and unplanned shutdowns.  Margins
were adversely impacted as price increases did not fully offset
higher raw material, freight and utility costs, and by the
previously announced incident at our methylcellulose joint
venture in China and a planned maintenance shutdown at the
company's Doel, Belgium MC plant.

"Aqualon’s strong top line growth reflects our global scale and
presence as well as continued growth in fast growing markets
including China, the Middle East and Latin America," said Mr.
Rogerson.  "Aqualon’s global diversity enabled us to offset
weaker demand in some of our North American markets."

In the Paper Technologies and Ventures Group, net sales in the
first quarter increased 7% and profit from ongoing operations
increased 7% compared with the same quarter in 2007.

Paper Technologies sales increased 2% due to 6% favorable rates
of exchange, partially offset by 1% lower prices, and 3%
unfavorable product mix. Volume in the aggregate was flat. Sales
in fast growing markets were up 16% compared to the prior year.  
Modest price increases were achieved in North America while
pricing was lower in both Europe and Asia.  Sales of new
products continued to drive growth in overall sales and
profitability.

Ventures sales increased 23% primarily due to 7% higher volume,
7% higher prices, 4% improved product mix, and 5% favorable
rates of exchange.  Sales increased in all Ventures business
units. Significant growth was achieved in both building products
and synthetic lubricants.  Pricing was favorable in most Venture
businesses.

The increase in profit from ongoing operations reflects
favorable rates of exchange, higher volume and improved selling
prices in Ventures, and lower pension costs, partially offset by
higher raw material and utility costs, and increased SG&A costs.

"The Venture businesses continue to deliver improved results,
while many of our global Paper Technology markets are growing
more modestly," commented Mr. Rogerson. "Sales of higher margin
new products continue to support margins overall."

                          Outlook

"We remain optimistic about revenue, earnings and cash flow
growth in 2008," said Mr. Rogerson. "We expect significant raw
material, freight and utility cost headwinds, but expect
announced and additional price increases to partially offset
these costs.  Despite these challenges, we expect profitability
to improve through higher utilization of our recent capacity
expansions and the impact of our new product introductions.  We
continue to pursue acquisition opportunities to expand our
product offerings and accelerate value creation for our
shareholders."

                        About Hercules Inc.

Wilmington, Delaware-based Hercules Inc. -- http://www.herc.com
-- (NYSE:HPC) manufactures and markets chemical specialties
globally for making a variety of products for home, office and
industrial markets.

Outside the United States, the company has subsidiaries in
Argentina, Bahamas, Belgium, Brazil, Hong Kong, India, Indonesia
and France.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on April 10,
2008, Standard & Poor's Ratings Services raised its ratings on
Hercules Inc., including the corporate credit rating to 'BB+'
from 'BB'.   The outlook is stable.


HEXCEL CORP: Earns US$23.2 Million in First Quarter 2008
--------------------------------------------------------
Hexcel Corporation results for the first quarter of 2008.  Net
sales from continuing operations during the quarter were
US$344.5 million, 21.9% higher than the US$282.6 million
reported for the first quarter of 2007.  Operating income for
the first quarter was US$36.4 million, compared to US$29.9
million for the same quarter last year.  The 2008 operating
income included US$2.7 million of pension settlement expense
associated with the termination of Hexcel’s U.S. defined benefit
pension plan.

Net income from continuing operations for the first quarter of
2008 was US$23.2 million, or US$0.24 per diluted share, compared
to US$14.8 million or US$0.15 per diluted share in 2007.  
Adjusted net income from continuing operations for the first
quarter of 2008 was US$0.23 per share, which excludes the one-
time items of the termination of Hexcel’s U.S. defined pension
plan and the US$2.5 million reversal of valuation allowances
against U.S. deferred tax assets.

              Chief Executive Officer Comments

Mr. Berges commented, “This was a strong start for 2008 and
continues the momentum from the second half of 2007.  Sales and
adjusted operating income for the quarter were again at record
levels, and we’re well on our way to hitting our full year
guidance as our adjusted diluted earnings per share (excluding
the one-time items) for the quarter was a solid US$0.23, as
compared to US$0.15 last year.”

“Sales for commercial aerospace were up sharply across the
board, a total of 29.6% in constant currency over the first
quarter of 2007; limiting our ability to serve other industrial
markets for the third quarter in a row.  We are accelerating our
plans for adding capacity to support what we now see as the
continued strong demand. We are now making first fiber on our
new Spanish line, and have begun to qualify product from our new
German and French prepreg plants.  We expect each of them to
cover their incremental costs in the second half of this year.
The new China prepreg plant for wind energy and our next carbon
fiber line are expected to begin production by October.  We are
now targeting the remaining tranche of our previously announced
carbon fiber and precursor capacity to come on line in the
second half of next year versus the original 2010 target.”

“We are in discussions with all of our customers who serve the
B787 to understand their demand plans for the coming quarters.  
While it’s too early to comment on the impact of the delay to
our sales, we have updated our estimated sales content per B787
to now be in the US$1.3 – US$1.6 million range, up from prior
estimates of US$1.0 - US$1.3 million. A380 sales continued their
steady recovery though they are still below the levels in the
first half of 2006. Despite the recent negative news about U.S.
airline profitability and the economy in general, Airbus and
Boeing continue to expand their huge backlog with reported first
quarter orders exceeding deliveries by 2.5 times.”

“We are reaffirming all of our guidance targets including
operating margins of 12 – 12.5% even though sales inflated by
current exchange rates could depress the ratio and the B787
schedule impact is likely to reduce our near term outlook for
that program.  We now expect our full year earnings to be at the
high end of the US$0.90-US$0.95 range.”

                           Markets

Commercial Aerospace

Commercial aerospace sales of US$191.9 million grew 33.3% (29.6%
in constant currency) for the quarter over first quarter 2007.
Sales to Airbus and its subcontractors grew over 35% in the
quarter and were about equal to the total sales from Boeing and
its subcontractors.

Sales to “other aerospace” which includes a wide range of
aircraft producers as a group were up over 25% for the fifth
consecutive quarter as both regional jets and turboprop build
rates have been strong.

Industrial

Industrial sales of US$78.3 million for the first quarter of
2008 had trends generally consistent with those of the second
half of 2007 with sales other than wind energy down from the
prior year due to soft winter recreation sales and capacity
constraints.  On a constant currency basis, industrial sales
were down 4.9% for the quarter compared to first quarter 2007,
but essentially flat sequentially.

Wind energy revenue had strong double digit growth both
sequentially and year over year as new prepreg capacity is now
coming on line in our Austrian operations.  The company now
expects wind to be more than 50% of our industrial segment sales
for the year.

Space & Defense

Space & Defense sales of US$74.3 million for the quarter were
10.9% higher compared to the first quarter of 2007 in constant
currency.  In the aggregate, this market performed as expected
with continued strength in global rotorcraft sales which now
account for almost half of this segment.

Exchange rate impacts

With the average dollar to the Euro rate about 14% weaker in the
first quarter of 2008 as compared to 2007, the impact of
exchange rates on this quarter’s results are significant.  There
are several impacts to Hexcel; our European aerospace sales are
primarily denominated in dollars, but have a significant portion
of their costs in Euros and GBP; more than one-third of our
total sales are denominated in Euros and GBP, so the weakening
dollar causes these sales (and their related costs and profits)
to translate higher; and we have overhead costs, capital
expenditures, working capital accounts, etc. denominated in
Euros and GBPs that all translate into higher balances as the
dollar weakens.  The company's guidance included a net-after-
hedging reduction of operating income in 2008 by over US$5
million as compared to 2007.

But should the dollar continue to weaken as it has this quarter,
every 5% move of the dollar results in an increase in annualized
sales of approximately US$25 million and operating income
decrease of about US$1 million.

These impacts, of course, reduce the company's gross margin and
operating income percentages.  The difference in exchange rates
lowered this quarter’s total company gross margin by about 150
basis points and operating income by over 100 basis points as
compared to last year.

Operations

Gross margin decreased to 23.3% for the quarter compared to
25.3% for the first quarter of 2007.  The benefits of higher
volume were offset by the impact of exchange rates and about
US$3 million of incremental costs and start-up activities
associated with the new facilities in Spain, France, Germany and
China.

All of the above expansion costs and almost all of the exchange
exposure is in our Composite Materials segment who provide
materials to wind energy and to our European commercial
aerospace customers.  This segment’s adjusted operating income
of 15.6% would have been over 17% on a constant dollar basis and
about 18% excluding the new plant costs.  While we have little
control over currency swings, the company says it expects the
incremental costs of all but the China plant to be at least
break-even at the operating level for the second half of 2008.

Adjusted operating income for our Engineered Products segment
increased to 12.0% as compared to 8.8% in 2007.  Last year’s
results were impacted by the start-up and research and
technology costs associated with the development and
qualification of our new HexMC(R) products.

Tax

The tax provision was US$9.6 million for the first quarter of
2008 which included a US$2.5 million benefit from the reversal
of valuation allowances against U.S. deferred tax assets.  
Excluding this benefit, the effective tax rate for the quarter
was 38.5%.  The company continues to review strategies to
improve our tax efficiency.

Cash

Total debt, net of cash as of March 31, 2008 was US$345.3
million, an increase of US$57.5 million during the quarter.

Approximately US$35 million of the increase was in accounts
receivable as a result of the higher sales.  Other uses of cash
during the first quarter included the final cash contributions
to the U.S. defined pension plan and annual cash incentive
awards, as well as other working capital needs arising from
sales growth.

Capital spending for the quarter was US$43.9 million compared to
US$15.6 in the first quarter of 2007, primarily due to the
accelerated progress being made on our fiber expansion plans.  
High first quarter capital spending, as well as additions to
inventory for growing sales contributed to the increase in
accounts payable.

The company completed the termination of the U.S. defined
benefit pension plan, which resulted in a US$2.7 million charge
during the quarter and US$6.4 million in cash contributions to
the plan.  In total, the charges for the termination were
US$12.1 million with cash contributions to the plan of just
under US$10 million.  The anticipated savings is approximately
US$2 million per year in pension costs.

Hexcel will host a conference call at 10:00 A.M. ET, tomorrow,
April 22, 2008 to discuss the first quarter results and respond
to questions. The telephone number for the conference call is
(913) 312-0693 and the confirmation code is 9942911. The call
will be simultaneously hosted on Hexcel’s web site at
www.hexcel.com/investors/index.html. Replays of the call will be
available on the web site for approximately three days.

                    About Hexcel Corporation

Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced  
composites company.  The company develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications such as wind turbine blades.  The company has
subsidiaries in Austria, the United Kingdom, Spain, Hong Kong,
Japan and Brazil

                       *     *     *

Hexcel carries Moody's Ba3 corporate family rating with a stable
outlook.  This rating was placed on April 2007.


HEXCEL CORP: Annual Stockholders Meeting Scheduled on May 8
-----------------------------------------------------------
Hexcel Corporation's Annual Meeting of Stockholders will be held
on May 8, 2008 at 10:30 a.m.

The meeting will be at the Community Room, Two Stamford Plaza,
281 Tresser Boulevard in Stamford, Connecticut.

Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced  
composites company.  The company develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications such as wind turbine blades.  The company has
subsidiaries in Austria, the United Kingdom, Spain, Hong Kong,
Japan and Brazil

                        *     *     *

Hexcel carries Moody's Ba3 corporate family rating with a stable
outlook.  This rating was placed on April 2007.


HOPSON DEVELOPMENT: S&P Puts BB Credit Rating on Negative Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating on Hopson Development Holdings Ltd. on CreditWatch
with negative implications, following the company's result
announcement.  At the same time, the 'BB' issue rating on
Hopson Development Holdings' US$350 million senior unsecured
notes due 2012 and Chinese renminbi (RMB) 1.83 billion zero-
coupon convertible bonds due 2010 have also been placed on
CreditWatch with negative implications.

"The CreditWatch reflects Hopson Development Holdings' weakening
liquidity position as a result of higher-than-expected capital
commitments and debt level, and the new management's execution
of an aggressive growth strategy in a challenging operating
environment," said Standard & Poor's credit analyst Bei Fu.

With less than Hong Kong dollar (HK$) 2 billion cash at the end
of 2007, the company would need to arrange for funding to meet
its current capital commitment of RMB9 billion due in 2008,
although, according to the company, the deadline for a portion
of the amount is negotiable.  With contracted sales of only
RMB1.2 billion in the first quarter of 2008, presale proceeds
alone are unlikely to be sufficient to meet the capital
commitment requirement, unless sales pick up substantially later
this year.

"This depends largely on a recovery in market sentiment," Ms. Fu
said.  "In addition, the usage of presale proceeds could become
more restrictive, depending on the enforcement of government
regulations."

The CreditWatch is likely to be resolved within the next two
months as Standard & Poor's is in the process of reviewing its
ratings on Hopson Development Holdings after meeting the company
recently.  The ratings could be lowered by a notch or the
outlook revised to negative if we believe the capital commitment
is likely to continue to put heavy pressure on the company's
liquidity position in the medium term.

Hopson Development Company Holdings Limited is one of the
largest property developers in China.  Its principal businesses
are residential developments in four major cities -- Guangzhou,
Beijing, Shanghai and Tianjin -- and their surrounding areas.


NINGBO BIRD: Incurs CN7593.6 Million Second Annual Loss
-------------------------------------------------------
Ningbo Bird Co. Limited posted second annual loss in three years
after competitors Nokia Oyj and Samsung Electronics Co. gained
more market shares by introducing cheaper models, John Liu and
Zhao Yidi of Bloomberg News report.

According to the report, the company recorded a CNY593.6 million
(US$84.8 million) net loss, or CNY0.77 a share, compared with a
restated net income of CNY33.6 million a year earlier.   

Meanwhile, the report notes, sales fell 33.1% to CNY4.57 billion
from a restated CNY6.83 billion.

John Liu and Zhao Yidi of Bloomberg write that the company's
market share plunged after Nokia and Samsung introduced more
models priced at CNY400 or less to win consumers in small towns
and rural areas.  

According to research firm Analysys International, Nokia's
market share increased 35% in the fourth quarter, while
Samsung's share rose to 13% from 9%, and Motorola Inc.'s tumbled
to 12% from 24%, the report says.

Meanwhile, Lenovo Group Ltd. increased its share of the market
to 6% in the fourth quarter from 4.7% a year earlier, according
to Analysys International, Bloomberg notes.

The research firm said Ningbo Bird's share fell to 3% from 4.3%,
the report adds.

                      About Ningbo Bird

Based in Ningbo, Zhejiang Province, Ningbo Bird Co., Ltd. --
http://www.birdintl.com/main.html-- is principally engaged in  
the development, manufacture and sale of mobile communications
products.  The company offers mobile phones and accessories,
communications system equipment, personal digital assistants
(PDAs), office equipment and other electronics products, under
the brand name of Bird.  The company also exports its products
to over 60 countries, including the United States, Mexico,
Argentina, and France, among others.

                         *     *     *

Xinhua Far East China Ratings gave the company a BB- issuer
credit rating on April 5, 2006.


SHIMAO PROPERTY: 2007 Profit Up 80% on Apartments Sales
-------------------------------------------------------
Shimao Property Holdings Limited reported an 80% increase in its
2007 profit as it sold more apartments amid surging home prices
in China, Kelvin Wong of Bloomberg News reports.

According to the report, the company recorded a net profit of
CNY4.1 billion (US$586 million), or CNY1.26 a share, from
CNY2.28 billion, or CNY0.85, in 2006, while sales rose 34% to
CNY9.28 billion.

Excluding earnings from property revaluations, Shimao's profit
rose 61% from to CNY2.9 billion yuan in 2007, that is close to
the CNY2.97 billion median estimate from 16 analysts surveyed by
Bloomberg.

Kelvin Wong of Bloomberg writes that Chinese developers may face
slowing growth after the government sought to curb home prices
by reducing lending.

The report relates that in the first half of 2007, Shimao
benefited from higher real estate values as smaller builders
were forced out of business by government austerity measures.  

Deputy Chairman Jason Hui told the news agency that Shimao
Property plans to set up, seek strategic investors this year,
and sell shares in the second half of 2009.   The company
intends to sell between 20% and 30% of the unit to investors,
and aims to operate over 7,000 rooms in 15 five-star hotels in
China by 2010, Mr. Hui said, the report notes.

                     About Shimao Property

Shimao Property Holdings Limited -- http://www.shimaogroup.com/  
-- is a large-scale developer of real estate projects in China,
specializing in high-end developments in prime locations.  The
company's business portfolio comprises the development of
residential properties, retail properties, offices and hotels.
The company has 15 projects at various stages of development
located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou,
Kunshan, Changshu, Shaoxing and Wuhu.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on Jan 17,
2008, Moody's Investors Service changed the outlook for Shimao
Property Holdings Limited's Baa3 issuer and bond ratings to
negative from stable.

On June 13, 2007, that Standard & Poor's Ratings Services said
that its rating on Shimao Property Holdings Ltd. (BB+/Stable/--)
was not immediately affected by the company's recent proposal to
inject most of its retail and commercial assets into A-
sharelisted Chinese property company, Shanghai Shimao Co. Ltd.,
in return for ultimate controlling ownership in the company.

In addition, on July 24, 2007, Fitch Ratings assigned a Long-
term Foreign Currency Issuer Default Rating of 'BB+' to China-
based Shimao Property Holdings Limited.  Simultaneously,
Fitch has assigned issue ratings of 'BB+' to Shimao's
US$350 million senior notes due 2016 and USD250m senior floating
rate notes due 2011, respectively.  The Outlook for the IDR is
Stable.


YRC WORLDWIDE: Amended Credit Pact Continues US$950MM Facility
--------------------------------------------------------------
YRC Worldwide Inc. disclosed in a regulatory filing that on
April 18, 2008, with certain of its foreign subsidiaries,
entered into Amendment No. 1 to the Credit Agreement, dated as
of Aug. 17, 2007, among the company, the foreign subsidiaries
and the lenders and agents party.

The Credit Agreement, as amended, continues to provide the
Company with a US$950 million senior revolving credit facility,
including sublimits available for borrowings under certain
foreign currencies, and a US$150 million senior term loan.

The Credit Agreement Amendment:

     -- increases, until such time as the company receives a
        rating of BBB- or better from Standard & Poor’s and Ba1
        or better from Moody’s, in each case with a stable
        outlook (the “Fall Away Event”), the company’s Total
        Leverage Ratio (as defined in the Credit Facility) from
        3.0x to (i) 3.75x for each of the fiscal quarters ended
        March 31, June 30 and Sept. 30, 2008 and (ii) 3.5x for
        each fiscal quarter thereafter; this was a proactive
        amendment however, as the company’s Total Leverage Ratio
        for the fiscal quarter ended March 31, 2008 was below
        3.0x;

     -- increases the interest rates and fees applicable to the
        revolving credit facility and term loan as set forth in
        the definition of “Applicable Rate” in Section 1.01 of
        the Credit Facility; effective with this amendment, the
        interest rate on amounts outstanding under the revolving
        credit facility and term loan is LIBOR plus 100 basis
        points and LIBOR plus 125 basis points, respectively,
        and the facility fee for the revolving credit facility
        is 25 basis points; the company expects interest expense
        to increase US$1.5 – 4.0 million annually with this
        amendment;

     -- requires the company and its domestic subsidiaries to
        pledge the following collateral (i) receivables not
        secured by the ABS facility or the company’s captive
        insurance companies, (ii) intercompany notes not secured
        by the ABS facility, (iii) fee-owned real estate parcels
        that have an estimated internal market value of
        US$2.5 million or greater, (iv) 100% of the stock of all
        domestic subsidiaries of the Company and (v) 65% of the
        stock of first-tier foreign subsidiaries of the company
        other than the company’s captive insurance companies;

     -- requires the Company and its subsidiaries to pledge
        additional assets, including rolling stock and the
        remaining real estate if the Total Leverage Ratio
        exceeds 3.5x at the end of any Test Period (as defined
        in the Credit Facility) or if the company receives a
        rating of BB- or worse from Standard & Poor’s and Ba3 or
        worse from Moody’s prior to the Fall Away Event;

     -- requires each domestic subsidiary of the company except
        for YRRFC to guarantee the credit facility; and

     -- modifies certain negative covenants (and in certain
        instances introduces new negative covenants) related to
        permitted liens, permitted acquisitions, permitted asset
        sales (and certain related mandatory prepayments from
        the proceeds thereof) and restricted payments.

Upon the occurrence of the Fall Away Event, (i) security
interests in pledged collateral will be released, (ii) all
negative covenant provisions (including the company’s Total
Leverage Ratio) and the mandatory prepayment provision will
revert to pre-Credit Agreement Amendment levels and concepts and
(iii) only material domestic subsidiaries and subsidiaries of
the Company that guarantee certain other indebtedness of the
Company or its subsidiaries will remain as guarantors.

The holders of USF Bonds and Roadway Bonds, each as defined in
the Credit Facility, will receive an equal and ratable lien
(pursuant to the terms of the respective bond indentures) in
certain assets that are pledged under the Credit Facility.

Pursuant to Section 1008 of the USF Bond indenture, holders of
USF Bonds are entitled to an equal and ratable lien with respect
to stock of the “significant” subsidiaries of YRC Regional
Transportation and any intercompany debt among Regional and its
“significant” subsidiaries.

Currently, the “significant” subsidiaries are USF Holland, USF
Reddaway and YRC Logistics Services.  Pursuant to Section
4.06(a) of the Roadway Bond indenture, holders of Roadway Bonds
are entitled to an equal and ratable lien with respect to stock
of subsidiaries of Roadway LLC, intercompany debt among Roadway
and its subsidiaries and certain property owned by Roadway and
its subsidiaries, including certain real estate and rolling
stock.

A full-text copy of Amendment No. 1, dated as of April 18, 2008,
to the Credit Agreement, dated as of August 17, 2007, among the
Company, the Canadian Borrower, the UK Borrower, the financial
institutions party thereto and JPMorgan Chase Bank, National
Association, as Administrative Agent, may be viewed for free at:

               http://ResearchArchives.com/t/s?2af0

                     About YRC Worldwide Inc.

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is  
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.


YRC WORLDWIDE: Renews Asset-Backed Securitization Facility
----------------------------------------------------------
YRC Worldwide Inc. disclosed in a regulatory filing that on
April 18, 2008, it renewed its asset-backed securitization
facility.

The renewed facility will expire on April 16, 2009.

The renewed facility:

     (i) reduces the financing limit available under the ABS
         facility from US$700 million to US$600 million,

    (ii) reduces the letters of credit sublimit from
         US$325 million to US$125 million,

   (iii) modifies the Total Leverage Ratio consistent with the
         Credit Agreement Amendment recently entered,

    (iv) increases the loss and discount reserve requirements
         and

     (v) increases the administrative fee (calculated based on
         financing limit) and program fee (calculated based on
         utilization) to 50 basis points and 75 basis points,
         respectively.

The interest rate under the ABS facility for conduits continues
to be a variable rate based on A1/P1 rated commercial paper
(weighted average interest rate of 3.35% at March 31, 2008),
plus the program fee.  The interest rate for Wachovia Bank,
National Association is one-month LIBOR, plus 100 basis points,
as Wachovia will no longer use a conduit to purchase receivables
under the ABS facility.  The Company expects interest expense to
increase up to US$4.0 million annually with this renewal.

The ABS facility utilizes the accounts receivables of these
subsidiaries of the company:

     -- Yellow Transportation, Inc.;
     -- Roadway Express, Inc.;
     -- USF Holland Inc.; and
     -- SF Reddaway Inc.

Yellow Roadway Receivables Funding Corporation, a special
purpose entity and wholly owned subsidiary of the Company,
operates the ABS facility.  Under the terms of the renewed ABS
facility, the Originators may transfer trade receivables to
YRRFC, which is designed to isolate the receivables for
bankruptcy purposes.  A third-party conduit or committed
purchaser must purchase from YRRFC an undivided ownership
interest in those receivables.  The percentage ownership
interest in receivables that the conduits or committed
purchasers purchase may increase or decrease over time,
depending on the characteristics of the receivables, including
delinquency rates and debtor concentrations.

In connection with the renewal of the ABS facility, the Company
unconditionally guaranteed to YRRFC the full and punctual
payment and performance of each of the Originators obligations
under the ABS facility.  YRRFC has pledged its right, title and
interest in the guarantee to the Administrative Agent, for the
benefit of the purchasers, under the Third Amended and Restated
Receivables Purchase Agreement.

A full-text copy of the Third Amended and Restated Receivables
Purchase Agreement may be viewed for free at:

               http://ResearchArchives.com/t/s?2af1

                     About YRC Worldwide Inc.

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is  
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.



YRC WORLDWIDE: Fitch Holds Ratings on Amended & Restated Loans
--------------------------------------------------------------
Following the announcement that YRC Worldwide Inc. (NASDAQ:
YRCW) has amended and restated its credit facility agreement,
Fitch Ratings has taken these rating actions on YRCW and its
Roadway LLC and YRC Regional Transportation, Inc. subsidiaries:

YRC Worldwide Inc.

   -- Issuer Default Rating (IDR) affirmed at 'BB+';
   -- Credit facilities affirmed at 'BB+';
   -- Senior unsecured downgraded to 'BB' from 'BB+'.

Roadway LLC

   -- IDR affirmed at 'BB+';
   -- Senior notes downgraded to 'BB' from 'BB+'.

YRC Regional Transportation, Inc.

   -- IDR affirmed at 'BB+';
   -- Senior notes downgraded to 'BB' from 'BB+'.

Fitch's ratings apply to approximately US$1 billion in
consolidated debt and a US$950 million revolving credit
facility.  The Rating Outlook for YRCW is Negative.

The most significant revisions to YRCW's credit facility are a
change in the facility's leverage covenant and a pledge of
collateral to secure the facility.  The leverage covenant, which
is based on the ratio of balance sheet debt to 12 months EBITDA,
has been raised to 3.75 times (x) for the first three quarters
of 2008.  The ratio will then decline to 3.5x in the fourth
quarter of 2008 through the facility's maturity in 2012.  The
prior leverage covenant was 3.0x for the duration of the
agreement.  In the event of certain credit ratings upgrades, the
collateral securing the credit facility will be released, the
leverage ratio covenant will decline to 3.0x and certain other
provisions in the credit facility will revert back to their pre-
amended status.

In return for the loosened covenant, YRCW has agreed to secure
the facility with a combination of hard assets (primarily real
estate), a portion of various subsidiaries' accounts receivable
not already pledged as collateral under YRCW's asset backed
securitization (ABS) facility agreement, 100% of the capital
stock of YRCW's U.S. subsidiaries, 65% of the stock of certain
first-tier foreign subsidiaries and a security interest in
certain intercompany notes.  According to the indenture covering
the outstanding US$225 million in Roadway notes due in December,
the Roadway notes will also be secured by certain Roadway
collateral pledged to the credit facility, including certain
Roadway properties.  In addition, the capital stock of the YRC
Regional Transportation subsidiaries that has been pledged as
collateral for the credit facility will also be shared as
collateral with the two series of outstanding YRC Regional
Transportation notes.

In addition to the revisions to its credit facility, YRCW has
also accelerated the renewal of its ABS facility.  The facility
had been scheduled to mature next month.  The ABS facility,
which is essentially a receivables sales program, is a key
component of the company's liquidity, and YRCW regularly uses it
for cash borrowings, as well as to back letters of credit.  The
limit on the renewed facility has been reduced to US$600 million
from US$700 million, however, to account for the actual level of
receivables generally available to support the program.

The loosening of the leverage covenant significantly reduces the
likelihood of a near-term default on the credit facility.  
Although YRCW has been slowly reducing its debt load over the
past several years, a very weak industry demand environment has
driven a sharp decline in YRCW's EBITDA over the past 12 months.  
Full-year EBITDA declined to US$489 million in 2007 from US$837
million in 2006, raising the company's year-end EBITDA leverage
to 2.5x from 1.5x. With the sharp decline in EBITDA, concern had
been growing recently that YRCW's EBITDA leverage would come
uncomfortably close to, or might exceed, the prior covenant
level of 3.0x by mid-2008. The addition of 75 basis points to
the covenant in the first three quarters of this year is
expected to provide sufficient headroom to avoid a covenant-
triggered default in the near term.  However, the covenant
level's decline to 3.5x in the fourth quarter and beyond could
be a concern if industry conditions continue to worsen
throughout the year.

The downgrade of the senior unsecured ratings reflects the
addition of collateral to secure the credit facility, which has
put the holders of the company's existing unsecured notes in a
junior position in YRCW's capital structure.  In addition,
although the Roadway and YRC Regional Transportation notes are
now secured by some collateral, Fitch believes the collateral
coverage of these notes is relatively low, effectively putting
holders of these notes in a position similar to that of the
unsecured holders.  As a result, Fitch has downgraded the
secured Roadway and YRC Regional Transportation notes, as well.

The Negative Rating Outlook reflects the near-term challenges
that YRCW continues to face with the slowing of the U.S.
economy.  Although industry shipment levels appear to be
stabilizing somewhat, they are stabilizing at weakened levels,
and there are no indications yet of a significant improvement in
demand in the near term.  Should a persistently weak industry
environment drive further declines in YRCW's financial
performance, Fitch may downgrade the ratings further.


ZTE CORPORATION: Licenses SPIRIT DSP's Voice Solution
-----------------------------------------------------
ZTE Corporation has licensed SPIRIT DSP's voice solution to
empower ZTE's HD (High Definition) video conferencing systems
with outstanding quality voice, giving end-users a rich
communication experience.

In 2007, ZTE topped the global CDMA market at 43% of the world's
total CDMA shipments.  With SPIRIT's solution built inside ZTE's
HD conferencing systems, end-users will experience HD quality
communication, offering enhanced realism from significantly
improved picture and sound quality.

The high-end videoconferencing market is surging very fast.
Research firm IDC expects sales to nearly triple this year to
US$169 million from just US$64 million last year, and reach US$1
billion by 2011.

"We found SPIRIT's solution to far exceed all known similar
software products in terms of quality, scalability and
reliability.  With SPIRIT's solution, there is no delay,
transcoding or noise aggregation on the server side – the
quality is magnificent and the software's ability to scale is
almost limitless.  We're pleased to be working with SPIRIT,"
said Huang Qiang, Chief Engineer of Multimedia Terminals Network
Division at ZTE.

"This relationship with ZTE marks another major milestone in
SPIRIT's commitment to continue supplying the world's leading
communications equipment providers with the most advanced, high-
definition communication technologies," said Alex Kravchenko, VP
Sales at SPIRIT.  "ZTE is a global telecom equipment supplier,
and we're excited to be working with such a global established
player to deliver perfect quality voice to the world."

                        About SPIRIT

SPIRIT DSP -- www.spiritDSP.com -- employs 140 professionals,
and has been in the international software licensing business
since 1992.  A bootstrap company, SPIRIT has been profitable for
15 years.  For the last 10 years, SPIRIT's focus has been on
voice and video communication software products.  SPIRIT counts
among its customers Adobe, Agere, Arima, ARM, Atmel, Blizzard
Entertainment, BT plc., Cisco, Compal, deltathree, Flextronics,
Ericsson, HP, HTC, Huawei, Importek, Korea Telecom, Kyocera, LG,
MediaRing, Microsoft, NEC, Nortel Networks, NXP, Oracle,
Paltalk, Polycom, Quanta, Radvision, Reigncom, Samsung, Siemens,
Texas Instruments, Toshiba, Trinity Convergence and Veraz, and
among 200+ other communication OEMs and software vendors.  
SPIRIT communication software is used in over 80 countries and
powers more than 100 million embedded voice channels.  SeeStorm
is a SPIRIT affiliate for synthetic video conferencing.

TeamSpirit is a registered trademark and IP-MR is a trademark of
SPIRIT DSP.  All other trademarks and/or registered trademarks
are registered to their respective owners.

                      About ZTE Corp

Headquartered in Shenzhen, China, ZTE Corp's principal
activities are the production and sale of general system and
communication terminal equipments.  The group operates both in
the domestic and international market.

The Troubled Company Reporter-Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
Outlook is Stable.


* Fitch Says Taiwanese Securities Firm is Strong
------------------------------------------------
Fitch Ratings commented that a prudent supervisory environment
governing capital retention, market and credit risk exposures,
as well as long-term investment expansion have contributed to
Taiwanese securities firms' financial soundness and stability.  
The industry's capitalisation is strong compared with
international peers and contrasts with the much higher leverage
levels seen at US investment banks, which have suffered
liquidity pressures during the ongoing credit crisis.  The
sector's liquidity is also adequate, supported by sufficient and
consistently positive net current assets.

Meanwhile, the liberalisation of many regulations since late
2007 will help boost Taiwanese securities firms' revenue
diversity and earnings quality.  The opening up of selective
wealth management and trust businesses has been especially
welcomed by securities firms with no group banking support, as
some of them have been losing customers to financial groups
which provide a complete range of financial services.  Fitch
highlighted in a special report that the capabilities of
securities firms with regards to product renovation and
manufacturing will be a key factor in their competition with
banks, which have distinct advantages in terms of distribution
channels and customer relationships.

Looking into 2008, the sector's earning prospects remain largely
favourable.  The agency expects a reasonably good turnover in
the Taiwanese stock market as market sentiment improves, partly
as a result of the easing of the cross-strait relationship
following the presidential election in March 2008.

Fitch also expects that the rating Outlook on Taiwan's
securities sector will remain Stable in 2008.  Selective
upgrades could be possible for securities firms that deliver
consistent profitability through improving their revenue
diversity and advanced risk management capabilities, while
rating downgrades are less likely and should be limited.  
Additionally, the agency views M&A-driven rating changes as
generally positive as some domestic financial groups have
expressed strong ambitions to expand their franchise value
through acquiring securities firms.



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DECCAN AVIATION: To Conclude Kingfisher Merger on June 1
--------------------------------------------------------
During a shareholders' meeting held recently in Bangalore for
Deccan Aviation and Kingfisher Airways, it was decided that the
official cut-off date for the merger of the two is on June 1,
2008, Lakshmi Vishwanath writes for TravelBizmonitor.  

All resolutions were passed unanimously at the meeting, the
report adds.

After the merger, Deccan Aviation's name will be changed to
Kingfisher Airlines Ltd, according to a previous regulatory
filing of the company.

Bangalore, India-based Deccan Aviation Limited --
http://www.deccanair.com/-- is a charter aviation company in
the private sector.  Deccan Aviation provides company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services.

In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.


TATA POWER: To Enter Memorandum of Understanding with Bhel
----------------------------------------------------------
Tata Power will enter into a memorandum of understanding with
Bhel, Financial Express reports.  The aggrement provides that
Tata Power will source its equipment from Bhel, a state-owned
company, for all its future power needs.

Ravi Kumar, Bhel's chairman and managing director, told the
Financial Express that to begin with, Tata Power will source
equipment for a capacity of around 5,000 mwh from Bhel through
the negotiated route.

Mr.Kumar also informed the Financial Express that the list of
power projects under discussions includes the 2000-2400 mw
Dehrand thermal power project in Maharashtra, the 1800 mw
Maithon thermal project in West Bengal, the 540 mw Naraj
Marthapur project in Orissa and the 100 mw Bhira hydro power
project in Maharashtra.

Tata Power Company Ltd -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area.  The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area.  The company also has a
plant that supplies power to Tata Steel.  In addition, Tata
Power has an 81-MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.

                            *     *     *

Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered
its corporate credit rating on India's Tata Power Co. Ltd. to
'BB-' from 'BB+'.  S&P said the outlook is stable.  At the same
time, the rating on Tata Power's US$300 million senior unsecured
bonds has been lowered to 'BB-' from 'BB+'.

Moody's Investors Service, on July 3, 2007, downgraded the
corporate family rating of Tata Power Company to Ba3 from Ba1.
At the same time, Moody's downgraded its senior unsecured
bond rating to B1 from Ba2.  Moody's said the ratings outlook is
negative.



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PERUSAHAAN LISTRIK: To Sign IDR7.3 Trillion Loan This Month
-----------------------------------------------------------
Aditya Suharmoko and Ika Krismantari of The Jakarta Post report
that PT Perusahaan Listrik Negara is slated to secure additional
loans to immediately finance the construction of its 35 power
plants under the government-sponsored 10,000 megawatts emergency
power project.  

The Port relates that PLN President Director Fahmi Mochtar said
on Friday the firm would sign another deal worth IDR7.3 trillion
or US$794.77 million with Bank Mega and Bank Bukopin to fund 12
coal-fired plants.  

The company held a signing ceremony on Friday related to a
IDR5.7 trillion syndicated loan it secured from:

    -- PT Bank Mandiri Tbk,
    -- PT Bank Negara Indonesia Tbk,
    -- PT Bank Rakyat Indonesia Tbk,
    -- PT Bank Mega Tbk, and
    -- PT Bank Central Asia Tbk,

As reported by the Troubled Company Reporter-Asia Pacific on
April 21, 2008, Perusahaan Listrik Negara will use the loan to
finance the construction of five power plants:

    -- the Suralaya coal-fired power plant for IDR740 billion;

    -- the Paiton power plant for IDR600 billion;

    -- the Labuan power plant for IDR1.19 trillion;

    -- the Indramayu coal-fired power plant for IDR1.27
       trillion; and

    -- the Rembang power plant for IDR1.91 trillion

Aditya Suharmoko and Ika Krismantari further report that
according to Mr. Fahmi, the IDR7.3 trillion or US$794.77 million
with Bank Mega and Bank Bukopin will be signed later this month.

The report relates that Bank Mega is set to disburse IDR4.61
trillion to finance 10 projects:

   -- Pelabuhan Ratu (945 MW),
   -- Lampung (200 MW),
   -- North Sumatra (400 MW),
   -- Riau (14 MW),
   -- East Nusa Tenggara (14 MW),
   -- West Nusa Tenggara (50 MW),
   -- Gorontalo (50 MW),
   -- North Sulawesi (50 MW),
   -- Southeast Sulawesi (20 MW), and
   -- Central Kalimantan (120 MW).

Mr. Fahmi adds that Bank Bukopin is set to channel IDR1.6
trillion toward the construction of 945 MW plant in Teluk
Naga, and IDR1.04 trillion for 630 MW plant in Pacitan, The
Jakarta Post reports.  

"With all of the loans, we have met all the rupiah-denominated
financing needed for the 10,000 MW program," The Post quotes Mr.
Fahmi as saying.
  
According to the report, Finance Minister Sri Mulyani Indrawati,
who attended the signing ceremony, said the government would
closely supervise PLN's use of the loans.  "With all the loans,
PLN must fulfill the country's electricity needs by the end of
2010," The Post quotes Mr. Mulyani as saying.  

                     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.



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ALI