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 Thursday, April 24, 2008, Vol. 11, No. 81 Headlines A U S T R A L I A COMPLETE TREE: Final Meeting Slated for April 30 FIT PLASTER: Final Meeting Slated for April 30 HEYWOOD CONTRACTING: Final Meeting Slated for April 30 J & B PAYNE: Final Meeting Slated for April 30 LIFT CAPITAL: Creditors Can Get at Least Half of Their Money M & V BROWN: Final Meeting Slated for April 30 OPES PRIME: ASIC Won't Interfere Over Beconwood-ANZ Case RUTLAND RIDGE: Final Meeting Slated for April 30 TECHNOVA PTY: Final Meeting Slated for April 30 C H I N A & H O N G K O N G & T A I W A N AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes ASIAN OPTOMETRIST: Liquidator Quits Post BENQ CORP: First Quarter LCD Monitor Sales Up 41.6% CAPITAL IDEA: Creditors' Proofs of Debt Due May 19 CHINA SOUTHERN: Expanding to Eight Overseas Routes This Year COSMIC INT'L: Court to Hear Wind-Up Proceedings on May 21 CS MANAGEMENT: Creditors' Proofs of Debt Due May 9 DANA CORP: Inks Separation Pact with CEO & COO Michael Burns DANA CORP: Ogre Wants Court to Overrule $1.3MM Claim Objection E2E SUPPLY: Liquidator Quits Post FIAT SPA: CEO Says Targets Meet Expectations Amid Poor Market GREENTOWN CHINA: Records RMB923.4 Million Profit for 2007 GREENTOWN CHINA: Opens Two Apartment Complexes in Hangzhou HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook HIGHNESS RESTAURANT: Creditors' Proofs of Debt Due May 17 HOGENT INTERNATIONAL: Liquidators Quit Post JOYFUL DESIGN: Appoints New Liquidators LANGWOOD LIMITED: Creditors' Proofs of Debt Due May 9 MARKVIEW LIMITED: Creditors' Proofs of Debt Due May 19 ORIENTAL POWER: Appoints New Liquidators PETROLEOS DE VENEZUELA: To Discuss Discrepancy in Output Figures PETROLEOS DE VENEZUELA: Paying Interests to Investors on Time PORTAL SOFTWARE: Commences Liquidation Proceedings RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 23 SILVER ELEGANT: Court to Hear Wind-Up Proceedings on May 14 TALENT LEADER: Commences Liquidation Proceedings TIGG (HOLDINGS): Creditors' Proofs of Debt Due May 19 WAH KONG: Court to Hear Wind-Up Proceedings on May 7 WELLBERY COMPANY: Commences Liquidation Proceedings XINHAO GAS: 2007 Profit Up 34% on Increasing Energy Demand ZTE CORPORATION: Fitch Holds 'BB+' ID Rating With Stable Outlook I N D I A DECCAN AVIATION: Appoints Dr. Vijay Mallya as Chairman ICICI BANK: To Cutback Hiring This Year IFCI LTD: Unit Defers Plan to Sell Equity Stake to Cargill CANARA BANK: Fitch Holds 'BB' Foreign Currency Bond Rating I N D O N E S I A BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29 BANK DANAMON: 1st Quarter 2008 Net Profit Reaches IDR563 Billion INDOFOOD SUKSES: To Issue Five-Year Bonds to Repay Debt PERUSAHAAN GAS: Will Supply Additional Natural Gas to PLN J A P A N ALITALIA SPA: OAO Aeroflot to Resume Talks Over Italy's Stake BOWNE & CO: Improved Cash Flow Cues Moody's Ba2 Rating Upgrade FUJI HEAVY: Sees Long-term Benefits With Toyota Tie-up GAP INC: Fitch Affirms IDR at BB+ on Considerable Liquidity GOODWILL GROUP: United Technology Plans No Hostile Bid TAIHEIYO CEMENT: Warns 20% Profit Decline at U.S. Unit K O R E A TAEYANG METAL: Hwang Gyu Hond Resigns as Co-CEO WOORI TECHNOLOGY: Makes Capital Injection Into Subsidiary M A L A Y S I A THERMADYNE HOLDINGS: Moody's Lifts CF Rating to B3 from Caa1 N E W Z E A L A N D AIR NEW ZEALAND: Fiscal 2007 Profit to Fall Due to Oil Hike ASSET BUILDERS: Proofs of Claim Must Be Filed by April 30 ATOMIX LTD: High Court to Hear Wind-Up Petition on April 28 BEDS-R-US WELLINGTON: Deadline to File Claims is Today BENTON DENTED CARRIERS: Court to Hear Wind-Up Petition Today BONSAI PRODUCTIONS: Creditors Must File Claims by April 25 CGNZ LTD: Shareholders Appoint Joint Liquidators CORVARA INVESTMENTS: Faces Bidvest's Wind-Up Petition EDGEWATER ADVENTURES: Creditors Must File Claims by April 28 FOXTON HOTEL: Liquidators Set May 27 Claims Bar Date LORRAINE ADAMS DESIGN: Court Enters Liquidation Order MENSWORKS GROOMING: Joint Liquidators Appointed NO.1 AUTOMART: Faces Aztech Automotive's Wind-Up Petition PEDLARS RECYCLERS: Joint Liquidators Appointed RAYDA LTD: Court to Hear Wind-Up Petition on May 26 SJG CONSTRUCTION: Joint Liquidators Appointed SKELLERUP HOLDINGS: Eyes U.S. Acquisition After Sale of 4 Units STAR SCREENPRINT: Members Appoint Joint Liquidators SUITE CENTRE: Joint Liquidators Appointed WANAKA GAS: Court Enters Liquidation Order P H I L I P P I N E S CHIQUITA BRANDS: Gets Sued Over Colombia Deaths SBARRO INC: Earns US$5.1 Million in Fourth Quarter Ended Dec. 30 MANILA ELECTRIC: Increases Pass-Through Charges for April * Fitch Wary at Sustainability of Philippine Revenues S I N G A P O R E FLEXTRONICS INT'L: May Complete Phase 2 of Arima Deal This Month GRANT PRIDECO: Completed Varco Deal Cues S&P to Withdraw Ratin - - - - - ================= A U S T R A L I A ================= COMPLETE TREE: Final Meeting Slated for April 30 ------------------------------------------------ The Complete Tree & Garden Company Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 3:15 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Complete Tree Based at Camberwell East, in Victoria, Australia, The Complete Tree & Garden Company Pty Ltd is in the durable goods business. FIT PLASTER: Final Meeting Slated for April 30 ---------------------------------------------- Fit Plaster Pty. Ltd. will hold a final meeting for its members and creditors on April 30, 2008, at 12:45 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia HEYWOOD CONTRACTING: Final Meeting Slated for April 30 ------------------------------------------------------ Heywood Contracting Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 1:00 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Heywood Heywood Contracting Pty Ltd is an investment company based at Upwey, in Victoria, Australia. J & B PAYNE: Final Meeting Slated for April 30 ---------------------------------------------- J & B Payne Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 1:15 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About J & B Payne J & B Payne Pty Ltd is a surety insurance company based at South Melbourne, in Victoria, Australia. LIFT CAPITAL: Creditors Can Get at Least Half of Their Money ------------------------------------------------------------ Lift Capital's administrator, McGrathNicol, told the company's 1,600 creditors that they can get back at least half of the money they invested with the firm, reports the Australian Associated Press. McGrathNicol, at a creditors' meeting in Sydney, also said that some Lift investors could have all of their funds returned, while those that don't will receive a dividend payment from a pool of funds, relates AAP. AAP quotes administrator Tony McGrath as saying, "Although it is early days, our expectation is that there will be quite a significant dividend that will be paid out of a pool." Mr. McGrath added that those in the pool could expect a payment of at least 50 cents in the dollar. Mr. McGrath also said in the report that an early estimate has indicated that investors are owed around AU$270 million. About Lift Capital Lift Capital -- http://www.liftcapital.com.au/-- is an Australian owned, independent (non-bank owned) financial services provider, specializing in lending against structured equity products principally against listed shares and interests in managed funds. The company's products enable its clients to borrow money to invest in a wide range of assets. Lift Capital may take a mortgage over these assets to secure the loan. The Troubled Company Reporter-Asia Pacific reported on April 14, 2008, that Lift Capital was placed under voluntary administration after reports questioning its viability triggered a run of investors wanting to liquidate their assets. The administrators will focus on gathering information to convey to creditors and investors. M & V BROWN: Final Meeting Slated for April 30 ---------------------------------------------- M & V Brown Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 1:30 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About M & V Brown Based at Carrum Downs, in Victoria, Australia, M & V Brown Pty Ltd arranges transportation of freight and cargo. OPES PRIME: ASIC Won't Interfere Over Beconwood-ANZ Case -------------------------------------------------------- Blair Speedy of The Australian writes that the Australian Securities & Investments Commission has "changed their mind" after planning to intervene in a Federal Court case against ANZ Banking Group for its selling of shares as part of the collapse of Opes Prime Group Ltd. Beconwood Securities is seeking the return of shares it lodged with Opes as security for a loan but which have since been partially sold by ANZ as the bank seeks to recover AU$650 million in loans made to Opes, relates The Australian. According to The Australian, the case centers on whether the loan arrangement between Beconwood and Opes dissolved any claim to ownership of the shares by Beconwood. Judge Ray Finkelstein told the court that ASIC notified him that it is no longer considering intervening in the case over the matter of ANZ's disclosure. The Australian says that an ASIC spokesman declined to comment on the reason for the regulator's decision. 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. RUTLAND RIDGE: Final Meeting Slated for April 30 ------------------------------------------------ Rutland Ridge Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 2:30 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Rutland Ridge Based at Werribee, in Victoria, Australia, Rutland Ridge Pty Ltd is in durable goods business. TECHNOVA PTY: Final Meeting Slated for April 30 ----------------------------------------------- Technova Pty Ltd will hold a final meeting for its members and creditors on April 30, 2008, at 3:00 p.m. During the meeting, the company's liquidators, V. R. Dye and N. Giasoumi at Dye & Co. Pty Ltd., will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Technova Based at Clayton, in Victoria, Australia, Technova Pty Ltd manufactures metal doors, sash, frames, moldings, and trims. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes --------------------------------------------------------------- Moody's Investors Service affirmed Amkor Technology Inc.'s corporate family (B2), long-term debt (B1 senior unsecured; Caa1 senior subordinated) and speculative-grade liquidity (SGL-2) ratings and revised the outlook to positive. The positive ratings outlook reflects Amkor's improved operating and financial performance with continued free cash flow generation against the backdrop of favorable industry fundamentals. It also reflects Moody's expectations that Amkor will continue to demonstrate a stable to improving credit profile as a result of better operating and financial discipline. Despite likely near-term consumer electronics end market demand weakness, the positive outlook anticipates the company will continue to benefit from a favorable business environment for OSAT services, relatively stable pricing in leading edge packaging solutions and continued demand for its advanced products. Ratings could experience upward pressure over the next 6-12 months if Amkor: (1) continues to sustain its track record of maintaining profitability and achieving anticipated financial and operating performance resulting in operating margins of 12-15% over a semiconductor cycle; (ii) continues to sustain a fixed cost structure such that it is able to generate sufficient free cash flow allowing it to build/maintain cash reserves to comfortably service intermediate debt maturities through 2011; (iii) repays debt prior to scheduled maturities; or (iv) is able to source or convert a sufficient amount of equity capital, such that debt to book capital is consistent with mid/high single-B rated technology peers. Over the past two years, the company's improved operating performance has led to EBITDA growth, margin expansion, and solid free cash flow generation applied to debt reduction (to US$1.76 billion at year end 2007 down from US$2.14 billion in 2005), resulting in improved credit protection measures. Financial leverage, as measured by debt to EBITDA, was 2.8x as of December 2007, which is comparable to B1-rated industry peers, thus lending additional support to the positive outlook. In February 2008, Amkor retired US$88 million of senior notes, further reducing leverage. Liquidity remains good, with cash balances of US$410 million at Dec. 31, 2007 plus access to an unused US$100 million secured revolving credit facility maturing November 2009, for which covenant compliance is expected over the next year. Combined with our expectations of stable to improving annual free cash flow (US$368 million on a Moody's adjusted basis for the twelve months ended Dec. 31, 2007) and improved financial flexibility, Amkor is well positioned to maintain leverage near current levels. Given that Amkor is strongly positioned within the B2 rating category, the rating can tolerate temporary financial leverage weakness as a result of possible fluctuations in EBITDA over the next twelve months due to end market demand softness. These ratings were affirmed and assessments revised: -- Corporate Family Rating -- B2; -- Probability of Default Rating -- B2; -- US$1,061 Million Senior Unsecured Notes with various maturities -- B1 (LGD-3, 44%); -- US$190 Million 2.5% Convertible Senior Subordinated Notes due 2011-Caa1 (LGD-6, 90%); -- Speculative Grade Liquidity Rating -- SGL-2. The ratings outlook is positive. Headquartered in Chandler, Arizona, Amkor Technology, Inc. (Nasdaq: AMKR) -- http://www.amkor.com/-- is a provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services. Outside the United States, the company has wholly-owned subsidiaries in Hong Kong, France, Japan, Singapore, the British Cayman Islands and Netherlands. ASIAN OPTOMETRIST: Liquidator Quits Post ---------------------------------------- On April 17, 2008, Lo Chi Yung stepped down as liquidator for Asian Optometrist Association Limited, which is undergoing liquidation. BENQ CORP: First Quarter LCD Monitor Sales Up 41.6% --------------------------------------------------- BenQ Corp. Inc. Asia Pacific reported first-quarter results for its LCD monitor business. The results showed that unit shipments of the company's LCD monitors increased by 41.6% in Q1 2008 compared to Q1 2007, significantly outperforming the overall market, which grew by 15.6%. Just since the previous quarter, Q4 2007, shipments increased by 24.8%, in contrast to the broader market, which saw an increase of just 2.2% according to the "Quarterly Desktop Monitor Shipment and Forecast Report" released by the NPD Group's DisplaySearch. BenQ's strong performance in Q1 was driven by booming demand for the company's 19" widescreen and 20" widescreen LCD displays, which BenQ has successfully targeted at mainstream market segments in ASEAN countries. Meanwhile, BenQ's 15" widescreen LCD display has also sold well, drawing on demand created as CRT displays are phased out in emerging markets. Moreover, BenQ's 22" widescreen and 24" widescreen LCD displays are catering to customer needs in more mature markets. "By taking advantage of our core strengths in product innovation, versatile marketing strategies and solid local partnerships, BenQ has had a record quarter for LCD monitor sales," said Danny Yao, director of BenQ Asia Pacific Corp. The newly launched BenQ V2400W exemplifies BenQ's innovation capabilities. It not only features HDMI support, 1080p full HD support, a 2ms gray-to-gray response time, and 4000:1 dynamic contrast ratio, but also BenQ's new Kinergy design language, which evokes a sense of motion through static forms-also helping the BenQ V2400W win design awards such as the 2008 if and red dot. The off-center base stand and curved back plate are unexpected yet appealing visual accents that help transform a utilitarian high-tech device into an aesthetically pleasing object. "The commitment to advancing display technology and design is what drives the collaboration between two BenQ Group companies- BenQ and AU Optronics, which is one of the top three TFT-LCD panel manufacturers worldwide. This close partnership is able to provide the most demanding customers with high-performance LCD monitors offering the fastest response time and distinctive looks," Chang added. "As the proliferation of multimedia content accelerates, customers are looking to BenQ for solutions that enable a more enjoyable lifestyle experience. We are confident that we are on track with fulfilling market needs and reaffirm our fiscal year business targets." About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. In June 2007 the company announced that it will change its name to Qisda. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. CAPITAL IDEA: Creditors' Proofs of Debt Due May 19 -------------------------------------------------- Creditors of Markview Limited are required to file their proofs of debt by May 19, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 2008. The company's liquidator is: Lit Kam Leung Rooms 2004-6, 20TH Floor Eastern Commercial Centre 397 Hennessy Road Wanchai, Hong Kong CHINA SOUTHERN: Expanding to Eight Overseas Routes This Year ------------------------------------------------------------ China Southern Airlines Co. will launched eight overseas routes this year to boost its international network, Shanghai Daily reports. Chairman Liu Shaoyong, the report notes, said that 19% of the airline's income comes from international routes, and it aim to raise the figure to 25% or 30% in five years. Mr. Shaoyong told the news agency that the airline is just waiting for regulatory approval to open a route linking Beijing and London in the year's fourth quarter. According to the report, the airline recently accelerated collaboration with other airlines to enhance its business by signing a framework agreement with China Eastern Airlines in January to cooperate in several areas, including ground handling and operations as well as marketing and aircraft procurement. The carrier also plans to open a cargo venture with Air France- KLM Group this year, the Daily relates. About China Southern Airlines Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. Fitch said the outlook on the ratings remains stable. COSMIC INT'L: Court to Hear Wind-Up Proceedings on May 21 --------------------------------------------------------- On March 13, 2008, Golden Take Limited, filed a petition to have Cosmic International Digital Company Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 21, 2008, to hear the petition. The petitioners' solicitor are: Messrs. Jimmie K.S. Wong & Partners Double Building, 22nd Floor 22 Stanley Street Central, Hong Kong CS MANAGEMENT: Creditors' Proofs of Debt Due May 9 -------------------------------------------------- Creditors of CS Management Services Limited are required to file their proofs of debt by May 9, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2008. The company's liquidators are: Yan Tat Wah 5/F., Dah Sing Life Building 99-105 Des Voeux Road Central, Hong Kong DANA CORP: Inks Separation Pact with CEO & COO Michael Burns ------------------------------------------------------------ Michael Burns, on Jan. 31, 2008, tendered his resignation as Dana Holding Corporation's president, chief executive officer, chief operating officer, and member of the company's board of directors. In line with Mr. Burns' resignation, Dana disclosed in a filing with the U.S. Securities and Exchange Commission that it has entered into a separation agreement with Mr. Burns on March 27, 2008, pursuant to which Mr. Burns' employment terminated on March 31, 2008. In accordance with the terms of the Separation Agreement, Mr. Burns continued to receive his base salary through March 31. The Agreement also provides that Mr. Burns is entitled to: (a) participate in all medical, dental, prescription drug, hospitalization, life insurance and other welfare coverages and benefits in which he was participating immediately prior to the Resignation Date through the Termination Date; (b) a previously paid and disclosed incentive award earned in 2007 under Dana's 2007 Annual Incentive Plan; (c) a previously disclosed incentive award earned in 2007 under Dana's 2007 Executive Incentive Compensation Plan; (d) an accrued benefit plus interest in full satisfaction of the Supplemental Retirement Benefit of which he will receive 60% in cash and 40% in the form of an allowed general unsecured claim; (e) a payment in the amount of $3,000,000 in consideration for executing a Confidentiality, Non-Compete, Non- Solicitation, Non-Disclosure and Non-Disparagement Agreement with Dana Corporation; (f) a payment in the amount of $150,000 as additional consideration for his obligations and commitments under the Agreement, the Non-Compete Agreement and a release of claims against Dana; and (g) benefits under the Consolidated Omnibus Budget Reconciliation Act commencing as of the Termination Date; (h) payment of attorneys' fees reasonably incurred since Nov. 1, 2007, in connection with his employment arrangements or the termination, provided that the fees will not exceed $125,000; and (i) all other or additional benefits to which Mr. Burns is entitled in accordance with the applicable terms of any applicable plan, program, agreement or arrangement of Dana or any of its affiliates. Under a Non-Compete Agreement, Mr. Burns has certain confidentiality obligations and will be bound by certain restrictive covenants, including one year non-competition and non-solicitation restrictions that will prohibit him from engaging in any business in competition with the businesses conducted by Dana and from soliciting the customers and employees of Dana. In addition, under the Release, Mr. Burns will release any claims he might have against Dana. A full-text copy of the Separation Agreement is available for free at http://ResearchArchives.com/t/s?2ac9 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 $7,131,000,000 in total assets and $7,665,000,000 in total debts resulting in a total shareholders' deficit of $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 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 $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 $1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. DANA CORP: Ogre Wants Court to Overrule $1.3MM Claim Objection -------------------------------------------------------------- Ogre Holdings, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to overrule reorganized Dana Corp.'s objection to Claim No. 14990 seeking damages as a result of the rejection of a settlement agreement involving environmental remediation at the Acraline Site in Tipton, Indiana. The Reorganized Debtors had objected to Claim No. 14990 and asked the Court to estimate the Claim at $1,300,000. "Dana's arguments against Claim No. 14990 are off the mark," Frank J. Deveau, Esq., at Sommer Barnard PC, in Indianapolis, Indiana, says. Mr. Deveau asserts refutes the Reorganized Debtors' assertions that they are only liable for 77.5% of any remediation costs at the Tipton Site. He says now that the Reorganized Debtors have rejected the settlement agreement, they are completely responsible for the contamination at the Property. Mr. Deveau tells the Court that the only reason why Ogre Holdings consented to the settlement agreement was because Dana Corporation, now Dana Holding Corporation, agreed to manage the remediation, pay the bulk of the costs on an ongoing basis, and seek reimbursement of all expenses from their insurers. However, Mr. Deveau contends, due to the rejection of the settlement agreement, Dana will not manage the remediation, will not pay any costs on an ongoing basis, and will not seek any reimbursement from insurers. Ogre Holdings asserts that the amount sought in Claim No. 14990 is well supported by the reports and evaluations prepared by Cornerstone Environmental, Health and Safety, Inc., an environmental consulting firm who has spent nine years dealing with the environmental issues and challenges posed by the Property. Mr. Deveau says the approach espoused by Cornerstone will remediate the Property to residential level closure standards and will enable Ogre Holdings to obtain a covenant not to sue. Ogre Holdings says it intends to engage in discovery with the Reorganized Debtors to determine what insurance coverage was available as of the Petition Date to reimburse remediation expenses at the Property. Ogre Holdings adds that it will depose the Reorganized Debtors' environmental consultant, Environmental Resources Management, with regard to its remediation plan for the Property. Ogre Holdings says it will present evidence from Cornerstone, Dr. Vicky Keramida, an environmental engineer, and a municipal well-field expert, at trial to support Claim No. 14990. 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 $7,131,000,000 in total assets and $7,665,000,000 in total debts resulting in a total shareholders' deficit of $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 $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 $1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. E2E SUPPLY: Liquidator Quits Post --------------------------------- On April 7, 2008, Men Yihu c/o Century Business Consultants Limited stepped down as liquidator for E2E Supply (Hong Kong) Limited, which is undergoing liquidation. FIAT SPA: CEO Says Targets Meet Expectations Amid Poor Market ------------------------------------------------------------- Sergio Marchionne, chief executive of Fiat SpA, said results for the first quarter are completely in line with expectations despite the poor state of the auto market, Reuters reports. Mr. Marchionne, Reuters relates, confirmed the group's financial targets for the year amid weaker sales. The Italian car marker aims a higher trading profit of up to EUR3.6 billion (US$5.7 billion). "Obviously, the market is taking it that conditions are worse than they were before," an analyst was quoted by the paper as saying. The company will hold a conference call at 4:00 p.m. (CET) today, April 24, 2008, to discuss the results for the first quarter. About Fiat Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/-- (BIT:F) is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. GREENTOWN CHINA: Records RMB923.4 Million Profit for 2007 --------------------------------------------------------- Greentown China Holdings Limited disclosed annual results for the year ended December 31, 2007. For the year ended December 31, 2007, the Group recorded revenue of RMB5,738.8 million. Gross profit margin was 36%. Net profit amounted to RMB923.4 million and earnings per share was RMB63 cents. The Board of Directors has resolved to recommend a final dividend of HK32 cents per share for the year ended December 31, 2007. Property Sales For the year under review, revenue from property sales amounted to RMB5,690 million. GFA recognized in the accounts from sales reached 652,158 sqm. Average selling price increased by 8% from RMB8,077 per sqm. in 2006 to RMB8,725 per sqm. in 2007. Sales were mainly derived from Shanghai, Hangzhou and Beijing, representing 33%, 21% and 21% of total sales respectively. Development Strategy The Group fully implemented the "Fine Product Strategy" and embraced a "quality first" philosophy. The reputation the Group has built for premium product line is well recognized in the market: - "Osmanthus City" represents large-scale residential development - "Chunjiang Huayue" represents high-rise apartment development - "Deep Blue Plaza" represents elaborately fitted-out high-rise apartment development - "Rose Garden and Taohuayuan" represents villa development The "Fine Product Strategy" serves to consolidate and further improve the standards of its product and ensure that it maintains the premium value of its brand name and continues to achieve strong sales growth. Demonstrating the Group's continuous efforts to explore and improve servicing quality, the "Greentown Lifestyle Community Service System" was piloted at Hangzhou Lanting Project. The System reflects an upgrade in the main emphasis of Greentown's management towards a new focus on providing services that satisfy the healthcare, cultural and everyday needs of residents in its projects. As a result, the System received "China City Administration Excellence Award" with other government sponsored public initiatives during 2007. After the launch to the market, it has stimulated sales of the units in a direct way. During the year, there were a total of 70 projects under development, with an aggregate GFA of 5.38 million sqm. Regarding the influence and growth of brand reputation, the Group adhered firmly to its decision to further spread its influence from the home base of Zhejiang Province to the dynamic metropolitan region around the Yangtze River Delta. At the same time, it continued to develop its presence in major cities around the Bohai Rim, and endeavored to increase its market share in Central China cities where it has undertaken projects such as Changsha and Hefei, etc. Forming strategic partnership is an appropriate decision to maintain a balance between expansion in projects and control of financial risks. In 2007, the Group established strategic cooperation relationships with a number of outstanding enterprises such as Haier Group, Zhejiang Energy Group, the Wharf Group, Beijing Chengjian Corporation and Zhejiang Baoye Construction Corporation. The Group acquired 21 projects including Qianjiang New City project in Hangzhou, Xinjiangwan City project in Shanghai, Yulan Garden and Yangming Road projects in Shaoxing, National Games Village project in Jinan, Changzhi Island project in Zhoushan, and Ningbo Crown Garden through auction and tender by the government in open market, and acquisition of equity interests from third parties; 78% of the new land bank added to the Group in the year of 2007 was through M&A or JV arrangement. Commenting on the results, Mr. Shou Bainian, Executive Vice- Chairman & Chief Executive Officer of Greentown said, "Decrease in revenue was mainly attributable to relocation issues or issues relating to the government approvals of 4 projects (namely Shanghai East Sea Plaza, Hangzhou Taohuayuan, Shanghai Rose Garden, Zhoushan Rose Garden) which were not delivered as scheduled in the plan. Shanghai East Sea Plaza (pre-sale rate 100%) recorded sales of RMB1.95 billion at the end of 2007. The Government has promised to solve the delay of relocation of public road outside Shanghai East Sea Plaza by mid of the year. Hangzhou Taohuayuan (pre-sale rate 78%) recorded sales of RMB574 million at the end of 2007. The development plan was re- submitted due to the new 90/70 Rule and has been approved. The progress for Shanghai Rose Garden (pre-sale rate 53%; recorded sales RMB468 million) and Zhoushan Rose Garden (not yet launched) were delayed due to adjustment in design development and both have been resolved." Future Prospects With ongoing rapid development of the country's economy, the acceleration of urbanization trend, and the continuous growth of market demand for homes that will offer improving lifestyle, the Group trusts there is no fundamental change in the long-term prospect of the real estate market in the PRC. It therefore remains confident about the prospects for the future development. In 2007, the Group has covered 25 cities nationwide. The total GFA from land bank accumulated amounted to 22.22 million sqm., which has laid solid groundwork for development for next 4 to 5 years. Mr. Shou added, "The Group will continue the "Homes for generations to live in and A brand for centuries to remember" philosophy. Leveraging on experienced management team, the Group continues to build on its brand premium, deepen the "Fine Product Strategy" and enhance the standard of its products and services. At the same time, the Group will speed up development process, thereby expediting turnover of assets and sure-footed expansion in operation." About Greentown China Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. * * * The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. GREENTOWN CHINA: Opens Two Apartment Complexes in Hangzhou ---------------------------------------------------------- Greentown China Holdings Limited has launched two new projects this week namely Lijiang Apartment in east Hangzhou and Lanting in Linping New City, north Hangzhou. Sales of the projects are encouraging. Located in east Hangzhou, Lijiang Apartment, was first launched on March 24. 241 units out of 329 units were sold on the first day launch, representing presales rate of 73% with sales revenue amounted to over RMB400 million. Majority size is around 85-89 sqm while some are about 135-143 sqm, at an average price of approximately RMB14,000/sqm, which is 20% higher than neighbouring fully fitted apartments. Facing Qiantangjiang on the south, the site is actually in Jiubao district, frontier of the City's "East Expansion" plan. It is positioned as a new urban residential center in combination of natural village and city culture. It is also equipped with high-end clubhouse and different facilities such as entertainment, leisure and gymnasium that can thoroughly satisfy various needs of all residents. Meanwhile, the Group has launched Lanting in Linping New City, north Hangzhou on 22 March. 52 units were sold in 2 days last weekend. Saleable area totaled 6,038 sqm and revenue amounted to RMB50 million. Mr. Shou Bainian, Executive Vice-Chairman & Chief Executive Officer of Greentown said, "In spite of volatile market sentiment, encouraging sales from the two projects has once again proved real market need for better housing standard as well as customers' confidence in Greentown's brand and products. Making masterpiece projects is always our commitment." About Greentown China Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. * * * The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on aerospace supplier Hexcel Corp. to positive from stable. At the same time, S&P affirmed ratings, including the 'BB' corporate credit rating, on the company. About US$370 million of debt is outstanding. "The outlook revision is based on improving profitability and credit protection measures, benefiting from growth in core markets, operational leverage, and debt reduction, despite high levels of capital spending," said Standard & Poor's credit analyst Roman Szuper. The ratings on Hexcel reflect participation in the cyclical and competitive commercial aerospace industry, significant investment in carbon fiber capacity needed to support increasing jetliner production rates, and uncertainty arising from on ongoing proxy contest over director nominations. Those factors are partly offset by the company's position as the world's largest manufacturer of advanced composite materials, generally favorable market conditions, and financial profile that is somewhat better than average for the rating. The outcome of a proxy contest over director nominations remains uncertain until the annual meeting of stockholders, which is scheduled for May 8, 2008. OSS Capital, an activist hedge fund, is proposing three nominees for the board of directors and is opposing three members proposed by Hexcel. OSS, which owns 5.5% of Hexcel's common stock, stated its main concern as Hexcel's financial underperformance; as a consequence, OSS alleges that shareholder value is not maximized. OSS offers no specific actions to address its concerns, aside from its proposal for board nominees. The nominating and governance committee of Hexcel's board offered to add one of the OSS candidates to the existing board, but the offer was rejected. S&P will monitor the situation and any potential adverse effect on credit quality. Continued favorable conditions in core markets, ongoing gains in operating efficiency, and further strengthening in credit protection measures could lead to a ratings upgrade over the next 12 months. S&P could revise the outlook to stable if the slowing global economy has a greater-than-expected effect on the company's sales and profits. Hexcel's financial policy or strategic direction may change somewhat if OSS representatives join the board of directors either through a proxy win or a settlement with the company. S&P would assess the rating outlook if Hexcel's financial policy becomes more aggressive. Stamford, Conn.-based Hexcel is a leader in the composites industry, producing lightweight, high-performance carbon fibers, industrial fabrics, specialty reinforcements, carbon prepregs, structural adhesives, honeycomb, and composite structures for the commercial aerospace, defense and space, and industrial sectors. The company concentrates on serving growing markets in which it has competitive advantage. HIGHNESS RESTAURANT: Creditors' Proofs of Debt Due May 17 --------------------------------------------------------- Creditors of Highness Restaurant, Limited are required to file their proofs of debt by May 17, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 5, 2008. The company's liquidator is: Chow Kee Wai Flat A, 9/F., Block 3, Garden Terrace 8A Old Peak Road, Hong Kong HOGENT INTERNATIONAL: Liquidators Quit Post ------------------------------------------- On April 10, 2008, Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators for Hogent International Holding Limited, which is undergoing liquidation. JOYFUL DESIGN: Appoints New Liquidators ---------------------------------------- Members of Joyful Design Limited appointed Messrs. Lai Kar Yan Derek and Darach E. Haughey as the company's liquidators. The liquidators are: Messrs. Lai Kar Yan Derek Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong LANGWOOD LIMITED: Creditors' Proofs of Debt Due May 9 ----------------------------------------------------- Creditors of Langwood Limited are required to file their proofs of debt by May 9, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2008. The company's liquidators are: Cheng Chung Por Gordon Ngan Lin Chun Esther 1902 MassMutual Tower, 38 Gloucester Rd. Wanchai, Hong Kong MARKVIEW LIMITED: Creditors' Proofs of Debt Due May 19 ------------------------------------------------------ Creditors of Markview Limited are required to file their proofs of debt by May 19, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 7, 2008. The company's liquidator is: Lam Ying Sui Room 1005, Allied Kajima Building 138 Gloucester Road Wanchai, Hong Kong ORIENTAL POWER: Appoints New Liquidators ---------------------------------------- Members of Oriental Power Electronics Limited appointed Kwong Chan Kin Hang, Danvil and Chan Man Yui as the company's liquidators. The liquidators are: Chan Kin Hang, Danvil Chan Man Yui Ginza Square, 17th Floor, 565-567 Nathan Road Kowloon, Hong Kong PETROLEOS DE VENEZUELA: To Discuss Discrepancy in Output Figures ---------------------------------------------------------------- Dow Jones Newswires reports that the Venezuelan government will discuss in May the discrepancy between Petroleos de Venezuela SA's oil output figures and estimates from the Organization of Petroleum Exporting Countries. According to Dow Jones, Venezuelan Oil Minister Rafael Ramirez said that Venezuela is proposing to OPEC that "other measures be used to ascertain oil production." The minister told reporters that "Venezuela has proposed that another reference be sought." Dow Jones notes that the Venezuelan government said that its daily output is about 3.3 million barrels, but outside estimates have placed Venezuela's actual production below official levels. Venezuela was producing about 2.33 million barrels per day "based on secondary sources," and the International Energy Agency placed the nation's daily oil production at 2.44 million barrels, published reports say, citing OPEC. Minister Ramirez told Dow Jones that the Venezuelan government is not in favor of using figures from "secondary sources" and that such estimates came from sources connected to the International Energy Agency, the energy watchdog of major industrialized nations. Minister Ramirez described the International Energy Agency as a "political agency biased toward oil consuming countries," Dow Jones says. Minister Ramirez also told Dow Jones that OPEC Secretary General Abdalla Salem el-Badri was scheduled to visit Venezuela in May and that the Venezuelan government will "take him to all our terminals and present him with a summary of all the ships and tankers that depart every day." Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PETROLEOS DE VENEZUELA: Paying Interests to Investors on Time ------------------------------------------------------------- Petroleos de Venezuela S.A. has performed in a responsible, efficient and transparent manner in the financial field by paying interests on the planned dates for bonds with maturity dates of 2017, 2027, and 2037, the company stated in a media release. PDVSA bonds are fixed income investment instruments that pay interests every six months. PDVSA calculates interests in U.S. dollars and gives them to the institutions having under custody investors' bonds in Venezuela and overseas. Banks in Venezuela can directly pay interests to their clients overseas or issue checks in dollars made payable to the beneficiaries. Another way banks can apply to pay interests to investors is to buy dollars at the official exchange rate and hand in their value in bolivars. Venezuela's exchange agencies can also open investment bank accounts for investors that can hold products in dollars or bolivars. The latter is only possible in Venezuela. PDVSA is now analyzing new payment possibilities to accumulate or transfer bonds' interests or capital payments to the client's preferred exchange agency or financial institution. To accomplish this, PDVSA is working with the National Securities Commission, the Venezuelan Securities Fund, the Venezuelan Association of Exchange Agencies, and the Caracas Stock Market. In this way, PDVSA can evaluate new mechanisms that will make it easier to collect bonds' interests, which will expedite this process and will benefit Venezuelans who invest and trust on the financial soundness of the country's main industry. In addition, PDVSA is motivating Venezuelans to save by investing in non-traditional financial instruments, thereby benefiting small investors and promoting productive investment. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. PORTAL SOFTWARE: Commences Liquidation Proceedings -------------------------------------------------- Portal Software's (Asia Pacific Limited) members agreed on April 8, 2008, to voluntarily liquidate the company's business. The company has appointed Rainier Hok Chung Lam and John James Toohey to facilitate the sale of its assets. The liquidators are: Rainier Hok Chung Lam John James Toohey Prince's Building 22nd Floor Central, Hong Kong RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 23 --------------------------------------------------------- Creditors of Ricon International Limited are required to file their proofs of debt by May 23, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 11, 2008. The company's liquidator is: Kong Chi How, Johnson 25/F, Wing On Centre 111 Conbaught Road Central, Hong Kong SILVER ELEGANT: Court to Hear Wind-Up Proceedings on May 14 ----------------------------------------------------------- On March 12, 2008, Silver Elegant Limited, filed a petition to have UPS Parcel Delivery Service Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 14, 2008, to hear the petition. The petitioners' solicitor is: Wilkinson & Grist Prince's Building, 6th Floor Charter Road, Central Hong Kong TALENT LEADER: Commences Liquidation Proceedings ------------------------------------------------ Talent Leader Entertainment & Productions' members agreed on April 8, 2008, to voluntarily liquidate the company's business. The company has appointed Yiu Cho Yan to facilitate the sale of its assets. The liquidator is: Yiu Cho Yan Yiu Cho Yan CPA Room 1702, 17/F., Asian House, 1 Hennessy Road Wanchai, Hong Kong TIGG (HOLDINGS): Creditors' Proofs of Debt Due May 19 ----------------------------------------------------- Creditors of TIGG (Holdings) Limited are required to file their proofs of debt by May 19, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 2008. The company's liquidator is: Au Yan Alfred 24/F., Hang Wai Commercial Building 231-233 Queen's Road East Wanchai, Hong Kong WAH KONG: Court to Hear Wind-Up Proceedings on May 7 ---------------------------------------------------------- On March 12, 2008, Dah Sing Bank Limited, filed a petition to have Wah Kong Paper Products Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on may 7, 2008, to hear the petition. The petitioners' solicitor is: K.B. Chau & Co. Wing Lung Bank Building, 16th Floor 45 Des Vouex Road Central, Hong Kong WELLBERY COMPANY: Commences Liquidation Proceedings --------------------------------------------------- Wellbery Company Limited's members agreed on April 12, 2008, to voluntarily liquidate the company's business. The company has appointed Wong Lai Yin to facilitate the sale of its assets. The liquidator is: Wong Lai Yin Room 1206, Haleson Bldg. 1 Jubilee Street Central, Hong Kong XINHAO GAS: 2007 Profit Up 34% on Increasing Energy Demand ----------------------------------------------------------- Xinao Gas Holdings Limited's 2007 profit rose 34% to after expanding its operations to benefit from the increase of energy demand in China, Bloomberg reports. The report relates that company net income increased to CNY507.5 million (US$73 million), or CNY0.503 a share, from a revised CNY379.6 million, or CNY0.387, a year earlier. Ying Lou of Bloomberg writes that Xinao Gas has expanded the number of city gas projects to 67 as the government promotes cleaner-burning fuels. Meanwhile, the company's sales rose to CNY5.76 billion from CNY3.4 billion, the same report relates. The company plans to increase sales by as much as 50% to 2.2 billion cubic meters this year as demand for the cleaner-burning fuel grows, Financial Director Yu Jianchao told the news agency. Xinao Gas will pay a final dividend of 13.42 Hong Kong cents per share, compared with 7.75 Hong Kong cents a year earlier, the report adds. About Xinao Gas Based in Hong Kong, Xinao Gas Holdings Limited -- is an investment holding company. The company, along with its subsidiaries, is principally engaged in the investment in, and the operation and management of, gas pipeline infrastructure and the sale and distribution of piped and bottled gas in the People's Republic of China. Xinao Gas Holdings Limited operates in four divisions: gas connection, sales of piped gas, distributions of bottled liquefied petroleum gas and sales of gas appliances. As of December 31, 2005, more than 90% of its assets are located in the People's Republic of China, including Hong Kong. The company has a total of 7,268 kilometers pipeline network, serving 1.79 million residential households and 4,041 commercial/industrial users (with a total designed daily capacity of 2,495,479 cubic meters). * * * The Troubled Company Reporter-Asia Pacific reported on Aug. 18, 2006, that Moody's Investors Service affirmed XinAo Gas' Ba1 senior unsecured debt rating with a negative outlook. Standard & Poor's gave the company's long-term local and foreign issuer credit a BB+ rating on July 22, 2005. ZTE CORPORATION: Fitch Holds 'BB+' ID Rating With Stable Outlook ---------------------------------------------------------------- Fitch Ratings affirmed ZTE Corporation Long-term foreign currency and local currency Issuer Default Ratings at 'BB+'. The rating Outlook remains Stable. The affirmation reflects the company's strong market position - ZTE is the second-largest Chinese telecommunications equipment vendor, with a comprehensive product and technology portfolio which is becoming increasingly important given the ongoing fixed-mobile convergence trend. Furthermore, its low cost base, especially in manufacturing and R&D, facilitates a competitive advantage enabling its products and services to be priced 20%- 30% below its global competitors. Its ratings are also underpinned by its strong financial profile, with net adjusted debt/EBITDAR of 1.1x at FYE07. ZTE's capital structure still remains conservative, although its total debt increased by 147% to CNY6.5 billion at FYE07 and, for the first time, turned into a net debt position of CNY179 million at FYE07, due to a 366% surge in short-term debts. Fitch believes developments in FY07 provided positive support to ZTE's ratings - a 50% increase in revenue, with very strong performance in its wireless infrastructure and handset sectors, and a breakthrough in international markets which contributed 58% of the company's revenue in FY07. The ratings are constrained by the company's low operating margin and the relatively high proportion of new network contracts in its portfolio. The ratings are also constrained by its relatively small revenue scale when compared to its global peers in the telecommunications equipment sector. A related concern is that ZTE's free cash flow remains negative, mainly in consequence of a substantial working capital investment requirement as revenue expands rapidly. Positive rating drivers include a revenue scale more comparable with its international competitors (US$6 billion is viewed as a minimum, compared with ZTE's US4.8 billion in FYE07), double digit EBITDAR margins (versus 8.7% in FY07), and generating positive FCF on a sustainable basis. Negative rating drivers include a substantial decline in operating margins due to fierce competition, and further leveraging above and beyond 2x net adjusted debt/EBITDAR on a sustainable basis. Listed on the stock exchanges of Shanghai and Hong Kong, ZTE is a leading telecommunications equipment vendor with an annual revenue base of CNY34.8 billion in FY07. ZTE provides a range of telecommunications systems and equipment, including wireless, wireline switch and access equipment, optical and data communications equipment, handsets, and telecommunications software systems and services. 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. ========= I N D I A ========= DECCAN AVIATION: Appoints Dr. Vijay Mallya as Chairman ------------------------------------------------------ In a merger between Deccan Aviation and Kingfisher Airlines, it was decided between the two companies to appoint Dr. Vijay Mallya as Chairman of the Board of Directors taking over from Lt. Gen. N S Narahari. Lt. Gen. Narahari will continue to remain as Director on the Board of company. Capt. Gopinath, said, "Lt. Gen Narahari has been the Chairman of Deccan since the inception in 1997, providing the moral moorings and leadership to the board and the company and steering Deccan to commanding heights and revolutionizing the aviation landscape of the country. We acknowledge his contribution and guidance." He also added "to enable successful merger between Kingfisher and Deccan and effective realization of both cost saving synergies and revenue enhancement, Dr. Vijay Mallya was chosen to lead the Board of Directors." As reported by the Troubled Company Reporter - Asia Pacific on April 23, 2008, the merger between the two companies will be finalized on June 1, 2008. 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. ICICI BANK: To Cutback Hiring This Year --------------------------------------- ICICI Bank plans to reduce its recruitment this year to a maximum of 9,000 from 16,000 new recruits last year, Latha Venkatesh of CNBNC-TV18 writes for moneycontrol.com. Earlier, the bank was recruiting for the future, but now it will only recruit for the present. It is hiring 2,500 campus recruits, plus 1,000 from Manipal. About 6,000 more candidates are to fill up the 15% attrition rate, which totals to 9,000 recruits instead of the 16,000 recruits, the report added. As to number of jobs, ICICI said it will only will cut casual and outsourced labour like watchmen. There will be no promotions and hikes will be restricted to a little over the inflation rate. Bonus comes under discretionary pay and can't be given when spreads are under pressure, the report says. The bank also declared that it is not cost cutting, but eliminating waste from stationery to travel to electricity, Ms. Venkatesh relates. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated Debt a BB rating. The bank currently carries Moody's Investors Service's Ba2 Foreign Long Term Bank Deposits rating, which was placed on Feb. 5, 2003. IFCI LTD: Unit Defers Plan to Sell Equity Stake to Cargill ---------------------------------------------------------- Asset Care Enterprises Ltd., which is a 36% owned by IFCI Ltd., deferred its plans to sell up to 49% equity stake to Cargill Inc.'s unit, Trading Markets reports citing the company's chief executive. "IFCI Ltd. and other shareholders wanted a partner to give strong direction to the company but the Reserve Bank of India was not comfortable (with a private equity firm buying such a large stake in the company)," the Trading Markets quoted Jayant Dang as saying. According to the report, Punjab National Bank owns a 26% stake in Asset Care, which reconstructs bad debt. Other shareholders are state-run Life Insurance Corp of India, Tourism Finance Corp. of India, Bank of Baroda and United Bank of India. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. CANARA BANK: Fitch Holds 'BB' Foreign Currency Bond Rating ---------------------------------------------------------- Fitch Ratings affirmed India-based Canara Bank's ratings at Long-term foreign currency IDR 'BBB-' with Stable Outlook, Individual 'C/D', Support '2', Support Rating Floor 'BBB-' and National Long-term 'AAA(ind)' with Stable Outlook. Its upper tier 2 and hybrid tier 1 bonds are affirmed at Long-term foreign currency 'BB'. Meanwhile, a Short-term foreign currency Issuer Default rating of 'F3' is assigned to Canara Bank. The ratings reflect Canara Bank's fairly strong financial profile among Indian banks, its size as the fourth-largest domestic bank by assets with a national presence, as well as its above-average capitalisation and solvency. Fitch expects Canara Bank's net interest margin to remain under pressure over the next 12 to 18 months as it undertakes measures to rebalance its portfolio by a natural run down of its high- cost bulk deposits and low-yielding corporate loans. Fee income is low (FY ended March 2007: 9% of total operating income) and, though the bank is trying to grow fee income from retail banking, Fitch expects that it could take time to gain traction in view of competition from new private banks. Profitability could be impacted by Canara Bank's provision for pension costs under AS 15 and also from its provision for the value depreciation of AFS securities portfolio if interest rates were to rise further. Canara Bank's current equity should be able to support business growth and absorb capital charge for operational risk under Basel II; however, Fitch notes that revaluation reserves represented 22% of equity in FY07. Nevertheless, Fitch takes comfort that with the government holding 73% of (statutory minimum: 51%) Canara Bank, the bank has ample headroom to augment its Tier 1 capital besides having recourse to hybrid capital in the interim. Canara Bank's gross non-performing loan (FY07: 1.5%, 9M08: 1.5%) ratio compares favourably with the system median (FY07: 2.6%) and has improved due to strong recoveries from written-off accounts. However, specific loan loss coverage ratio (FY07: 30%, 9M08: 38%) remains lower than the system's (FY07: 61%) because a majority of its NPLs are in sub-standard category where, unlike other large banks in India, Canara Bank only provides coverage close to the regulatory minimum. With a network of 2,644 branches, Canara Bank has a pan-India branch network, although south and west India account for 38% and 24% of deposits, respectively. Through joint ventures and nine subsidiaries, Canara Bank also engages in asset management, factoring, venture capital, primary dealerships, and life and non-life insurance; these activities' contribution to profit remains limited. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. ================= I N D O N E S I A ================= BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29 ------------------------------------------------------------- PT Bank Rakyat Indonesia Tbk will hold its first quarter 2008 Earnings Presentation on Tuesday, April 29, 2008. As reported by the Troubled Company Reporter-Asia Pacific on April 1, 2008, the bank is targeting a 10-15% rise in its 2008 net profit. For the quarter ended March 31, 2007, Bank Rakyat reported net income of IDR1.2 trillion. The TCR-AP also reported on March 31, 2008, that Bank Rakyat's 2007 net profit increased 13.6% to IDR4.84 trillion from IDR4.26 trillion in 2006, after net interest margins declined slightly. Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. BANK DANAMON: 1st Quarter 2008 Net Profit Reaches IDR563 Billion ---------------------------------------------------------------- PT Bank Danamon Indonesia Tbk. (Danamon) reported a 30% year-on- year loan growth for the first quarter 2008, supported by strong loan expansions in the mass market and wholesale customer segments. During the past one year period, Danamon's loans grew by IDR12.8 trillion, reaching IDR55.9 trillion as of March 31, 2008, improving its Loan-to-Deposit Ratio (LDR) to 89.4%. Danamon's net profit after tax reached IDR563 billion, up 17% yearon- year from IDR482 billion for the first quarter of 2007. "We are pleased to see a continuing momentum in our business growth over the past several quarters," said Sebastian Paredes, President Director of Danamon. "Despite the global and domestic economic challenges, we are confident that we will be able to achieve our growth targets for the year," continued Sebastian. Taking into account its long-term funding, LDR at the end of the first quarter of 2008 was 74.2%. "Our mass market loans, which comprise of micro lending and consumer auto financing loans grew by 32% in the span of one year," stated Sebastian. "This growth was supported by continued expansion in Danamon Simpan Pinjam loans which increased by 39% to IDR9.1 trillion. This micro lending segment now accounts for more than 16% of Danamon's total loans at the end of March 2008," Sebastian continued. Meanwhile, auto loans through Adira Finance increased significantly by 21% year-on-year to IDR13.8 trillion supported by the strong growth in motorcycle financing. "Another engine of our business growth has been the Consumer Mass Market, or CMM, which offers personal loans to salaried customers. Our loans to this segment has almost tripled year-on-year with outstanding loans growing progressively to IDR1.2 billion," Sebastian explained. Danamon's Small and Medium Enterprise (SME) loans grew by 8% to IDR9.1 trillion, representing 16% of total loans at the end of the first quarter 2008. Retail loans increased by 39% to IDR4.9 trillion on the back of strong growth in mortgage and card businesses. "Our wholesale segment, which is mainly comprised of Commercial and Corporate loans also contributed well to our loan growth over the past several quarters. Our corporate loans grew by 56% year-on-year to IDR8.6 trillion partly driven by trade financing; commercial loans expanded by 35% to IDR7.5 trillion contributed by strong growth in asset based financing," explained Sebastian. As per March 31, 2008 Danamon's wholesale segment made up 31% of its total loan book. "Danamon's Gross NPL declined to 2.3% as of March 31, 2008 from 3.2% a year ago, while Net NPL remained zero with a loss- coverage ratio of 156.4%, after taking into account collateral value," said Vera Eve Lim, Chief Financial Officer and Director of Danamon. At 19.7%, Danamon's Capital Adequacy Ratio (CAR) remained well above regulatory requirements. For the first three months of the 2008 financial year, Danamon reported a Net Profit After Tax (NPAT) of IDR563 billion, up 17% for the same period last year. "This increase was largely driven by strong growth in net interest income and lower cost of credit. Our net interest income rose by 19% to IDR1.98 trillion in the first quarter 2008 on the back of continued loan growth and expanded margin. Interest income rose by 7% to IDR3,15 trillion in line with strong loan expansion," Vera continued. At the end of the first quarter 2008, Danamon's ROAA and ROAE stood at 2.5% and 20.6%, respectively. "In line with our organic growth plan this year, we are making strong progress in our branch network expansion, having opened 6 new conventional and retail banking branches as well as 115 new DSP branches in the first three months of this year," said Sebastian. In 2008, Danamon plans open 78 new conventional and retail banking branches, 41 Adira branches and 236 Danamon Simpan Pinjam (DSP) branch offices across Indonesia. "Up to the end of March, we have hired over 2,000 new employees from our plan of 5,000 for the year," Sebastian continued. Danamon's total interest-bearing funding increased by 10% to IDR73.8 trillion from IDR67.0 trillion a year earlier supported by strong growth in low cost deposits and long-term funding. Current and saving accounts grew by 35% and 18% to IDR6.8 trillion and IDR11.5 trillion, respectively, and both accounted for 25% of total funding. Meanwhile, long-term funding, which include senior bonds, subordinated debt, securities sold under repurchase agreements and other borrowings, made up another 16% of funding. Following the successful issuance of IDR1.5 trillion senior bonds in May 2007, long-term funding rose by 24% to IDR11.8 trillion as of March 31, 2008. This long-term funding initiative is part of the bank's strategy to minimize the asset liability maturity mismatch as well as to diversify the funding sources. According to Reuters, analysts expect Danamon to report a full- year net profit of IDR2.71 trillion in 2008, or an increase of about 28 percent from last year's net profit of IDR2.12 trillion. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch Ratings took rating actions on PT Bank Danamon. Fitch revised the outlook to stable from positive. The detailed ratings are: -- LTFC IDR upgraded to 'BB' from 'BB-'/Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Support Rating Floor upgraded to 'BB-' from 'B'; -- Individual rating affirmed at C/D; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA(idn)'. On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3. -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. INDOFOOD SUKSES: To Issue Five-Year Bonds to Repay Debt ------------------------------------------------------- PT Indofood Sukses Makmur Tbk plans to raise IDR1.5 trillion by selling five-year bonds by June, Harry Suhartono writes for Reuters. According to Mr. Suhartono, Indofood said that most of the proceeds from the rupiah-dominated bonds would be used to repay debt which matures in June. Mr. Suhartono quotes Indofood as saying, "We will use around 82 percent, or about 1.23 trillion rupiah, to repay our bonds issued in 2003 which will mature on June 10. The rest will be used for working capital." The report says Indofood has appointed DBS Vickers Securities, Danareksa Sekuritas, ING Securities Indonesia, Kim Eng Securities, and Mandiri Sekuritas as underwriters and managers for the bond issue. About Indofood Sukses PT Indofood Sukses Makmur Tbk (Indofood) -- http://www.indofood.co.id/-- is Indonesia's premier processed foods company. Its products, including instant noodles, wheat flour, branded edible oils and fats, baby foods, snack foods, food seasoning, lead domestic market shares. Indofood is currently the largest instant noodles manufacturer and the largest flour miller in the world, with installed capacities of approximately 13 billion packs and 3.6 million tons per annum, respectively. Indofood's products are distributed mainly through its subsidiaries, including Indomarco, independent distributors, as well as some cooperatives, which bring the Company's products to more than 150,000 retail outlets in the country. Total employees as of December 1999 were 42,172. A combination of shrinking profits, escalating costs, losses, competition and a declining rupiah prompted the Company to cut around 2,000 or 4.4% of its workforce and slash 40 products from its range in 2005. In 2005, Indofood's total outstanding debt fell to IDR6.8 trillion from IDR7.9 trillion in 2004. The United States dollar-denominated debts also fell to US$190.6 million in the same period from US$317.4 million in 2004. Indofood has bought back US$166.3 million (IDR1.55 trillion) of its US$280 million (IDR2.61 trillion) Eurobonds due in 2007. The company also plans to redeem all the outstanding balance of the Eurobonds this year. The Troubled Company Reporter-Asia Pacific reported on July 19, 2006, that Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Indofood at the company's request. PERUSAHAAN GAS: Will Supply Additional Natural Gas to PLN --------------------------------------------------------- PT Perusahaan Gas Negara said it will supply 50 million cubic feet per day of natural gas for two years from July to PT Perusahaan Listrik Negara, Reuters reports. "PGN will sign a contract with PLN to supply an additional 150 million cubic feet per day for five years, also from July this year," PGN's president director Sutikno told Reuters, Muklis Ali writes. "PLN has agreed to pay $5.6 per million British thermal units," he said, the report adds. According to Reuters, Sutikno said the gas supply from PGN will save PLN around 2 million kilolitre or 12.5 million barrels of diesel oil per year. Muklis Ali relates that PGN will supply the gas from gas fields operated by U.S. oil major ConocoPhillips and Pertamina in South Sumatra. Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk-- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 26, 2007, that Standard & Poor's Ratings Services raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed ========= J A P A N ========= ALITALIA SPA: OAO Aeroflot to Resume Talks Over Italy's Stake ------------------------------------------------------------- OAO Aeroflot will resume negotiations with Alitalia S.p.A. over the sale of the government's 49.9% stake in the Italian carrier, Reuters reports, citing Russian President Vladimir Putin. Mr. Putin, after speaking with Aeroflot chairman Alexander Zurabov, said the Russian carrier is ready to resume contact with Alitalia, Reuters says. Mr. Putin noted that Alitalia's condition is complicated, citing the airline's debt and profitability problems as well as the need to convince the Italian government and the unions to accept it possible offer, Reuters relates. Aeroflot CEO Valery Okulov, however, told Russia Today that the carrier is not planning to submit a second bid for Alitalia. "I believe we gained useful experience by participating in an Alitalia privatization tender, but the information we have does not inspire sufficient optimism to participate in the project for a second time." Italy's Prime Minister-elect Silvio Berlusconi welcomed Aeroflot's possible offer, adding that they are open to all options to revive Alitalia as along as the it remains the national carrier headquartered in the country. As reported in the TCR-Europe on April 3, 2008, an Aeroflot spokesman said it may submit a proposal to acquire Italy's stake in Alitalia S.p.A. if talks between Air France-KLM SA and the national carrier's unions fail. Aeroflot and financial backer UniCredit S.p.A. had joined the preliminary rounds of bidding for Alitalia, but withdrew. Air France has withdrawn its bid for Alitalia, but said it may resume talks with the carrier and its unions. Alitalia chairman Aristide Police has recommended the resumption of negotiations between the parties. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. BOWNE & CO: Improved Cash Flow Cues Moody's Ba2 Rating Upgrade -------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Bowne & Co., Inc. to Ba2 from Ba3 and the rating on its convertible subordinated notes to B1 from B2. In conjunction with the upgrade, Moody's changed the ratings outlook to stable from positive. The action follows substantial improvement in free cash flow generation (free cash flow-to-debt exceeded 20% for 2007), some margin improvement, and a moderation of the share repurchase program. Furthermore, the company has developed adequate business diversification to withstand the downturn in capital markets, in Moody's view. The stable outlook assumes that Bowne will continue to generate free cash flow in excess of 5% of debt, margins will remain above 12% (all metrics as per Moody's standard adjustments), and the company will maintain strong liquidity. The current ratings level could tolerate continued cash financed acquisitions in line with the historic pattern (less than $50 million purchase price) provided leverage remains around 3 times debt-to-EBITDA (as per Moody's standard adjustments) and margins do not contract. Bowne & Co., Inc. -- Corporate Family Rating, Upgraded to Ba2 from Ba3 -- Probability of Default Rating, Upgraded to Ba2 from Ba3 -- Subordinate Convertible Bonds, Upgraded to B1 from B2 -- Outlook, Changed To Stable From Positive Bowne's strong liquidity, moderate leverage (2.9 times debt-to- EBITDA for 2007, as per Moody's standard adjustments, including treatment of pension obligations as debt), and considerable stream of recurring revenue support its Ba2 corporate family rating. The rating also reflects the seasonality and volatility of its free cash flow, its exposure to the capital markets cycle, some vulnerability to the reduction in demand for printed products, and some execution and acquisition risk. Bondholders could put the $75 million convertible notes to Bowne for cash in October of 2008. Moody's believes Bowne has adequate liquidity from its balance sheet cash (approximately $100 million as of 2007 year end) and $150 million revolving credit facility to satisfy this potential obligation, should bondholders exercise this option. Headquartered in New York, New York, Bowne & Co., Inc. provides services to help companies produce and manage their investor communications, including regulatory and compliance documents, and also markets business communications,personalized statements, enrollment books and sales and marketing collateral. Its annual revenue is approximately $850 million. Headquartered in New York City, Bowne & Co. Inc. (NYSE: BNE) -- http://www.bowne.com/-- provides financial, marketing and business communications services around the world. Bowne has 3,200 employees in 60 offices around the globe. The company's Latin American offices are located in Argentina, Brazil, Mexico, Japan and Portugal. FUJI HEAVY: Sees Long-term Benefits With Toyota Tie-up ------------------------------------------------------ Fuji Heavy Industries Ltd. said deeper ties with Toyota Motor Corp. may have long-term benefits that could help the company as it faces a tough year for earnings, Edwina Gibbs of Reuters reports. According to the report, Fuji Heavy President Ikuo Mori expressed concern on the appreciating yen which eats into overseas earnings as well as the expected increase of prices of materials. Mr. Mori hopes, Reuters says, that with Toyota's help, the company will be able to focus its resources on developing "sporty" cars and to gain access to Toyota's advanced technology. Fuji Heavy, makers of the Subaru brand, expects to book an operating profit of JPY40 billion for fiscal 2007, Reuters notes. Toyota doubled its stake in Fuji Heavy to 16.5%, giving the company the funds to build a new domestic plant, Reuters relates. About Fuji Heavy Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp-- is manufacturing company engaged in four business segments. The Automobile segment is engaged in the manufacturing, repair and sale of light vehicles, compact cars and standard vehicles. The Industrial Machinery segment offers motors, machinery for agricultural, forestry and constructional use, as well as other machinery and equipment. The Aerospace segment offers airplanes, aerospace-related equipment and parts. The Others segment is engaged in the manufacturing, repair and sale of dustcarts, bus-related parts and houses, as well as the leasing of real estates. The Company distributes its products in both domestic and overseas markets. As of March 31, 2007, Fuji Heavy Industries has 109 subsidiaries and nine associated companies. The Company has a global network. Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. GAP INC: Fitch Affirms IDR at BB+ on Considerable Liquidity ----------------------------------------------------------- Fitch has affirmed its ratings on The Gap, Inc, (NYSE: GPS) as: -- Issuer Default Rating at 'BB+'; -- Senior unsecured notes at 'BB+'. The Rating Outlook is revised to Stable from Negative. The rating action affects approximately US$188 million of debt. Gap's rating reflects its considerable liquidity as reflected in cash of US$1.9 billion against debt of US$188 million at the fiscal year ending Feb. 2, 2008. The company is expected to be debt free after Mar. 1, 2009. Gap has been a strong cash generator. Free cash flow (operating cash flow less capital expenditures and dividends) has been positive in the past seven years ranging from a low of US$301 million in the poor retail year of 2001 to as high as US$1.8 billion in 2003. Fitch expects that the company will remain free cash flow positive in the intermediate term. The rating also encompasses the significant pressure placed on the top line given poor same store sales trends which has been negative in each of the past three fiscal years. The negative trend continues into the current fiscal year with -6% in February 2008 and -18% in March 2008. The slide in top line performance is of concern as it has long term negative implications for the business. The company has significantly scaled back new store additions domestically, which means that top line growth is reliant on same store sales growth, international expansion and online operations. Additionally, the macro-economic environment and management turnover at the brand level - particularly at Old Navy - is not favorable towards a reversal of these trends. Nevertheless, there is additional focus on return on invested capital at the store level, inventory discipline, and cost containment. Management is committed to maintaining significant cash balances at a current minimum of US$1.2 billion. Fitch expects that Gap will maintain on a clean balance sheet, keep liquidity high, and will pull back on discretionary spending as needed. Gap's minor debt burden and strong liquidity underpin the rating. Despite a weak economy and expected sales decline, the Stable Outlook is based on the company's ability to comfortably meet its capital and investment requirements as well as the expectation that liquidity will remain strong and remaining debt will be repaid by Mar. 1, 2009. The risk to note-holders is low. For the fiscal year ended Feb. 2, 2008, the company continued to experience sales declines of 1.1% to US$15.