T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 29, 2008, Vol. 11, No. 84 Headlines A U S T R A L I A ABC LEARNING: Newly-Elected Chairman to Turn Around Finances DARCY DEVELOPMENTS: Members' Meeting Set for May 6 EMANUEL BUGEJA: Placed Under Voluntary Liquidation GAMESTOP CORP: Moody's Lifts Ratings to Ba1 I & L COWAN: Members and Creditors to Meet Tomorrow LIVESTOCK CONTROLS: Commences Liquidation Proceedings NOVARA FURNITURE: Joint Meeting Slated for April 30 OMNINET WIRELESS: Placed Under Voluntary Liquidation OPES PRIME: May Have Been Insolvent Before Collapse PEART, COVENEY: Members Agree on Voluntary Liquidation PIRANHA AGENCIES: Placed Under Voluntary Liquidation RUSSBOUR PTY: Members Receive Wind-Up Report SHARPER IMAGE: Chooses to Pursue Sale of Business and Assets SUGRA PTY: Commences Liquidation Proceedings TRICOM PROJECTS: Undergoes Liquidation Proceedings WESTVALE INT'L: Commences Liquidation Proceedings C H I N A & H O N G K O N G & T A I W A N BANCO ITAU: Unit Will Increase Stake in Banco Portugues BEAR STEARNS: SEC Doesn't Reveal Reasons on Probe Withdrawal BURALL IMAGENET: Members & Creditors to Meet on May 20 CHINA EASTERN: Flights Suspended on Returned Flights Incident EVERICH INTERNATIONAL: Members' Final Meeting Set for May 20 FUYAO GROUP: To Issue RMB1.4 Billion Short-Term Financial Bills GANSU JIU: To Pay 2007 Dividend of RMB2 Per 10 Shares HAINAN OVERSEAS: Company President Sun Qian Resigns From Post HAINAN OVER: Uses Business Estate as Collateral for RMB80MM Loan HAINAN OVERSEAS: Not Paying Dividend for FY 2007 HUA RUI: Creditors' Proofs of Debt Due May 19 KONKA GROUP: First Quarter Net Profit Up 79% on Increased Sales LI & FUNG : Members' Final Meeting Set for May 22 MASTERWELL WORLDWIDE: Commences Liquidation Proceedings MICRON TECH: Inks New DRAM Joint Venture with Nanya Technology MICRON TECH: Moody's Holds Ba3 Corporate Family Rating PIZZAVEST SHENZEN: Members' Final Meeting Set for May 19 REGIONAL RESOURCES: Liquidator Quits Post RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 11 ROAD KING INFRASTRUCTURE: S&P Puts BB Rating on CreditWatch SANDOR LIMITED: Members' Final Meeting Set for May 22 SINO GRAND: Members' Final Meeting Set for May 20 WINSPOWER LIMITED: Members & Creditors to Meet on April 30 I N D I A BHARTI AIRTEL: Updates on Amalgamation with Bharti Aquanet CABLE & WIRELESS: Unit Spending BBD10 Million to Boost Service CANARA BANK: Earns INR4.64 Bil. in Qtr. Ended March 31 ESSAR OIL: Incurs INR84.80 Million Loss in Qtr. Ended March 31 ICICI BANK: Earns INR11.5 Bil. in Qtr. Ended March 31 GENERAL MOTORS: Moody's Changes Outlook to Negative GENERAL MOTORS: GMAC and ResCap Downgrades Cue S&P's Neg. Watch PRIDE INT'L: BOD's Actions May Cue Seadrill's Buyout, Fitch Says I N D O N E S I A ADAM AIR: DOT Offers Routes to Other Airlines BANK NEGARA: Reports IDR153 Billion 1st Quarter Net Profit BANK NIAGA: Shareholders Approve 2007 Annual Report BANK NIAGA: Reports IDR207.2 Billion 1st Quarter Net Profit INDOFOOD: To Issue IDR1.5 Trillion in Bonds PERUSAHAAN LISTRIK: To Fine Suppliers for Late Coal Deliveries J A P A N ALITALIA SPA: Italy Has Until May 4 to Explain Loan, EC Rules BANCO BRADESCO: Discloses Termination of Shareholders' Pact BANCO DO BRASIL: Will Issue American Depository Receipts by June CONTINENTAL AIRLINES: Chooses Not to Merge with United Air Lines FIAT SPA: Earns EUR427 Million in First Quarter of 2008 JVC CORP: Net Loss Narrows to JPY47.5 Billion in FY 2008 JVC CORP: Plans on Ending Production at JVC UK in July 2008 KIRAYAKA HOLDINGS: JCR Cuts Rating on Subordinated Bonds to BB+ MITSUBISHI MOTORS: Global Production for FY 2007 Climbs 8.8% PATHEON INC: Undertakes Series of Events on Restructuring Plan PATHEON INC: Moody's Holds B2 Rating; Changes Outlook to Neg. SANYO ELECTRIC: Tie-Up Rumors With Matsushita are Untrue K O R E A CHOROKBAEM MEDIA: Signs KRW2,900 Million Contract With SBS DAEWOO: Signs KRW107.6 Billion Supply Deal With Transmax Asia DAEWOO ELECTRONIC: Establishes New Subsidiary DIOMED HOLDINGS: Seeks Court OK to Sell Assets to AngioDynamics DIOMED HOLDINGS: Gets Interim OK to Use Lenders' Cash Collateral DIOMED HOLDINGS: Selects Fladgate LLP as U.K. Legal Counsel UAL CORP: Continental Airlines Chooses Not to Merge with United UAL CORP: Begins Merger Discussions with US Airways M A L A Y S I A MALAYSIAN AIRLINES: To Factor Market Status Before Buying Planes PROTON HOLDINGS: Inks MOU with Edaran Otomobil Nasional N E W Z E A L A N D AOTEA ENGINEERING: Faces SteelNZ's Wind-Up Petition CHARCOAL HOLDINGS: Court to Hear Wind-Up Petition on May 23 JOSEPH PRODUCTIONS NO. 1: Faces CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 2: Court Sets May 2 Wind-Up Hearing JOSEPH PRODUCTIONS NO. 3: Faces CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 4: Court to Hear Wind-Up Petition JOSEPH PRODUCTIONS NO. 5: Court to Hear Wind-Up Petition JOSEPH PRODUCTIONS NO. 6: Faces CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 7: Court to Hear CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 8: Court to Hear CIR Petition on May 2 JOSEPH PRODUCTIONS NO. 9: Court to Hear CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 10: Wind-Up Petition Hearing Is on May 2 NATIONAL BEVERAGES: Creditors Must File Claims by May 8 PHOENIX CONSTRUCTION: Joint Liquidators Appointed SHENANIGANS IRISH BAR: Court to Hear Wind-Up Petition on May 2 P H I L I P P I N E S ABS-CBN HOLDINGS: Confirms Stockholders' Meeting Attendees WENDY'S INTERNATIONAL: Inks US$2BB Buyout Deal with Triarc Cos. WENDY'S INT'L: Triarc Deal Prompts Moody's 'Ba3' Rating Reviews WENDY'S INT'L: Triarc Deal Cues S&P's Neg. Watch on BB- Rating S I N G A P O R E SEA CONTAINERS: SCSL Panel Asks Documents on Pension Dispute S R I L A N K A MILLICOM INTERNATIONAL: Earns US$158.1 Mln for 1st Quarter 2008 T H A I L A N D FOSTER WHEELER: Moody's Raises Corporate Family Rating to 'Ba2' SR TELECOM: Changes Name to SRX Post After Acquisition X X X X X X X X * BOND PRICING: For the Week April 28 to May 2, 2008 - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Newly-Elected Chairman to Turn Around Finances ------------------------------------------------------------ Michael Sainsbury of The Australian reports that ABC Learning Centres Ltd. chairman-elect, David Ryan would "absolutely" take a hands-on role in trying to turn around the company's fortunes. Mr. Ryan, who will take the chair on June 1, admitted to The Australian that a breakdown in management accountability, a "failure of process" and a poor disclosure in the ABC's Australian operations were the triggers behind its collapse. Moving forward, Mr. Ryan expressed to The Australian, "We have non-material acquisitions; we have a pipeline of developments that are programmed to come on stream between now and June 2009 that will continue to contribute to growth; we have occupancy levels we can increase; we a have better use of the facilities that we have in Australia. So the outlook is very positive, particularly given the initiative the Rudd Government has announced with regard to better rebates." According to The Australian, ABC's board was unaware of the "quantum" of margin loans over their shares which three executive directors had taken out. With regards to the breakdown in management accountability, Mr. Ryan is quoted by The Australian as saying, "During the period of six to eight to 10 months when (chief executive) Eddy (Groves) was focused on the US business, clearly our Australian team took their eye of the ball." Mr. Ryan's comments cast a cloud over the future of the former head of ABC's Australian and New Zealand operations, Martin Kemp, who was dumped from the ABC board last week but remains an "executive" of the company, relates The Australian. When asked if the breakdown was Mr. Kemp's fault, Mr. Ryan said that there were "a range of people" who were responsible for the other problems and that "there have been people moved out of the company already," states The Australian. Asked if Mr. Kemp would stay on, Mr. Ryan is quoted by The Australian as saying, "That's a question you will have to ask me another day." The Australian notes that Mr. Ryan admitted there had been problems with the disclosure of ABC's financial results saying, "The way we presented the accounts didn't provide enough clarity." So was the board aware of the situation that the three executive directors all had hefty margin loans over their shares in the group? "I don't think I would like to go into the specific circumstances of the margin loans of the directors," said Mr. Ryan, whose own ABC shares were sold in February after he was hit with a margin call, states The Australian. Mr. Ryan told The Australian, "We were aware that they had borrowings but not the quantum of them." Last week, notes The Australian, Mr. Ryan replaced Sallyanne Atkinson as the company's chairman, saying that the question of balance between executive and non-executive directors on the board has been "discussed a lot." Liam Walsh of The Courier Mail reports that Ms. Atkinson said that ABC's disclosure had been inadequate and the business structure too complex. Ms. Atkinson, according to The Courier, said she "never thought the business was at...risk." Ms. Atkinson, who has been chairman of ABC since 2001, maintained her departure was not forced, saying the timing was appropriate, relates The Courier. The Courier relates that Ms. Atkinson felt "satisfied about having brought (ABC) to this stage in its growth." About ABC Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter-Asia Pacific, the company's Sydney trading on Feb. 26, 2008, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. DARCY DEVELOPMENTS: Members' Meeting Set for May 6 -------------------------------------------------- Darcy Developments Pty Limited's appointed estate liquidator will meet with the company's members on May 6, 2008, at 10:30 a.m., at 58 James Street, Fortitude Valley, in Queensland, Australia, to provide them with property disposal and winding-up reports. The liquidator is: Bryan D'Arcy Phelan c/o Cooper Grace Ward Lawyers GPO Box 834 Brisbane 4001 Queensland, Australia Telephone (07) 3231 2526 Facsimile (07) 3231 8526 EMANUEL BUGEJA: Placed Under Voluntary Liquidation -------------------------------------------------- Emanuel Bugeja Farming Co Pty Ltd's members agreed on March 10, 2008, to voluntarily liquidate the company's business. The company has appointed Anthony Jay Edward Miskiewicz and Moira Kathleen Carter at Jessup & Partners to facilitate the sale of its assets. The liquidators can be reached at: Anthony Jay Edward Miskiewicz Moira Kathleen Carter Jessup & Partners Level 3, St. James Place 155-157 Denham Street, Townsville Queensland, Australia About Emanuel Bugeja Emanuel Bugeja Farming Co Pty Ltd is an investment company based at Mackay, in Queensland, Australia. GAMESTOP CORP: Moody's Lifts Ratings to Ba1 ------------------------------------------- Moody's Investors Service upgraded the long-term debt ratings of GameStop Corp., corporate family and probability of default ratings to Ba1 from Ba2, and affirmed the speculative grade liquidity rating at SGL-1. The rating outlook is stable. The upgrade reflects the company's strong operating performance combined with a continuous reduction in its funded debt level. This has resulted in a significant improvement in credit metrics to investment grade levels, debt to EBITDA has fallen to 3.0 times, EBITA to interest expense has risen to 4.0 times, and free cash flow to net debt has risen to 17.0%. These ratings are upgraded: -- Corporate family rating to Ba1 from Ba2; -- Probability of default rating to Ba1 from Ba2; and -- Senior unsecured notes to Ba1 (LGD4, 63%) from Ba3 (LGD4, 61%). These rating is affirmed: Speculative grade liquidity rating of SGL-1. GameStop's Ba1 corporate family rating is supported by the company's strong credit metrics and the company's market position as the leading specialty retailer of electronic games with a particular strength in the used game business. The electronic games segment is one of the few retail segments that continues to exhibit growing demand and has not yet become impacted by the downloading of content off the internet. In addition, the rating category also reflects the company's moderate scale with revenues of $7.1 billion, its international store footprint, and its very good liquidity, including a $400 million asset based revolving credit facility. The rating category is primarily constrained by the long term future risk that electronic gaming content will be made available to download off the internet; potentially placing GameStop in a challenging competitive position given its sizable store base. The rating category also reflects the risk of the company over expanding its store base given its very aggressive store expansion plans. In addition, the rating category reflects the company's product offering, which is highly discretionary and exposed to frequent renewal cycles, and by its high seasonality, which exposes the company to a "make or break" fourth quarter holiday selling season. The stable rating outlook reflects Moody's expectation that the company will maintain its current level of strong credit metrics along with moderate financial policies, which include very good liquidity and a very modest level of fold in acquisitions. GameStop Corp., headquartered in Grapevine, Texas, is the world's largest specialty retailer of video game products and PC entertainment software. The company operates 5,266 stores in the United States, Australia, Canada, and Europe primarily under the names GameStop and EBGames. Revenues for the fiscal year ended Feb. 2, 2008 were approximately $7.1 billion. I & L COWAN: Members and Creditors to Meet Tomorrow --------------------------------------------------- I & L Cowan Pty Ltd will hold a joint meeting for its members and creditors at 11:00 a.m. tomorrow, April 30, 2008. During the meeting, the company's liquidator, Philip G. Jefferson at PKF Chartered Accountants & Business Advisers, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Philip G. Jefferson PKF Chartered Accountants & Business Advisers Level 6, 10 Eagle Street, Brisbane 4000 Queensland, Australia LIVESTOCK CONTROLS: Commences Liquidation Proceedings ----------------------------------------------------- Livestock Controls Pty Ltd's members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Simon Guy Theobald at PPB to facilitate the sale of its assets. The liquidator can be reached at: Simon Guy Theobald PPB Chartered Accountants Level 2, 250 St Georges Terrace Perth WA 6000 About Livestock Controls Based in Osborne Park, West Australia, Livestock Controls Pty Ltd engages in commercial physical and biological research. NOVARA FURNITURE: Joint Meeting Slated for April 30 --------------------------------------------------- Novara Furniture (Aust) Pty. Ltd. will hold a joint meeting for its members and creditors at 10:30 a.m. tomorrow, April 30, 2008. During the meeting, the company's liquidator, Matthew Jess of Worrells Solvency & Forensic Accountants, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Matthew Jess Worrells Solvency & Forensic Accountants 15 Queen Street, Level 5 Melbourne, Victoria 3000 Australia Telephone (03) 9613 5514 Facsimile (03) 9614 3233 About Novara Furniture Novara Furniture is a wood office furniture located at 3 Clegg Rd. Mount Evelyn, Victoria, Australia. OMNINET WIRELESS: Placed Under Voluntary Liquidation ---------------------------------------------------- Omninet Wireless Pty. Ltd.'s members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Andre Janis Strazdins and Nicholas David Cooper to facilitate the sale of its assets. The liquidators can be reached at: Andre Janis Strazdins Nicholas David Cooper SimsPartners 12 Pirie Street, Level 4 Adelaide, South Australia 5000 Australia About Omninet Wireless Omninet Wireless Pty. Ltd. is involved with telephone communications, except radiotelephone. The company is located at Frankston, in Victoria, Australia. OPES PRIME: May Have Been Insolvent Before Collapse --------------------------------------------------- Opes Prime Group Ltd. administrators believe that the firm was insolvent before its appointment, raising the possibility of legal action against the company's directors, Richard Gluyas writes for The Australian. Opes Prime directors Julian Smith and Anthony Blumberg, have given their public account blaming the lack of margin calls on key customer accounts, the creation of an even bigger deficit through a client's demand for the return of AU$10 million in shares and cash, and the withdrawal of banking support, the report says. The Australian relates that John Lindholm of Ferrier Hodgson included the explanations of the directors in a 31-page report to Opes Prime's 1,200 customers. Mr. Lindholm also provided more insights into the British Virgin Islands company Riqueza, which according to the report, acted as a conduit for transactions between Opes and two companies associated with the directors, Hawkswood Investments and Leveraged Capital. Riqueza, according to Mr. Lindholm, "may have been controlled" by Mr. Smith and chief executive Lauri Emini. Also, Riqueza ended up being one of Opes' main debtors, owing AU$101 million, while six problem accounts that were spared margin calls by Mr. Emini owe AU$128 million, notes The Australian. Mr. Lindholm further said in the report that Riqueza does not appear to hold any assets "either in Australia or overseas" and that they are "seeking to establish a more definitive view as soon as possible." In a preliminary estimate, Mr. Lindholm said Opes clients will receive a final payout of about 30 cents in the dollar, however in his second report, he says there are a number of legal and commercial hurdles to overcome before a firm estate can be made which include: * That no surplus is expected in the short term; * That the construction of securities lending documentation is currently the subject of proceedings in the Federal Court; * That the result of any negotiated settlements or litigation over transactions could be undone by a liquidator because they involved preferential treatment; and * That there was a dividend flow from related entities such as Riqueza, Hawkswood and Leveraged Capital. Among the transactions under examination that could potentially be undone is the security taken by ANZ Banking Group in return for AU$95million in emergency funding handed over to Opes Prime in the stockbroker's dying days, adds The Australian. 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. PEART, COVENEY: Members Agree on Voluntary Liquidation ------------------------------------------------------ Peart, Coveney & Associates Pty. Ltd.'s members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Gregory Stuart Andrews of GS Andrews & Associates to facilitate the sale of its assets. The liquidator can be reached at: Gregory Stuart Andrews 22 Drummond Street, Carlton, Victoria 3053 Australia Telephone (03) 9662 2666 Facsimile (03) 9662 9544 About Peart, Coveney Peart, Coveney & Associated Pty. Ltd. is into the floor laying and floor work business. The company is located at 353 Victoria St., Brunswick, Victoria, Australia PIRANHA AGENCIES: Placed Under Voluntary Liquidation ---------------------------------------------------- Piranha Agencies Pty Ltd's members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Graeme Trevor Lean to facilitate the sale of its assets. RUSSBOUR PTY: Members Receive Wind-Up Report -------------------------------------------- Russbour Pty. Ltd. held a final meeting for its members and creditors on April 28, 2008. During the meeting, the company's liquidator, Robert C. Parker at Freer Parker & Associates, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Robert C. Parker Freer Parker & Associates 40 Sturt Street Adelaide, South Australia 5000 Australia Telephone:(08) 8211 7177 Facsimile:(08) 8212 4677 e-mail: insolvency@freerparker.com.au About Russbour Pty. Russbour Pty. Ltd. is involved with architectural and ornamental metal work. The company is located at Keswick, in South Australia, Australia. SHARPER IMAGE: Chooses to Pursue Sale of Business and Assets ------------------------------------------------------------ Sharper Image Corp. has elected to pursue a sale of its business and assets pursuant to the provisions of the bankruptcy code, the company disclosed in a statement. "[G]iven the present retail climate and specialty nature of the Company, as well as the limited financing available to the Company, a sale of its business and assets at this time will preserve values and yield the best recovery to the company," said Robert Conway, the company's chief executive officer. Any sale will be subject to court approval. According to the statement, Sharper Image will solicit indications of interest from potential acquirers, and bid and auction procedures will be established as soon as reasonably practicable. The company intends to complete the sale process and seek court approval of the sale by the end of May 2008. Persons interested in acquiring all or part of the business or assets are directed to contact Robert Del Genio at Telephone Number (212) 813-1300. Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SUGRA PTY: Commences Liquidation Proceedings -------------------------------------------- Sugra Pty Ltd.'s members agreed on March 17, 2008, to voluntarily liquidate the company's business. The company has appointed Nick Combis and Peter Dinoris of Vincents Chartered Accountants to facilitate the sale of its assets. The liquidators can be reached at: Nick Combis Peter Dinoris Vincents Chartered Accountants Level 27, 239 George Street, Brisbane, Queensland, Australia Telephone (07) 3854 4555 Facsimile (07) 3236 2452 TRICOM PROJECTS: Undergoes Liquidation Proceedings -------------------------------------------------- Tricom Projects Pty Ltd.'s members agreed on March 5, 2008, to voluntarily liquidate the company's business. The company has appointed Mark Pearce to facilitate the sale of its assets. The liquidator can be reached at: Mark Pearce Pearce & Heers Insolvency Accountants Suite 3, Level 9 320 Adelaide Street, Brisbane 4000 Queensland, Australia Tel. No.: (07)3221-0055 About Tricom Projects Tricom Projects Pty Ltd is an investment company based at Mooloolaba, in Queensland, Australia. WESTVALE INT'L: Commences Liquidation Proceedings ------------------------------------------------- Westvale International Pty Ltd's members agreed on March 14, 2008, to voluntarily liquidate the company's business. The company has appointed Simon Guy Theobald to facilitate the sale of its assets. The liquidator can be reached at: Simon Guy Theobald PPB Chartered Accountants Level 2, 250 St Georges Terrace Perth WA 6000 ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== BANCO ITAU: Unit Will Increase Stake in Banco Portugues ------------------------------------------------------- Portuguese daily Diario Economico reports that Banco Itau Holding Financeira SA's Itau Europe will increase its stake in Banco Portugues de Investimentos to 20% from 18.8%. Business News Americas relates that the Portuguese central bank previously authorized Itau Europe to purchase up to 20% of Banco Portugues. Itau Europe is Banco Portugues' second largest shareholder, following La Caixa which has 25.0%. Itau Europe runs remittance partnerships with Banco Portugues and La Caixa, BNamericas states. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding Financiera S.A.'s 'BB+' foreign currency IDR rating to positive from stable. BEAR STEARNS: SEC Doesn't Reveal Reasons on Probe Withdrawal ------------------------------------------------------------ The U.S. Securities and Exchange Commission did not divulge reasons why it withdrew from further investigation on Bear Stearns Cos. Inc.'s anomalies in pricing securities, Reuters reports. The SEC said its reasons were confidential. "The Commission does not disclose the existence or nonexistence of an investigation or information generated in any investigation unless made a matter of public record in proceedings brought before the Commission or the courts," Reuters quotes SEC Chairman Christopher Cox in an April 16 letter. The letter was a response to a congressional request asking the SEC why it withdrew from the probe. As reported in the Troubled Company Reporter on March 20, 2008, the SEC disclosed that the federal regulator is considering potential investigation into Bear Stearns' conduct prior to the investment bank's acquisition agreement with J.P. Morgan Chase & Co. The SEC's Division of Enforcement wrote a letter concerning investigations and potential future inquiries into conduct and statements by Bear Stearns before the public announcement of the transaction with JPMorgan. The Division investigates possible violations of the securities laws as appropriate, said the SEC. Among the things the Division looks for are potential indications of insider trading or manipulation of markets through the dissemination of false or misleading information to investors by companies or other market participants. The SEC brings enforcement actions when it concludes the securities laws have been violated. About Bear Stearns New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. The firm has offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco and San Juan. In addition to London, the firm maintains an international presence with offices in Beijing, Dublin, Hong Kong, Lugano, Milan, S�o Paulo, Shanghai, Singapore, and Tokyo. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BURALL IMAGENET: Members & Creditors to Meet on May 20 ------------------------------------------------------ Burall Imagenet (Hong Kong) Limited will hold a joint meeting for its members and creditors at 10:00 a.m. and 10:30 p.m. respectively, on May 20, 2008. At the meeting, the company's liquidators, Alan C. W. Tang and Wong Kwok Man will provide the attendees with property disposal and winding-up reports. The company's liquidators can be reached at: Alan C. W. Tang Wong Kwok Man Gloucester Tower, 13th Floor The Landmark, 15 Queen's Road Central, Hong Kong CHINA EASTERN: Flights Suspended on Returned Flights Incident ------------------------------------------------------------- The Southwest Management Bureau of the Civil Aviation Administration of China (CAAC) has suspended China Eastern Airlines Corporation Limited's flights for the returned flights incident earlier this month, various reports say. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2008, some pilots of China Eastern Airlines' flights refused to land at their destinations and instead returned to their departure point on March 31. The pilots were reportedly seeking higher wages and freedom to work for another airline. About 1,000 passengers were stranded at Kunming Airport in the southern China. A total of 21 flights from southeastern Yunnan province were affected. Some pilots and the general manager of China Eastern's Yunnan unit were suspended. According to the TCR-AP, China Eastern has been fined CNY1.5 million (US$215,000) for the pilots' strike. The CAAC, as punishment, asked the airline to stop the flights between Kunming and Xishuangbanna, and to Dali, China CSR News reports. According to China Hospitality News these two routes are to be suspended from May 4. CSR News notes that the company's flights between Kunming and Lijiang, and Kunming and Zhongdian as well as a number of other cities have also been reduced. All the suspended flights of China Eastern will be run by Air China, Shenzhen Airlines, Lucky Air and West Air, of which, the Yunming airport based Lucky Air will be the biggest beneficiary, CSR News says. Furthermore, Southwest Regional Administration of CAAC urged the airline to arrange orderly endorsements and refunds for passengers who have bought or booked air tickets for those routes and flights, Hospitality News relates. Hospitality News notes that the four airlines replacing China Eastern were required to organize transportation capacity and coordinate flight schedules quickly. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. EVERICH INTERNATIONAL: Members' Final Meeting Set for May 20 ------------------------------------------------------------ Members of Everich International Industrial Limited will have their final general meeting on May 20, 2008, at Progress Commercial Building, Room 2407, 7-17 Irving Street, Causeway Bay, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: You Lai Fong Lau Kin Ho Progress Commercial Building Room 2407, 7-17 Irving Street Causeway Bay, Hong Kong FUYAO GROUP: To Issue RMB1.4 Billion Short-Term Financial Bills --------------------------------------------------------------- Fuyao Group Glass Industries Co Limited will issue up to RMB1.4 billion short-term financial bills with a term of 365 days, Reuters reports. The report relates that the company will also apply to Fujian Branch of Agricultural Bank of China on a credit line of RMB1 billion. Headquartered in Fuqing, Fujian Province, Fuyao Group Glass Industries Co., Ltd. -- http://www.fuyaogroup.com/-- is a manufacturer of automotive and industrial safety glass. The company provides laminated and tempered glass for automobiles, encapsulation products, bulletproof glass, laminated and tempered glass for buildings, furniture and decorative glass products, front panel glass for electrical appliances and panel glass for other specialty industrial applications. The Company has seven production bases in the People's Republic of China and two wholly owned subsidiaries in the United States. FYG mainly exports to North America and Asia Pacific. The company currently holds Xinhua Far East China Ratings' BB+ issuer credit rating. GANSU JIU: To Pay 2007 Dividend of RMB2 Per 10 Shares ----------------------------------------------------- Gansu Jiu Steel Group Hongxing Iron & Steel Co Limited will pay cash dividend of RMB2 (before tax) to shareholders for every 10 shares they hold, Reuters reports. Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. -- http://www.jiugang.com/comunes/marcosn.htm-- is principally engaged in the manufacture and sale of iron and steel products. Based in Jiayuguan, Gansu Province, China, the Company offers pig iron, steel ingots, steel plates, wire rods, steel bars and other iron and steel products. It also supplies chemical by- products. The Company mainly distributes its products in Northwestern China. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on December 27, 2004. HAINAN OVERSEAS: Company President Sun Qian Resigns From Post ------------------------------------------------------------- Hainan Overseas Chinese Investment Co.'s President, Mr. Sun Qian, resigned from his post, Reuters reports. Meanwhile, the report said that the company has named Mr. Chen Wei as its new chief financial officer. Headquartered in Haikou, Hainan Province, Hainan Overseas Chinese Investment Co., Ltd. is primarily engaged in the production and sale of pharmaceuticals, including injections, tablets, solutions and externally applied agents, through its subsidiary. The Troubled Company Reporter - Asia Pacific reported on February 1, 2008, that the company has a capital deficiency of US$9.90 million, on total assets of US$28.97 million. HAINAN OVER: Uses Business Estate as Collateral for RMB80MM Loan ---------------------------------------------------------------- Hainan Overseas Chinese Investment Co. will use part of its business real estate in Liuzhou, Guangxi Province, as collateral for a loan, Reuters reports. According to the report, the company will apply to Hainan Branch of China Construction Bank for a three-year RMB80 million loan. Headquartered in Haikou, Hainan Province, Hainan Overseas Chinese Investment Co., Ltd. is primarily engaged in the production and sale of pharmaceuticals, including injections, tablets, solutions and externally applied agents, through its subsidiary. The Troubled Company Reporter - Asia Pacific reported on February 1, 2008 that the company has a capital deficiency of US$9.90 million, on total assets of US$28.97 million. HAINAN OVERSEAS: Not Paying Dividend for FY 2007 ------------------------------------------------ Hainan Overseas Chinese Investment Co. will not pay any dividend to its shareholders for fiscal year 2007, Reuters reports. The report relates that the company will change its accounting policies and keep in accordance with new accounting standards. Headquartered in Haikou, Hainan Province, Hainan Overseas Chinese Investment Co., Ltd. is primarily engaged in the production and sale of pharmaceuticals, including injections, tablets, solutions and externally applied agents, through its subsidiary. The Troubled Company Reporter - Asia Pacific reported on February 1, 2008 that the company has a capital deficiency of US$9.90 million, on total assets of US$28.97 million. HUA RUI: Creditors' Proofs of Debt Due May 19 --------------------------------------------- Creditors of Hua Rui Investments Limited are required to file their proofs of debt by May 19, 2008, to be included in the company's dividend distribution. The company's liquidators are: Natalia Seng Sze Ka Mee Cynthia Wong Tak Yee Three Pacific Place, Level 28 1 Queen's Road East, Hong Kong KONKA GROUP: First Quarter Net Profit Up 79% on Increased Sales --------------------------------------------------------------- Konka Group Co. Limited's first quarter profit climbed 79% on increased sales of televisions and mobile phones, English People Daily News reports. According to the report, the company's net income rose to CNY47.1 million (US$6.7 million), or CNY0.0782 a share, from CNY26.3 million, or CNY0.0436, a year earlier. Jiang Jianguo of Bloomberg relates that the company expects its first-half profit to rise 50% to 100% on increased sales of high-margin products. Bloomberg says the company didn't give an earnings figure in a statement to the city's stock exchange. Net income was CNY42.5 million (US$6 million) in the first half of 2007, the report notes. About Konka Group Headquartered in Shenzhen, Guangdong Province, the People's Republic of China, Konka Group Co., Ltd. -- http://www.konka.com/-- is a manufacturer of electronics and telecommunications products. The Company has established five manufacturing bases, located in Mudanjiang, Shaanxi Province, Dongguan, Anhui Province and Chongqing. It also has a nationwide sales and services network, with 300 sales branches, 7,000 retailers and 30,000 services centers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on July 10, 2006. LI & FUNG : Members' Final Meeting Set for May 22 ------------------------------------------------- Members of Li & Fung Industrial Limited will have their final general meeting on May 22, 2008, at Prince's Building, 20th Floor, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rainier Hok Chung Lam Prince's Building, 20th Floor Central, Hong Kong MASTERWELL WORLDWIDE: Commences Liquidation Proceedings ------------------------------------------------------- Masterwell Worlwide Investments Limited's members agreed on April 11, 2008 to voluntarily liquidate the company's business. The company has appointed Lee Sze Ho to facilitate the sale of its assets. The liquidator can be reached at: Lee Sze Ho Island Place Tower, Unit 2605 510 King's Road, North Point Hong Kong MICRON TECH: Inks New DRAM Joint Venture with Nanya Technology -------------------------------------------------------------- Micron Technology, Inc. and Nanya Technology Corporation said last week that they have signed an agreement to create MeiYa Technology Corporation, a new DRAM joint venture. The partnership will leverage both Micron and Nanya�s manufacturing technology, strengths and experience. As part of the joint venture, a 200 millimeter (mm) Nanya manufacturing facility in Taiwan will be upgraded to industry-leading 300mm technology starting this year, with the facility coming online for production in 2009. In addition to MeiYa, the parties will jointly develop and share future technology. Both parent companies will own 50 percent of the joint venture initially, and each will contribute US$550 million in cash by the end of 2009. The transaction is subject to customary closing conditions, including regulatory approval in Taiwan, and is expected to close within the next few months. �This partnership brings greater scale and efficiency to the DRAM manufacturing operations of both parent companies, and Micron is pleased to officially enter into this joint venture with Nanya,� said Mark Durcan, Micron�s President and Chief Operating Officer. �We are sure that MeiYa will demonstrate the synergistic combinations of Nanya and Micron�s strength in the DRAM industry,� said Dr. Jih Lien, Nanya�s President. �Nanya has a very high expectation for this new entity.� About Nanya Nanya Technology Corporation -- http://www.ntc.com.tw-- is a member of the Formosa Plastics Group. The company is in the business of advanced memory semiconductors, focusing on research and development, design, manufacturing, and sales of DRAM products. NTC�s common stock is traded on the Taiwan Stock Exchange Corporation under the 2408 symbol. The company currently owns two 200mm fabrication facilities and one 300mm fabrication facility in Taiwan. The company also has a 300mm joint venture, Inotera Memories, Inc., which operates two 300mm fabrication facilities in Taiwan. About Micron Headquartered in Boise, Idaho, Micron Technology, Inc. -- http://www.micron.com/-- (NYSE:MU) is a provider of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking, and mobile products. Outside the United States, the company has subsidiaries in the United Kingdom, Japan, Singapore, Germany, China, Italy, and Puerto Rico. MICRON TECH: Moody's Holds Ba3 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed Micron Technology, Inc.'s Ba3 corporate family rating and revised the outlook to negative from stable. Moody's also assigned a speculative grade liquidity rating of SGL-2. The negative rating outlook reflects expectations for continued challenging conditions in Micron's core DRAM and NAND flash memory markets. Over the past year, the memory markets have been hampered by excess capacity, lower unit demand and continued sharp ASP (average selling price) erosion. For most of fiscal 2007 the company was unable to lower unit production costs quickly enough to offset sharp ASP degradation given the difficult DRAM pricing environment. The negative outlook also reflects the company's weakened financial flexibility given Micron's capital intensive business model in which large capital expenditures to transition its wafer fabs to 300mm capacity have outpaced internally funded cash flow generation, which has resulted in significant negative free cash flow over the past 18 months. Though Micron has flexibility to reduce certain capex requirements, our expectation is for lower cash balances over the near-term given the large capital expenditures planned for fiscal 2008, which are anticipated to be in excess of internal cash flow from operations. Additionally, Moody's believes Micron will be challenged to expand its leading edge technology in a timely manner beyond consumer-based end markets, which depend, in large part, on consumer discretionary spending, an area that has experienced a marked slowdown in recent months. Maintenance of the Ba3 rating is predicated on prudent cash management and improvement in credit protection measures and margins as a result of continued cost reductions and increased operating efficiencies relative to ASP pressures. Moody's notes the rating would likely experience downward pressure near-term if challenging industry conditions do not abate and/or poor execution causes Micron to experience further operating margin degradation and sustained levels of negative free cash flow, resulting in further weakening of its liquidity position or increased use of debt. The SGL-2 rating reflects the company's good liquidity. However, Micron's liquidity position could become an area of concern given the company's declining cash balances, weakening gross cash flow and expectations of continued negative free cash flow generation. As of February 2008, the company had approximately US$1.8 billion in cash and short-term investments. This is down from US$2.9 billion of cash in May 2007, which was artificially boosted by proceeds from a US$1.3 billion convertible note issue to help fund the large capex requirement. Micron will need to service roughly US$528 million of debt maturities over the next year, presumably with balance sheet cash since we do not anticipate free cash flow to be positive over this period. The Ba3 rating incorporates Moody's expectations that Micron will maintain at least US$1.2 billion of balance sheet liquidity and flat to lower debt levels over the near to intermediate term. For the quarter ended Feb. 28, 2008, Micron's revenues declined 5% to US$1.36 billion from US$1.43 billion in the comparable 2007 period while gross margins declined to -3.2% from 25% over the same time period, which can be attributed to sharp ASP decline in its core memory markets (i.e., 60% drop in DRAM and 70% drop in NAND), the company's inability to reduce costs at a faster pace than market price erosion and lack of a material increase in DRAM production volumes to offset sharp ASP declines. However, Micron's ongoing transition of its DRAM production using 68-nanometer process technology and 50- nanometer NAND process technology could provide a base off of which cost reductions and higher volumes can be realized to offset the steep price declines across the memory market. These ratings and assessments were affirmed: -- Corporate Family Rating -- Ba3 -- Probability of Default Rating -- Ba3 -- Senior Unsecured Shelf Registration -- (P)B1 (LGD-5, 71%) -- Subordinated Shelf Registration -- (P)B2 (LGD-6, 97%) This rating was assigned: -- Speculative Grade Liquidity -- SGL-2 -- The outlook is negative. Micron Technology, Inc., headquartered in Boise, Idaho, is a manufacturer of DRAM, NAND flash memory, CMOS image sensors, and semiconductor components. Revenues and EBITDA (Moody's adjusted) for the twelve months ended Feb. 28, 2008 were approximately US$5.6 billion and US$1.1 billion, respectively. PIZZAVEST SHENZEN: Members' Final Meeting Set for May 19 -------------------------------------------------------- Members of Pizzavest Shenzhen (H.K.) Limited will have their final general meeting on May 19, 2008, at Gloucester Tower, 8th Floor, The Landmark, 15 Queens Road, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Iain Fegurson Bruce Gloucester Tower, 8th Floor The Landmark, 15 Queens Road Central, Hong Kong REGIONAL RESOURCES: Liquidator Quits Post ----------------------------------------- On March 25, 2008, IP Yin Wah stepped down as liquidator for Regional Resources Agencies Limited, which is undergoing liquidation. RICON INTERNATIONAL: Creditors' Proofs of Debt Due May 11 --------------------------------------------------------- Creditors of Ricon International Limited are required to file their proofs of debt by May 11, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 23, 2008. The company's liquidator is: Kong Chi How, Johnson Wing On Centre, 25th Floor 111 Connaught Road Central, Hong Kong ROAD KING INFRASTRUCTURE: S&P Puts BB Rating on CreditWatch ----------------------------------------------------------- Standard & Poor's Ratings placed its 'BB' long-term corporate credit rating on Road King Infrastructure Ltd. (RKI) and its 'BB' issue rating on senior unsecured notes guaranteed by RKI on CreditWatch with negative implications. The CreditWatch placements reflect uncertainty over the outcome of RKI's recently announced legal proceedings. RKI is taking action against the former management of two subsidiaries in Tianjin in order to gain effective control of the companies. An unfavorable outcome could adversely affect RKI's financial performance, financial flexibility, and future operations. "An unfavorable outcome could adversely affect RKI's financial performance, financial flexibility, and future operations," said Standard & Poor's credit analyst Ryan Tsang. "In a worse-case scenario, the case could reduce the company's land bank and limit its future cash flow. The two Tianjin subsidiaries' combined land bank accounts for 14% of the RKI group's total land bank of 6.1 million square meters. In addition to the risk that it will lose its Hong Kong dollar 593 million investment in the two subsidiaries, prolonged legal proceedings could affect RKI's plan to spin off its real estate business, which would constrain its financial flexibility," said Mr. Tsang. The CreditWatch placement should be resolved within the next three months after we hold further discussions with RKI's management and evaluate the overall impact of the legal cases. We will also take into consideration the company's business strategy, risk management, and due diligence process. Road King Infrastructure Limited -- http://www.roadking.com.hk/ -- is a publicly listed company in Hong Kong with its core business in the investment, development, operation and management of toll roads and bridges in China. As of December 2007, the company had toll road investments of around HK$6 billion consisting of approximately 1,000 kilometers spread throughout eight provinces in China. The company also had an attributable land bank of 6.1 million sq. m. across nine provinces as at the end of 2007. The Troubled Company Reporter-Asia Pacific reported on April 14, 2008, that Moody's Investors Service affirmed the Ba2 corporate family and bond ratings of Road King Infrastructure Limited. Moody's rating action follows Road King's announcement of litigation with respect to its disputes with the former majority shareholders in Sunco Property Holdings Company Limited, and the company's failure to exert control over the management of two Tianjin property subsidiaries acquired from Sunco Property. SANDOR LIMITED: Members' Final Meeting Set for May 22 ----------------------------------------------------- Members of Sandor Limited will have their final general meeting on May 22, 2008, at Bank of America Tower, Room 509, 12 Harcourt Road, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tsang Kwok Fai Bank of America Tower, Room 509, 12 Harcourt Road Central, Hong Kong SINO GRAND: Members' Final Meeting Set for May 20 ------------------------------------------------- Members of Sino Grand Enterprises Limited will have their final general meeting on May 20, 2008, at Progress Commercial Building, Room 2407, 7-17 Irving Street, Causeway Bay, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: You Lai Fong Lau Kin Ho Progress Commercial Building Room 2407, 7-17 Irving Street Causeway Bay, Hong Kong WINSPOWER LIMITED: Members & Creditors to Meet on April 30 ---------------------------------------------------------- Winspower Limited will hold a joint meeting for its members and creditors at 2:30 p.m. and 3:00 p.m. respectively, on April 30, 2008. At the meeting, the company's liquidators, Jackson IP will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Lau Sui Hung Wing Yee Commercial Building, 2nd Floor 5 Wing Kut Street, Central Hong Kong ========= I N D I A ========= BHARTI AIRTEL: Updates on Amalgamation with Bharti Aquanet ---------------------------------------------------------- With regards to the Scheme of Amalgamation of Bharti Aquanet Ltd into Bharti Airtel Ltd, the company has informed The Bombay Stock Exchange that Bharti Aquanet has set up landing station at Chennai for handling data and voice transmission in and out of India in association with Domestic Long Distance operators and Submarine Cable Companies. Initially Bharti Aquanet Ltd was 51% subsidiary and the balance 49% capital was held by Singtel of Singapore. Thereafter, Bharti Airtel acquired the balance 49% shareholding of Bharti Aquanet from Singtel and as a result Bharti Aquanet became 100% subsidiary of Bharti Airtel. Hence, with a view to maintain a simple corporate structure and eliminate duplicate corporate procedures, Bharti Airtel decided to merge and amalgamate all the undertakings of Bharti Aquanet into Bharti Airtel Ltd. The vesting of all undertakings of Bharti Aquanet in Bharti Airtel will enable the company to provide single window integrated telecom solutions, into new service areas as well expand it's subscribers base. The Amalgamation of all Undertakings of Bharti Aquanet into Bharti Airtel will facilitate consolidation of all the undertakings in order to enable effective management and unified control of operations. The Amalgamation would create economies in administrative and managerial costs by consolidating operations and will substantially reduce duplication of administrative responsibility and multiplicity of records and legal and regulatory compliances. Headquartered in New Delhi, India, -- Bharti Airtel Limited's -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services and Enterprise Services. * * * Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel Limited's Long-term foreign currency Issuer Default Rating at 'BB+'. Fitch said the outlook on the rating is stable. CABLE & WIRELESS: Unit Spending BBD10 Million to Boost Service -------------------------------------------------------------- The Barbados Advocate reports that Cable & Wireless PLC's Barbadian unit is spending BBD10 million to improve its fixed line and broadband service infrastructure. Cable & Wireless Barbados has invested over BBD$200,000 helping the government offer broadband Internet service to communities across the nation, The Advocate says, citing Cable & Wireless Barbados' President Donald Austin. Mr. Austin told Business News America that Barbados has Internet penetration of 55% and broadband penetration of up to 37%. BNamericas notes that Cable & Wireless Barbados' Regulatory Affairs Manager Claire Downes-Haynes said the firm will be providing free personal computers and Internet access in public libraries under its Connect Barbados program. The reopening of the library would let the firm further spread the services it is offering. Ms. Downes-Haynes told The Advocate that whenever the main Public Library reopened, the firm would be offering free Internet access there as part of Connect Barbados. According to The Advocate, Mr. Austin said that over the past few months, Cable & Wireless Barbados' technical team had upgraded its networks in the BBD10 million operation through the Multi-Service Access Nodes project. Cable & Wireless Barbados identified some community centers that lacked Internet access and the firm would be offering the deployment of its services to them, The Advocate notes, citing Chief Community Development Officer Sandra Greenidge. The center at Drax Hall will be shared with members from the community and surrounding areas and with the students from Parkinson School, Ms. Greenidge told The Advocate. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. Specifically, the company's operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * As of Feb. 12, 2008, Cable & Wireless Plc carries a Ba3 long- term corporate family rating, a B1 senior unsecured debt rating and a Ba3 probability of default rating from Moody's Investors Service, which said the outlook is stable. The company also carries a BB- long-term local and foreign issuer credit ratings from Standard & Poor's Ratings Services, which said the outlook is stable. S&P rates its short-term local and foreign issuer credit at B. CANARA BANK: Earns INR4.64 Bil. in Qtr. Ended March 31 ------------------------------------------------------ Canara Bank has posted a net profit of INR4.64 billion for the three months ended March 31, 2008, as compared to INR5.05 billion earned in the same quarter in 2007. Total income has increased from INR38.36 billion in 2007, to INR45.02 billion in the latest quarter under review. The bank's expenditures in Jan-March. 2008 aggregated INR35.63 billion, including operating expenses at INR6.97 billion and interest charges of INR28.66 billion. The bank also provided INR1 billion for taxes and INR3.75 billion as provisions and contingencies. 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. On April 24, 2008, Fitch Ratings affirmed the company's Long- term foreign currency at 'BB'. In addition, Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. ESSAR OIL: Incurs INR84.80 Million Loss in Qtr. Ended March 31 -------------------------------------------------------------- In the three months ended March 31, 2008, Essar Oil Ltd incurred a net loss of INR84.80 million as compared to net profit of INR9.90 million in the same quarter of 2007. Total income has decreased from INR2.68 billion for the quarter ended March 31, 2007 to INR490.70 million in the same quarter of 2008. Essar Oil also posted an operating income of INR474.60 million in the three months ended March 31, 2008, as compared to INR2.65 billion operating income in the same period of 2006. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. ICICI BANK: Earns INR11.5 Bil. in Qtr. Ended March 31 ----------------------------------------------------- In a regulatory filing with the Bombay Stock Exchange, ICICI Bank Ltd has reported a net profit of INR11.49 billion for the quarter ended March 31, 2008, as compared to INR8.25 billion in the same quarter in 2007. Total income has increased to INR103.91 billion in the three months ended March 31, 2008, from INR84.95 billion in the same quarter of 2007. The company's expenditures in Jan-March. 2008 also totaled to INR81 billion, including operating expenses at INR21.5 billion and interest expended of INR59.49 billion. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated Debt a BB rating. The bank currently carries Moody's Investors Service's Ba2 Foreign Long Term Bank Deposits rating, which was places on Feb. 5, 2003. GENERAL MOTORS: Moody's Changes Outlook to Negative --------------------------------------------------- Moody's Investors Service changed the rating outlook for General Motors Corporation (GM) to negative from stable, but affirmed the company's B3 corporate family rating and its SGL-1 speculative grade liquidity rating. The change in outlook reflects Moody's concerns that GMAC LLC's ability to provide retail and wholesale funding in support of GM's automotive operations may be eroded by the operating weakness at its subsidiary, ResCap LLC. GMAC's long-term rating was lowered to B2 from B1 and remains under review for further possible downgrade because of the risks that ResCap poses for GMAC's capital position and liquidity profile (see separate GMAC and ResCap press releases of April 23rd). Moody's believes that in order for ResCap to have continued access to debt capital, GMAC may be required to provide additional indications of support for the unit and that it is likely to do so. This support, however, could weaken GMAC's own credit profile and limit its ability to access the secured and unsecured debt markets. Moody's recognizes that GMAC retains a large cash position and sizable committed credit facilities that can support a significant portion of anticipated new receivable originations. In addition, should GMAC's ability to fund originations be constrained by reduced access to debt capital, third party lenders would likely remain willing to fund higher-quality GM retail receivables. Nevertheless, Moody's views the potential erosion in GMAC's credit profile and its ability to fund retail and wholesale receivables as a material risk factor for GM. Bruce Clark, senior vice president with Moody's, said that "GMAC has always filled a critical role in supporting GM's retail sales, and anything that lessens its ability to provide that support is a negative for GM. We think that one of the tradeoffs for GMAC's potential support of ResCap is an erosion in its ability to support GM's retail sales." Additional factors contributing to the negative outlook are the considerable cash requirements that GM will face during 2008 and 2009. By 2010, GM has the potential to generate positive cash flow due, in part, to the considerable savings that will begin to be realized from the UAW-managed health care plan established as part of the 2007 labor contract. Going into 2008, GM's gross liquidity consisted of approximately US$27.3 billion in cash and US$7.3 billion in committed credit facilities. These liquidity resources support the company's SGL-1 speculative grade liquidity rating by providing substantial coverage of all cash requirements likely to arise during the coming twelve months. These requirements include: ongoing minimum levels of cash required to fund intra-month working capital requirements that can approximate 5%-6% of revenues in the automotive OEM sector; scheduled debt repayments; a large operating cash burn associated with declining industry volumes in North America; and anticipated restructuring expenditures at both GM and Delphi. GM could also be faced with additional cash expenditures related to a resolution of the American Axle -UAW contract negotiations, Delphi's bankruptcy emergence plans, or capital contributions to GMAC. Clark noted that, "A critical element of GM's strategy is to maintain enough liquidity to bridge the large cash consumption requirements of 2008 and 2009, until significantly lower health care expenditures start to occur in 2010. Our key credit concern is that while this liquidity bridge is pretty robust through 2008, it could become more tenuous as the company gets in into the latter half of 2009. We'll continue to focus a lot of our attention on GM's liquidity and its adequacy to get the company to 2010." Although GM's approximately US$34.6 billion in gross liquidity will amply cover all of 2008's cash requirements, the resulting level of liquidity available to cover 2009's requirements will be significantly reduced. Moreover, Moody's remains concerned that absent a material rebound in North American automotive demand, GM's 2009 cash requirements have the potential to strain the liquidity resources the agency expects to be available at that time. As a result Moody's will closely monitor GM's operating performance, the magnitude of cash needs, and the prevailing market conditions through the coming nine months in order to gauge the likely sufficiency of the company's liquidity resources to fund all requirements during 2009. Over the course of this nine-month period, indications that cash requirements are exceeding expectations would likely lead to a lowering of the company's speculative grade liquidity rating. An unabated erosion in the liquidity profile would likely be a precursor to a downgrade of the company's long-term ratings. Conversely, evidence that GM's intermediate term cash requirements are lower than anticipated and that the resulting liquidity position will adequately cover 2009's requirements would contribute to a stabilization of the rating outlook. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GENERAL MOTORS: GMAC and ResCap Downgrades Cue S&P's Neg. Watch --------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The CreditWatch update follows downgrades of 49%-owned subsidiaries GMAC LLC (B/Negative/C) and Residential Capital LLC (CCC+/Watch Neg/C). The rating actions on Residential Capital LLC and GMAC were triggered by the resignation of the only independent directors at Residential Capital LLC. "We don't expect GM to provide any significant capital to GMAC or indirectly to Residential Capital," said Standard & Poor's credit analyst Robert Schulz, "nor are they required to do so in the future." S&P's ratings does not incorporate any transfer of substantial capital to GMAC. GM's ratings were originally placed on CreditWatch because of the strike at major supplier American Axle & Manufacturing Holdings Inc. The American Axle strike has now lasted two months and forced production shutdowns at several GM plants that produce full-size pickups and SUVs. In addition, GM workers began a strike last week over local work issues at an assembly plant in Delta Township, Michigan, which produces a popular line of crossover utility vehicles. Although S&P expects these labor issues to be resolved, the timing, and therefore the full extent, of their effect on GM's liquidity is unknown. S&P expects the American Axle strike to contribute to a very large use of cash in GM's first-quarter 2008 results, which GM will announce in the next few weeks, and the effect will be magnified by the timing of GM's payables and receivables. The first quarter will be hurt by the negative cash effect of reduced truck shipments and little to no offsetting benefit from reduced payments to suppliers, including American Axle. The second quarter will be affected as well, and in light of weak sales, GM's production levels could remain under pressure even once the American Axle strike is over. Still, GM should be able to maintain ample available liquidity; at year-end 2007, the company had US$27.3 billion, including cash, marketable securities, and US$600 million in short-term VEBA funds. Another uncertainty for GM, although less of a pressing issue in the near term, is former supplier Delphi Corp.'s difficulties in emerging from bankruptcy. S&P still believes the comprehensive costs to GM of Delphi's reorganization will remain within the scope of GM's liquidity. Still, the current capital market turmoil may keep Delphi in Chapter 11 for several more months, if not the rest of this year. S&P's ratings does not leave any room for GM to make substantial cash payments to support a Delphi emergence. S&P's resolution of the GM CreditWatch will likely not occur until the American Axle strike has been resolved. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. PRIDE INT'L: BOD's Actions May Cue Seadrill's Buyout, Fitch Says ---------------------------------------------------------------- Pride International announced that its Board of Directors has revised the company's Stockholder Rights Plan to lower the threshold level of beneficial ownership that would trigger the poison pill from 15% to 10% for acquisitions by Seadrill Limited and its affiliates and associates. Pride's Board of Directors took this step in response to Seadrill's acquisition of an approximately 9.9% ownership stake in Pride. In addition, Seadrill has made a filing under the Hart-Scott- Rodino Antitrust Improvements Act of 1976 to permit it to acquire Pride securities. It is unclear at this time if Pride's Board of Directors has taken this step for the purpose of remaining independent or in order to engage in more formal negotiations with Seadrill. Fitch notes that one potential outcome stemming from the announcement is that Pride could be acquired by Seadrill. If an acquisition should occur, Pride bondholders are protected by a change of control provision in the company's US$500 million of 7.375% senior notes due 2014. Bondholders have the ability to force the company to repurchase the notes at 101% of par plus accrued and unpaid interest, but only if the change in control results in a ratings downgrade. Additionally, Pride's US$500 million senior secured credit facility contains a change of control protection for lenders. The revolver was undrawn at year-end 2007 and had only US$13.3 million of letters of credit on the facility. Lenders of the company's $300 million of 3.25% convertible senior notes due 2033 contain multiple protections. Noteholders have the right to require the company to repurchase the notes on May 1, 2008 at 100% of the principal amount plus accrued and unpaid interest. More importantly, the notes are convertible into Pride's common stock at a conversion rate of 38.9045 shares per US$1,000 principal amount of notes (equal to a conversion price of US$25.704 per share). The notes are currently convertible and Pride has announced its plans to redeem the notes on May 16, 2008, effectively forcing noteholders to convert before May 15, 2008. Pride currently expects to pay approximately US$300 million in cash in connection with the conversion and the remaining amount satisfied in shares. Fitch has not taken any rating actions on Pride as a result of the current disclosure by the company. Fitch would note that should Seadrill succeed in acquiring Pride, negative rating action at Pride remains a possibility. Seadrill currently operates with significantly higher leverage than its peers in the offshore drilling market. In addition, Seadrill has been significantly more aggressive in acquiring and building newbuilds on a speculative basis than has Pride or others in the industry. Pride's ratings reflect the significant improvement the company has made in reducing debt and capitalizing on the strong offshore drilling environment to sell non-core assets and refocus the company as an offshore drilling contractor with a focus on deepwater assets. Pride's credit metrics reflect these improvements as well as the strong market conditions for offshore drilling rigs. For the last 12 months ending Dec. 31, 2007, Pride generated US$918.3 million of EBITDA, and free cash flow was US$28.6 million. Credit metrics were robust with interest coverage of 11 times and debt-to-EBITDA of 1.3x. Fitch currently maintains these ratings for Pride: -- Issuer Default Rating at 'BB'; -- Senior unsecured at 'BB'; -- Senior secured bank facility at 'BBB-'; -- Senior convertible notes at 'BB'. The Rating Outlook is Stable. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. ================= I N D O N E S I A ================= ADAM AIR: DOT Offers Routes to Other Airlines --------------------------------------------- Tempo Interactive reports that the Department of Transportation has provided the chance for seven national airlines to use the routes of Adam Air. Harun Mahbub of Tempo Interactive relates that the government sent a letter offering the additional flight routes to seven airlines: -- Garuda Indonesia, -- Merpati Nusantara Airlines, -- Metro Batavia, -- Lion Air, -- Wings Abadi, -- Mandala Airlines, and -- Indonesia AirAsia. Tempo Interactive reports that the government annulled Adam Air's route permit on April 9, 2008, "as the airline was considered to be ignoring aviation safety." About Adam Air Adam Air, (incorporated as PT. Adam SkyConnection Airlines), -- http://www.adamair.co.id/-- is a privately owned airline based in Jakarta, Indonesia. It used to operate scheduled domestic services to over 20 cities and international services to Penang and Singapore. Its main base was Soekarno-Hatta International Airport, Jakarta. The airline had 21 domestic routes and four international routes. The domestic flight frequency reached 490 times per week and international flights reached 42 times per week. In 2007, Adam Air carried 5.2 million domestic passengers and 120,618 passengers abroad. As reported by the Troubled Company Reporter-Asia Pacific on March 26, 2008, the Department of Transportation canceled Adam Air's airline operations starting March 19 due to failure to comply with the agency's safety standards. Another TCR-AP report noted that a leasing firm seized more than half of Adam Air's fleet when the airline defaulted on payments. BANK NEGARA: Reports IDR153 Billion 1st Quarter Net Profit ---------------------------------------------------------- Harry Suhartono of Reuters reports that PT Bank Negara Indonesia Tbks' net profit in the January-March period plunged to IDR153 billion from IDR400 billion in the same period last year. According to Reuters, the bank reported a 62 percent fall despite a rise in its net interest income by 46.1 percent to IDR2.23 trillion. Mr. Suhartono relates that analysts expect BNI to post a net profit of IDR2.44 trillion in 2008, up from IDR897.93 billion last year. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 25, 2008, Fitch Ratings took these rating actions on PT Bank Negara Indonesia (Persero) Tbk: -- LTFC/LTLC IDRs 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 'D'; -- ST IDR affirmed at 'B'; -- National Long-term affirmed at 'AA-(idn)'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. On Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara Indonesia (Persero) Tbk.'s foreign currency long-term debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. On April 20, 2007, Standard & Poor's Ratings Services raised Bank Negara's long-term counterparty credit ratings to 'BB-' from 'B+'. BANK NIAGA: Shareholders Approve 2007 Annual Report --------------------------------------------------- In Annual General Meeting of Shareholders of PT Bank Niaga Tbk held on April 23, 2008, at Financial Hall, Graha Niaga lantai 2, Jalan Jenderal Sudirman Kaveling 58, the Meeting approved seven issues: 1. To approve and accept the Company�s Annual Report for 2007 and ratify the Company�s consolidated Financial Statements for 2007 as audited by �Haryanto Sahari dan Rekan� Public Accountant, an affiliate of PriceWaterhouseCoopers, with the opinion that the consolidated Financial Statements present fairly all material aspects, in conformity with generally accepted accounting principles in Indonesia, as evidenced in the report dated February 15, 2008, and Under Article 20 paragraph 20.3 of the Articles of Association of the Company, with the approval of the Company�s 2007 Annual Report and consolidated Financial Statements, the Meeting discharged and acquitted the Board of Directors and Board of Commissioners of the Company, including retiring members of the Board of Directors and Board of Commissioners of the Annual General Meeting of Shareholder on April 19, 2007, from the accountability of their management and supervision during 2007, to the extent that it was reflected in the Company�s Annual Report and the consolidated Financial Statements 2007, except for misappropriation, fraud and any other criminal acts. 2. To resolve the Company�s net profit for 2007 totaling to IDR770.481.212.191 -- to be used: a. 50% from the net profit or a total of IDR385,240,606,095 -- for final dividend to be distributed to the shareholders, the amount of which will be deducted by the interim dividend of IDR243,371,402,496 already distributed to the shareholders on September 14, 2007; thus the cash dividend for distribution to the shareholders amounts to IDR141,869,203,599 b. A total of IDR385,240,606,095 is to be recorded as retained earnings c. No reserve part of the Company�s net income to form the statutory reserve, since it has been formed currently amounted IDR215,900,166,498 or 22.17% of the paid-up capital. 3. a. To re-appoint of �Haryanto Sahari & Rekan� Public Accountant, an member of PriceWaterhouseCoopers International in Indonesia, to audit the Company�s Annual Accounts for 2008; and b. To authorize the Commissioners to determine the honorarium for Public Accountant and any other requirements related to such appointment. 4. a. To approve the provision of salary/honorarium and allowance for the Commissioners of the Company, with a maximum gross amount of IDR7,283,333,333 per annum, and Tantiem of accrual a maximum gross amount of IDR4,042,500,000; and b. To approve the delegation of authority to the Commissioners to determine the salary or honorarium and allowance for the Directors for the 2008 fiscal year, in observance of the proposal submitted by the Committee of Remuneration and Nomination. 5. a. To approve the change of the Articles of Association of the Company to adjust with Act No. 40 of 2007 regarding Limited Liability Company; and b. To approve the delegation of authority to the Board of Directors to restate the Resolution of the Meeting before the Public Notary regarding the change of the Articles of Association of the Company, and to restate the Company�s shareholders and the members of the Company�s Board of Commissioners, Board of Directors, and Syariah Supervisory Board, and to further direct the approval and or notification of the change of the Company�s Article of Association to the Minister of Law and Human Rights of the Republic of Indonesia as stipulated in the prevailing regulation. 6. a. To approve the confirmation of the appointed Syaria Supervisory Board of the Company with the term of office as of the closing of this Meeting up to the closing of 2009 Annual General Meeting of Shareholders in 2010 which is the same with the Board of Commissioners� and Board of Directors� term of office; and b. With the approval, the members of the Syariah Supervisory Board with the term of office as of the closing of this Meeting up to the closing of 2009 Annual General Meeting in 2010 will be: b.1. Prof. Dr. M. Quraish Shihab, MA b.2. Prof. Dr. Hasanuddin AF, MA; dan b.3. Prof. Dr. Huzaemah T. Yanggo, MA 7. a. To approve the ratification for the Board of Commissioners� action in approving the paid-up capital increased of the Company, therefore changing Article 4 paragraph 4.2 of the Article of Association of the Company regarding the Company�s paid-up capital in relation with the exercises of ESOP and Series I Warrant effective as of August 16, 2007 up to the closing of this Meeting; and b. To approve the delegation of the authority to the Board of Commissioners to approve the paid-up capital increase of the Company time to time in relation to the exercises of Warrant Series I, therefore to change the Article 4 paragraph 4.2 of the Article of Association of the Company regarding the Company�s paid-up capital increase effective for a year after the closing of the Meeting or 23 April 2009. Based on the resolution of Annual General Meeting of Shareholders, the Company will distribute the cash dividend amounted to IDR141.869.203.599 to the shareholders: Cum Dividend in Regular Markets : May 22, 2008 Ex Dividend in Regular Markets : May 23, 2008 Cum Dividend in Cash Markets : May 27, 2008 Recording Date : May 27, 2008 Ex Dividend in Cash Markets : May 28, 2008 Payment : June 10, 2008 The dividend will be distributed to shareholders who registered on the List of Company�s Shareholders as of May 27, 2008, at 4:00 p.m. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch Ratings took these rating actions on PT Bank Niaga: -- LTFC IDR upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Individual rating affirmed at 'C/D'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. The TCR-AP reported on Oct. 19, 2007, that Moody's Investors Service took these rating actions on PT Bank Niaga: -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and 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. BANK NIAGA: Reports IDR207.2 Billion 1st Quarter Net Profit ----------------------------------------------------------- Harry Suhartono of Reuters reports that PT Bank Niaga Tbk reported IDR207.2 billion net profit for the three months ended March 31, 2008, compared with IDR201.6 billion in the same period in 2007. According to the report, Net Interest Income for the first quarter of 2008 reached IDR657.24 billion, compared with IDR627.50 billion last year. The company posted a lower Operating Income of IDR207.28 billion for the first quarter of 2008, compared with last year's IDR235.90 billion, Reuters adds. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * The Troubled Company Reporter-Asia Pacific reported on Feb. 25, 2008, Fitch Ratings took these rating actions on PT Bank Niaga: -- LTFC IDR upgraded to 'BB' from 'BB-'; Outlook revised to Stable from Positive; -- Support rating upgraded to '3' from '4'; -- Individual rating affirmed at 'C/D'; -- FC subordinated debt upgraded to 'BB-' from 'B+'. The TCR-AP reported on Oct. 19, 2007, that Moody's Investors Service took these rating actions on PT Bank Niaga: -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and 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: To Issue IDR1.5 Trillion in Bonds ------------------------------------------- Novia D. Rulistia of The Jakarta Post reports that PT Indofood Sukses Makmur will issue bonds worth IDR1.5 trillion to fund debt refinancing and working capital. According to The Post, Indofood Director Thomas Tjhie said 82 percent of the proceeds will be used to repay its maturing bonds in June. The report relates that Indofood's underwriters for the bond issuance are: -- DBS Vickers Securities, -- PT Danareksa Sekuritas, -- PT ING Securities Indonesia, -- PT Kim Eng Securities, and -- PT Mandiri Sekuritas. Citing officials at DBS Vickers Securities, The Jakarta Post further discloses details regarding the bonds: -- it will be for five years; -- it will be priced up to 1.1 percent more than the government's FR19 bond series; -- interest rates will range between 0.75 percent to 1.1 percent above the FR19 series; -- offering period will run from May 30 until June 3; -- it will be listed on the Indonesia Stock Exchange on June 9. 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 LISTRIK: To Fine Suppliers for Late Coal Deliveries -------------------------------------------------------------- PT Perusahaan Listrik Negara, ANTARA News reports, is considering imposing a sanction on suppliers who delay their coal supplies. Antara News relates that PLN President Director Fahmi Mochtar commented last week, "A fine will be imposed as part of efforts to remind them on the importance of their responsibility for uninterrupted national electricity supply." According to Mr. Fahmi, the company wants coal suppliers to be more disciplined, the report states. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time