T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 1, 2008, Vol. 11, No. 86 Headlines A U S T R A L I A ABC LEARNING CENTRES: To Post AU$89 Million Loss in 2008 ALLCO FINANCE: Japan Unit Placed in Trading Halt BRIGHTPOINT INC: Subsidiary Acquires Hugh Symons Business CENTRO PROPERTIES: Gets One-Week Extension to Pay AU$5.6BB Debt CENTRO PROPERTIES: Posts AU$190.9MM Dec. 2007 Investment Income COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study DUNCAN J BASSETT: Commences Liquidation Proceedings GLOBAL MARKETING: Michael Smith Appointed as Liquidator LUJAN INVESTMENTS: Alex Koutzoumis Appointed as Liquidator NRG ENERGY: Moody's Changes Outlook to Stable; Holds Ba3 Ratings PEARCE DESIGN: Commences Liquidation Proceedings ROO GROUP: Net Loss Up to $12MM in Quarter Ended December 31 SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney SHARPER IMAGE: Committee Wants to Retain Cooley as Lead Counsel SHARPER IMAGE: Committee Wants to Retain Loughlin as Advisor SHARPER IMAGE: Committee Wants to Retain Whiteford as Counsel SMARTIRE SYSTEMS: CFO Finkelstein Quits; Dodge Named Interim CFO SYNOPSIS SOLUTIONS: To Declare Final Dividend on May 30 C H I N A & H O N G K O N G & T A I W A N CHINA EASTERN: Posts First-Quarter Net Profit of CNY210.8Mil. CHINA EASTERN: Adds Flights for Sanya-Moscow Routes CHINA EASTERN: Directors Approve Various Renewal Agreements ELEPHANT TALK: Kabani & Co Expresses Going Concern Doubt GREENTOWN CHINA: Annual General Meeting Slated for May 23 HAINAN AIRLINES: 1st Qtr. Net Income Increases to CNY286.7 Mil. HAINAN: Hires Mr. Chusid as General Manager for North America HEXCEL CORP: S&P Maintains 'B3' Corp. Rating With Stable Outlook HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating SHIN KONG: S&P Affirms D+ Bank Fundamental Strength Rating YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating ZTE CORP: Seals Belarus IPTV Project Contract I N D I A ESSAR OIL: Unit Bids for 2 Offshore Blocks in Australia GENERAL MOTORS: To Cut One Shift of Full-size Truck Production GMAC LLC: Financial Arm Posts $589MM Net Loss in 2008 1st Qtr. ICICI BANK: Khandwala Puts “Buy” Rating on Firm's Shares IFCI LTD: Incurs INR425.20 Mil. Net Loss in Qtr. Ended March 31 QUEBECOR WORLD: Randy Benson Named Chief Restructuring Officer QUEBECOR WORLD: Posts US$2 Billion Net Loss for Full Year 2007 QUEBECOR WORLD: Quebecor Inc. Issues Clarification TATA POWER: Refinances Bridge Loan to Fund Stake Purchase I N D O N E S I A BANK RAKYAT: Reports IDR1.4 Trillion Net Profit in 1Q 2008 EXCELCOMINDO PRATAMA: Earns IDR368 Billion in 1st Quarter 2008 INDOFOOD: Reports IDR383 Billion 1st Quarter 2008 Net Profit GOODYEAR TIRE: Earns US$147 Million in 2008 First Quarter MEDCO ENERGI: Mitsubishi LNG Project May Cost US$1.4 Billion J A P A N BANCO BRADESCO: Net Income Up 23.3% to BRL2.1 Billion in 1Q 2008 BANCO BRADESCO: Units Earn BRL746 Million in First Quarter 2008 BANCO BRADESCO: Forms Unit to Handle Credit Card Operations BANCO BRADESCO: Won't Enter Commercial Banking Segment Abroad COREL CORP: Reports $18M Stockholders' Deficit, Lower Net Loss FORD MOTOR: Inks Master Economics Offer Agreement with CAW JASDAQ SECURITIES: May Resort to Merger to Keep Business SADIA SA: To Form Joint Venture With Kraft Foods K O R E A DAEWOO ELECTRONIC: Ziontech, et al. Acquire 945,300 Shares DURA AUTOMOTIVE: Files First Revised Chapter 11 Plan Supplements DURA AUTOMOTIVE: Unable to File 2007 Annual Report on Time KENERTEC CO: Moves Private Placement Listing Date to May 28 KENERTEC: Unit to Acquire 85% Stake in Ratanak Kenertec N E W Z E A L A N D AIR NEW ZEALAND: To Increase Domestic Fares by May 6 AMRIT GLASS LIMITED: Reynolds Appointed as Liquidator AURUM UPHOLSTERY: Court to Hear Wind-Up Petition Today CLASSIC MOTORS: Court to Hear Wind-Up Petition Tomorrow CLICK SOUND (2004): Claim Filing Deadline is May 20 CLUBZONE LTD: Court to Hear Wind-Up Petition Tomorrow DOTCARD (AUSTRALASIA) LIMITED: Claim Filing Deadline is July 9 EURO BUILDERS: Creditors Must File Claims by May 23 GENEVA FINANCE: S&P Lifts LT Counterparty Credit Rating to CCC GENEVA FINANCE: To List on NZX by July 1 "at the Latest" INTERNATIONAL ENVIRONMENTAL: Court Appoints Liquidators GRAND VIEW HOLDINGS: Commences Liquidation Proceedings INTO THE LIGHT CONSULTANCY: Faces Sloane's Wind-Up Petition MFS PACIFIC FINANCE: Presents Draft Moratorium Proposal QUICK FREIGHT LIMITED: Commences Liquidation Proceedings RPM DIRECT LIMITED: Creditors Must File Claims by July 9 THAI KITCHEN (NEW LYNN) LIMITED: Court Appoint Liquidators WOULD CAFE LTD: Court to Hear Wind-Up Petition on May 7 P H I L I P P I N E S * PHILIPPINES: Pre-Need Industry First Qtr 2008 Sales Down 27% - - - - - ================= A U S T R A L I A ================= ABC LEARNING CENTRES: To Post AU$89 Million Loss in 2008 -------------------------------------------------------- The Australian Associated Press reports that ABC Learning Centres expects to post a loss of up AU$89 million this year. ABC co-founder Eddy Groves told the AAP that "the company had been hit hard by a number of external factors, including changing interest rates and changes in the debt market, but conceded communication to the market was poor." "We have not helped ourselves internally," the AAP quotes Mr. Groves as saying. "We cannot blame it all on external factors. We certainly have not communicated well with the market. We need to improve that." According to the report, ABC Chairman Sallyanne Atkinson and Chief Financial Officer James Black have decided to step down on their own accord. ABC plans to reduce its debt by AU$485 million by selling 60% of its portfolio of childcare centres in the U.S. to Morgan Stanley Private Equity for US$700 million, the AAP relates. 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. ALLCO FINANCE: Japan Unit Placed in Trading Halt ------------------------------------------------ Katherine Jimenez of The Australian reports that Allco Finance Group's Rubicon Japan Trust was placed in a trading halt on Tuesday, pending news on the refinancing of a debt facility with the Shinsei Bank. According to Ms. Jimenez, Rubicon asked Shinsei Bank and Credit Suisse for an extension of the deadline to repay its JPY5.5 billion debt. Rubicon is supposed to repay JPY4.9 billion to Shinsei Bank on May 6. The Australian relates that in a brief statement, Rubicon said it requested the trading halt because "we believe that there will be information regarding the refinancing of the Shinsei Bank debt facility which we will soon be in a position to release to the market". Allco Finance Group is also trying to restructure a corporate debt facility of up to AU$1.15 billion. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. BRIGHTPOINT INC: Subsidiary Acquires Hugh Symons Business --------------------------------------------------------- Brightpoint Inc.'s wholly-owned subsidiary, Brightpoint Great Britain Limited, has acquired the Hugh Symons Group Ltd.'s wireless distribution business. Brightpoint Great Britain Ltd. acquired the assets in exchange for GBP294,000 (approximately US586,000) and the value of inventory at date of closing. In addition, Brightpoint agreed to contingent cash earn out payments based upon certain operating performance measures which may be payable on the 1st, 2nd and 3rd anniversary of closing. The total earn out payments shall in no event exceed GBP3.6 million (approximately US7.2 million). Mr. Hugh Roper and other key former members of Hugh Symons Group Ltd.'s wireless distribution business will join Brightpoint Great Britain Ltd. and will continue to be involved with the management and operation of the business. "The acquisition will strengthen our position in Europe," stated Steen F. Pedersen, President for Brightpoint Europe. "We have been looking for an opportunity to enter the UK market for the past few years. We believe that we have found the right opportunity. Hugh Symons Group Ltd. has been developing the smart phone market in UK, which is an important element of our growth strategy. Additionally, we want Hugh Roper and his team to further expand the business with other Brightpoint models like the customized logistic services model." "I believe that the ownership of Brightpoint gives us huge opportunities in UK," stated Hugh Roper, Managing Director and sole-shareholder of Hugh Symons Group Ltd. "I am convinced that our UK team together with the knowledge and competences from Brightpoint will be a powerful platform for further development of the business. I am looking forward to develop Brightpoint Great Britain Ltd. into a full-blown value adding distributor and logistic provider." Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- distributes wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. CENTRO PROPERTIES: Gets One-Week Extension to Pay AU$5.6BB Debt --------------------------------------------------------------- Centro Properties Group's lenders gave the company until May 7, 2008, to refinance AU$5.6 billion or US$5.2 billion of debt as it works to sell assets, Laura Cochrane of Bloomberg News reports. The company's debt repayment deadline was supposedly yesterday, April 30. Centro's lenders, according to Bloomberg, include Commonwealth Bank of Australia, Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and BNP Paribas. Early last month, Centro Properties said in a statement that it requested the Australian Securities Exchange to grant a trading halt of its stapled securities. A report on the shares trading halt by Laura Cochrane of Bloomberg News was cited in yesterday's issue of the Troubled Company Reporter. Meanwhile, Centro Properties said in a statement Monday last week that there have been offers received for Centro’s interest in the Centro Australia Wholesale Fund. The Group said it has reviewed the offers and is reconsidering the marketing strategy for the interest to achieve the most value, which may include selling the CAWF properties in smaller portfolios or individually. The company also noted that the Centro America Fund process started later than the CAWF process and is ongoing with offers currently being considered. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of $24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CENTRO PROPERTIES: Posts AU$190.9MM Dec. 2007 Investment Income --------------------------------------------------------------- Centro Properties Group reported AU$190.9 million in net property investment income for December 2007 compared to AU$175.7 million in December 2006. Net services business income for December 2007 was AU$138.4 million up from AU$63.8 million in December 2007. Distributable income attributable to ordinary securityholders for December 2007 was AU$185.9 million while net AIFRS profit was (AU$1,112.4) million. This compares to distributable income attributable to ordinary securityholders of AU$162.8 million and net AIFRS profit of AU$157.3 million in December 2006. Total Australian sales as of December 31, 2007, was AU$10,505 million. Centro Properties Group also recorded US property portfolio value of US$13.6 billion at December 2007 compared to US$5.4 billion in December 2006, while Australian property portfolio value for December 2007 was AU$9.5 billion compared to AU$8.4 billion in December 2006. Balance sheet data as of December 31, 2007, showed total assets of AU$8,000 million financed by AU$3,892 million in borrowings, AU$2,409 million in equity and AU$1,699 million in other liabilities. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of $24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study -------------------------------------------------------------- Coeur d'Alene Mines Corp.'s Chief Financial Officer Mitchell Krebs told Business News Americas that the firm wants to complete in June a feasibility study for its Palmarejo silver- gold project in Chihuahua, Mexico. The study will include the first proven and probable reserves estimate for the Palmarejo deposit, BNamericas says, citing Ms. Krebs. According to BNamericas, "Palmarejo's measured and indicated resources stand at 88.7 million ounces of silver and one million ounces of gold, with additional inferred resources of 61.4 million ounces of silver and 700,000 ounces of gold. The current mine plan foresees a commercial production rate of 4,500 tons per day throughput, with annual output of nearly 10.4 million ounces of silver and 115,000 ounces of gold at cash costs, net of gold byproduct, of negative US$0.41 per ounce of silver." Ms. Krebs told BNamericas that before Coeur d'Alene acquired the Palmarejo project, processing equipment with a capacity of 6,000 tons per day -- including ball mills and sag mills -- were bought. "So we will have about 1,500 tons per day of excess capacity that we will hopefully take up with added production from the other nearby deposits, like Guadalupe and La Patria. Hopefully, although not immediately, but in the first couple of years of production, we can bump production from 4,500 tons per day up to 6,000 tons per day," Ms. Krebs commented. The Palmarejo project will be "in commercial production" at 4,500 tons per day by 2009, with about 2,500 tons per day coming from the open pit and 2,000 tons per day coming from underground, BNamericas says, citing Ms. Krebs. "Capital expenditures to get Palmarejo into commercial production are estimated at US$225 million," Ms. Krebs told BNamericas. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. DUNCAN J BASSETT: Commences Liquidation Proceedings --------------------------------------------------- At a final meeting held yesterday, April 30, 2008, John Greer, the liquidator appointed by the members of Duncan J Bassett Services Pty Limited, presented an account showing the manner in which the winding up of the company has been conducted and the property disposed of. The meeting was held at the offices of Griffiths, Forrest & Greer, Chartered Accountants, Level 7, 276 Pitt Street, in Sydney, Australia. GLOBAL MARKETING: Michael Smith Appointed as Liquidator ------------------------------------------------------- At a general meeting of the members of Global Marketing Company Pty Ltd, formerly trading as Banjara Classic Indian Restaurant, held March 17, 2008, it was resolved that the company be wound up voluntarily. The members appointed Michael John Morris Smith of Smith Hancock as liquidator of the company. The liquidator can be reached at: Michael John Morris Smith Smith Hancock Level 4, 88 Phillip Street Parramatta NSW 2150 LUJAN INVESTMENTS: Alex Koutzoumis Appointed as Liquidator ---------------------------------------------------------- Lujan Investments Pty Ltd's shareholders resolved, at a general meeting held on March 19, 2008 , that the company be wound up voluntarily. Mr. Alex Koutzoumis was appointed as liquidator of the company. The liquidator can be reached at: Alex Koutzoumis Holden & Bolster Avenir Pty Ltd Level 31, Australia Square 264-278 George Street Sydney NSW 2000 NRG ENERGY: Moody's Changes Outlook to Stable; Holds Ba3 Ratings ---------------------------------------------------------------- Moody's Investors Service changed the rating outlook for NRG Energy, Inc. to stable from negative, and upgraded its Speculative Grade Liquidity Rating to SGL-1 from SGL-2. The rating agency also affirmed all of NRG's ratings, including its Corporate Family Rating at Ba3, the Probability of Default Rating at Ba3, and the senior unsecured debt at B1. "The change in rating outlook reflects an expectation of continued stable cash flow for the foreseeable future, execution of a more balanced capital allocation program, and the continued use of joint ventures and other arrangements which mitigate risk and lower future capital expenditure requirements, "said A.J. Sabatelle, VP -- Senior Credit Officer of Moody's. "The upgrade in NRG's liquidity rating to SGL-1 factors in, among other things, the substantial reduction in working capital requirements following recent modifications to several of NRG's counterparty agreements," said Mr. Sabatelle. The rating affirmation reflects relatively stable cash flows expected at NRG given the company's competitive position in several key markets and the degree of forward hedges in place for the next several years. NRG's adjusted cash flow (CFO pre- W/C) to total adjusted debt has averaged approximately 15% for the past three years and 16% in 2007. Moody's expects this financial metric to modestly improve during 2008 due to continued steady operating cash flow generation and permanent consolidated debt reduction, including debt retirement of around $475 million under the company's secured term loan, the bulk of which occurred in December 2007 and March 2008. The rating affirmation and outlook change considers management's efforts to balance shareholder and creditor interests through its deployment of discretionary cash. While Moody's believes that the company will continue to pursue a capital allocation strategy that returns to shareholders an average rate of 3% annually (or approximately $250 million to $300 million each year), the company has complimented this capital return program with associated debt retirement. Additionally, the rating action considers NRG's approach to managing a substantial capital investment program that include the use of joint venture arrangements for all of the company's largest generation projects, and the execution of long-term power purchase arrangements with load serving entities at other projects in conjunction with re-powering initiatives. Notwithstanding this measured approach, Moody's observes that potential capital investments for NRG over the next several years are quite substantial when compared to the company's $10 billion market capitalization. For 2008, NRG will be able meet its capital expenditure requirements with operating cash flow as free cash flow (operating cash flow less dividends and capital expenditures) is expected to approximate $250 million (or about 3% of total consolidated debt), which incorporates a more than $700 million year-over-year increase in capital investment, principally for re-powering and environmental related requirements. The upgrade of NRG's speculative grade liquidity rating to SGL-1 from SGL-2 reflects Moody's expectation that NRG will maintain a very good liquidity profile over the next 12-month period as a result of its generation of strong internal cash flows, maintenance of significant cash balances and access to substantial credit availability. The upgrade considers the recent increase in credit availability following NRG's successful exchange of collateral with its largest counterparties, enabling the return of $622 million in letters of credit, and acknowledges the expected further increase in liquidity that should follow upon completion of the sale of ITISA to a subsidiary of Brookfield Asset Management for $288 million, subject to purchase price adjustments. NRG's stable rating outlook reflects Moody's expectation for continued generation of relatively predictable cash flow for this wholesale power company due to the fleet's competitive position and hedging strategy. The stable outlook considers continued execution of management's capital allocation policy, which has resulted in lower consolidated debt, and factors in NRG's measured strategy for capital investment, including the use of joint ventures and execution of key contractual arrangements to mitigate risk. In light of better macroeconomic conditions for power generators, including lower reserve margins in certain regions and a long-lead time for large base load construction, Moody's expects improved financial performance in the intermediate term for most wholesale power companies, including NRG. The ratings for NRG could be upgraded if such conditions lead to an improvement in key financial metrics including adjusted cash flow (CFO pre-W/C) to total adjusted debt rising to the high teens level on a sustainable basis, while maintaining its discipline in executing its capital allocation program. An additional consideration concerning any upgrade would be a deeper understanding around the numerous growth initiatives at the company, including the recent formation of Nuclear Innovation North America, a joint venture with Toshiba Corp. The rating could be downgraded if the degree of shareholder initiatives accelerates over the next twelve to eighteen months or if the company chooses to finance its capital investment program or any acquisition with higher than anticipated levels of debt. Additionally, should margins compress across NRG's generation fleet due to weaker macroeconomic factors or an extended forced outage causing adjusted cash flow (CFO pre-W/C) to total adjusted debt to fall below 12% for an extended period, the rating could be downgraded. Upgrades: Issuer: NRG Energy, Inc. -- Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2 -- Multiple Seniority Shelf, Upgraded to a range of 73 - LGD5 to 17 - LGD2 from a range of 78 - LGD5 to 22 - LGD2 -- Senior Secured Bank Credit Facility, Upgraded to 17 - LGD2 from 22 - LGD2 -- Senior Unsecured Regular Bond/Debenture, Upgraded to 73 - LGD5 from 78 - LGD5 Outlook Actions: Issuer: NRG Energy, Inc. -- Outlook, Changed To Stable From Negative Issuer: NRG Holdings, Inc. -- Outlook, Changed To Rating Withdrawn From No Outlook Withdrawals: Issuer: NRG Holdings, Inc. -- Senior Secured Bank Credit Facility, Withdrawn, previously rated (P)B2 Headquartered in Princeton, New Jersey, NRG Energy, Inc. owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia and Germany. PEARCE DESIGN: Commences Liquidation Proceedings ------------------------------------------------ PEARCE DESIGN & CONSULTING PTY LIMITED's members resolved, at a general meeting held on March 18, 2008, that the company be wound up voluntarily. Bruce Gleeson of Jones Partners, Insolvency & Business Recovery was appointed as liquidator of the company. The liquidator can be reached at: Bruce Gleeson Jones Partners Insolvency & Business Recovery Level 13 189 Kent Street Sydney, Australia Telephone: (02) 9251-5222 ROO GROUP: Net Loss Up to $12MM in Quarter Ended December 31 ------------------------------------------------------------ ROO Group Inc. reported financial results for the quarter and year ended Dec. 31, 2007, the reporting period immediately prior to the assumption of executive management responsibilities by the KIT Capital group. The net loss for the quarter ended Dec. 31, 2007, was $12.5 million compared to net loss of $5.0 million in the same period last year. The net loss for the quarter ended Dec. 31, 2007, includes non-cash items totaling approximately $1.1 million in stock-based compensation and other compensation payments, compared to $860,000 in the same period last year, and $4.1 million relating to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the quarter was $7.3 million. The increase in net loss for the quarter is attributed to continued investments in building out our technology platform, the cost of running the RBS business unit, which was still in the research and development phase, well as legal fees and costs associated with headcount reduction. Weighted average common shares outstanding for the three months ended Dec. 31, 2007, was 38,953,109 compared to 21,920,172 for the same period in the prior year. The RBS business unit, which was researching peer-to-peer networking technology, was closed down in January 2008. For the year ended Dec. 31, 2007, the net loss was $34.6 million compared to net loss of $14.6 million in 2006. The net loss includes non-cash items totaling approximately $4.7 million in stock-based compensation and other compensation payments, compared to $2.6 million in 2006, and $4.1 million relating to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the year was $25.8 million. The increase in net loss for the year is attributed to the cost of development of the VX Platform, the acquisition of strategic assets of Wurld Media and the cost of running the RBS business unit, well as a ramp up of operations and sales personnel. Weighted average common shares outstanding for the year ended Dec. 31, 2007 was 34,869,325 compared to 15,901,049 for the same period in the prior year. At Dec. 31, 2007, the company's balance sheet showed total assets of $18.115 million, total liabilities of $6.76 million and total shareholders' equity of $11.355 million. The company also made several key corporate action statements, including: (a) The conversion of all of the company's outstanding 10 million super-voting preferred shares into an aggregate of 400,000 common shares, well as the extinguishment of all shelf preferred shares, thereby resulting in the extinguishment of the entire class of preferred stock; (b) The concurrent issuance of 8.65 million fully vested warrants to Robert Petty and Robin Smyth as part of restructured employment agreements, but unrelated to future employment; (c) The execution of share purchase agreements with selling shareholders towards acquiring the remaining 49% of Sputnik Agency, ROO's profitable, interactive online advertising subsidiary, pursuant to the agreement in principle originally reached on March 16, 2008; and (d) The corporate re-branding of ROO Group, including re- naming the company to 'KIT Digital Inc.'. About ROO Group Headquartered in New York, ROO Group Inc. (OTC BB: RGRP) -- http://www.roo.com/-- is a provider of digital media solutions and advercasting technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and mobile communication devices. ROO was founded in 2001 and went public in 2003. ROO has over 100 employees with worldwide operations in New York, Los Angeles, London and Australia. Going Concern Doubt Moore Stephens PC expressed substantial doubt about ROO Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and negative cash flows from operations. SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted Sharper Image Corp. authority to employ Weil, Gotshal & Manges LLP as its attorneys to perform the extensive legal services that will be necessary during the Chapter 11 case. According to Rebecca L. Roedell, executive vice president and chief financial officer of Sharper Image, the Debtor selected WG&M because of the firm's extensive general experience and knowledge and, in particular, its recognized expertise in the field of debtor's protections, creditors' rights and business reorganizations under Chapter 11 of the Bankruptcy Code. Ms. Roedell related that WG&M has become familiar with the Debtor's business, affairs, and capital structure because prior to the Petition Date, in February 2008, WG&M has provided assistance and advice to the Debtor with respect to formulating, evaluating, and implementing various restructuring, reorganization, and other strategic alternatives. Also, WG&M assisted and advised the Debtor in connection with the preparation for the Chapter 11 case. WG&M will represent the Debtor in coordination with Womble Carlyle Sandridge & Rice, PLLC. WG&M and Womble have discussed a division of responsibilities in connection with representation of the Debtor and will make every effort to avoid and minimize duplication of services in the representation of the Debtor, Ms. Roedell adds. The Debtor proposed to pay WG&M its customary hourly rates for services rendered that are in effect from time to time and to reimburse WG&M according to its customary reimbursement policies. Harvey R. Miller, Esq., a partner at WG&M, assured the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Committee Wants to Retain Cooley as Lead Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Cooley Godward Kronish LLP as its lead counsel, nunc pro tunc to the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, relates that the Creditors Committee selected Cooley Godward because the attorneys in the bankruptcy group at the firm have significant experience representing creditors' committees in retail Chapter 11 cases throughout the country. As the Creditors Committee's lead counsel, Cooley Godward will: (a) attend the meetings of the Creditors Committee; (b) review financial information furnished by the Debtor to the Creditors Committee; (c) negotiate the budget and the use of cash collateral; (d) review and investigate the liens of purported secured parties; (e) confer with the Debtor's management and counsel; (f) coordinate efforts to sell assets of the Debtor in a manner that maximizes the value for unsecured creditors; (g) review the Debtor's schedules, statement of affairs and business plan; (h) advise the Creditors Committee as to the ramifications regarding all of the Debtor's activities and motions before this Court; (i) file appropriate pleadings on behalf of the Creditors Committee; (j) review and analyze the Debtor's financial advisor's work product and reports to the Creditors Committee; (k) provide the Creditors Committee with legal advice in relation to the case; (l) prepare various applications and memoranda of law submitted to the Court for consideration and handle all other matters relating to the representation of the Creditors Committee that may arise; (m) assist the Creditors Committee in negotiations with the Debtor and other parties in interest on an exit strategy for this case; and (n) perform other legal services for the Creditors Committee as may be necessary or proper in this proceeding. Seven Cooley Godward professionals are expected to have primary responsibility for providing services to the Creditors Committee: Professional Hourly Rates ------------ ------------ Lawrence C. Gottlieb US$850 Jay R. Indyke US$760 Cathy R. Hershcopf US$680 Richard S. Kanowitz US$680 Brent Weisenberg US$525 Seth Van Aalten US$470 Brian W. Byun US$335 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Mr. Gottlieb, a partner at Cooley Godward, assures the Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Committee Wants to Retain Loughlin as Advisor ------------------------------------------------------------ The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Loughlin Meghji + Company as its financial advisor, nunc pro tunc to the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, relates that the Creditors Committee selected Loughlin because of the firm's experience and expertise, and the complex nature of the Debtor's business and financial affairs. As the Creditors Committee's financial advisor, Loughlin will: (a) assist and advise the Creditors Committee in the analysis of the current financial position of the Debtor; (b) assist and advise the Creditors Committee in its analysis of the Debtor's business plans cash flow projections, restructuring programs, selling, general and administrative structure, and other reports and analyses prepared by the Debtor or their professionals, in order to assist the Creditors Committee in its assessment of the business viability of the Debtor, the reasonableness of projections and underlying assumptions, the impact of market conditions on forecast results of the Debtor, and the viability of any restructuring strategy pursued by the Debtor or other parties in interest; (c) assist and advise the Creditors Committee in its analysis of proposed transactions for which the Debtor seeks Court approval; (d) assist and advise the Creditors Committee in its analysis of the Debtor's internally-prepared financial statements and related documentation in order to evaluate performance of the Debtor as compared to its projected results; (e) attend and advise at meetings and calls with the Creditors Committee, its counsel and representatives of the Debtor and other parties; (f) assist and advise the Creditors Committee and its counsel in the development, evaluation and documentation of any Plan of Reorganization or strategic transaction; (g) assist and advise the Creditors Committee in its analysis of the Debtor's hypothetical liquidation analyses under various scenarios; and (h) assist and advise the Creditors Committee in other service as may be necessary and advisable. The services to be provided by Loughlin will be at the request and direction of the Creditors Committee, so as to avoid duplicative efforts among the Creditors Committee's professionals retained in the Chapter 11 case. In exchange for the contemplated services, Loughlin will be paid based on the firm's applicable hourly rates: Professional Hourly Rates ------------ ------------ Principal/Managing Director US$625 to US$750 Director US$425 to US$495 Senior Associate US$375 Associate US$325 Analyst US$250 Paraprofessional US$125 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Kenneth Simon, Esq., a partner at Loughlin, assures the Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Committee Wants to Retain Whiteford as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Whiteford Taylor Preston LLC as its Delaware counsel, nunc pro tunc as the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, states that due to the size and the complex nature of the Chapter 11 case as well as the significant relief sought by the Debtor during the early stages of the case, there was an immediate need for Whiteford Taylor to perform services for the Creditors Committee. Mr. Sass relates that the Creditors Committee selected Whiteford Taylor because of the firm's substantial experience appearing before Courts in Delaware and representing committees and creditors in complex reorganization cases. As the Creditors Committee's Delaware counsel, Whiteford Taylor will: (a) provide legal advice with respect to the Creditors Committee's rights, powers and duties in the Chapter 11 case; (b) assist lead counsel in preparing, filing and serving all necessary applications, answers, responses, objections, orders, reports and other legal papers; (c) represent the Creditors Committee in any matters arising in the bankruptcy case; (d) assist the Creditors Committee in its investigation and analysis of the Debtor; (e) represent the Creditors Committee in all aspects of confirmation proceedings; and (f) perform all other legal services for the Creditors Committee that may be necessary or desirable in the proceedings. In exchange for the contemplated services, Whiteford Taylor will be paid based on the firm's applicable hourly rates: Professional Hourly Rates ------------ ------------ Shareholders US$390 to US$530 Associates US$280 to US$370 Legal Assistants/Paralegals US$210 to US$250 Five Whiteford Taylor professionals are expected to have primary responsibility for providing services to the Creditors Committee: Professional Hourly Rates ------------ ------------ Margaret M. Manning US$385 Daniel A. Griffith US$410 Cara Chasney US$250 Kathleen G. McCruden US$210 Jennifer L. Tittsworth US$210 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Ms. Manning, a partner at Whiteford Taylor, assures the Court that her firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SMARTIRE SYSTEMS: CFO Finkelstein Quits; Dodge Named Interim CFO ---------------------------------------------------------------- Chief Financial Officer Jeff Finkelstein resigned from SmarTire Systems Inc. for personal reasons. SmarTire says there is no disagreement with Mr. Finkelstein on any matter relating to the company's operations, policies or practices. The Board of Directors of SmarTire appointed David A. Dodge as interim Chief Financial Officer. Mr. Dodge previously served as Vice President and Chief Financial Officer of NeoMedia Technologies, Inc., a publicly traded software development company, from 2002 to 2007. From 1999 to 2002, prior to assuming Chief Financial Officer responsibilities, Mr. Dodge held the positions of Financial Reporting Manager and Financial Planning Director at NeoMedia. Before joining NeoMedia, Mr. Dodge was an auditor with Ernst & Young LLP from 1997 to 1999. Mr. Dodge holds a B.A. in economics from Yale University and an M.S. in accounting from the University of Hartford, and is also a Certified Public Accountant. About SmarTire Systems Based in British Columbia, Canada, SmarTire Systems Inc. (OTC Bulletin Board: SMTR) -- http://www.smartire.com/-- develops and markets technically advanced tire pressure monitoring systems for the transportation and automotive industries that monitor tire pressure and tire temperature. Its TPMSs are designed for improved vehicle safety, performance, reliability and fuel efficiency. The company has three wholly owned subsidiaries: SmarTire Technologies Inc., SmarTire USA Inc. and SmarTire Europe Limited. The company has operations in Australia and New Zealand. SmarTire Systems Inc.'s balance sheet at Jan. 31, 2008, showed total assets of $3.406 million and total liabilities of $34.865 million, resulting to total shareholders' deficit of $31.159 million. Going Concern Doubt As reported in the Troubled Company Reporter on July 4, 2007, BDO Dunwoody LLP, in Vancouver, Canada, conducted its audit of SmarTire Systems Inc.'s consolidated financial statements for the year ended July 31, 2006, in accordance with Canadian reporting standards which do not permit a reference to such events and conditions which cast substantial doubt about a company's ability to continue as a going concern when these are adequately disclosed in the financial statements. The company has incurred recurring operating losses and has a deficit of $104 million as at July 31, 2006. The ability of the company to continue as a going concern is in substantial doubt and is dependent on achieving profitable operations, and obtaining the necessary financing in order to achieve profitable operations. SYNOPSIS SOLUTIONS: To Declare Final Dividend on May 30 ------------------------------------------------------- Synopsis Solutions Pty Limited will declare its first and final priority employee superannuation dividend on May 30, 2008. The deadline for creditors to prove their debts or claims was April 22, 2008. The company's liquidator is: Michael G. Jones Jones Partners Insolvency & Business Recovery Telephone: (02) 9251-5222 ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== CHINA EASTERN: Posts First-Quarter Net Profit of CNY210.8Mil. ------------------------------------------------------------- China Eastern Airlines Corporation Limited, in a filing with the Hong Kong Stock Exchange, said first-quarter net profit attributable to shareholders was CNY210 million, up 142% as compared with the same period in 2007. Basic earnings per share rose 134% to CNY0.0433. Thomson Financial notes the company had booked a loss of CNY490.86 million in 2007, but has reported profits in the first quarter of 2008 due to higher traffic and a stronger yuan. The company's operating revenue in the first quarter increased 14.25% year-on-year to CNY10.61 billion, while operating costs improved 12.53% at CNY9.66 billion due to higher jet fuel costs. During the same period, the company booked a gain of CNY642.74 million due to the local currency's appreciation, against a loss of CNY154.82 million a year earlier. The company, in the stock exchange filing, acknowledged that net financial costs decreased by 515.14% during the first quarter compared with the same period in 2007 due to the the exchange gains as a result of the continued appreciation of the yuan. Non-operating income decreased 35.14% due to a reduction in subsidy income. The company also said total assets rose 2% to CNY68.5 billion as of March 31 from CNY67.1 billion as of the end of last year, while owner's equity of the company increased 3.17% to CNY3 billion from CNY2.9 billion at the end of 2007. The net earnings per share attributable to the shareholders of the company is CNY0.6060 for the first quarter, up 3.17% from CNY0.5882 at the end of 2007, the company noted. The company did not disclose the amount of cash it had at the end of the reporting period. It had reported holding CNY1.66 billion in cash and cash equivalents at the end of 2007. However, the company said that during the first quarter: -- net cash flow generated from operating activities decreased by 55.92% compared to same period in 2007 due to increase in cash payment to and for employees; -- net cash flow generated from investment activities increased by 137.82% attributable to the increase in cash received from disposal of fixed assets, intangible assets and other long term assets; and -- net cash flow generated from fund raising activities increased by 140.77% due to the increase in cash received from borrowing. About China Eastern Airlines 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. As of December 31, 2006, it operated a fleet of 205 aircraft, including 182 jet passenger aircraft and 11 jet freighters. The company operated a total of 423 routes serving a total of 136 foreign and domestic cities. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On Feb. 27, 2008, Fitch Ratings affirmed China Eastern Airlines Corp. Ltd.'s "B+" Long Term Issuer Default Rating and "B+" Local Currency Long Term Issuer Default Rating with a stable outlook. CHINA EASTERN: Adds Flights for Sanya-Moscow Routes --------------------------------------------------- China Eastern Airlines' Moscow office opened nonstop passenger and cargo flights from Sanya to Moscow on April 26, China Hospitality News reports. According to the report, the operation will start with one flight every two weeks, using an Airbus A340-300 aircraft. Li Jun, general manager of China Eastern Airlines Moscow office, told the news agency that the tourism communication and cooperation between Sanya and Moscow will be further strengthened with the opening of the new flights. 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. CHINA EASTERN: Directors Approve Various Renewal Agreements ----------------------------------------------------------- China Eastern Airlines Corporation Limited, in a filing with the Hong Kong Stock Exchange, said that the company's board of directors passed certain resolutions during their third regular meeting for this year held on April 28, 2008. The company meeting was presided by Board Chairman Li Fenghu. During the meeting, the directors considered and unanimously: 1. considered and approved the 2008 first quarterly financial report of the Company; 2. considered and approved the 2008 first quarterly report of the Company and decided to publish it together with the first quarterly financial report in both Hong Kong and Shanghai on April 29, 2008; 3. considered and approved the: -- Property Leasing Renewal Agreement to be entered into between the Company and China Eastern Air Holding Company, -- Financial Services Renewal Agreement to be entered into between the Company and Eastern Air Group Finance Company Limited, -- Import and Export Agency Renewal Agreement to be entered into between the Company and Eastern Aviation Import & Export Company, -- Maintenance Services Renewal Agreement to be entered into between the Company and Shanghai Eastern Aviation Equipment Manufacturing Corporation, -- Catering Services Agreement to be entered into between the Company and Eastern Air Catering Investment Co. Ltd., -- Sales Agency Services Renewal Agreement to be entered into between the Company and four other companies including Shanghai DongMei Aviation Tourism Co. Ltd., and -- Advertising Services Renewal Agreement to be entered into between the Company and Shanghai Eastern Aviation Advertising Company Limited. 4. agreed to authorize the Chairman of the Company to release the notice for the 2007 Annual General Meeting of the Company before May 15, 2008. 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. ELEPHANT TALK: Kabani & Co Expresses Going Concern Doubt -------------------------------------------------------- Kabani & Company, Inc., raised substantial doubt about the ability of Elephant Talk Communications, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company’s net loss of US$12,057,732, working capital deficit of US$24,429,464, accumulated deficit of US$29,019,832 and cash used in operations of US$3,449,351. The increase in net cash used in operating activities for the year ended Dec. 31, 2007, is primarily due to the increase in loss of US$7,228,067 in 2007, decrease in accounts receivable of US$991,412, increase in prepaid expenses of US$183,556, decrease in accounts payable and customer deposits of US$916,376, decrease in deferred revenue of US$11,444 and increase in accrued expenses and other payable of US$1,428,141. Net cash used in investment activities for the year ended Dec. 31, 2007, was US$2,037,269. Cash used to purchase plant and equipment was US$2,154,559, restricted cash deposit for inter-connect was US$23,266, cash paid for acquisition of subsidiary was US$241,883 and cash obtained from acquisitions was US$382,439. Net cash received by financing activities for the year ended December 31, 2007 was US$9,085,991. The Company received US$8,498,471 from the sales of shares of its common stocks and US$561,520 from third parties. As a result, the Company recorded a cash and cash equivalent balance of US$4,366,312 as of Dec. 31, 2007, a net increase in cash and cash equivalent of US$4,034,311 for the year ended Dec. 31, 2007. Management has devoted considerable efforts during the period ended Dec. 31, 2007, and in the first few months of 2008 towards obtaining additional equity financing, controlling of salaries and general and administrative expenses, management of accounts payable, settlement of debt by issuance of common shares and strategically acquire profitable companies that bring synergies to the company’s products and services. Management believes the company’s existing available cash, cash commitments, cash equivalents and short term investments as of Dec. 31, 2007 in combination with continuing contractual commitments will be sufficient to meet our anticipated capital requirements until the May 2008. The company posted a net loss of US$12,057,732 on total revenues of US$47,361,028 for the year ended Dec. 31, 2007, as compared with a net loss of US$4,829,663 on total revenues of US$158,292 in the prior year. At Dec. 31, 2007, the company's balance sheet showed US$24,608,228 in total assets and US$34,322,539 in total liabilities, resulting in US$9,714,311 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$9,661,500 in total current assets available to pay US$34,090,964 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2ae8 About Elephant Talk Based in Orange, California, Elephant Talk Communications Inc. (OTC BB: ETLK) -- http://www.elephanttalk.com/-- until recently was engaged in the long distance telephone business in China and the Special Administrative Region Hong Kong. The company currently operates a switch-based telecom network with national licenses and direct fixed line interconnects with the Incumbents/National Telecom Operators in eight (8) European countries, one (1) in the Middle East (Bahrain), licenses in Hong Kong and the U.S.A. and partnerships with telecom operators in Scandinavia, Poland, Germany and Hong Kong. GREENTOWN CHINA: Annual General Meeting Slated for May 23 --------------------------------------------------------- Greentown China Holdings Limited will be holding an Annual General Meeting at 3:00 p.m. on May 23, 2008, at Chater Room, 2nd Floor, Mandarin Oriental Hotel, 5 Connaught Road, Central, Hong Kong. At the meeting, the participants will discuss on: 1. the audited consolidated financial statements and the reports of the Directors and of the auditors for the year ended December 31, 2007; 2. declaration of a final dividend; 3. re-election of retiring Directors and determining the Directors’ remuneration; 4. re-appointment of auditors and fixing of their remuneration; 5. passing with or without amendments certain resolutions, including the exercise by the Directors during the relevant period of all the powers of the Company to purchase its shares, subject to and in accordance with the applicable laws. The Register of Members of the Company will be closed from May 21, 2008, until May 23, 2008, both days inclusive, during which period no transfer of shares will be registered. To qualify for the proposed final dividend and to attend and vote at the Annual General Meeting, all transfers of shares, accompanied by the relevant share certificates and appropriate transfer forms, must be lodged with the Company’s share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited at: Rooms 1806-07, 18th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong Registration is until 4:00 p.m. of May 20, 2008. About Greentown China Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. * * * The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. HAINAN AIRLINES: 1st Qtr. Net Income Increases to CNY286.7 Mil. --------------------------------------------------------------- Hainan Airlines Co. Limited's first-quarter net income surged more than fivefold to CNY286.7 million (US$41 million), or CNY0.08 a share, from CNY51.2 million, or CNY0.014, in 2007, Irene Shen of Bloomberg News reports. According to the report, the company attributed the increase in net income on a stronger yuan and higher ticket sales. Bloomberg relates that the airline benefited from a 4.2% appreciation in the yuan, that cut their dollar-denominated debt's value, and the increased demand for Hainan province flights. The airline's first-quarter sales rose 3.4% to CNY3.57 billion, the report notes. Bloomberg says the airline aims to boost overall passenger numbers 16% to 16.75 million. The airline flew 14.5 million passengers last year, an increase of 0.7%. About Hainan Airlines Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HAINAN: Hires Mr. Chusid as General Manager for North America ------------------------------------------------------------- Hainan Airlines Co Limited appointed Joel Chusid as general manager for North American, and promoted Xinyu (Frank) Fang as branch manager of the Seattle office, Travel Daily News reports. According to the report, both officials will be responsible for the establishment of the airline's presence in Seattle, launching the new nonstop service between Seattle and Beijing, and introducing the Hainan Airlines brand to North American travelers. Hainan Airlines will launch its first service to North America with new nonstop flights from Seattle to Beijing beginning on June 9, 2008, the report notes. About Hainan Airlines Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HEXCEL CORP: S&P Maintains 'B3' Corp. Rating With Stable Outlook ---------------------------------------------------------------- Moody's Investors Service affirmed Hexcel Corporation's Corporate Family and Probability of Default ratings of Ba3, and the B1 rating of Hexcel's subordinated notes, but raised the rating on the Secured Bank Credit Facilities to Baa3 from Ba1. The rating outlook remains stable. Because about $96 million of the term loan portion of the Credit Facilities was repaid, recovery expectations are higher under Moody's Loss Given Default methodology and the rating on the Credit Facilities was raised one notch to Baa3 The claim of the Credit Facilities in the waterfall benefits from substantial collateral, up-stream guarantees from Hexcel's material domestic subsidiaries as well as a significant level of subordinated debt. The Ba3 Corporate Family and Probability of Default ratings balance the company's modest scale, significant market presence, strong credit metrics, and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow. The rating also recognizes concentration aspects in Hexcel's customer base and the cyclical nature of the build rate for new commercial aircraft. Recent performance demonstrates healthy interest coverage and significantly lower leverage, and flows from a combination of higher production rates in commercial aerospace and wind energy, increasing percentage use of composite materials in new aircraft, sustained margins, and the application of proceeds from business divestitures to reduce indebtedness. Moody's expects favorable operating trends to continue, but the company's plan for substantial capital expenditures is likely to result in no better than break-even free cash flow in the near term. Consequently, debt is not expected to be reduced. Hexcel could generate strong free cash flow once the heavy capital investments begin to ebb and the build-rates for larger aircraft progress to a normalized production level. The ratings are further supported by Hexcel's strong competitive position in what is expected to be a continuing robust environment for OEM aircraft suppliers. While Hexcel is anticipated to generate credit metrics at levels at or above those typical for the Ba3 rating, the rating considers uncertainty in the pace at which the Airbus A380 (on which Hexcel will have $3 million content per aircraft, according to the company) and the ongoing delays in production of Boeing's B787 (on which Hexcel will have between $1.3 million to $1.6 million of content per aircraft, according to the company). Also, a shareholder activist group has proposed three alternative nominees to Hexcel's board of directors (the shareholders meeting is scheduled for May 8, 2008) and has further said that shareholder value has not been maximized. Uncertainty of future financial policies constrains the rating. The stable rating outlook reflects Moody's expectations for continued healthy operating margins and revenue growth in an ongoing robust commercial aerospace environment and is supported by the firm's satisfactory liquidity profile despite the prospects for break-even free cash flow in 2008. The stable outlook also assumes that any developments relating to the production and delivery schedule of the A380 or B787 will have no material negative impact on the company's margins or working capital requirements. Ratings upgraded with revised Loss Given Default Assessments: -- $125 million secured revolving credit facility, Baa3 (LGD- 2, 14%) from Ba1 (LGD-2, 22%) -- $87 million secured term loan, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) Ratings affirmed with revised Loss Given Default Assessment: -- Corporate Family, Ba3 -- Probability of Default, Ba3 -- $225 million senior subordinated notes, B1 (LGD-4, 69%) The last rating action was on April 3, 2007 at which time Hexcel's Corporate Family and Probability of Default ratings were up-graded to Ba3 from B1. Hexcel Corporation, headquartered in Stamford, Connecticut, is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense, and certain industries. Revenues in 2007 were approximately $1.2 billion. HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed Hexcel Corporation's Corporate Family and Probability of Default ratings of Ba3, and the B1 rating of Hexcel's subordinated notes, but raised the rating on the Secured Bank Credit Facilities to Baa3 from Ba1. The rating outlook remains stable. Because about US$96 million of the term loan portion of the Credit Facilities was repaid, recovery expectations are higher under Moody's Loss Given Default methodology and the rating on the Credit Facilities was raised one notch to Baa3. The claim of the Credit Facilities in the waterfall benefits from substantial collateral, up-stream guarantees from Hexcel's material domestic subsidiaries as well as a significant level of subordinated debt. The Ba3 Corporate Family and Probability of Default ratings balance the company's modest scale, significant market presence, strong credit metrics, and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow. The rating also recognizes concentration aspects in Hexcel's customer base and the cyclical nature of the build rate for new commercial aircraft. Recent performance demonstrates healthy interest coverage and significantly lower leverage, and flows from a combination of higher production rates in commercial aerospace and wind energy, increasing percentage use of composite materials in new aircraft, sustained margins, and the application of proceeds from business divestitures to reduce indebtedness. Moody's expects favorable operating trends to continue, but the company's plan for substantial capital expenditures is likely to result in no better than break-even free cash flow in the near term. Consequently, debt is not expected to be reduced. Hexcel could generate strong free cash flow once the heavy capital investments begin to ebb and the build-rates for larger aircraft progress to a normalized production level. The ratings are further supported by Hexcel's strong competitive position in what is expected to be a continuing robust environment for OEM aircraft suppliers. While Hexcel is anticipated to generate credit metrics at levels at or above those typical for the Ba3 rating, the rating considers uncertainty in the pace at which the Airbus A380 (on which Hexcel will have US$3 million content per aircraft, according to the company) and the ongoing delays in production of Boeing's B787 (on which Hexcel will have between US$1.3 million to US$1.6 million of content per aircraft, according to the company). Also, a shareholder activist group has proposed three alternative nominees to Hexcel's board of directors (the shareholders meeting is scheduled for May 8, 2008) and has further said that shareholder value has not been maximized. Uncertainty of future financial policies constrains the rating. The stable rating outlook reflects Moody's expectations for continued healthy operating margins and revenue growth in an ongoing robust commercial aerospace environment and is supported by the firm's satisfactory liquidity profile despite the prospects for break-even free cash flow in 2008. The stable outlook also assumes that any developments relating to the production and delivery schedule of the A380 or B787 will have no material negative impact on the company's margins or working capital requirements. Ratings upgraded with revised Loss Given Default Assessments: -- US$125 million secured revolving credit facility, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) -- US$87 million secured term loan, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) Ratings affirmed with revised Loss Given Default Assessment: -- Corporate Family, Ba3; -- Probability of Default, Ba3; -- US$225 million senior subordinated notes, B1 (LGD-4, 69%). The last rating action was on April 3, 2007 at which time Hexcel's Corporate Family and Probability of Default ratings were up-graded to Ba3 from B1. Hexcel Corporation, headquartered in Stamford, CT, is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense, and certain industries. Revenues in 2007 were approximately US$1.2 billion. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. SHIN KONG: S&P Affirms D+ Bank Fundamental Strength Rating ---------------------------------------------------------- Standard & Poor's Ratings affirmed its 'BBB+' long-term and 'A- 2' short-term counterparty credit ratings on Taiwan Shin Kong Commercial Bank. The outlook on the long-term rating is stable. At the same time, Standard & Poor's affirmed its 'D+' bank fundamental strength rating on the bank. "The ratings reflect Shin Kong Bank's importance to the Shin Kong Financial Holding Co. Ltd. [Shin Kong FHC; BBB/Stable/A-3] group, as well as the bank's adequate capitalization," said credit analyst Andy Chang. Counterbalancing factors include the bank's mediocre core earnings generating capability and small market position. Shin Kong Bank is the core member of Shin Kong FHC group, a midsize insurance-centric financial holding company with a well- established domestic franchise and customer base. The bank has effective cross-selling activities under the group's bancassurance strategy, and contributed about 11 % of the first-year premiums of Shin Kong Life Insurance Co. Ltd. (BBB+/Stable/--) in 2007. Shin Kong Bank accounted for about 21% of the group's consolidated equity at the end of 2007. Shin Kong Bank's core earnings are mediocre due to the bank's scale disadvantage and intense competition in the domestic banking sector. The bank accounted for only about 1% of total system assets at the end of 2007. Its pre-provision (excluding one-time disposal gain/losses) return on average assets (ROAA) and ROAA were only 0.6% and 0.4%, respectively, in 2007. The bank's capitalization is adequate. Its ratio of adjusted total equity to assets stood at 5.2% at the end of 2007. Shin Kong Bank's asset quality is adequate, supported by its clean-up of problematic loans and increasingly sophisticated underwriting skills. The bank's ratio of impaired assets (including official NPLs and foreclosed property) stood at 2.6% at the end of 2007. Its loss coverage ratio was 55% at the same time. YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter -------------------------------------------------------------- YRC Worldwide Inc. reported a first quarter 2008 loss of US$45,875,000 on operating revenue of US$2,232,592,000. This compares to a net income of US$1,279,000 on operating revenue of US$2,328,342,000 for the three months ended March 31, 2007. The company also said that the results included the previously announced reorganization charges related to USF Holland and USF Reddaway and losses on property disposals. The results also included unfavorable actuarial adjustments primarily related to prior-year development of self-insurance claims. At March 31, 2008, the company had total assets of US$5,011,025,000 and total debts of US$1,174,510,000. "The soft economy, severe winter weather and record fuel prices created a very difficult operating environment in the first quarter," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "With that said, we have taken a number of actions that address the areas within our control and we are seeing benefits from those efforts. Despite the macroeconomic challenges that we are facing, we believe that we have turned the corner and expect meaningful earnings improvement starting with the current quarter," Zollars continued. Although the practice of providing earnings guidance was suspended in 2007, due in great part to uncertainty in the economy, which remains difficult to predict, the company determined that investors should be provided with additional near-term clarity regarding the anticipated performance of YRCW. Based upon the internal actions the company has already implemented, including securing a more competitive labor contract, renewing its credit agreement, and making footprint changes at YRC Regional Transportation, YRCW expects to earn between US$.30 and US$.40 per share in the second quarter, which ends June 30, 2008. "Given our solid action plans and the momentum that is underway, we are excited about the future of YRC and what we can do for our customers, employees and investors," stated Zollars. Segment Information Key segment information for the first quarter 2008 included: * YRC National Transportation LTL revenue per hundredweight up 6.3% from first quarter 2007 and LTL tonnage per day down 8.9% * YRC Regional Transportation LTL revenue per hundredweight up 5.4% compared to last year and LTL tonnage per day down 10.1% * YRC Logistics revenue and operating income consistent with last year despite the weak economy About YRC Worldwide YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings on YRC Worldwide Inc., including the 'BB' corporate credit rating, and removed the ratings from CreditWatch, where they had been placed with negative implications on Feb. 21, 2008. The outlook is negative. The ratings had been placed on CreditWatch because of heightened concerns over the company's refinancing risk, earnings performance, and liquidity position over the next year, given the slowing U.S. economy and continuing pressures in the trucking sector. "The company has since obtained an amendment to its credit facility that allows additional covenant relief, and has renewed its 364-day asset-backed security facility, which was due to expire on May 16, 2008," said Standard & Poor's credit analyst Anita Ogbara. YRC has meaningful debt maturities over the next year and expects to use some combination of free cash flow, refinancing, and capacity under its amended bank facility to meet these maturities. "We believe the additional covenant relief provides sufficient room and expect the company to remain in compliance with its covenants," the analyst added. At the same time, Standard & Poor's lowered its issue-level rating on Yellow Corp.'s unsecured debt to 'B+' from 'BB' (two notches lower than the corporate credit rating on YRC Worldwide Inc.). S&P assigned a recovery rating of '6' to this debt, indicating the expectation for negligible (0-10%) recovery in the event of a payment default. The issue-level rating on the now partly secured notes at Roadway LLC is unchanged at 'BB'. S&P assigned a recovery rating of '4' to this debt, indicating the expectation for average (30%-50%) recovery. YRC is the largest less-than-truckload trucking company in North America, generating US$9.6 billion in annual revenues. YRC competes with large LTL companies Arkansas Best Corp. (US$1.8 billion in revenue) and Con-Way Inc. (US$4.2 billion in revenue) and with numerous smaller long-haul and regional LTL companies. Conditions in the trucking sector have deteriorated over the past several quarters and will likely not improve materially over the near term, given the weaker U.S. economy. YRC has pursued selective acquisitions in the past that have helped the company gain market share and increase its product offering. However, these acquisitions have stretched the company's financial profile, and YRC has not yet rationalized these acquired LTL operations. To improve profitability, YRC plans to streamline operations, reduce overhead, and manage costs more effectively. YRC has formalized plans to improve financial performance and is targeting US$100 million in cost savings over the next few quarters through the combination of terminal rationalization, elimination of redundant activities, and other cost reductions. S&P expects YRC's financial results to improve by early 2009 in response to various operating initiatives and as the freight environment improves. S&P could lower the ratings if financial results do not improve and the expected improvement in credit protection measures fails to materialize or if access to liquidity becomes constrained. S&P could revise the outlook to stable if YRC's credit metrics return to expected levels, and the improvement appears sustainable. YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. ZTE CORP: Seals Belarus IPTV Project Contract --------------------------------------------- ZTE Corporation penetrated the Eastern European IPTV market by sealing an IPTV project contract with the Republican Unitary Telecommunication Enterprise (RUE) Beltelecom, a National Telecommunications Operator of the Republic of Belarus. Since May 2006, Beltelecom has been initiating the national IPTV development and conducting IPTV trial tests with leading providers in the industry. ZTE beats other competitors in the contract bid with its network video technology, which has a solid network performance infrastructure design, and one of the most reliable and comprehensive end-to-end multimedia solutions in the industry that meets sophisticated needs of multimedia service providers. "We are honored to be selected by Beltelecom for its national IPTV project. We have an extensive track record and IPTV system deployment experience with service providers in various international markets," said Mr. Yu Yifang, General Manager of ZTE Multimedia and Terminal Product Lines. "This new and significant customer win not only validates our proven capability in offering reliable IPTV network video solution, but also another key milestone for our IPTV expertise in penetrating international markets." Beltelecom, which is wholly owned by the State Republic, is the only telecom fixed-line provider and general internet provider with advanced telecommunication networks in the country. Established in July 1995, the company was transformed to RUE Beltelecom in 2004 by Order of the Ministry of Communications and Informatization. Today, Beltelecom has nine State-level unitary telecommunication enterprises, and six joint ventures under these enterprises. In addition to regulating the country's national fixed-line business and data transmission backbone infrastructure, Beltelecom is a shareholder of three mobile telecom providers in Belarus. Over the years, ZTE has conducted major IPTV trials in China as well as deployed IPTV systems in Europe, Asia Pacific, Latin America and other regions. In December 2007, ZTE clinched a major contract win with China Netcom Group Corporation (CNC) for the world's first AVS-IPTV commercial network development bid. The company has also sealed deals to construct IPTV projects for China Telecom, including the world's largest H.264 standard- based IPTV network for Shanghai Telecom. To-date, ZTE holds more than 50% of China's current IPTV market. About ZTE Corp Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. * * * The Troubled Company Reporter-Asia Pacific reported on April 24, 2008, that Fitch Ratings affirmed ZTE Corporation's Long-term foreign currency and local currency Issuer Default Ratings at 'BB+'. The rating Outlook remains Stable. In December 2006, Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. ========= I N D I A ========= ESSAR OIL: Unit Bids for 2 Offshore Blocks in Australia ------------------------------------------------------- Essar Oil's wholly owned subsidiary, Essar Exploration and Production Ltd, has bid for 100% interest in two shallow-water offshore blocks in Australia, writes Pratim Ranjan Bose for the Business Line. According to the report, the bidding round ended on April 17 and the award is expected within a month. Moreover, S.R. Agarwal, Essar Exploration's CEO, told Business Line in an interview that the company has also tied up with a global major having US$15-20 billion market capitalisation for bidding in consortium for offshore blocks offered under NELP-VII in India. 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. GENERAL MOTORS: To Cut One Shift of Full-size Truck Production -------------------------------------------------------------- General Motors Corp. is eliminating one shift of production at its full-size pickup truck assembly plants in Pontiac, Michigan; Flint, Michigan; and Oshawa, Ontario; and its full-size SUV assembly plant in Janesville, Wisconsin. The decisions were made to bring production capacity more in line with market demand. Under this plan, approximately 88,000 units of full-size pickup and 50,000 units of full-size SUV production will be removed from [UTF-8?] North American production capacity for the remainder of the 2008 calendar year. Based on current plans, the shift reductions will be effective on these dates: * Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra): July 14; * Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL): July 14; * Pontiac Assembly (Chevrolet Silverado, GMC Sierra): July 14; * Oshawa Truck (Chevrolet Silverado and GMC Sierra): Sept. 8. The full-size pickup truck and full-size SUV segments have [UTF-8?]softened for the entire industry -â€“ down 15 and 26%, respectively, through the first quarter of 2008. Nonetheless, GM remains the segment leader in both instances, with nearly 40% share of full-size trucks and more than 63% share in the full- size SUV market. "With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," Troy Clarke, president GM North America, said. "This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market." Mr. Clarke noted that with the market shifting toward cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave and GMC Acadia. He added that the company is continuing to explore options to increase car and crossover production, but there are no changes to car production at this time. The full-size truck production cuts will result in lower staffing requirements at all four plants, and those details will be worked out over the next several weeks with the United Auto Workers and Canadian Auto Workers unions. About GM 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. * * * As reported in the Troubled Company Reporter on April 28, 2008, 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. GMAC LLC: Financial Arm Posts $589MM Net Loss in 2008 1st Qtr. -------------------------------------------------------------- GMAC LLC's unit, GMAC Financial Services reported a 2008 first quarter net loss of $589 million, compared to a net loss of $305 million in the first quarter of 2007. Profitable results in the global automotive finance and insurance businesses were more than offset by significant declines in the international mortgage operation of Residential Capital, LLC. Affecting results in the quarter were market-driven valuation adjustments and lower net financing revenue. "Continued volatility in the capital and credit markets put pressure on first quarter results," GMAC Chief Executive Officer Alvaro de Molina said. "While the actions we have taken to date to reduce risk, reduce leverage and streamline the cost structure have produced results, there is still more to do to stabilize ResCap and position the overall company for profitable growth. Moving through this unprecedented market environment clearly requires endurance, and liquidity is the key enabler. GMAC has made prudent liquidity management a top priority including holding high levels of cash, expanding the use of GMAC Bank and working with our banking partners on an approach to renew bank facilities." Liquidity and Capital GMAC's consolidated cash and certain marketable securities were $18.6 billion as of March 31, 2008, down from $22.7 billion at Dec. 31, 2007. Of these total balances, ResCap's consolidated cash and cash equivalents were $4.2 billion at quarter-end, down from $4.4 billion at Dec. 31, 2007. The decline in cash is due mainly to open market debt repurchases, unsecured debt maturities and an increase in originations. During the fourth quarter of 2007 and first quarter of 2008, GMAC purchased ResCap debt for $750 million in the open market, which was contributed to ResCap and retired during the first quarter. In exchange for the capital contribution, GMAC received shares of a new class of ResCap preferred equity that is equal to the market value of the debt at the time of the contribution. GMAC took this measure to further support the capital position at ResCap, while still maintaining consideration for GMAC's investors and stakeholders. As of March 31, 2008, ResCap's total equity base was $5.8 billion, exceeding its minimum tangible net worth requirements in its credit facilities. Global Automotive Finance GMAC's global automotive finance business reported net income of $258 million in the first quarter of 2008, compared to net income of $398 million in the year-ago period. Strong vehicle origination and wholesale penetration were offset by weaker credit performance which drove unfavorable valuation adjustments, higher credit loss provisions and increased operating expenses related to restructuring, remarketing and servicing initiatives. In addition, affecting performance was lower gain on sale of receivables and deterioration in the residual performance of off-lease vehicles. New vehicle financing originations for the first quarter of 2008 increased to $12.9 billion of retail and lease contracts from $12.3 billion in the first quarter of 2007, despite lower industry sales levels in North America. Used vehicle originations for the quarter remained stable at $2.1 billion, the same amount as the year-ago period. This reflects refinement of the diversification strategy to better balance credit risk. Delinquencies decreased in the first quarter of 2008 to 2.42% of managed retail assets, versus 2.52% in the prior year period. The decrease reflects additional underwriting and servicing measures taken in late 2007, which included expanding collection resources, increasing contact with higher-risk borrowers and strategically tightening underwriting. Credit losses have increased to 1.34% of managed assets, versus 1.13% in the first quarter of 2007. The actions taken have stemmed delinquencies in the first quarter, although losses increased as a result of higher year-end delinquency levels and loss severity in North America. In addition, international operations posted higher credit losses as a result of a maturing portfolio in Asia Pacific and weakness in Latin America; however, losses remain in line with expectations. Delinquency trends in the international operation improved in the first quarter. In February, GMAC disclosed a restructuring plan for its North American automotive finance operations that would consolidate 20 regional offices into five business centers in the U.S. and Canada and reduce the workforce by approximately 930 employees. GMAC expects to incur a total of $65 to $85 million in restructuring charges related to severance and other employee- related costs and the closure of facilities. During the first quarter, GMAC incurred $11 million of restructuring charges and the majority of the remaining charges are expected to occur in the second half of the year. As a result of the restructuring, GMAC expects an annual run rate savings of approximately $175 million. Insurance GMAC's insurance business recorded net income of $132 million, compared to net income of $143 million in the first quarter of 2007. Results primarily reflect investments related to growth initiatives in the U.S. The total value of the insurance investment portfolio was $7.2 billion at March 31, 2008, compared to $6.7 billion at March 31, 2007. The year-ago level reflects a dividend payment to GMAC. The majority of the investment portfolio is in fixed income securities with less than 10% invested in eq