T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, May 6, 2008, Vol. 11, No. 89 Headlines A U S T R A L I A ACN 057 587 881: Commences Liquidation Proceedings ALBERTO-CULVER: Commences Liquidation Proceedings CAPITAL SECURITISATION: Placed Under Voluntary Liquidation CENTRO PROPERTIES: Employees Lost AU$265 Million in Holdings CHARTWELL ENTERPRISES: Director Graeme Hoy Expects Charges COEUR D'ALENE: Matrix Research Upgrades Rating on Firm to Sell CROYDON PARK: Commences Liquidation Proceedings EYRA SKIN: Commences Liquidation Proceedings GC CONCRETE: Appoints Grahame Hill as Liquidator HUNTER SMITH: Appoints Francis O'Connor as Liquidator INTERNATIONAL LAMINEX: Final Members' Meeting Set for May 19 KLEINS GROUP: Placed Under Voluntary Administration LUJAN FAMILY: Commences Liquidation Proceedings MATADOR BULLBARS: Placed Under Voluntary Liquidation NOSAKA PTY: Commences Liquidation Proceedings PREMIER PAINTING: Placed Under Voluntary Liquidation REFLECT ENTERPRISES: Placed Under Voluntary Liquidation REVLON INC: March 31 Balance Sheet Upside-Down by $1.1 Billion SEAVIEW KWIK-PRINT: To Declare Final Dividend on May 13 SKEETA-M: Commences Liquidation Proceedings ST. GEORGE BANK: Analysts Expect AU$619 Million Cash Profit C H I N A & H O N G K O N G & T A I W A N AGRICULTURAL BANK: 1Q Domestic Operating Profit Up to CNY14.1BB AGRICULTURAL BANK: Pan Gongsheng to be Appointed as Bank's VP AGRICULTURAL BANK: Inks CNY10 Bil. Credit Pact With Benxi Steel BLOUNT INT'L: March 31 Balance Sheet Upside-Down by $43.8 Mil. CAPITAL SHIPPING: Members' Final Meeting Set for May 29 CHINA SOUTHERN AIRLINES: Launches Guiyang-Seoul Route CHINA TOP: Creditors' Proofs of Debt Due May 26 CITIC GROUP: Considers Increasing Stake in Macarthur Coal CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+' EUROPOINT WATCH: Members & Creditors to Meet on May 28 FUSION COMPUTER: Members' Final Meeting Set for May 28 HONGKONG TECHNICAL: Creditors' Proofs of Debt Due May 10 KING FORTUNE: Members' Final Meeting Set for May 24 KHK TRADING: Members & Creditors to Meet on May 28 PATERIGHT DEVELOPMENT: Creditors' Proofs of Debt Due May 26 RISE POINT: Members' Final Meeting Set for May 28 STONE ENERGY: Inks Merger Deal With Boise d'Arc for $1.8 Billion STONE ENERGY: Moody's Keeps B3 Ratings on Bois d'Arc Acquisition STONE ENERGY: Bois d'Arc Deal Cues S&P to Hold 'B+' Debt Rating UNIVERSAL ALUMINIUM: Members & Creditors to Meet on May 27 I N D I A GENERAL MOTORS: Total April 2008 Sales Decrease 16 Percent QUEBECOR WORLD: Names Randy Benson as CRO SUN MICROSYSTEMS: Eliminates 2,500 Jobs to Save $220MM in Costs TATA STEEL: May Bid for a Stake in PT Krakatau Steel I N D O N E S I A MEDCO ENERGI: Reports US$22.96 Million 1st Quarter Net Profit NORTEL NETWORKS: Net Loss Widens to $138MM in 2008 First Quarter J A P A N CHRYSLER LLC: Seeks to Sell Two Michigan Axle Plants for $400MM DRAKE MANAGEMENT: To Liquidate $2.5 Billion Investment Fund FORD MOTOR: To Offer Buyouts to 1,300 Workers in Two Plants HERBALIFE LTD: Reports US$62.4 Mil. Net Income in First Quarter NISHI-NIPPON: Fitch Holds 'BB+' Rating on Subordinated Debt JAPAN AIRLINES: Inks JALCARD Transfer Pact With Mitsubishi UFJ SADIA SA: Consolidated Net Income Doubles to BRL216MM in 1Q 2008 * Fitch Says Japanese REITs Have Falling Share Prices Since 2007 K O R E A FRESH DEL MONTE: Richard Contreras Replaces John Inserra as CFO HYUNDAI ENGINEERING: Inks US$2.07 Billion Qatar Projects Deal HYUNDAI ENGINEERING: Signs Sri Lanka Port Expansion Project Deal M A L A Y S I A MALAYSIA AIRLINES: To Keep Low Fares Program in Asean Region SINORA INDUSTRIES: To Hold Annual General Meeting on May 26 N E W Z E A L A N D ARBITRATION & ALTERNATIVE: Faces Katavich's Wind-Up Petition HAMILTON NURSERIES: Faces CIR's Wind-Up Petition JOSEPH PRODUCTIONS NO. 16: Court to Hear Petition on May 7 JOSEPH PRODUCTIONS NO. 18: Court to Hear Petition on May 7 JOSEPH PRODUCTIONS NO. 19: Court to Hear Petition on May 7 JOSEPH PRODUCTIONS NO. 21: Court to Hear Petition on May 7 JOSEPH PRODUCTIONS NO. 22: Court to Hear Petition on May 7 JOSEPH PRODUCTIONS NO. 23: Court to Hear Petition on May 9 JOSEPH PRODUCTIONS NO. 24: Court to Hear Petition on May 9 JOSEPH PRODUCTIONS NO. 25: Court to Hear Petition on May 9 JOSEPH PRODUCTIONS NO. 26: Court to Hear Petition on May 9 JOSEPH PRODUCTIONS NO. 28: Court to Hear Petition on May 9 JOSEPH PRODUCTIONS NO. 29: Court to Hear Petition on May 9 MACH 4: Faces Maddison Slurry's Wind-Up Petition PROFILE WINE: Faces Crab Farm's Wind-Up Petition SARNIA FINANCIAL: Court to Hear Wind-Up Petition on May 7 TECHNOLOGY DEVELOPMENTS: Court to Hear Wind-Up Petition on May 7 VTL GROUP: Releases Half-Year Report Ended Feb. 29 WWW.CARTOON.CO.NZ: Court to Hear Wind-Up Petition on May 7 P H I L I P P I N E S ACE HARDWARE: Moody's Designates 'Ba3' Corporate Family Rating FEDDERS CORP: Wants to Sell Air Quality Biz for $25 Million MANILA ELECTRIC: Malacañang Supports GSIS' Transparency Call S I N G A P O R E CONEXANT SYSTEMS: Terminates Daniel Artusi as President & CEO CONEXANT SYSTEMS: Names D. Scott Mercer as CEO SCOTTISH RE: S&P Retains 'B' Credit Rating Under Negative Watch SPACE TECHNOLOGIES: Court to Hear Wind-Up Proceedings AUSSEA ORGANICS: Court to Hear Wind-Up Proceedings CHENG POH: Members' Final Meeting Set for May 6 M-COMMERCE: Creditors' Proofs of Debt Due May 26 MJC (SINGAPORE): Members' Final Meeting Set for May 6 PETROLEUM DEVELOPMENT: Court to Hear Wind-Up Proceedings SEI WOO VENTURE: Creditors' Proofs of Debt Due May 26 SEI WOO PLASTIC: Creditors' Proofs of Debt Due May 26 SHINE STAR: Members' Final Meeting Set for May 9 SMSHUB PTE: Court to Hear Wind-Up Proceedings V I E T N A M VIETCOMBANK: S&P Affirms Counterparty Credit Rating at BB/B * S&P Revises Outlook on Vietnam's Sovereign Ratings to Negative X X X X X X X X * BOND PRICING: For the Week May 5 to May 9, 2008 - - - - - ================= A U S T R A L I A ================= ACN 057 587 881: Commences Liquidation Proceedings -------------------------------------------------- At the general meeting of the members of A.C.N 057 587 881 Pty Ltd held May 1, 2008, Andrew Simmons, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted. ALBERTO-CULVER: Commences Liquidation Proceedings ------------------------------------------------- ALBERTO-CULVER HOLDINGS PTY LIMITED is under liquidation and MURRAY SMITH has been appointed to wind up the company. A final meeting of the company's members was held 11:00 a.m. yesterday, May 5, 2008. At that meeting, the liquidator gave an account about how the winding of the company up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: MURRAY SMITH McGrathNicol Level 9, 10 Shelley Street Sydney NSW 2000 Telephone: (02) 9338-2666 CAPITAL SECURITISATION: Placed Under Voluntary Liquidation ---------------------------------------------------------- Capital Securitisation Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. The company has appointed Nicholas Crouch to facilitate the sale of its assets. The liquidator can be reached at: Nicholas Crouch Crouch Insolvency Chartered Accountants Level 28, 31 Market Street Sydney, New South Wales 2000 Australia CENTRO PROPERTIES: Employees Lost AU$265 Million in Holdings ------------------------------------------------------------ Turi Condon of The Australian reports that employees of Centro Properties Group are understood to have sustained losses of about AU$265 million on their holdings in the company since December. "That represents a loss of just under $500,000 per employee for each of the 531 workers who were known to be holders of Centro via an in-house scheme," Turi Condon writes. The Australian relates that Centro's latest annual report shows 531 employees took part in the "Centro Employee Security Plan and Loan Scheme (ESP)", with 27.8 million Centro securities issued. "When Centro's share price reached its zenith of [AU]$10, on paper the employees had [AU]$278 million worth of company securities under the plan. [As of May 4], the shares were worth $13 million," Turi Condon notes. A Centro spokesman told The Australian that "[i]t was obviously very upsetting for all involved when the share price fell, given the financial impact it had on some of our staff and investors generally. . . . However, it is not unusual for individuals to establish personal margin loans or for a company to put in place a share plan for its employees." Interim Financing Extension Centro Properties Group advised last week that it continues to work closely with its financiers in order to finalise (before May 7, 2008) terms to extend facilities until at least Sept. 30, 2008. The facilities are comprised of: * Facilities of AU$2.3 billion in aggregate owed to the Australian lending group; and * US$450 million in aggregate owed to US Private Placement noteholders. In the company’s view, the negotiation of all material terms for the further extensions has been substantively concluded (subject to final documentation) with all of its financiers except one which is owed less than AU$200 million. All of the other relevant financiers, comprising Australian lenders, US Private Placement noteholders and US lenders, have indicated their support for the longer term extension and continue to work constructively to finalise these arrangements as quickly as possible by May 7, 2008. This debt has been extended or refinanced as follows: Amount Expiring Fund April 30, 2008 (AU$) Comments ---- -------------------- -------- Centro (CNP) $4.2 billion These amounts are included in the interim seven-day extension: * AU$2.3 billion under the Australian extension arrangements; * US$450 (AU$505) million collectively owed to US PP noteholders; and * AU$1.3 billion associated with its US joint venture with Centro Retail Trust (CER) which has been extended to Sept. 30, 2008, subject to similar arrangements being agreed under the Australian extension arrangements. CER $1.2 billion Included as part of the interim seven-day extension. This is debt associated with its US joint venture with Centro which has been extended to September 30, 2008 subject to similar arrangements being agreed under the Australian extension arrangements. CAWF $0.7 billion * AU$117 million has been refinanced to 2010; and * AU$622 million is currently being refinanced and is under a separate extension to May 30, 2008 whilst a longer term extension is finalised. Centro MCS $0.5 billion * AU$159 million for (Australia) Centro MCS 9 has been extended to May 30, 2008 whilst a longer term extension is negotiated; * AU$16 million for Centro MCS 16 has been extended to March 31, 2009. This amount has recently been increased by $31 million being additional development funding; and * AU$331 million for eight syndicates is currently being refinanced. A separate interim extension has been put in place to allow for the completion of documentation for a new two-year term expiring April 2010. Total $6.6 billion 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. CHARTWELL ENTERPRISES: Director Graeme Hoy Expects Charges ---------------------------------------------------------- The Australian Associated Press reports that Chartwell Enterprises Director Graeme Hoy says he expects to be charged over the collapse of his multi-million dollar stockbroking firm. A creditors' meeting was held yesterday in Geelong. Mr. Hoy told the AAP that he could end up in jail: "It's a distinct possibility and if I'm found guilty of offences then so be it. . . . I don't believe (I deserve jail) because I don't believe I'm guilty of offences." "I'm just devastated, absolutely devastated. It's not an outcome that was intended. . . . I'm not running away from it and I'll deal with the consequences of it," the AAP quotes Mr. Hoy as saying. According to the AAP, Administrator Bruno Secatore was not optimistic Chartwell's investors would get their money back. Reports earlier related that the company hired a financial astrologer to predict sharemarket trends based on when the "stars were aligned". Mr. Hoy denied this saying that the system his stockbroking firm was working on was sound, the AAP relates. "The mistake was not in the system, the mistake was in the level of returns that was being offered," Mr. Hoy told the AAP. Mr. Hoy admitted to the AAP that the high-flying lifestyle he led prior to his firm's collapse -- complete with a yacht, luxury cars and a luxury apartment -- were partly "ego out of control" and partly a plan to attract investment. Mr. Hoy told the AAP that he was now seeing a psychiatrist to put his life back together. Based in Geelong, Australia, Chartwell Enterprises was founded by Ian Rau and Graeme Hoy. Mr. Hoy also owns a hospitality company which has recently been placed in receivership. The Troubled Company Reporter-Asia Pacific reported on April 30, 2008, that administrators have been appointed to look into the collapse of Chartwell Enterprises. The Australian Securities and Investments Commission is also investigating Chartwell Enterprises, which owes about 100 staff and investors millions of dollars. Bruno Secatore from Cor Cordis Chartered Accountants was appointed as one of the administrators. COEUR D'ALENE: Matrix Research Upgrades Rating on Firm to Sell -------------------------------------------------------------- Matrix Research Ltd said in research notes that it has upgraded its ratings on Coeur d'Alene Mines Corp.'s shares to "sell" from "strong sell," Newratings.com reports. 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. CROYDON PARK: Commences Liquidation Proceedings ----------------------------------------------- At the final meeting of the members and creditors of Croydon Park Mechanical Repairs Pty Ltd held on 2 May 2008, P. Ngan, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: P. Ngan Ngan & Co. Level 5, 49 Market Street, Sydney New South Wales 2000 Australia EYRA SKIN: Commences Liquidation Proceedings -------------------------------------------- At the general meeting of the members of Eyra Skin Clinic Pty Ltd held May 1, 2008, A. R. Nicholls, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: A. R. Nicholls Nicholls & Co Suite 6, 459 Peel Street Tamworth, New South Wales 2340 Australia GC CONCRETE: Appoints Grahame Hill as Liquidator ------------------------------------------------ At a general meeting of GC CONCRETE PLACEMENTS PTY LTD's members held March 17, 2008, it was resolved that the company be wound up by Grahame Hill. The liquidator can be reached at: Grahame Hill c/- Hills Insolvency Services Pty Ltd PO Box 915 Rockdale NSW 2216 Telephone (02) 9599 7945 Facsimile (02) 9599 7946 HUNTER SMITH: Appoints Francis O'Connor as Liquidator ----------------------------------------------------- At a general meeting held March 20, 2008, HUNTER SMITH MOREE PTY LTD appointed Francis William O'Connor as liquidator of the company. The liquidator can be reached at: Francis William O'Connor 43 Auburn Street Moree NSW 2400 INTERNATIONAL LAMINEX: Final Members' Meeting Set for May 19 ------------------------------------------------------------ International Laminex Pty Ltd will hold a final meeting of its members on May 19, 2008, at 10:00 a.m., at the offices Adrian Garrett, 175 Inlet Road, Keri Keri, in Bay of Islands, New Zealand. At the meeting, the appointed liquidator will present an account of how the winding up has been conducted and the property of the company has been disposed of. The liquidator is: Adrian Garrett 175 Inlet Road Keri Keri, Bay of Islands New Zealand KLEINS GROUP: Placed Under Voluntary Administration --------------------------------------------------- The Australian Associated Press reports that Kleins Group has been placed into voluntary administration after the company collapsed. The jeweller owes more than AU$20 million, the report adds. According to the AAP, "Ferrier Hodgson partners James Stewart and George Georges have been appointed as administrators of the Kleins Group, which includes Kleins Franchising, The Jewellery Chain and JDA Imports." Mr. Stewart told the AAP that they have started going through the company's financial records so it's "too early to comment on the scale of the debt or the depth of the company's financial position." The AAP relates, citing Mr. Stewart, that the administrators will consider selling the business on a going- concern basis. Mr. Stewart said, the AAP notes, "the business would continue to operate in administration while the company's financial records are examined." The New Zealand Press Association reports that the company's affairs are being handled in New Zealand by BDO Spicers. Kleins is an Australian, privately owned company, which has been trading for more than 24 years. The company has 200 stores across Australia, New Zealand and South Africa. Kleins head office and warehouse are situated in Melbourne, Victoria where Kleins employ more than 65 people dedicated to ensuring that Kleins follows it's mission statement of "Looking Good Costs So Little." LUJAN FAMILY: Commences Liquidation Proceedings ----------------------------------------------- At a general meeting of LUJAN FAMILY HOLDINGS PTY LTD's shareholders held March 19, 2008, it was resolved that the company be wound up voluntarily by Mr Alex Koutzoumis. The liquidator can be reached at: Alex Koutzoumis. Holden & Bolster Avenir Pty Ltd Level 31, Australia Square 264-278 George Street Sydney NSW 2000 MATADOR BULLBARS: Placed Under Voluntary Liquidation ----------------------------------------------------- Matador Bullbars & Towbars Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. The company has appointed Robert Whitton to facilitate the sale of its assets. The liquidator can be reached at: R. W. Whitton Lawler Partners Chartered Accountants Level 9, 1 O'Connell Street Sydney, New South Wales 2000 Australia NOSAKA PTY: Commences Liquidation Proceedings --------------------------------------------- At the final meeting of the members of Nosaka Pty Ltd held April 22, 2008, Jamieson Louttit, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Jamieson Louttit Jamieson Louttit & Associates Level 15, 88 Pitt Street Sydney, New South Wales 2000 Telephone: (02) 9231-0505 Facsimile: (02) 9231-0303 PREMIER PAINTING: Placed Under Voluntary Liquidation ---------------------------------------------------- Premier Painting & Decorating Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. The company has appointed M. F. Cooper to facilitate the sale of its assets. The liquidator can be reached at: M. F. Cooper Frasers Insolvency Advisory Level 5, 99 Elizabeth Street Sydney, New South Wales 2000 Australia REFLECT ENTERPRISES: Placed Under Voluntary Liquidation ------------------------------------------------------- At a general meeting of Reflect Enterprises Pty Ltd's members held March 19, 2008, it was resolved that the company be wound up voluntarily and that Bradd Morelli of Jirsch Sutherland be appointed to act as liquidator of the company. The liquidator can be reached at: Bradd Morelli Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone: (02) 9236-8333 Facsimile: (02) 9236-8334 Email: admin@jirschsutherland.com.au REVLON INC: March 31 Balance Sheet Upside-Down by $1.1 Billion -------------------------------------------------------------- Revlon Inc. disclosed Thursday its earnings for the fiscal quarter ended March 31, 2008. At March 31, 2008, the company's consolidated balance sheet showed $882.6 million in total assets and $2.0 billion in total liabilities, resulting in a $1.1 billion total stockholders' deficit. The company reported a net loss of $2.5 million in the first quarter of 2008, compared with a net loss of $35.2 million in the first quarter of 2007. Operating income was $32.5 million in the first quarter of 2008, versus operating income of $3.0 million in the first quarter of 2007. Adjusted EBITDA in the first quarter of 2008 was $58.1 million, compared to an Adjusted EBITDA of $32.3 million in the same period last year. Operating income, net loss and Adjusted EBITDA in the first quarter of 2008 included a net gain of $6.0 million related to the sale of a non-core trademark. Operating income, net loss and Adjusted EBITDA in the first quarter of 2007 were also reduced by $4.3 million of restructuring charges, and included a benefit of $4.4 million from the reduction of lease liability related to the consolidation of office space in New York. The improvement in operating income, net loss and Adjusted EBITDA in the first quarter of 2008 compared to the same period last year, excluding the $6.0 million net gain related to the sale of a non-core trademark, was due mainly to lower selling, general and administrative expenses, primarily due to the fact that the first quarter of 2007 included significant brand support expenses related to the launch of Revlon Colorist hair color. Revlon president and chief executive officer, David Kennedy, said, "Our strong financial results for the first quarter of 2008 build upon our performance in 2007. These results continue to validate our strategy, and we remain focused on increasing the value of our company by building the Revlon brand." First Quarter 2008 Results Net sales in the first quarter of 2008 decreased 2.5% to $320.4 million, compared to net sales of $328.6 million in the first quarter of 2007. Excluding the favorable impact of foreign currency fluctuations, net sales in the first quarter decreased 5.5% versus year-ago. Net sales in the first quarter of 2007 benefited from initial shipments of beauty care products, including the launches of Revlon Colorist hair color and Mitchum Smart Solid anti-perspirant and deodorant. In the United States, net sales in the first quarter of 2008 decreased 8.3% to $177.2 million, compared to net sales of $193.3 million in the first quarter of last year. In the company's international operations, net sales in the first quarter of 2008 increased 5.8% to $143.2 million, compared to net sales of $135.3 million in the first quarter of last year. Excluding the favorable impact of foreign currency fluctuations, net sales in the first quarter of 2008 decreased 1.5% compared to the same period last year, reflecting higher net sales in the Asia Pacific and Latin America regions, which were more than offset by lower net sales in the Europe region. In the first quarter of 2007, net sales in the Europe region were positively impacted by retail space gains related to the Revlon brand and higher closeout sales. $150 Million Two-Year Interest Rate Swap In April 2008, the company entered into a $150.0 million two- year floating-to-fixed interest rate swap transaction related to indebtedness under the company's bank term loan, intended to reduce exposure to interest rate volatility. Following the execution of this swap and the $150.0 million two-year floating- to-fixed interest rate swap that the company entered into in September 2007, approximately 60% of the company's total long- term debt is at fixed interest rates and approximately 40% is at floating interest rates. Outlook In conclusion, Mr. Kennedy said, "We have delivered improved margins and demonstrated our ability to control costs and improve cash usage. We have also demonstrated, with our 2008 new product launches, that we have reinvigorated our new product development process. We believe that strong new product development will result in sustainable sales growth, which given our margin structure, will be profitable. Our plan, therefore, is based on growing our sales and continued control of our costs. We believe these factors, along with other efficiencies, will lead to further margin expansion. All combined, we expect to generate sustainable, profitable sales growth and positive free cash flow." About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE: REV) -- http://www.revlon.com/-- is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and personal care products company. The company's brands, which are sold worldwide, include Revlon(R), Almay(R), Mitchum(R), Charlie(R), Bozzano(R), Gatineau(R) and Ultima II(R). SEAVIEW KWIK-PRINT: To Declare Final Dividend on May 13 ------------------------------------------------------- SEAVIEW KWIK-PRINT PTY LIMITED will be declaring a first and final dividend to participating creditors on May 13, 2008. The deadline for creditors to prove their debts or claims was April 24, 2008. For further information, contact: ADAM SHEPARD Deed Administrator Star Dean-Willcocks Level 1, 32 Martin Place Sydney NSW 2000 Telephone (02) 9223 2944 Facsimile (02) 9223 3011 SKEETA-M: Commences Liquidation Proceedings ------------------------------------------- At the final meeting of the members of Skeeta-M Corporation Pty Ltd held April 22, 2008, Jamieson Louttit, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Jamieson Louttit Jamieson Louttit & Associates Level 15, 88 Pitt Street Sydney, New South Wales 2000 Telephone: (02) 9231-0505 Facsimile: (02) 9231-0303 ST. GEORGE BANK: Analysts Expect AU$619 Million Cash Profit ----------------------------------------------------------- Ross Kelly of the Australian Associated Press reports that analysts forecast that St. George Bank will report today a cash profit of AU$619 million for the six months ended March 31, 2008, compared with AU$586 million in the same period a year before. The AAP notes that "St. George has shone in customer satisfaction ratings and has a successful track record serving small and medium-sized business, particularly in its home state of New South Wales. . . . but the bank's capacity to find enough reasonably priced money to fund its rapid growth is causing concern." Mr. Kelly relates that St. George has exposure to several struggling companies hurt by the credit crunch like Allco Finance Group, Centro Properties Group and MFS Finance. The AAP interviewed analysts at Citigroup, Goldman Sachs JBWere, Credit Suisse and Merrill Lynch. Prices AU$700 Million Subordinated Notes Issue In a news release, St. George Bank Limited disclosed the pricing on May 2, 2008, of a new AU$700 million Subordinated Notes issue. The issue was upsized from an initial AU$300 million to AU$700 million following strong investor demand and will settle on May 9, 2008. The Notes have a 10-year tenor, maturing on May 9, 2018. They will be callable by St.George, with the prior written consent of the Australian Prudential Regulation Authority (APRA), in May 2013 and quarterly thereafter. The issue comprises a Fixed Rate series of AU$590 million and a Floating Rate series of AU$110 million. The Fixed Rate tranche has a semi-annual coupon of 10.00% to the first call date and is priced at 99.519%, yielding a margin of 395 basis points over the May 2013 Commonwealth Government bond or 275 basis points over the 5 year swap rate. The Floating Rate tranche was priced at par with a coupon of 275 basis points over quarterly BBSW. The coupon on both series will step up to 3 month BBSW+375 basis points if the Notes are not called at the first call date. The Notes are being distributed to non-retail investors by St. George Bank Limited as Sole Lead Manager. The minimum parcel size is AU$500,000. APRA has indicated that the Notes will qualify as Lower Tier 2 capital for St. George. It is expected the Notes will be rated Aa3 by Moody’s, A by Standard & Poor’s and A by Fitch. About St. George Bank Headquartered in Kogarah, New South Wales, Australia -- http://www.stgeorge.com.au-- St. George Bank Limited is a banking company. The Company operates in four business segments: Retail Bank (RB), Institutional and Business Banking (IBB), BankSA (BSA) and Wealth Management (WM). RB is responsible for residential and consumer lending, provision of personal financial services including transaction services, call and term deposits, small business banking and financial planners. This division manages retail branches, call centers, agency networks and electronic channels, such as electronic funds transfer at point of sale (EFTPOS) terminals, automated teller machines (ATMs) and Internet banking. On September 28, 2007, it disposed of its 100% interest in Scottish Pacific Business Finance Holdings Pty. Limited. * * * The Troubled Company Reporter-Asia Pacific reported on March 28, 2008 that Fitch Ratings assigned a 'B' rating on the AU$1.0 million Class E bond of St. George. A subsequent TCR-AP report on April 2, 2008, said Fitch Ratings rated St. George's AU$1.7 million Class D bond a 'BB'. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== AGRICULTURAL BANK: 1Q Domestic Operating Profit Up to CNY14.1BB --------------------------------------------------------------- Agricultural Bank of China's first-quarter domestic operating profit increased 71% year-on-year to CNY14.1 billion (US$2.01 billion), attributable to intermediate service growth and an improved business structure, Xinhua News reports. The report relates that the company's income from intermediate services increased 53% to CNY5.97 billion. The bank's non-performing loan ratio fell by 1.14 percentage points from 23.64% at the end of last year, with the total amount of non-performing loans dropping CNY7.3 billion in the first quarter from the end of last year, Xinhua News notes According to the report, that decline was CNY2.2 billion more than the same period last year. Meanwhile, Xinhua says the bank had given extensive support to reconstruction work following the severe winter weather, as well as to spring planting and stabilizing supplies of grains, meat, edible oils and dairy products. New loans to support agriculture and farming and county-level economic development reached CNY68.3 billion, accounting for 48 percent of total first-quarter loan growth, the report adds. About Agricultural Bank of China Agricultural Bank of China -- http://www.abchina.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. * * * Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. AGRICULTURAL BANK: Pan Gongsheng to be Appointed as Bank's VP ------------------------------------------------------------- Pan Gongsheng, board secretary of the Industrial and Commercial Bank of China, is to be appointed vice president of Agricultural Bank of China, Xinhua News reports citing the 21st Century Business Herald. According to the report, Mr. Gongsheng is also the general manager of ICBC's strategic management department. Mr. Gongsheng's appointment was intended to speed up the restructuring of Agricultural Bank of China, the report relates. Agricultural Bank of China -- http://www.abchina.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. * * * Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. AGRICULTURAL BANK: Inks CNY10 Bil. Credit Pact With Benxi Steel --------------------------------------------------------------- Agricultural Bank of China signed a comprehensive cooperation agreement with Benxi Iron and Steel Group, Steel Guru News reports. According to the report, under the business contract, the bank will provide CNY10 billion intention credits to Benxi Iron and Steel Group and the two sides will carry out full cooperation in traditional credit business and financing advisers, investment in bank and other fields. Agricultural Bank VP Yang Kun told the news agency that it has been actively supporting the development of Chinese iron and steel industry, providing financial services for iron and steel enterprises' adjustment of industrial structure, energy saving and emission reduction. Agricultural Bank of China -- http://www.abchina.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. * * * Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. BLOUNT INT'L: March 31 Balance Sheet Upside-Down by $43.8 Mil. -------------------------------------------------------------- Blount International Inc. disclosed Wednesday financial results for its first quarter ended March 31, 2008. At March 31, 2008, the company's consolidated balance sheet showed $407.5 million in total assets and $451.3 million in total liabilities, resulting in a $43.8 million total stockholders' deficit. The company reported net income of $6.8 million in the first quarter of 2008, compared with net income of $4.7 million in the same period of 2007. The increase in net income is a result of the improved year over year operating income and lower net interest expense due to a reduction in debt levels and lower borrowing rates. Company debt at the end of the first quarter was $296.7 million, a decrease of $70.8 million from last year's first quarter. The company's sales in the first quarter were $133.2 million, compared to $118.3 million in 2007, a 12.6% increase. The Outdoor Products segment sales increased by 13.9% from last year's first quarter. Operating income increased in this year's first quarter to $16.7 million from $16.2 million last year. In the first quarter, operating income was adversely impacted by approximately $2.7 million from changes in foreign currency exchange rates as compared to last year. Commenting on the first quarter results, James S. Osterman, chairman and chief executive officer, stated: "In the first quarter, we continued to see robust demand for saw chain products. The stronger euro, volume gains in developing markets and various marketing programs contributed to our increase in sales. A solid order backlog is encouraging for continued top line growth for the balance of the year; however, foreign currency and raw material cost trends will continue to put pressure on our operating margins for the remainder of 2008." About Blount International Blount International Inc. (NYSE: BLT) -- http://www.blount.com/ -- is an international company operating one principal business segment, the Outdoor Products segment. Blount sells its products in more than 100 countries around the world. The Outdoor Products segment manufactures and markets cutting chain, guide bars, sprockets and accessories for chainsaw use, concrete-cutting equipment and accessories and lawnmower blades. This segment also markets branded parts and accessories for the lawn and garden equipment market. The segment's products are sold to original equipment manufacturers for use on new chainsaws and yard care equipment, and to the retail replacement market through distributors, dealers and mass merchants. CAPITAL SHIPPING: Members' Final Meeting Set for May 29 ------------------------------------------------------- Members of Capital Shipping and Transport Consulatants Limited will have their final general meeting on May 29, 2008, at One Pacific Place, 35th Floor, 88 Queensway, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Lai Kar Yan, Derek Darach Eoghan Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong CHINA SOUTHERN AIRLINES: Launches Guiyang-Seoul Route ----------------------------------------------------- China Southern Airlines Co. Limited launched a new route linking Guiyang City in southwest China's Guizhou Province to Seoul of the Republic of Korea, Xinhua News reports. According to the report, local officials said that a three-day sightseeing tour of Korean journalists in March prompted the opening of the route. The airline will use a Boeing 737 aircraft to service the route twice a week, the report adds. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. The Outlook on the ratings is Stable. CHINA TOP: Creditors' Proofs of Debt Due May 26 ----------------------------------------------- Creditors of China Top Investments Limited are required to file their proofs of debt by May 26, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 18, 2008. The company's liquidator is: Chan Chi Kei Ronald Shanghai Industrial Investment Building Suite 1304, 60 Hennessy Road Wanchai, Hong Kong CITIC GROUP: Considers Increasing Stake in Macarthur Coal --------------------------------------------------------- CITIC Group is considering to increase its 19.9% stake in the Australian miner Macarthur Coal by launching a bid for Macarthur Coal founder's holdings worth about US$830 million, various reports say. According to The South China Morning Post, founder Ken Talbot holds a 24% stake in Macarthur Coal, which two weeks ago the company announced he was planning to sell. Australian mining magnate Nathan Tinkler, The Post relates, indicated that he would also sell his 10% stake in Macarthur Coal if Mr Talbot did. Australian law requires an acquiring company to launch a general offer when its stake rises above 20%. Meanwhile, BHP Billiton, Rio Tinto and Brazil's Vale have not only also considered bidding for Mr. Talbot's stake in Macarthur but also wanted Citic's stake, various reports note. Citic's decision to make a bid or in whether it succeeds or not, could be affected by the Australian government's tightened scrutiny of Chinese interest in buying Australian mining companies. This was prompted by Prime Minster Kevin Rudd due to increasing similar situations. However, one source told The Post that Citic's long-standing investment could play in its favor. Moreover, The Australian Business News reports citing, a statement to the Australian Securities Exchange, Macarthur said it is still in discussions after an approach from an interested party. "No formal proposal has yet been made to the Macarthur Coal board and there can be no certainty that any proposal will be made to the board or to shareholders," the company said. About CITIC Group State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. * * * The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on CNH Global N.V. to 'BBB-' from 'BB+' after taking the same rating action on CNH's parent company, Italy-based auto and truck manufacturer Fiat SpA (BBB-/Stable/A-3). The outlook is stable. Owing to the investment-grade rating, recovery methodology is no longer applicable and Standard & Poor's has thus withdrawn its '4' recovery rating on Case Corp.'s and Case New Holland Inc.'s senior unsecured debt. The corporate credit rating and outlook on publicly traded CNH are the same as those on Fiat because of the close ties between the two. Fiat views CNH as a core business and continues to provide strong liquidity support to CNH by way of intercompany loans and bank loan guarantees. Fiat has a roughly 90% equity ownership stake in CNH. As of March 31, 2008, CNH had $1 billion of cash deposited with Fiat affiliates' cash management pools (repayable to CNH on one day's notice). "Because S&P views CNH as core to the Fiat Group, a positive or negative rating action on Fiat would result in the same action on CNH," said Standard & Poor's credit analyst Dan Picciotto. "If S&P ceases to view CNH as core to the Fiat Group, and if CNH's stand-alone financial profile fails to support the ratings, S&P could take a negative rating action." CNH Global N.V. -- http://www.cnh.com/-- (NYSE: CNH) manufactures agricultural and construction equipment businesses. CNH Global is a majority-owned subsidiary of Fiat S.p.A. (MILAN: FIA) (NYSE: FIA). Aside from the U.S. and Canada, the company also has manufacturing facilities in Austria, Belgium, France, Italy, Poland, United Kingdom, China, India, Brazil, and Mexico, among others. EUROPOINT WATCH: Members & Creditors to Meet on May 28 ------------------------------------------------------ Europoint Watch & Jewelry Limited will hold a joint meeting for its members and creditors at 10:30 a.m. and 11:00 a.m. respectively, on May 28, 2008. At the meeting, the company's liquidators, Wong Man Chung, Francis will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Wong Man Chung, Francis 3rd Floor, 34-37 Connaught Road Central, Hong Kong FUSION COMPUTER: Members' Final Meeting Set for May 28 ------------------------------------------------------ Members of Fusion Computer Limited will have their final general meeting on May 28, 2008, at C C Wu Building, Room 1304, 302-8 Hennessy Road, Wanchai, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Liu Chi Tat Stephen C C Wu Building, Room 1304 302-8 Hennessy Road, Wanchai Hong Kong HONGKONG TECHNICAL: Creditors' Proofs of Debt Due May 10 -------------------------------------------------------- Creditors of HongKong Technical Services Limited are required to file their proofs of debt by May 10, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 2008. The company's liquidators are: Alan Chung Wah Tang Wong Kwok Man Gloucester Tower, 13th Floor The Landmark, 15 Queen's Road Central Hong Kong KING FORTUNE: Members' Final Meeting Set for May 24 --------------------------------------------------- Members of King Fortune Enterprises Limited will have their final general meeting on May 24, 2008, at Chung Chi House, 2nd Floor, Room 208, Chung on Chi Estate, Ma On Shan, Shatin, New Territories, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Luk Sau Man Chung Chi House, 2nd Floor Room 208, Chung on Chi Estate Ma On Shan, Shatin, New Territories Hong Kong KHK TRADING: Members & Creditors to Meet on May 28 -------------------------------------------------- KHK Trading Limited will hold a joint meeting for its members and creditors on May 28, 30, 2008. At the meeting, the company's liquidators, Liu Chi Tat Stephen will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Liu Chi Tat Stephen C C Wu Building, Room 1304 302-8 Hennessy Road, Wanchai Hong Kong PATERIGHT DEVELOPMENT: Creditors' Proofs of Debt Due May 26 ----------------------------------------------------------- Creditors of Pateright Development Limited are required to file their proofs of debt by May 26, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 2008. The company's liquidators are: Puen Wing Fai Lo Yeuk Ki, Alice Kwan Chart Tower, 6th Floor 6 Tonnochy Road, Wanchai Hong Kong RISE POINT: Members' Final Meeting Set for May 28 ------------------------------------------------- Members of Rise Point Trading Limited will have their final general meeting on May 28, 2008, at Grand Progress Building, 3rd Floor, Room B, 58 D' Aguilar Street, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Liu Chi Tat Stephen Grand Progress Building 3rd Floor, Room B, 58 D' Aguilar Street Hong Kong STONE ENERGY: Inks Merger Deal With Boise d'Arc for $1.8 Billion ---------------------------------------------------------------- Stone Energy Corporation and Bois d'Arc Energy Inc. have entered into a definitive merger agreement pursuant to which Stone will acquire Bois d'Arc. Bois d'Arc stockholders will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc common stock. The transaction has an aggregate value of approximately $1.8 billion. "Bois d'Arc is an outstanding fit with Stone given the complementary asset bases, strategies and skill sets of the two companies," David Welch, chief executive officer of Stone, said. "Stone is a strong exploitation and development company and combined with Bois d'Arc's outstanding inventory of shelf exploration prospects, the combined company will be a leading Gulf of Mexico producer." "The transaction will be accretive to Stone on a 2008 cash flow basis and the combined entity is expected to generate significant free cash flow which will continue to strengthen its balance sheet," Mr. Welch added. Following the merger, Stone expects to produce over 300 Mmcfe per day and have over 700 Bcfe of estimated proved reserves and approximately 275 Bcfe of estimated probable reserves, with a multi-year exploration prospect inventory, extensive 3D seismic coverage over the Gulf of Mexico, and a material leasehold position of over 800,000 net undeveloped acres. "Stone has the cash flow as well as the depth of personnel and the infrastructure in place to effectively capture the full value of Bois d'Arc's extensive prospect inventory," Gary Blackie, chief executive officer of Bois d'Arc, stated. "The case for combining the two companies is extremely compelling to the Bois d'Arc stockholders." Stone expects to fund the transaction utilizing existing cash on its balance sheet, borrowings from a proposed new $700 million credit facility underwritten by Bank of America N.A., and the issuance of approximately 11.3 million shares of Stone common stock. The transaction is expected to close in the third quarter of 2008. After the closing, Stone will remain headquartered in Lafayette, Louisiana, and David Welch will continue as chief executive officer of the combined company. The boards of directors of both companies have approved the merger agreement, and each will recommend the transaction to its respective stockholders for approval. Completion of the transaction is subject to stockholder approval of Stone and Bois d'Arc, regulatory approvals, and other customary conditions. Post closing, it is anticipated that the Stone stockholders will own approximately 72% of the combined company, and the Bois d'Arc stockholders will own approximately 28% of the combined company. Concurrent with the execution of the merger agreement, Comstock Resources Inc., which holds approximately 49% of the outstanding shares of Bois d'Arc, entered into a stockholder agreement in which it agreed to vote in favor of the merger and agreed to a one-year lock-up. In addition, Gary Blackie, director and chief executive officer of Bois d'Arc, and Wayne Laufer, director and former chief executive officer of Bois d'Arc, who own approximately 8% and 10% of the outstanding shares of Bois d'Arc common stock, also entered into stockholder agreements in which they agreed to vote in favor of the merger. "We are very excited about this combination and are enthusiastic about our 13% post-merger ownership in Stone Energy," Jay Allison, chief executive officer of Comstock, said. "Stone has made significant strides in positioning itself as a leader in the Gulf of Mexico and the Bois d'Arc team has done an outstanding job of creating value since Bois d'Arc's inception." Gary Blackie and certain key Bois d'Arc employees have entered into a participation agreement with Stone, under which, after the completion of the merger, Mr. Blackie and his team will generate exploration prospects in the Gulf of Mexico drawing on their extensive geological expertise in the region. Stone will provide overhead support and will advance certain funds needed to conduct exploration activities. Stone will be entitled to a non-promoted 50% working interest in each prospect generated. Tudor, Pickering, Holt & Co. acted as financial advisor to Stone and provided a fairness opinion to the board of Stone. Scotia Waterous (USA) Inc. and Raymond James & Associates Inc. acted as financial advisors to Bois d'Arc, and Raymond James & Associates Inc. provided a fairness opinion to the board of Bois d'Arc. About Bois d'Arc Energy Based in Houston, Texas, Bois d'Arc Energy Inc. (NYSE:BDE) -- http://www.boisdarcenergy.com/-- is an independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico. The company's oil and natural gas properties are estimated to have proved reserves of 398 billion cubic feet of natural gas equivalent. Bois d'Arc's proved oil and natural gas reserve base is 63% natural gas and 37% proved developed on a Bcfe basis as of Dec. 31, 2007, and it serves as operator for approximately 98% of its properties. During the year ended Dec. 31, 2007, its daily production averaged 88 million cubic feet of natural gas and 4,578 barrels of oil or 116 million cubic feet of natural gas equivalent. The company's properties are located in the outer continental shelf of the Gulf of Mexico in water depths of up to 75 feet. Its Gulf of Mexico operations include properties located offshore of Louisiana and Texas, in state and federal waters of the Gulf of Mexico. About Stone Energy Corporation Headquartered in Lafayette, Louisiana, Stone Energy Corporation (NYSE:SGY) -- http://www.stoneenergy.com/-- is an independent oil and natural gas company. The company is engaged in the acquisition and subsequent exploration, development, operation and production of oil and gas properties located in the conventional shelf of the Gulf of Mexico, the deep shelf of the Gulf of Mexico, the deepwater of the Gulf of Mexico, the Rocky Mountain Basins and the Williston Basin. Stone Energy is also engaged in an exploratory joint venture in Bohai Bay, China. STONE ENERGY: Moody's Keeps B3 Ratings on Bois d'Arc Acquisition ---------------------------------------------------------------- Moody's Investors Service affirmed the ratings for Stone Energy Corp. following the company's announcement that it is acquiring Bois d'Arc Energy, Inc. The ratings being affirmed are the B3 corporate family rating, the B3 probability of default rating, and the Caa1 (LGD 4; 62%) senior subordinated note rating. Simultaneously, Moody's is changing the speculative grade liquidity rating to SGL-3 from SGL-2. Moody's notes that while the Caa1 note rating remains one notch below the CFR, an additional notch down could occur if the long-term financing plan consists of a significant amount of senior secured debt. The outlook is stable. On April 30, 2008, Stone announced that it is acquiring Bois d'Arc Energy, a Gulf of Mexico focused producer that is 49% owned by Comstock Resources (B1 CFR), for total consideration of $1.8 billion. Under terms of the agreement, Bois d'Aarc's shareholders will get $13.65/share in cash and 0.165 shares of Stone stock, making the total consideration about 55% cash and 45% equity. At closing, Stone shareholders will own 72% of the combined company and Bois d'Arc shareholders will own 28%. Based on year-end 2007 reserves, the purchase price reflects a very high $4.54/mcfe ($27.27/boe) of proved reserves and about $93,103/ boe ($15,517/mcfe) of flowing Q4 '07 production. However, Moody's notes that this valuation does compare favorably to some recent GOM transactions. The stable outlook considers the increased scale of the combined company as well as the outlook for commodity prices, both of which provide the company with additional opportunities to achieve reserve and production growth and to execute on its debt reduction strategy. However, the stable outlook also reflects that the combined company will have increased leverage on the PD reserves at close, the high cost structure of the two companies and the concentration in the GOM, where Stone had been previously challenged to grow its reserves and production. Pro forma leverage on the PD reserve base will be higher (over $9.00/boe compared to $7.49/boe at FYE Dec. 31, 2007) expected and elevates the already high reinvestment risk associated with the GOM. A positive outlook and upgrade would be considered if management is executing on its debt reduction plans and there are clear indications that the capital productivity is improving. Evidence of this would be sustained sequential quarterly production growth, replacing all of its production at more sustainable costs, and leverage on the PD reserve base is trending towards $8.00/boe. The company's 2008 year-end FAS 69 disclosure will be a critical element in determining its progress. The B3 ratings continue to reflect the Stone's inconsistent track record of replacing its reserves (though there has been some improvement) and the company's very high cost structure which has resulted in a leveraged full cycle ratio below 100% despite very supportive commodity prices. The B3 is supported by the significantly increased scale of the combined company. Pro forma for the acquisition, Stone's reserves will essentially double in size and production will increase by approximately 80% and will make it one of the larger Gulf of Mexico producers within the single-B rated exploration and production company peer group. While leverage is increasing with the acquisition, the B3 CFR can accommodate this added leverage, assuming that commodity prices and production volumes remain supportive for debt reduction over the next twelve months. The downgrade of the speculative grade liquidity rating to SGL-3 from SGL-2 primarily reflects the company's use of about $500 million of its own cash on hand for the acquisition, leaving cash balances at modest levels. Although the acquisition is not expected to close until Q3'08, the cash will in the meantime be earmarked for the purchase and will not be made available for other use. Currently, Stone has no borrowing under its $300 million secured revolving credit facility ($175 million borrowing base), however, upon closing, a new $700 million facility is expected to be significantly drawn to partially fund the purchase of Bois d'Arc. The company is expected to be well within its maintenance covenants under the credit facility, though it the facility will be secured by essentially all of its reserves, leaving no alternative sources of liquidity. Stone Energy Corporation is headquartered in Lafayette, Louisiana, and is an independent oil and gas company engaged in the acquisition and subsequent exploration, development, operation and production of oil and gas properties primarily located in the conventional shelf of the GOM, the deep shelf of the GOM, and the deepwater of the GOM. STONE ENERGY: Bois d'Arc Deal Cues S&P to Hold 'B+' Debt Rating --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Stone Energy Corp. and its 'BB-' corporate credit rating on Comstock Resources Inc. The outlook on both is stable. At the same time, S&P placed the issue ratings on Stone's subordinated notes and Comstock's senior notes on CreditWatch with negative implications. S&P rate Stone's subordinated notes 'B+', with a recovery rating of '3', which indicates its expectation of meaningful (50% to 70%) recovery in the event of default. S&P rate Comstock's senior notes 'B+', with a recovery rating of '5', which indicates its expectation of modest (10% to 30%) recovery in the event of default. "These rating actions follow the announcement that Stone has entered into a definitive agreement to acquire Bois d'Arc Energy Inc., in which Comstock holds a 49% ownership interest," said Standard & Poor's credit analyst Jeffrey Morrison. (Standard & Poor's does not rate Bois d'Arc Energy Inc.) Stone and Comstock are independent exploration and production firms focused in Gulf of Mexico. The CreditWatch listings on Stone and Comstock's subordinated notes and senior notes issue ratings, respectively, reflect the potential that S&P could lower the issue ratings and change the recovery ratings in the near term. S&P's concerns derive from changes to the capital structure and assets caused by the transaction--specifically, increased secured debt capacity at Stone, and a reduced enterprise valuation at Comstock after the sale of its interests in Bois d'Arc. S&P expect to resolve the CreditWatch in the near term. UNIVERSAL ALUMINIUM: Members & Creditors to Meet on May 27 ---------------------------------------------------------- Universal Aluminium Company Limited will hold a joint meeting for its members and creditors on May 27, 30, 2008. At the meeting, the company's liquidators, Fung Tat Man will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Fung Tat Man Xiu Ping Commercial Building 104 Jervois Street, Sheung Wan Hong Kong ========= I N D I A ========= GENERAL MOTORS: Total April 2008 Sales Decrease 16 Percent ---------------------------------------------------------- General Motors Corp. dealers in the United States delivered 260,922 vehicles in April. Retail car and crossover sales were up more than 9%. A sharp sales increase in fuel efficient cars and crossovers could not make up for soft truck demand and a sharp decline in fleet deliveries impacted by the American Axle & Manufacturing Holdings Inc. strike. On a non-adjusted basis, retail sales were down 11.5% and total sales for the month were down 16%. On an adjusted basis, total sales declined 22.7%. Dealer inventories were at their lowest level since September 2005 with about 824,000 vehicles in stock, down about 206,000 vehicles compared to last April, and down more than 84,000 vehicles compared with December 2007. "Consumer preference is shifting and we're shifting with it as evidenced by our strong car and crossover sales," Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing, said. "Our new products such as the Chevrolet Malibu, Cadillac CTS and Buick Enclave were hot throughout the month. Throughout the industry, truck sales have been soft. We've been able to match the current economic slowdown with historically low total inventories, and as we look for ways to increase car and crossover production, we are improving our competitive position for the economic recovery." Chevrolet Malibu total sales were up 29% with retail sales up 147%, Aveo sales were up 14% total and 13% retail, and Cobalt sales were up 16% total and 17% retail. Pontiac Vibe total sales were up 36% and retail sales were up 39% compared with April 2007. Saturn Aura was up 19% total and 16% retail, and the Astra had its fourth consecutive month of increasing sales with more than 900 vehicles sold. In the luxury car segment, the award-winning Cadillac CTS saw total sales increase 8% with a strong retail increase of 12%. GM's popular crossover Buick Enclave, GMC Acadia and Saturn Outlook together accounted for nearly 13,000 retail vehicle sales in the month, an increase of 7% compared with the same month last year. There were more than 6,600 Acadia, 4,000 Enclave and 2,300 Outlook retail sales. The Saturn Vue had a total sales increase of about 600 vehicles compared with April 2007. "Our sales performance in mid-cars and crossovers shows the power of new products to attract consumers -- even in a tough market," Mr. LaNeve added. "So as the mix shifts from trucks to cars, we're ready in our dealers' showrooms with vehicles that provide industry-leading value, great fuel economy and the best warranty coverage of any full-line automaker." Certified Used Vehicles April 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 44,479 vehicles, up nearly 7% from April 2007 results. Year-to-date sales are 168,087 vehicles, down 7% from the same period last year. GM Certified Used Vehicles, the industry's top-selling certified brand, posted April sales of 38,861 vehicles, up 6% from last April. Cadillac Certified Pre-Owned Vehicles sold 3,565 vehicles, up 27%. Saturn Certified Pre-Owned Vehicles sold 1,159 vehicles, down 21%. Saab Certified Pre-Owned Vehicles sold 727 vehicles, up 14%, and HUMMER Certified Pre-Owned Vehicles sold 167 vehicles, up 109%. "Our certified sales momentum continued in April, as GM Certified Used Vehicles sales grew for the fourth consecutive month, a 6 percent increase over last April's results," Mr. LaNeve said. "The Cadillac, Saab and HUMMER Certified Pre-Owned Vehicles programs also generated robust increases as consumers take advantage of the great value and peace-of-mind assurances that come with the purchase of certified GM vehicles." In April, GM North America produced 242,000 vehicles (128,000 cars and 114,000 trucks). This is down 93,000 vehicles or 28 percent compared to April 2007 when the region produced 335,000 vehicles (120,000 cars and 215,000 trucks). (Production totals include joint venture production of 22,000 vehicles in April 2008 and 16,000 vehicles in April 2007.) Approximately 130,000 units of production have been lost in April due to the American Axle work stoppage. Since the dispute began in late February, approximately 230,000 units of production have been lost. GMNA has revised its forecast for 2008 second-quarter production to 950,000 vehicles, down 130,000 units from the prior forecast to reflect April production losses. Due to the current American Axle work stoppage, there is considerable uncertainty with regard to the second quarter production forecast. On April 30, 2008, GM's annual total vehicle sales forecast for the industry was revised to an expected mid-to-high 15 million vehicle SAAR. The previous forecast provided in January of this year was in the low-16 million unit range. The revision reflects actual industry sales rates for the first four months of 2008 and the current assessment of the recovery of the U.S. economy. 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. QUEBECOR WORLD: Names Randy Benson as CRO ----------------------------------------- Quebecor World Inc. appointed Randy Benson, Chief Restructuring Officer of the Company. Mr. Benson will report to the Restructuring Committee of the Board of Directors. "We are very pleased to have someone of Randy's experience and capabilities joining Quebecor World at this time," said Jacques Mallette, President and CEO, Quebecor World. "Randy brings valuable experience in working with other companies going through a financial restructuring process. He will work closely with our senior management team and the Creditors' Committees, as we develop our restructuring plan with a view of quickly emerging from creditor protection as a strong company in our industry." Mr. Benson most recently served as Chief Restructuring Officer for Hollinger Inc and prior to that held the same position at Ivaco Inc. Mr. Benson was Senior Vice-President and Chief Financial Officer at Call-Net Enterprises-Sprint Canada Inc. and before that he served as a division president at Parmalat Canada and as Executive Vice-President and Chief Financial Officer of Beatrice Foods Inc. He is the principal of R.C. Benson Consulting Inc., a management consulting company focused on providing strategic analysis, chief executive management, and financial and operational restructuring expertise. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, and Switzerland. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. The Debtors' CCAA stay has been extended to May 12, 2008. The Debtors have until Sept. 30, 2008, to exclusively file a reorganization plan. (Quebecor World Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SUN MICROSYSTEMS: Eliminates 2,500 Jobs to Save $220MM in Costs --------------------------------------------------------------- Sun Microsystems Inc. will reduce its workforce by around 1,500 to 2,500 people in the current quarter, Christopher Lawton of The Wall Street Journal reports. The company relates that it needs to slash costs as the U.S. economy is pretty weak and they are facing delays in orders from customers. Sun adds that they would be taking a charge of $130.0 million to $220.0 million in its fiscal fourth quarter to account for the cuts. Sun shares rose 67 cents, or 4.3%, to $16.33 at 4 p.m. in Nasdaq Stock Market composite trading, before the formal statement, WSJ notes. WSJ adds that shares fell 11.2% to $14.50 in after-hours trading. Third Quarter Financial Results Sun Microsystems reported net loss for the third quarter ended March 30, 2008, on a Generally Accepted Accounting procedures or GAAP basis of $34.0 million as compared with net income of $67.0 million for the third quarter of fiscal 2007. In the third quarter of fiscal 2008, the company recorded a $52 million dollar tax provision, as compared to a tax benefit of $3 million in the third quarter of fiscal 2007. Net loss for the third quarter included charges related to the acquisition of MySQL. Cash generated from operations for the third quarter of fiscal 2008 was $329.0 million, and the cash and marketable debt securities balance at the end of the quarter was $3.8 billion. During the third quarter, Sun continued to leverage its cash position, spending $300.0 million to repurchase 17.5 million shares of its common stock. There is $500.0 million remaining of the $3.0 billion share repurchase program disclosed in the company's fiscal fourth quarter of 2007. At March 30, 2008, the company's balance sheet showed total assets of $14.2 billion, total liabilities of about $8.5 billion and total shareholders' equity of $5.7 billion About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: JAVA) -- http://sun.com/-- provides network computing infrastructure product and service solutions worldwide. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Moody's Investors Service placed Sun Microsystems Inc.'s corporate family and unsecured debt rating at 'Ba1' in September 2005. The ratings still hold to date with a stable outlook. TATA STEEL: May Bid for a Stake in PT Krakatau Steel ---------------------------------------------------- Tata Steel Limited plans to bid for a stake in Indonesia's largest steel maker PT Krakatau Steel, various reports say. Ansari Bukhari, the industry ministry's director general for metal, told Antara News that Tata Steel has also expressed its interest in finding out more details in the Krakatau Steel privatization. A representative of Tata Steel would meet Industry Minister Fahmi Idris early next week, he said, Antara News relates. According to Agence France-Presse, Australian firm BlueScope Steel Limited, ArcelorMittall, and Indian firm Essar have also reportedly expressed an interest in Krakatau's privatization. Mr. Bukhari's office confirmed Mr. Idris will also receive a representative of Bluescope Steel, AFP adds. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. * * * As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating was removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= MEDCO ENERGI: Reports US$22.96 Million 1st Quarter Net Profit ------------------------------------------------------------- Antara News reports that PT Medco Energi Internasional Tbk disclosed that it booked a net profit of US$22.96 million in the first quarter, compared with US$15.43 million a year earlier, aided by stronger sales. According to Antara News, Medco's sales jumped 86 percent to US$334.55 million from US$179.87 million in the first quarter of 2007, mainly driven by oil and gas sales, which rose 68 percent to US$210.5 million. The report relates that the remaining sales came from drilling and related services, chemicals and other petroleum products, and power sales. Antara News adds that Medco's operating profit rose to US$87.75 million from US$49.44 million a year ago. Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). NORTEL NETWORKS: Net Loss Widens to $138MM in 2008 First Quarter ---------------------------------------------------------------- Nortel* Networks Corporation reported its results for first quarter ended March 31, 2008, which demonstrated continued progress against the company's turnaround strategy. The company reported a net loss in the first quarter of 2008 of $138 million compared to net loss of $103 million in the first quarter of 2007 and net loss of $844 million in the fourth quarter of 2007. The net loss $138 million included: -- special charges of $88 million for restructurings; -- a loss of $19 million due to changes in foreign exchange rates; -- a charge of $12 million related to a patent lawsuit settlement; and -- a gain of $16 million from mark-to-market gains on interest rate swaps. The net loss in the first quarter of 2007 of $103 million included a shareholder litigation gain of $54 million reflecting a mark-to-market adjustment of the share portion of the class action settlement and special charges of $80 million for restructuring. The net loss in the fourth quarter of 2007 of $844 million included a reduction of the deferred tax asset of $1,043 million, special charges of $38 million for restructurings, a gain of $23 million on the sale of assets, a gain of $40 million due to favourable effects of changes in foreign exchange rates and a gain due to a market value adjustment of $15 million on an interest rate swap. "Nortel had a strong first quarter, driven by the completion of a contract in our LG-Nortel joint venture and continued improvements in gross and operating margins, Mike Zafirovski, Nortel president and chief executive officer, said. "Nortel's operating margin, a critical measure of our plan's traction, expanded for the seventh consecutive quarter year over year, recording a 512 bps improvement to 4.7%." "We except to achieve our full year guidance and we continue to make solid progress against the strategy to turn around the company," Mr. Zafirovski added. "Our relentless focus on execution and our determination to deliver value to customers is strengthening the foundation upon which to build our performance over the balance of 2008 and beyond." Cash balance at the end of the first quarter of 2008 was $3.2 billion, down from $3.5 billion at the end of the fourth quarter of 2007. The decrease in cash was driven by a cash outflow from operating activities of $260 million, cash used in investing activities of $44 million and cash used in financing activities of $14 million. The cash outflow from operating activities of $260 million included a net loss of $138 million and outflows of $264 million related to: -- the payment of 2007 bonuses and fourth quarter sales compensation; -- $121 million related to pension funding; -- $51 million cash payments related to its restructuring plans. The cash outflow was partially offset by net cash inflows of $99 million of working capital and non-cash additions including $82 million of amortization and depreciation and $78 million of minority interest related to profitability of the LG-Nortel joint venture. At March 31, 2008, the company's balance sheet showed total assets of $16.2 billion, total liabilities of $13.6 billion and total shareholders' deficit of about $2.6 billion. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. * * * Nortel Networks Corp. still carries Moody's Investors Service's 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. ========= J A P A N ========= CHRYSLER LLC: Seeks to Sell Two Michigan Axle Plants for $400MM --------------------------------------------------------------- Chrysler LLC offered to sell two axle facilities in Michigan for $400 million, and approached private equity firms and axle suppliers Dana Holding Corp. and American Axle and Manufacturing Holdings Inc., The Wall Street Journal reports citing unnamed sources. WSJ relates that Chrysler is selling its unfinished Maryville plant and the Detroit Axle. However, no buyers have come forward. Chrysler did not comment on the matter. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's $2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for 50% to 70% recovery in the event of a payment default, from '4'. Both the issue-level and recovery ratings on Chrysler's $7 billion first-lien term loan due 2013 remain unchanged. The issue-level rating on this debt is 'BB-' with a recovery rating of '1', indicating an expectation for 90% to 100% recovery in the event of a payment default. DRAKE MANAGEMENT: To Liquidate $2.5 Billion Investment Fund ----------------------------------------------------------- Katherine Burton at Bloomberg News reports that Drake Management LLC is winding down the $2.5 billion Global Opportunities Fund, its largest hedge fund, after losses prompted clients to withdraw investments. The Global Opportunities Fund lost 25% last year on wrong-way bets on U.S. Treasuries, as well as Japanese bonds and stocks in developed markets, Bloomberg says, citing a year-end report Drake sent to investors. The fund manager borrowed about $12 for every $1 of net assets as of Dec. 31, according to a separate report by Bloomberg in March. Bloomberg says Drake's managers, Anthony Faillace and Steve Luttrell, will decide on the fate of its two other hedge funds by the end of the May and plan to start a new fund this year. Drake also runs the $1.3 billion Drake Absolute Return Fund and the $160 million Drake Low Volatility Fund. Bloomberg relates that the Drake Absolute Return Fund fell 14% in 2007. Mr. Luttrell has said current investors have committed about $300 million to a new Absolute Return fund, Bloomberg reports. The two managers will continue to manage $8 billion in traditional fixed-income accounts, according to Bloomberg. In a report by the Troubled Company Reporter on March 14, 2008, Drake restricted client redemptions or allowed clients to shift assets to a new fund. In an 11-page letter to investors dated March 12, Drake said it "would seem more probable that the market disruptions we have experienced will not abate in the short term, but will instead continue for some time." The Wall Street Journal, citing a person familiar with the situation, said in March Drake also was likely to stop investor withdrawals from its two other hedge funds. Ms. Burton, citing Drake's letter to investors, relates that clients had voted to switch about $500 million to the new fund, but when some investors opposed splitting the assets, Drake decided to liquidate Global Opportunities. Ms. Burton reports that investors may get most of their money back by the end of the year. The shut down, she says, is scheduled to be completed by the first quarter of 2009. New York-based Drake is an investment advisor registered with the Securities and Exchange Commission, specializing in active fixed income strategies. The firm was founded in May 2001 with the goal of delivering attractive risk-adjusted returns for substantial investors worldwide. Founded by Anthony Faillace and Steve Luttrell, who both previously worked at New York-based BlackRock and Pacific Investment Management Co. in Newport Beach, California, Drake began managing assets in January 2002. Drake currently manages more than $10 billion. With more than 100 professionals, Drake has offices in Tokyo, Japan; Miami, Florida; Sao Paulo, Brazil; and Istanbul, Turkey. FORD MOTOR: To Offer Buyouts to 1,300 Workers in Two Plants ----------------------------------------------------------- Ford Motor Company spokeswoman Angie Kozleski disclosed that the automaker intends to offer buyouts to 800 workers in an assembly plant in Chicago, Illinois, and to 500 workers in an assembly plant in Louisville, Kentucky, several papers report. The Associated Press relates that workers in an engine plant in Cleveland, Ohio, will also be offered buyouts, although, figures weren't reported. As reported in the Troubled Company Reporter on March 4, 2008, Ford disclosed plans to further align its capacity with demand at four U.S. manufacturing facilities as it works to return its North American operations to profitability by 2009. The Chicago Assembly Plant and Louisville Assembly Plant will operate on one shift beginning this summer. The date for the shift reduction has not been finalized. Cleveland Engine Plant #2 will operate on one shift beginning in late April. In addition, Cleveland Engine Plant #1, which has been idled since May 2007, will resume production in the fourth quarter. The company had planned to resume production resume this spring. AP recounts that the Chicago plant produces the Ford Taurus and Mercury Sable sedans and Taurus X crossover vehicle, while the Louisville assembly facility manufactures the Ford Explorer and Mercury Mountaineer sport utility vehicles. The Cleveland plant produces engines. Michael Dolan of The Wall Street Journal writes that the automaker is instigatin