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 8, 2008, Vol. 11, No. 91 Headlines A U S T R A L I A A L Y MEATS: Placed Under Voluntary Liquidation ALAN MCKINNEY: Placed Under Voluntary Liquidation AVCPL PTY: To Declare Dividend on May 30 BTCP PTY: Placed Under Voluntary Liquidation CAPRICORN CHILDCARE: Liquidator Presents Wind-Up Report CENTRO PROPERTIES: Still in Talks; Extension Expected Today ERIC WHITBREAD: Liquidator Presents Wind-Up Report FAUSTAS PTY: Placed Under Voluntary Liquidation IRENE SIMPSON: Placed Under Voluntary Liquidation J D MANAGEMENT: Liquidator Gives Wind-Up Report PANAVISION INC: Weakening Liquidity Cues Moody's Rating Reviews POLYPORE INT'L: Moody's Lifts Ratings to B2 on Reduced Leverage ST. GEORGE BANK: Union Criticizes "Outsourcing" Plan TIFAM INVESTMENTS: Placed Under Voluntary Liquidation VAN KLOOSTER: Members and Creditors to Meet Today ZINIFEX LTD: Jinchuan Accepts Offer for Allegiance Mining Stake ZINIFEX LTD: CFO to Retire After Oxiana Merger C H I N A MONITOR OIL: Global Maritime & Adshead Sued for Contract Breach PUDONG BANK: 412.5 Mil. Shares to Become Tradable Next Week *CHINA: Watchdog Warns State Firms to "Brace for Tough Times" H O N G K O N G CENTRAL UNITY: Liquidator Quits Post COACTIVE TECH: S&P Holds Rating on Failure to File Fin'l Report ECR EUROCURRENCY: Liquidator Quits Post FOKA DEVELOPMENT: Creditors' Proofs of Debt Due May 21 GOLDIAN LIMITED: Creditors' Proofs of Debt Due May 16 GWA INT'L: Members' Final Meeting Set for May 27 HELPING METAL: Members & Creditors to Meet on May 27 HONG KONG YOSHITOKU: Liquidator Quits Post MORIRIN (ASIA): Creditors' Final Meeting Set for May 6 PARKSON RETAIL: 2007 Net Profit Up 46.7% to CNY676.0 Million PARKSON RETAIL: Khazanah Sells Company Shares Via Placement PENAR LIMITED: Liquidator Quits Post SUCCESS WIDE: Commences Liquidation Proceedings I N D I A GENERAL MOTORS: Charges on Delphi Corp. Issues Reach $8.3 Bil. GENERAL MOTORS: Plastech Inks MOU with GM for Exit Financing GMAC LLC: Home Mortgage Unit Unable to Pay Debts Due June 2008 TATA MOTORS: Sales Decline by 5.8% in April 2008 I N D O N E S I A BANK RAKYAT: To Sell Mutual Funds With Trimegah & Danareksa GARUDA INDONESIA: Extends MOU With Jasindo Insurance GARUDA INDONESIA: May Acquire Smaller Airlines PERUSAAHAN LISTRIK: Non-Subsidized Tariffs to Bring Savings J A P A N ALITALIA SPA: Receives EUR300-Million Loan Italian Government ALITALIA SPA: May Now Sell Slots for Fund Following EU Directive DELPHI CORP: Plastech Can Return Tooling to Delphi Automotive DELPHI CORP: Court Moves Exclusive Plan-Filing Period to Aug. 31 DELPHI CORP: GM's Charges on Delphi Issues Reach $8.3 Billion FORD MOTOR: CAW Union Members Ratify New Labor Agreement USINAS SIDERURGICAS: J Mendes To Produce 5 Million Tons in 2008 USINAS SIDERURGICAS: Positive About Local Economy & Steel Demand * Moody's Says Outlook for Japan Cosmetics Industry Still Stable K O R E A DAEWOO ELECTRONIC: Adjusts Conversion Price of Convertible Bonds DURA AUTOMOTIVE: Court Approves Merger with Automotive Aviation DURA AUTOMOTIVE: Wants to Expand Assessment Tech's Scope of Work EG SEMICON: Makes Amendments to its Third Bonds Issuance EG SEMICON: Moves Private Placement Listing Date to May 23 NVIDIA CORP: Court Rejects Trustee's Claim for $100 Million M A L A Y S I A CNLT (FAR EAST): 2 Bank Creditors Approve Restructuring Scheme LUSTER INDUSTRIES: Equity Less Than 50% of Paid-Up Share Capital LIQUA HEALTH: Incurs MYR10.72MM Net Loss in Qtr. Ended Dec. 31 PILECON ENGINEERING: Hong Kong Subsidiary Struck Off PUTERA CAPITAL: Feb. 29 Balance Sheet Upside-Down by MYR22.18MM SYARIKAT KAYU: Incurs MYR989,000 Net Loss in Qtr. Ended Feb. 29 TALAM CORPORATION: SC Approves Revised Regularization Plan N E W Z E A L A N D ACACIA EMPLOYMENT: Brown and Rodewald Appointed as Liquidators BLUE CHIP: Barrister Renews Call for Statutory Management CENTRAL RIGGING: Brown and Rodewald Appointed as Liquidators CONTRAK CARTAGE: Face's Stevenson's Wind-Up Petition on May 16 DE-LUSH VINEYARD: Taps Crichton and Horne as Liquidators FASTFORWARD HOLDINGS: Shareholders Appoint Barlow as Liquidator HEAVY DIESEL: Court Appoints Shephard and Dunphy as Liquidators I AM IMPORT: Court Appoints Shephard and Dunphy as Liquidators ISLAND BAY: Creditors Have Until May 16 to File Claims JADEWOOD INTERNATIONAL: Court to Hear Wind-Up Petition on May 16 JOANNIE PROPERTIES: Shareholders Appoint Barlow as Liquidator KENDALL EARTHMOVERS: Creditors Must File Claims by May 16 LIBERTY LIVE: Shareholders Appoint Barlow as Liquidator M N T LIMITED: Brown and Rodewald Appointed as Liquidators MAXBUILD LIMITED: Creditors Must File Claims by May 16 MILKKAN LIMITED: Commences Liquidation Proceedings NEWLINE CONSTRUCTION: Claims Filing Deadline is May 16 NZ QUALITY: Creditors Must File Claims by May 16 OXFORD FARMLANDS: Trevor Croy Appointed as Liquidator REMUERA 464: Commences Liquidation Proceedings T & F KENT: Brown and Rodewald Appointed as Liquidators UPG LIMITED: Brown and Rodewald Appointed as Liquidators * NEW ZEALAND: Labor Force Ageing and Growth Slowing P H I L I P P I N E S PLDT: First Quarter 2008 Net Income Up by 21% to Php10.4 Billion PRC LLC: Files Amended Chapter 11 Plan and Disclosure Statement PRC LLC: Discloses Various Analysis Under Chapter 11 Plan PRC LLC: Verizon and Affiliates Balk at Disclosure Statement * PHILIPPINES: April 2008 Inflation Climbs to 8.3% T H A I L A N D ARVINMERITOR INC: Spins Off Light Vehicle Biz to Shareholders ARVINMERITOR: Light Vehicle's Spinoff Cues Fitch's Neg. Watch ARVINMERITOR INC: S&P Holds 'B+' Rating on Light Vehicle Spinoff X X X X X X X X * S&P Says Asian Financial Markets Must Continue New Approaches - - - - - ================= A U S T R A L I A ================= A L Y MEATS: Placed Under Voluntary Liquidation ----------------------------------------------- A L Y Meats Pty Ltd's members agreed on March 11, 2008, to voluntarily liquidate the company's business. Angelo Gangemi was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: Angelo Gangemi 134 Martin Street Brighton, Victoria ALAN MCKINNEY: Placed Under Voluntary Liquidation ------------------------------------------------- Alan McKinney Holdings Pty Ltd's members agreed on March 17, 2008, to voluntarily liquidate the company's business. Anthony M. Long was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: Anthony M. Long Liquidator Boyce Chartered Accountants 19 Montague Street Goulburn NSW 2580 AVCPL PTY: To Declare Dividend on May 30 ---------------------------------------- Avcpl Pty Limited will declare dividend on May 30, 2008. Only creditors who were able to file their proofs of debt by April 22, 2008, will be included in the company's dividend distribution. The company's liquidator is: Peter P. Krejci GHK Ferrier Green Krejci Silvia Level 13, 1 Castlereagh Street Sydney NSW 2000 BTCP PTY: Placed Under Voluntary Liquidation -------------------------------------------- Btcp Pty Limited's members agreed on March 17, 2008, to voluntarily liquidate the company's business. Raymond George Tolcher and Stewart William Free were appointed to facilitate the sale of the company's assets. The liquidators can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West NSW 2302 CAPRICORN CHILDCARE: Liquidator Presents Wind-Up Report ------------------------------------------------------- Robert Moodie, Capricorn Childcare Development Pty Limited's estate liquidator, met with the company's members on May 7, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: Robert Moodie Rodgers Reidy Level 8, 333 George Street Sydney NSW 2000 CENTRO PROPERTIES: Still in Talks; Extension Expected Today ----------------------------------------------------------- Laura Cochrane of Bloomberg News reports that Centro Properties Group is continuing talks with lenders about extending [the May 7] deadline to repay its debt. Ms. Cochrane relates that in a phone interview, Jim Kelly, a Sydney-based spokesman for Centro, said the company is in meetings with creditors and an agreement is expected today. Yesterday, the company halted trading in its shares and is expected to resume normal trading on May 9. As previously reported in the Troubled Company Reporter-Asia Pacific, Centro Properties is seeking an extension of these these facilities until at least September 30, 2008: -- Facilities of AU$2.3 billion in aggregate owed to Australian lending group; and -- US$450 million in aggregate owed to US private placement noteholders. According to Centro Properties, the negotiation of all materials terms for further extensions has been substantively concluded with all of its financiers except one which is owed less than AU$200 million. Centro further said that its Australian lenders, its US lenders and the US private placement noteholders have indicated their support for the longer term extension. 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. ERIC WHITBREAD: Liquidator Presents Wind-Up Report -------------------------------------------------- Jennifer Harwood, Eric Whitbread Shoes Pty Limited's estate liquidator, met with the company's members on April 30, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: Jennifer Harwood Fortunity 155 The Entrance Road Erina NSW 2250 FAUSTAS PTY: Placed Under Voluntary Liquidation ----------------------------------------------- Faustas Pty Limited's members agreed on March 14, 2008, to voluntarily liquidate the company's business. Raymond George Tolcher was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West NSW 2302 IRENE SIMPSON: Placed Under Voluntary Liquidation ------------------------------------------------- Irene Simpson Pty Ltd's members agreed on March 19, 2008, to voluntarily liquidate the company's business. John Frederick Taylor was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: John Frederick Taylor WHK Horwath Level 15, 309 Kent Street Sydney J D MANAGEMENT: Liquidator Gives Wind-Up Report ----------------------------------------------- James Garnsey, J D Management Services Pty Limited's estate liquidator, met with the company's members on April 7, 2008, and provided them with property disposal and winding-up reports. PANAVISION INC: Weakening Liquidity Cues Moody's Rating Reviews --------------------------------------------------------------- Moody's Investors Service placed the B3 corporate family rating and all other ratings for Panavision Inc. on review for possible downgrade. The action reflects weakening liquidity and fundamental operating concerns. Moody's believes continued compliance with bank financial covenants throughout 2008 could prove difficult for Panavision. Furthermore, its $35 million revolver provides only relatively modest external capacity for a seasonal, cash consumptive business with limited visibility, in Moody's view. These liquidity constraints compound core business challenges, including the negative impact of the strike by the Writers' Guild of America, which could result in a permanent loss of related TV segment revenue in 2008. A potential future strike by the Screen Actors' Guild would further reduce volume, and even absent a SAG strike, an increased focus on production costs by television studios could lead to diminished use of Panavision equipment. Finally, adoption of Genesis cameras remains below Panavision's previously lowered forecasts, and the company has again reduced forecasts for revenue from this initiative. In resolving the review, Moody's will evaluate Panavision's prospective ability to improve operating performance and establish a greater cushion of compliance under bank financial covenants. Panavision Inc. -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently B3 -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently B3 -- Senior Secured First Lien Bank Credit Facility, Placed on Review for Possible Downgrade, currently B2 -- Senior Secured First Lien Bank Credit Facility, Placed on Review for Possible Downgrade, currently Caa2 -- Outlook, Changed To Rating Under Review From Stable Panavision's B3 corporate family rating reflects weak liquidity, high financial risk, some degree of volatility in its core camera rental business, and uncertain asset coverage. Panavision's industry leading market share in the feature film and episodic television markets, strong brand image and reasonably high EBITDA margins support its ratings. Ratings also benefit from some evidence of success in identifying and integrating acquisitions and from recent cost cutting initiatives undertaken in response to challenging operating conditions. Headquartered in Woodland Hills, California, Panavision manufactures and rents camera systems and lighting equipment to motion picture and television producers worldwide. Its annual revenue is approximately $300 million. Panavision has locations in Australia and New Zealand. POLYPORE INT'L: Moody's Lifts Ratings to B2 on Reduced Leverage --------------------------------------------------------------- Moody's Investors Service raised the ratings of Polypore International, Inc., Corporate of Family to B2 from B3 and Probability of Default to B2 from B3. Moody's also raised the ratings of Polypore's bank credit facility to Ba2 from Ba3, and senior subordinated notes to B3 from Caa1. The outlook is changed to stable. The upgrade reflects Polypore's overall improvement in credit metrics stemming from a reduction in leverage, steady free cash flow generation, improved interest coverage, and strong operating margins. Polypore's de-leveraging activities and actions to shift production to low cost countries, close plants, and restructure away from its cellulosic membrane business have all contributed to the improvement of credit metrics. The ratings also reflect the expectation that the hemodialysis and lead-acid battery after-markets will continue to support the company's track record of generating positive free cash, and its recent turnaround. Polypore announced in March 2008 the acquisition of 100% of the stock of Microporous Holding Corporation from Industrial Growth Partners II L.P. and other stockholders, through its subsidiaries, Daramic LLC and Daramic Acquisition Corporation, for total consideration of approximately $76 million. The acquisition was funded with a combination of cash, assumption of debt and borrowings under Polypore's existing credit facility. Polypore said the acquisition of Microporous adds rubber-based battery separator technology to the Daramic product line. The acquisition broadens Polypore's participation in the deep-cycle industrial battery market, adds to the membrane technology portfolio and product breadth, enhances service to common customers and adds cost-effective production capacity. Polypore said, as a result of its acquisition of Microporous, it has increased its financial guidance for fiscal 2008. For the year ending Jan. 3, 2009, Polypore now expects to achieve net sales of $580 million to $605 million, adjusted EBITDA of $170 million to $178 million and earnings. These estimates are based on an assumed full-year weighted average fully diluted share count of 40.7 million shares. Additionally, the company estimates total capital expenditures of approximately $52 million in 2008. According to Moody's, the acquisition was funded with a combination of $45 million of cash, $17 million of revolver borrowings, and $14 million of assumed debt. Moody's sees that additional debt from this transaction as nominal and expects these amounts to paid down over the near term. The acquisition is expected to be accretive to Polypore's earnings prior to any synergies. The stable rating outlook reflects the expectation that the company's solid growth trends and operating performance will continue, bolstered by solid end-market growth prospects, its recurring revenue base and strong geographical diversification, tempered to some extent by a sluggish North American economy. In addition, the outlook reflects the company's adequate liquidity profile, including nominal debt maturities over the near term. These ratings are raised: Polypore International, Inc. -- Corporate Family Rating, to B2 from B3; -- Probability of Default, to B2 from B3; -- $90 million guaranteed senior secured revolving credit facility due 2013; to Ba2 (LGD2, 19%) from Ba3 (LGD2, 19%); -- $370 million guaranteed senior secured term loan due November 2014; to Ba2 (LGD2, 19%) from Ba3 (LGD2, 19%); -- $[_______] guaranteed senior subordinated notes due May 2012, to B3 (LGD5, 76%) from Caa1 (LGD5, 78%); -- Euro guaranteed senior subordinated notes due May 2012, to B3 (LGD5, 76%) from Caa1 (LGD5, 78%); The last rating action was on May 9, 2007 when the bank credit facility ratings were assigned and the outlook changed to Positive. Using Moody's standard adjustments for the last twelve months ended March 29, 2008, Polypore's consolidated total debt EBITDA leverage approximated 5.5x, EBIT interest was approximately 1.4x. Pro forma for the exclusion of interest accreted on the discount notes, EBIT interest coverage was approximately 1.5x. Polypore maintained a $90 million revolving credit facility under which there were approximately $17 million of borrowings at March 29, 2008. The company also maintained $23 million of cash on hand. Polypore International Inc., headquartered in Charlotte, North Carolina, is a leading worldwide developer, manufacturer and marketer of specialized polymer-based membranes used in separation and filtration processes. The company is managed under two business segments. The energy storage segment, which currently represents approximately two-thirds of total revenues, produces separators for lead-acid and lithium batteries. These products have applications in transportation, electronics, and general industrial applications. The separations media segment, which currently represents approximately one-third of total revenues, produces membranes used in various healthcare and industrial applications. For the twelve months ending March 31, 2008, Polypore's net sales approximated $553 million. The company has operations in Australia, Germany and Brazil. ST. GEORGE BANK: Union Criticizes "Outsourcing" Plan ---------------------------------------------------- George Lekakis of The Herald Sun reports that the Finance Sector Union "launched a major attack on [St. George Bank], claiming that it had not consulted staff on the outsourcing initiatives." "We have not received any formal or detailed information on what was announced [] by the bank," Mr. Lekakis quotes FSU spokesman Rod Masson. The FSU covers full-time, part-time and casual staff in banks, insurance companies, credit unions, finance companies, brokers and financial planners. "That's pretty poor from a bank that claims to differentiate itself from its rivals," Mr. Masson added, according to The Herald Sun. Citing the Australian Associated Press, the Troubled Company Reporter-Asia Pacific reported yesterday that St. George Bank said it will cut jobs when it undertakes its AU$30 million restructuring program, but company officials declined to specify how many staff would go. The TCR-AP noted that St. George missed analysts expectations to report a cash profit of AU$619 million for the six months ended March 31, 2008; it reported AU$603 Million instead. In addition, as a result of recognising a AU$20 million credit loss on a margin loan during the half and as the effects of the turmoil in global financial markets flow through to the domestic economy, the bank revised its EPS growth target to a range of 8 to 10 percent for 2008, on the basis of no further unexpected material credit losses. 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'. TIFAM INVESTMENTS: Placed Under Voluntary Liquidation ----------------------------------------------------- Tifam Investments Pty Limited's members agreed on March 14, 2008, to voluntarily liquidate the company's business. John Gibbons and Keiran Hutchison were appointed to facilitate the sale of the company's assets. The liquidators can be reached at: John Gibbons Keiran Hutchison Ernst & Young Centre 680 George Street Sydney NSW 2000 Telephone: (02) 8295-6590 VAN KLOOSTER: Members and Creditors to Meet Today -------------------------------------------------- Van Klooster Transport Pty Limited will hold a final meeting for its members and creditors at 10:00 a.m. today. During the meeting, the company's liquidator, Geoffrey Reidy at Rodgers Reidy, Level 8, 333 George Street in Sydney, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Geoffrey Reidy Rodgers Reidy Level 8, 333 George Street Sydney NSW 2000 ZINIFEX LTD: Jinchuan Accepts Offer for Allegiance Mining Stake --------------------------------------------------------------- Jinchuan Group Ltd has accepted Zinifex Australia Limited's offer for its 10.4% interest in Allegiance Mining NL. With Jinchuan's acceptance, Zinifex will own more than 90% of Allegiance and will move to compulsorily acquire the outstanding shares and de-list the company. Zinifex's CEO Andrew Michelmore said that Zinifex was very pleased to have gained Jinchuan's support. "We view Jinchuan as a strategic partner particularly given Jinchuan's leading position in China's commodity markets which are growing rapidly. We are excited by the potential for expanding the relationship between the companies in relation to other base metal projects." Mr. Michelmore said that the recently announced merger between Zinifex and Oxiana opens up a whole new suite of possibilities to extend the relationship with Jinchuan. "The merged company will be a substantial producer of copper, nickel, and zinc which are all metals that are part of Jinchuan's business. These markets present multiple opportunities to grow together." Zinifex assumes a number of the commitments with Jinchuan through its acquisition of Allegiance, including: 1. Zinifex will implement Allegiance's commitments under the "Agreement for the Purchase and Sale of Nickel Concentrate" between Allegiance and Jinchuan, dated 13 April 2006, despite any changes which have occurred in respect of Allegiance, including but not limited to delisting, shareholders' changing, capital reorganisation, company's merger and acquisition etc. The first delivery of concentrate from the Avebury nickel mine to Jinchuan is expected in June or July 2008. 2. Zinifex will also implement Allegiance's commitments under the "Agreement for Purchase and Sale of All Mineral Products � Tasmania Projects (other than Avebury)" between Allegiance and Jinchuan, dated April 30, 2006, (the Agreement). Zinifex undertakes that all the nickel resources discovered in Tasmania within the Agreement area will be produced and delivered to Jinchuan in accordance with the Agreement. Mineral products that are produced from Zinifex's Rosebery mine and any discoveries arising on Zinifex's existing Tasmanian exploration tenements are excluded from the Agreement. 3. Plans to expand nickel production at Avebury and increase exploration with the aim of extending the mine life. All of the increased output would be delivered to Jinchuan under the existing supply contract. 4. Enhancing the performance of Avebury and our joint expertise in nickel mining and processing, through technical collaboration, sharing of operating information and bilateral site visits. Zinifex's Offer for Allegiance mining is currently scheduled to close at 7 p.m. on May 16, 2008, and will not be extended. Any Allegiance shareholders who have not already done so are encouraged to accept the Offer before it closes. Accepting shareholders will be paid within 5 business days of receipt of a valid acceptance. Payment for shares acquired compulsorily after the Offer closes could take significantly longer than by accepting the Offer. If Allegiance shareholders have any queries in relation to how to accept the offer or any other matter relating to the takeover bid, please contact the Zinifex offer information line on 1300 658 985 (within Australia) and +61 2 8986 9352 (outside Australia). ZINIFEX LTD: CFO to Retire After Oxiana Merger ---------------------------------------------- Andrew Michelmore, chief executive officer of Zinifex Ltd., related last week that Tony Barnes, Zinifex's chief financial officer, had advised him of his decision to retire following the merger with Oxiana at a date to be agreed later in 2008. Mr. Michelmore said, "Tony has made a tremendous contribution to the company in playing a lead role both in guiding it through the challenges of administration and importantly transforming the company to where it is now with an exciting future in front of it." Zinifex's Chairman Peter Mansell also praised Tony's contribution commenting, "Tony leaves Zinifex well placed to make a significant contribution to the new merged entity, with an enviable balance sheet that can be used to take advantage of opportunities to grow shareholder wealth. This is a far cry from the modest position Zinifex commenced its life with four short years ago. In particular Tony deserves much credit for what was achieved during his time as interim CEO with the successful delivery of the Nyrstar float followed by the offer for Allegiance Mining. Tony's straight forward approach has been well valued by the Zinifex board." Commenting on his departure, Mr. Barnes said, "The past seven years have been an interesting journey and perhaps a once in a lifetime experience. In particular being part of the team that created Zinifex and then transformed into what it is today is something that I will look back on as a highlight of my executive life. In making the decision to retire I leave knowing the company has a great future in front of it but it is now someone else's turn to help shape that future as CFO." "My intention is to continue to be involved in the business world through nonexecutive directorships and to spend more time doing all those things I have put on hold for too long." Mr. Barnes will remain as Zinifex's Chief Financial Officer until completion of the merger with Oxiana. Some Oxiana Shareholders Are Uneasy The Australian reports that some Oxiana shareholders have expressed uneasiness over the proposed merger with Zinifex. They are apprehensive that Oxiana boss Owen Hegarty will be retiring in favor of Zinifex's Andrew Michelmore, the report relates. The Australian notes that this is likely to be exacerbated by the latest metal forecasts from JPMorgan, which has downgraded the zinc outlook. According to The Australian, both Mr. Hegarty and Mr. Michelmore have sought to counter these concerns "by stressing that the merger is about capitalising on the long-term benefits of increased scale." The report notes that Mr. Hegarty will be staying on the merged board and had been planning to retire at the end of 2009 anyway. As previously reported by the Troubled Company Reporter-Asia Pacific, the parties reached a deal after 12 months of intense negotiations. Gold and copper miner Oxiana will buy zinc and lead producer Zinifex for AU$6.2 billion (US$5.8 billion). The new company will be equally owned by Oxiana and Zinifex shareholders. Zinifex shareholders will be voting on the deal at a meeting scheduled for June 16, The Australian adds. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch's Web site as of April 21, 2008, says the rating outlook is positive. ========= C H I N A ========= MONITOR OIL: Global Maritime & Adshead Sued for Contract Breach --------------------------------------------------------------- Monitor Oil PLC and its debtor-affiliates commenced an adversary proceedings against Global Maritime, an offshore engineering and design firm in Houston, Texas, and Stephen Adshead, a controlling party of Mancorp AS, for breach of fiduciary duties to the Debtors. The Debtors assert that Global Maritime has not complied with some obligations under a second amended and restated agreement entered among the parties in August 2006, which remains in effect and governs the current relationship between the parties. Global Maritime has failed to provide schematic drawings, calculations, regulatory approvals and other intellectual property for the Single Lift Vessel (SLV) design to the Debtors pursuant to the agreement. Mancorp entered in an agreement dated June 2006 with the Debtors, which calls for Mr. Adshead to oversee and manage "all phases of the SLV construction project." Mr. Adshead was the president and director of Monitor Offshore Systems AS. The Debtors say Mr. Adshead failed to obtain documents for the SLV design from Global Maritime. Mr. Adshead permitted Global Maritime to take all of the materials constituting the SLV design back after Global Maritime terminated the second amended and restated agreement on Nov. 14, 2007. The Debtors say they requested Global Maritime and Mr. Adshead to turn over all documents of the SLV design but both refused to do so. Global Maritime and Mr. Adshead have taken action to use the SLV design for their own benefit, the Debtors allege. The Debtors could suffer imminent harm if Global Maritime and Mr. Adshead still have control over the SLV design. About Monitor Oil Headquartered in the Cayman Islands, Monitor Oil, Plc -- htpp://www.monitoroil.com/ -- an oil and gas service company that provides oil and gas production solutions, offshore services and engineering services. The Monitor Group has operations in London, England; Aberdeen, Scotland; Stavanger, Norway; Caldicot, Wales; Shanghai, China and New York, United States. The company and two of its affiliates, Monitor Single Lift 1, Ltd., and Monitor US FinCo, Inc., filed for Chapter 11 Protection on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709). Eric Lopez Schnabel, Esq., at Dorsey & Whitney, L.L.P., represents the Debtor. The U.S. Trustee for Region 2 appointed five creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Ira L. Herman, Esq., at Thompson & Knigh t, LLP, represents the Committee. As of Dec. 31, 2007, the company disclosed total assets of $98,340,000 and total debts of $56,125,000. PUDONG BANK: 412.5 Mil. Shares to Become Tradable Next Week ----------------------------------------------------------- Shanghai Pudong Development Bank Co.'s 412.5 million of yuan- denominated shares will become tradable next week as their two- year lockup period expires, Luo Jun of Bloomberg News reports. Pudong Bank's two largest shareholders will be allowed to sell part of their holdings, representing 7.3 percent of total outstanding shares, on May 12, Bloomberg says, citing a statement from the bank. According to the report, Pudong Bank still has 6.5 billion non- tradable shares. On April 15, 2008, the Troubled Company Reporter-Asia Pacific, citing a report by Edmund Klamann of Reuters, said Pudong Bank's first quarter net profit rose at least 180% from a year earlier, attributing the gains to asset growth, rising interest margins, growth in non-interest income and a lower effective corporate tax rate. Pudong Bank President Fu Jianhua said in March that he looks to boost net profit by at least 50% this year, the TCRAP reported, citing Reuters. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carried Moody's Investors Service's Ba1 financial strength rating. *CHINA: Watchdog Warns State Firms to "Brace for Tough Times" ------------------------------------------------------------ China's Assets Supervision and Administration Commission has warned major state-owned enterprises to "brace for tough times" given the likelihood of a worsening global economic slowdown, Agence France-Presse reports. Li Rongrong, director of the Commission, told Chinese state- owned enterprises to pay more attention to their financial position to avoid a potential capital crunch, the report said, citing the Economic Observer. Mr. Li added that the SOEs, some of which have already flagged cash flow shortages, should better prepare themselves for tightening monetary policy lasting at least two years, AFP relates, citing the state media. ================ H O N G K O N G ================ CENTRAL UNITY: Liquidator Quits Post ------------------------------------ On April 17, 2008, Hung See Mei, Elina stepped down as liquidator for Central Unity International Limited, which is undergoing liquidation. COACTIVE TECH: S&P Holds Rating on Failure to File Fin'l Report --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on Hong Kong-based CoActive Technologies Inc. and revised the outlook to negative from stable. The action follows the company's announcement that its financial statements for the fiscal year ended Dec. 31, 2008, would not be filed by the time specified in the covenants of its Credit Agreements. Financial results were due on April 29, 2008. The company expects to file financial statements within the 30-day cure period provided in the Credit Agreements. The delay relates to the auditor having not yet finalized its examination and review of the company's financial statements for the year ended Dec. 31, 2007, attributed to completion of purchase accounting, and is not related to any issues of accounting for the company's operations. "We do not expect any material adjustments to 2007 EBITDA in the review," said Standard & Poor's credit analyst Bruce Hyman. CoActive, formerly known as DeltaTech Controls Inc., acquired ITT Corp.'s electromechanical and dome array switch businesses, and related products, in mid-2007. The ratings on CoActive reflect the company's estimated 4% share of the highly fragmented and competitive electronic switch market, and its lack of a track record as an independent company. These factors are partly are offset by the company's diverse end markets and broad customer base, low-cost manufacturing locations, and costs customers would incur to change suppliers. CoActive manufactures switches used in a wide range of electronic products, custom-engineered switches and electromechanical controllers for automotive and industrial equipment, and dome array switches used in cellphones. CoActive's pro forma financial performance for the quarter and for the nine months ended Sept. 30, 2007, were within expectations. Debt to EBITDA was about 4.5x for the same period, and EBITDA margins were in the lower teens percentage area. The company also stated that it continues to perform well and expects to show compliance with all financial covenants as of Dec. 31, 2007, when its statements are released. ECR EUROCURRENCY: Liquidator Quits Post --------------------------------------- On April 14, 2008, Kim Tim Hei stepped down as liquidator for Ecr Eurocurrency Research Limited, which is undergoing liquidation. FOKA DEVELOPMENT: Creditors' Proofs of Debt Due May 21 ------------------------------------------------------ Creditors of Foka Development Limited are required to file their proofs of debt by May 21, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 23, 2008. The company's liquidator is: Tam Shing Yan Shop No. 101, 1st Floor 328 Sha Tsui Road, Tsuen Wan N.T. Hong Kong GOLDIAN LIMITED: Creditors' Proofs of Debt Due May 16 ----------------------------------------------------- Creditors of Goldian Limited are required to file their proofs of debt by May 16, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 15, 2008. The company's liquidator is: Yan Tat Wah Dah Sing Life Building, 5th Floor 99-105 Des Vouex Road Central, Hong Kong GWA INT'L: Members' Final Meeting Set for May 27 ------------------------------------------------ Members of GWA International (Hong Kong) Limited will have their final general meeting on May 27, 2008, at Level 28, Three Pacific Place, 1 Queens Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Natalia Seng Sze Ka Mee Cynthia Wong Tak Yee Level 28, Three Pacific Place 1 Queens Road East, Hong Kong HELPING METAL: Members & Creditors to Meet on May 27 ---------------------------------------------------- Helping Metal Company Limited will hold a joint meeting for its members and creditors at 2:30 p.m. and 3:00 p.m. respectively on May 27, 2008. During the meeting, the company's liquidator, 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 19th Floor, No.3 Lockhart Road Wanchai, Hong Kong HONG KONG YOSHITOKU: Liquidator Quits Post ------------------------------------------ On April 25, 2008, Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators for Hong Kong Yoshitoku Company Limited, which is undergoing liquidation. MORIRIN (ASIA): Creditors' Final Meeting Set for May 6 ------------------------------------------------------ Members of Moririn (Asia) Company Limited will have their final general meeting on May 6, 2008, at Lippo Center, Tower 2, 24th Floor, Suite 2408, 89 Queensway in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. No liquidator information was disclosed. PARKSON RETAIL: 2007 Net Profit Up 46.7% to CNY676.0 Million ------------------------------------------------------------ Parkson Retail Group Limited and its subsidiaries disclosed audited consolidated annual results for the year ended December 31, 2007. The company continues to achieve impressive growth in both total gross sales proceeds and total operating revenues. Total gross sales proceeds rose 46.0% to top CNY9 billion. Total operating revenues increased by 40.1% to CNY3.1 billion. Net profit attributable to the Group improved to CNY676.0 million, an increase of 46.7%. Basic earnings per share was CNY1.22, grew by 47.0% over the same period of last year. The board of directors recommended payment of a final dividend for the year ended December 31, 2007 of CNY0.38 (2006: CNY0.27) in cash per share. Together with the interim dividend of CNY0.22 per share, the full year dividend amounts to CNY0.60 (2006:0.42) in cash per share, representing approximately 42.9% of the year's net profit attributable to the Group. Business Review Commenting on the full year results, Mr. Alfred Cheng Yoong Choong, Managing Director of Parkson said, "We continued our impressive growth in the year 2007 with same store sales growth coming in strongly at approximately 18.4%. We carried out effective promotional activities and introduced quality branded and innovative products with higher value to our loyal customers. Our efforts to re-align the usage of premium and high traffic floor spaces to high value and productive merchandises have paid off. The net profit attributable to the Group increased by 46.7% to CNY676.0 million. " "We made a solid progress in consolidating our position as one of the leading department store operators in the PRC through opening new stores and M&A transactions at an earnings accretive pricing to our shareholders." Mr. Cheng said the Group now operates and manages a total of 41 stores, 29 self-owned department stores, 10 managed department stores and 2 "Xtra" branded super centres. Prospects "Despite the uncertainties and threats facing the world economy due to sub-prime mortgages, we remain bullish about the PRC economy and believe it will maintain its strong growth in the coming years as the PRC government will continue to rebalance the economic growth away from export and fixed asset investments, and towards domestic consumption, which is expected to be the main pillar of the economy going forward. We have 41 stores in our existing portfolio and will continue to roll out more stores in the coming years." Mr. Cheng said Mr. Cheng concluded, "We will continue to pursue our M&A strategy of acquiring the minority interest of the existing stores and the controlling interests of the managed stores to enhance our shareholder's returns. We will also actively explore the opportunities to make other acquisitions that meet our strategic initiatives and return on capital requirements." About Parkson Retail Group Headquartered in Hong Kong, Parkson Retail Group Limited operates department stores including 37 "Parkson" branded department stores and 2 "Xtra" branded supercentres situated in 26 cities in the People's Republic of China. Other activities include provision of consultancy and management services, research and development of computer software and investment holding. * * * As of April 26, 2008, Parkson Retail Group Limited continues to carry Moody's "Ba1" Senior Unsecured Debt, Senior Secured Debt, and Long-Term Corporate Family Ratings with a Stable outlook. In addition, Parkson Retail still carries Standard & Poor's "BB" long-term local and foreign issuer credit ratings. PARKSON RETAIL: Khazanah Sells Company Shares Via Placement ----------------------------------------------------------- Malaysian state investment arm Khazanah Nasional sold its stake in Parkson Retail Group, raising US$647 million through a share placement and an exchangeable Islamic bond, Reuters reports. According to the report, of the proceeds, US$550 million has been raised by issuing a five-year sukuk exchangeable into a total of 44 million Parkson Retail shares, or 7.9% of the company. The remaining US$97 million was raised through the placement of 10.6 million shares, or 1.9% of Parkson Retail, at HK$71 per share, the report notes. About Parkson Retail Group Headquartered in Hong Kong, Parkson Retail Group Limited operates department stores including 37 "Parkson" branded department stores and 2 "Xtra" branded supercentres situated in 26 cities in the People's Republic of China. Other activities include provision of consultancy and management services, research and development of computer software and investment holding. * * * As of April 26, 2008, Parkson Retail Group Limited continues to carry Moody's "Ba1" Senior Unsecured Debt, Senior Secured Debt, and Long-Term Corporate Family Ratings with a Stable outlook. In addition, Parkson Retail still carries Standard & Poor's "BB" long-term local and foreign issuer credit ratings. PENAR LIMITED: Liquidator Quits Post ------------------------------------ On April 17, 2008, Christopher Harvey Hall stepped down as liquidator for Penar Limited, which is undergoing liquidation. SUCCESS WIDE: Commences Liquidation Proceedings ----------------------------------------------- Success Wide Development Limited's members agreed on April 21, 2008 to voluntarily liquidate the company's business. The company has appointed Fung Kit Yee to facilitate the sale of its assets. The liquidator can be reached at: Fung Kit Yee Two International Finance Centre 8 Finance Street, Central Hong Kong ========= I N D I A ========= GENERAL MOTORS: Charges on Delphi Corp. Issues Reach $8.3 Bil. -------------------------------------------------------------- General Motors Corp. said that during the first quarter of 2008, it took a non-cash charge of $731,000,000 to increase its liability for estimated net costs associated with its support of Delphi Corp.'s bankruptcy and restructuring efforts. "This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM's recoveries," GM said. Delphi was scheduled to emerge from bankruptcy in mid-April but obtained problems with its exit equity financing from Appaloosa Management, PC, thus affecting the timing of GM's recoveries from Delphi. General Motors has now recorded charges totaling $8,300,000,000 in connection with Delphi-related issues, Reuters reports. GM has recently agreed to advance Delphi $650,000,000 in 2008 in anticipation of settlement agreements between the companies that would have been paid to the supplier had Delphi emerged from court protection as expected in April. General Motors also recorded a $1,450,000,000 non-cash partial impairment charge for its equity investment in its finance unit GMAC LLC for the first quarter of 2008. General Motors reported net losses of $3,251,000,000 on $42,700,000,000 of revenues for the first quarter. GM said its results were marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in North America operations and liquidity of nearly $24,000,000,000, despite the impact of the American Axle strike and weakness in the U.S. auto industry. Bloomberg News said the loss was smaller than analysts estimated, causing GM shares to gain 9.4% in the New York Stock Exchange. GM's loss excluding costs for Delphi and the GMAC was $350,000,000, or 62 cents a share, beating the $1.52 average estimate of 13 analysts surveyed by Bloomberg. GM said that in light of the current state of the U.S. economy and automotive industry, it has revised its 2008 U.S. industry seasonally adjusted annual rate (SAAR) outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM announced earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, Wisconsin; Pontiac and Flint, Michigan; and Oshawa, Ontario. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. 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. GENERAL MOTORS: Plastech Inks MOU with GM for Exit Financing ------------------------------------------------------------ In connection with the $87,000,000 financing provided by its major customers General Motors Corporation, Chrysler, LLC, Johnson Controls, Inc., and Ford Motor Company, Plastech Engineered Products Inc. and its debtor-affiliates agreed to a covenant requiring that at least one Major Customer accepts, by May 15, 2008, a proposal by the Debtors regarding a means of exiting Chapter 11. Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, informs the U.S. Bankruptcy Court for the Eastern District of Michigan that General Motors has accepted Plastech's Chapter 11 exit plan, pursuant to the terms of a memorandum of agreement, and a related sale of assets in connection with the memorandum. "The MOU was only recently finalized, however, and the Debtors must be authorized to consummate the transactions contemplated thereby as soon as possible in order to maintain compliance with their postpetition financing and the terms of the MOU," Mr. Galardi said. In that light, the Debtors sought the Court's permission to shorten the notice period to 17 days, instead of 20, schedule a hearing on the MOU for May 16, 2008 at 9:30 a.m. Mr. Galardi said if the MOU is not approved by May 16, Plastech will be unable to comply with the terms of their DIP Financing, and, absent funding from the Major Customers, the Debtors will likely be unable to continue to operate their businesses. Plastech did not disclose the specific terms of the GM Memorandum of Understanding as it sought and obtained the Court's permission to file the GM MOU documents under seal. Mr. Galardi explained the Debtors are seeking relief that is "of a confidential, commercial nature, which the Debtors believe would cause severe disruption to their operations if made publicly available." He said the sealed documents contain information pricing, quantity and timing of production and other sensitive business issues. Plastech will only provide unsealed copies of the GM MOU Motion to the Court and the U.S. Trustee. Subject to entry into a confidentiality agreement reasonably acceptable to General Motors, the Debtors' term loan lenders, sources of financing and capital necessary for confirmation and implementation of the Plan, and counsel to the Committee may be provided with an unsealed copies of the documents. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling $729,000,000 and total liabilities of $695,000,000. (Plastech Bankruptcy News, Issue No. 19; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. 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: Home Mortgage Unit Unable to Pay Debts Due June 2008 -------------------------------------------------------------- Residential Capital LLC, a home mortgage unit of GMAC LLC, disclosed that it is highly leveraged relative to its cash flow, and its liquidity position has been declining. According to a Securities and Exchange Commission filing, there is a significant risk that the company will not be able to meet its debt service obligations, be unable to meet certain financial covenants in its credit facilities, and be in a negative liquidity position in June 2008. As of Feb. 29, 2008, ResCap's liquidity portfolio (cash readily available to cover operating demands from across its business operations and maturing obligations) totaled $1.8 billion. In addition, the company has expended a significant amount of its available cash in recent weeks. ResCap had approximately $4.4 billion of unsecured long-term debt maturing during the remainder of 2008, consisting of approximately $1.2 billion aggregate principal amount of notes due in June 2008, approximately $1.8 billion of outstanding borrowings under its term loan due in July 2008, and approximately $1.1 billion aggregate principal amount of notes due in November 2008. In addition, the company had approximately $15.6 billion of secured, short-term debt outstanding as of Dec. 31, 2007, with various maturity dates in 2008, excluding debt of GMAC Bank. In an effort to improve its short-term liquidity and its capital structure and generally reduce its financial risk, ResCap has undertaken these: a) ResCap is conducting debt tender and exchange offers, as reported in yesterday's Troubled Company Reporter, for its outstanding unsecured notes to improve its financial flexibility by extending the maturities of such indebtedness and reducing the company's overall indebtedness. ResCap is offering eligible holders of ResCap notes that mature in 2008 and 2009, as well as holders of ResCap notes that mature in 2010 through 2015, the ability to exchange such notes for one of two newly-issued series of notes of ResCap. Holders of ResCap's floating rate notes maturing on June 9, 2008, have the ability to tender such notes for cash. In addition, eligible holders participating in the exchange offers may elect to receive cash in lieu of new notes that they would otherwise receive pursuant to a "Modified Dutch Auction" process. Newly issued notes would be secured by a second or third priority lien on the assets that would secure the proposed senior secured credit facility with GMAC. b) ResCap is in negotiations with its parent, GMAC LLC, to provide ResCap with a new $3.5 billion senior secured credit facility, which would be used to fund the cash required for the offers, to repay the term loan maturing in July 2008, and to replace its $875.0 million 364-day revolving bank credit facility and its $875.0 million 3-year revolving bank credit facility. Such facility would be secured by a first priority lien in substantially all of its existing and after-acquired unencumbered assets remaining available to be pledged as collateral. c) ResCap is seeking amendments to substantially all of its secured bilateral facilities that would extend the maturities of such facilities from various dates in 2008 to May 2009 and eliminate or modify the tangible net worth covenant contained in such facilities. Although some of its secured facilities have been extended during 2008, the extensions have generally been for periods shorter than such facilities' previous terms. Between March 1, 2008 and Dec. 31, 2008, the company has $30.2 billion, or 96.8%, of its secured committed capacity maturing. d) ResCap is in negotiations with GMAC for them to contribute to ResCap by May 31, 2008, approximately $350.0 million principal amount of its outstanding notes held by GMAC in exchange for additional ResCap preferred units, which are exchangeable at GMAC's option at any time after Jan. 1, 2009, subject to certain conditions, into preferred units of IB Finance Holdings, LLC, the owner of GMAC Bank. e) ResCap is seeking approximately $150.0 million in additional borrowings under one of its existing secured facilities with GMAC, the availability of which is subject to certain conditions. Even if ResCap is successful in implementing all of the actions, it will be required, in order to satisfy its liquidity needs and comply with anticipated covenants to be included in its new debt agreements requiring maintenance of minimum cash balances, to consummate in the near term certain asset sales or other capital generating actions over and above its normal mortgage finance activities to provide additional cash of $600 million by June 30, 2008. Asset liquidation initiatives may include, among other things, sale of retained interest in ResCap's mortgage securitizations, marketing of loans secured by time share receivables, marketing of its U.K. and Continental Europe mortgage loan portfolios, whole loan sales and marketing of businesses and platforms that are unrelated to its core mortgage finance business. Moreover, the amount of liquidity ResCap needs may be greater than currently anticipated as a result of additional factors and events (such as interest rate fluctuations and margin calls) that increase its cash needs causing the company to be unable to independently satisfy its near-term liquidity requirements. Liquidity and Capital Resources Domestic and international mortgage and capital markets have continued to experience significant dislocation. As a result, the company's liquidity was negatively impacted due to reduced committed lending levels and lower effective advance rates of its secured committed sources of liquidity. In addition, the company has incurred significant losses in the first quarter of 2008, and many of its secured committed facilities experienced shorter dated extensions than in the past. On Feb. 21, 2008, ResCap's subsidiary, Residential Funding Company, LLC, entered into a secured credit agreement with GMAC, as a lender and as agent, to provide RFC with a revolving credit facility with a principal amount of up to $750.0 million. To secure the obligations of RFC under the credit agreement, RFC has pledged as collateral under a pledge agreement, among other things, its membership interest in RFC Resort Funding, LLC, a wholly owned special purpose subsidiary of RFC, certain loans made by RFC to resort developers secured by time-share loans or agreements to purchase timeshares and certain loans made by RFC to resort developers to fund construction of resorts and resort- related facilities and all collections with respect to the pledged loans. This funding is supplemental to existing third party financing for the Resort Finance business. On Feb. 21, 2008, RFC borrowed $635.0 million under the credit agreement maturing on Aug. 21, 2009, and subsequently drew an additional $20.0 million in March 2008. As previously reported in the TCR, ResCap's parent, GMAC LLC, contributed notes of ResCap that GMAC had previously purchased in open market purchase transactions with a face amount of approximately $1.2 billion and a fair value of approximately $607.2 million to ResCap in exchange for 607,192 ResCap preferred units with a liquidation preference of $1,000 per unit. The ResCap preferred units are exchangeable at GMAC's option on a unit-for-unit basis into preferred membership interests in IB Finance at any time after Jan. 1, 2009, so long as neither ResCap nor any of its significant subsidiaries was the subject of any bankruptcy proceeding on or before that date. As reported in the Troubled Company Reporter on April 25, 2008, Residential Funding Company and GMAC Mortgage LLC, both subsidiaries of Residential Capital, LLC, borrowed $468 million collectively under a Loan and Security Agreement with ResCap's parent, GMAC LLC, as lender, to provide ResCap's subsidiaries with a revolving credit facility with a principal amount of up to $750 million, providing incremental liquidity for ResCap's operations until longer-term financing is arranged. ResCap and GMAC are investigating various strategic alternatives related to all aspects of ResCap's business, including extensions and replacements of existing secured borrowing facilities, and establishing additional sources of secured funding for ResCap's operations. One potential source of new secured funding is credit secured by certain of ResCap's mortgage servicing rights. About Residential Capital Headquartered in Minneapolis, Minnesota, Residential Capital LLC -- http://www.rescapholdings.com/-- is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMAC LLC. About GMAC LLC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. In Asia, the company has operations in Australia, China, India, New Zealand and Thailand. * * * As reported in yesterday's Troubled Company Reporter, Fitch Ratings has downgraded the long-term Issuer Default Rating of GMAC LLC and related subsidiaries to 'BB-' from 'BB'. Fitch has also downgraded GMAC's unsecured long-term ratings to 'B+' from 'BB-', reflecting the potential for reduced recovery in a default scenario should the company encumber assets. Additionally, Fitch has affirmed the 'B' short-term ratings. The Rating Outlook remains Negative. As reported in the Troubled Company Reporter on April 25, 2008, Moody's Investors Service downgraded GMAC LLC's senior rating to B2 from B1; the rating remains on review for further possible downgrade. This action follows Moody's rating downgrade of ResCap LLC, GMAC's wholly owned residential mortgage unit, to Caa1 from B2. TATA MOTORS: Sales Decline by 5.8% in April 2008 ------------------------------------------------ Tata Motors reported a total sale of 38,149 vehicles which includes exports for the month of April 2008, a decline of 5.8% over 40,486 vehicles sold in April last year. Commercial Vehicles The company�s sales of commercial vehicles in April 2008 in the domestic market were 21,001 nos., an increase of 7% compared to 19,607 vehicles sold in April last year. M&HCV sales stood at 11,248 nos., an increase of 8% over April 2007. LCV sales were 9,753 nos., an increase of 6% over April 2007. Passenger Vehicles Tata Motors passenger vehicle business reported a total sale of 14,843 vehicles in the domestic market in April 2008, a decline of 12% compared to 16,842 nos. sold in April 2007. While the Indica retails were over 10,000 nos., wholesale billings were restricted to 7430 nos., a decline of 31.6% over April 2007. The Indigo family registered sales of 3763 nos., an increase of 43% over April 2007. Sumo and Safari sales at 3650 nos, registered an increase of 9.3% over April last year. Exports The company exported 2,305 vehicles in April 2008 as compared to 4,037 vehicles in April last year, a decline of 43%. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero-coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. ================= I N D O N E S I A ================= BANK RAKYAT: To Sell Mutual Funds With Trimegah & Danareksa ----------------------------------------------------------- The Jakarta Post reports that PT Bank Rakyat Indonesia signed an agreement with PT Danareksa Investment Management and PT Trimegah Securities on Monday to sell various mutual funds. The Jakarta Post quotes BRI Financial Director Abdul Salam as saying: "Through our 5,000 branch offices and our newly developed BRI prioritas service, we are honored that Danareksa and Trimegah have chosen us as partners to sell mutual funds." According to the report, BRI BRI expects to sell IDR100 billion worth of mutual funds in 2008 "for its five partners, which include ABN Amro, Kresna Securities and another, undisclosed, securities company the bank hopes to sign with this month." About RBI Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. GARUDA INDONESIA: Extends MOU With Jasindo Insurance ---------------------------------------------------- Garuda Indonesia and Jasindo Insurance extended their existing MoU to cover cargo as well instead of only passengers need, in order to improve its service and to cope with the customers needs. The MoU was signed in Jakarta on Tuesday by Garuda President and CEO Emirsyah Satar and President Director Asuransi Jasa Indonesia (JASINDO) Eko Budiwiyono, and witnessed by State Owned Enterprise Minister Sofyan A Djalil. The MoU will be more flexible and will cover more space including "travel inconvenience insurance, cargo insurance, and irregularities on tour package," instead of "accident insurance." Furthermore, Jasindo Insurance will cover "flight delay", mis- connection flights, lost baggage, damage baggage, late delivery baggage, and irregularity of tour package. While for cargo service, the coverage will include "missing/damage shipment." With the extension of the MoU, Garuda will be the one and the only airline in which will give the advance service to its customers in term of more passenger convenience and cargo protection. President & CEO Garuda Emirsyah Satar said that the extension of this insurance coverage of Jasindo is part of commitment of Garuda as "full service airline" which focus on service in its business. Furthermore, Service Enhancement is part Garuda�s program in 2008. President Director Jasindo Eko Budiyono said that Jasindo Insurance will support the needs of Garuda in order to improve its service to the customers, especially on travel convenience insurance and cargo protection. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. * * * The Troubled Company Reporter-Asia Pacific reported on March 18, 2008, that PT Garuda Indonesia is slated to complete the restructuring of its US$800 million debts, including US$500 million to the European Credit Agency, in the first semester of this year. As part of efforts to boost efficiency, since Jan. 15, Garuda had halted the operation of its budget-carrier Citilink pending a reorganization of the division. The TCR-AP reported on Sept. 6, 2007, that Garuda was saddled with a debt of around US$750 million of which US$475 million was owed to the European Credit Agency. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. GARUDA INDONESIA: May Acquire Smaller Airlines ---------------------------------------------- The Jakarta Post reports that Garuda Indonesia Airlines President Emirsyah Satar commented on Tuesday that consolidation within Indonesia's aviation industry is the way forward to deal with cutthroat competition and soaring oil prices. The report notes that Garuda was forced to raise its fuel surcharge from about IDR80,000 (US$8) to about IDR100,000. Mr. Emirsyah points out that the European Union's ban on Indonesian airlines flying into Europe will also be a factor in any possible consolidation, the Jakarta Post adds. According to the Jakarta Post, Mr. Emirsyah did not rule out the possibility of Garuda acquiring smaller airlines. "If the opportunity presents itself, and it proves to be lucrative, with strong benefits coming from such an expansion, then yes we'll take it," the Post quotes Mr. Emirsyah as saying. The Post relates that Garuda increased its fleet by 60 airplanes, including 10 Boeing 777-300ER jumbo jets and 50 Boeing 737NG next-generation jets, which would begin arriving in 2009. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. * * * The Troubled Company Reporter-Asia Pacific reported on March 18, 2008, that PT Garuda Indonesia is slated to complete the restructuring of its US$800 million debts, including US$500 million to the European Credit Agency, in the first semester of this year. As part of efforts to boost efficiency, since Jan. 15, Garuda had halted the operation of its budget-carrier Citilink pending a reorganization of the division. The TCR-AP reported on Sept. 6, 2007, that Garuda was saddled with a debt of around US$750 million of which US$475 million was owed to the European Credit Agency. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. PERUSAAHAN LISTRIK: Non-Subsidized Tariffs to Bring Savings ----------------------------------------------------------- The Jakarta Post reports that PT Perusahaan Listrik Negara said it would continue applying non-subsidized tariffs to higher income consumers and businesses in order to save about IDR474 billion this year in Java and Bali alone. "PLN President Director Fahmi Mochtar said during a seminar the company had saved IDR1.3 billion per day for a month following the introduction of its policy of non-subsidized tariffs," The Jakarta Post relates. According to the report, PLN began charging non-subsidized tariffs to Riau, West Java, East Kalimantan, Bangka Belitung, Jakarta and Tangerang customers with an electricity capacity of more than 6,600 megawatts in April because it wanted to reduce the company's operating costs due to the rise in the price of oil. The Post states that the move is part of PLN's cost-cutting measures to save about IDR2.7 trillion this year to help offset the deficit of almost IDR5 trillion for the electricity subsidy. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= ALITALIA SPA: Receives EUR300-Million Loan Italian Government ------------------------------------------------------------- Alitalia S.p.A. has received the EUR300-million emergency loan pledged by the Italian government, Bloomberg News reports. European Union Transport Commissioner Jacques Barrot, however, said Alitalia's weak coffers have raised doubts on the legality of the loan, Bloomberg News relates. The European Commission gave Italy until May 19, 2008, to provide details of the bridging loan, which is currently under review for possible violation of the European Union rule on state aid. Italy needs to prove that the loan was offered on commercial terms to gain approval from the Commission. Alitalia may face months-long probe over the legality of the loan, which may further cramp Italy's efforts to sell its 49.9% stake in the national carrier. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ALITALIA SPA: May Now Sell Slots for Fund Following EU Directive ---------------------------------------------------------------- Alitalia S.p.A. may financially benefit from a recent directive by the European Union allowing European airlines to auction takeoff and landing block they do not use, Thomson Financial relates citing a Corriere della Sera report. Under the directive, Corriere della Sera relates, airlines can sell or swap unprofitable or idle slots. The TCR-Europe reported Dec. 28, 2007, the Alitalia sold three pairs of slots at London's Heathrow airport that it considered non-strategic for EUR92 million. The company is planning to give up around 180 of its 357 slots at Milan's Malpensa airport, and may sell them for more funds, Corriere della Sera suggests. Proceeds from the sale of slots would allow Alitalia to finance its operations until the Italian government's 49.9% is sold, without receiving the planned EUR300 million bridging loan from Italy. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. DELPHI CORP: Plastech Can Return Tooling to Delphi Automotive ------------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the Eastern District of Michigan to return certain tooling equipment to Delphi Automotive Systems LLC. As reported in the Troubled Company Reporter on April 21, 2008, the Debtors sought authority specifically to: (a) surrender certain tooling owned by Delphi Automotive Systems, LLC, that is in the Debtors' possession; and (b) sell to Delphi certain de minimis finished goods inventory made with the Delphi tooling for $4,671, free and clear of liens. The Debtors also asked the Court to lift the automatic stay to effectuate the release of tooling and the sale of the de minimis inventory to Delphi. The Debtors currently are in possession of certain tooling which is fully paid for and is owned by Delphi at a plant in Croswell, Michigan, that was used to make service parts for Delphi's Powertrain Division that are no longer in production. The Debtors informed that the Inventory represents idle assets that are of little or no use or value to the Debtors' estates or restructuring efforts, as the Inventory consists of service parts that are no longer in production. The Debtors have determined in their sound business judgment that the sale of the Inventory to Delphi is the most efficient way to convert idle assets of de minimis value into cash. The Debtors believe that the sale of the inventory to Delphi is commercially reasonable in light of the assets being sold and as a result, the value of the proceeds from the sale fairly reflects the value of the Inventory sold. The Debtors proposed that any party with a lien on the Inventory be given a corresponding security interest in the proceeds of the sale. In light of these, the requirements of Section 363(f) of the Bankruptcy Code would be satisfied for any proposed sales free and clear of liens, the Debtors said. Moreover, because the Debtors have no further need for the Delphi Tooling, the Debtors believe that the automatic stay should be lifted pursuant to Section 362(d) of the Bankruptcy Code to allow Delphi to take possession of the Delphi Tooling and to deem the applicable purchase orders between Delphi and the Debtors terminated upon the return of the Delphi Tooling and payment for the Inventory. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling $729,000,000 and total liabilities of $695,000,000. (Plastech Bankruptcy News, Issue No. 19; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. DELPHI CORP: Court Moves Exclusive Plan-Filing Period to Aug. 31 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended Delphi Corp. and its debtor-affiliates' exclusive periods to file a plan of reorganization until 30 days after substantial consummation of the confirmed First Amended Joint Plan of Reorganization or any modified Plan, and their exclusive periods to solicit acceptances of that Plan until 90 days after substantial consummation of the First Amended Plan or modified Plan. The Court ruled that: (i) the Debtors' exclusive period under Section 1121(d) of the Bankruptcy Code for filing a plan of reorganization, as between the Debtors and the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders is extended through and including August 31, 2008. (ii) The Debtors' exclusive period under Section 1121(d) for soliciting acceptance of a plan of reorganization, as between the Debtors and the Statutory Committees, is extended through and including October 31, 2008. As reported in the Troubled Company Reporter on April 17, 2008, out of an abundance of caution and to ensure clarity with their stakeholders, including their customers and supplies, the Debtors sought an extension of the Exclusive Periods to prevent any lapse in exclusivity, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, clarified. A further extension of the Exclusive Periods, Mr. Butler said, is justified by the significant progress the Debtors have made toward emerging from Chapter 11. After obtaining confirmation of the First Amended Plan, the Debtors secured exit financing and met all other conditions to the effectiveness of the Plan and Investment Agreement and were prepared to emerge from Chapter 11. The Debtors' efforts to emerge from Chapter 11, however, were affected by severe dislocations in the capital markets that began late in the second quarter of 2007 and that have continued through the present, according to Mr. Butler. Although the Debtors eventually obtained the exit financing required by the First Amended Plan, the turbulence in the capital markets was a principal cause of the delay in the Debtors' emergence from Chapter 11 before the end of 2007, he maintained. Moreover, the decision by Appaloosa Management L.P. and the other Plan Investors to not honor their commitments in the parties' New Equity Purchase and Commitment Agreement prevented the Debtors from emerging on April 4, 2008. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: GM's Charges on Delphi Issues Reach $8.3 Billion ------------------------------------------------------------- General Motors Corp. said that during the first quarter of 2008, it took a non-cash charge of $731,000,000 to increase its liability for estimated net costs associated with its support of Delphi Corp.'s bankruptcy and restructuring efforts. "This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM's recoveries," GM said. Delphi was scheduled to emerge from bankruptcy in mid-April but obtained problems with its exit equity financing from Appaloosa Management, PC, thus affecting the timing of GM's recoveries from Delphi. General Motors has now recorded charges totaling $8,300,000,000 in connection with Delphi-related issues, Reuters reports. GM has recently agreed to advance Delphi $650,000,000 in 2008 in anticipation of settlement agreements between the companies that would have been paid to the supplier had Delphi emerged from court protection as expected in April. General Motors also recorded a $1,450,000,000 non-cash partial impairment charge for its equity investment in its finance unit GMAC LLC for the first quarter of 2008. General Motors reported net losses of $3,251,000,000 on $42,700,000,000 of revenues for the first quarter. GM said its results were marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in North America operations and liquidity of nearly $24,000,000,000, despite the impact of the American Axle strike and weakness in the U.S. auto industry. Bloomberg News said the loss was smaller than analysts estimated, causing GM shares to gain 9.4% in the New York Stock Exchange. GM's loss excluding costs for Delphi and the GMAC was $350,000,000, or 62 cents a share, beating the $1.52 average estimate of 13 analysts surveyed by Bloomberg. GM said that in light of the current state of the U.S. economy and automotive industry, it has revised its 2008 U.S. industry seasonally adjusted annual rate outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM announced earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, Wisconsin; Pontiac and Flint, Michigan; and Oshawa, Ontario. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: CAW Union Members Ratify New Labor Agreement -------------------------------------------------------- For the first time in its history, Ford Motor Company of Canada, Limited has reached a collective bargaining agreement with the Canadian Auto Workers more than four months before the current contract expires. Ford employees represented by the CAW ratified the new deal in a vote held May 4, 2008. The early settlement brings stability to Ford's operations as it prepares to launch the new Ford Flex crossover vehicle at the Oakville Assembly Complex, which also builds the Ford Edge and Lincoln MKX. Ford disclosed plans to add 500 positions to increase production at the Oakville plant due to high demand for the Ford Edge and Lincoln MKX, and to prepare for the start of production of the Ford Flex. "This agreement is the right solution for the Canadian marketplace," Stacey Allerton Firth, vice president, human resources, Ford of Canada, said. "The terms recognize the importance of our employees' contributions and improves the competitiveness of the Canadian operations." "It's a credit to the relationship we have with the CAW that we were able to reach a responsible agreement in record time. Both the union and the company realized that we had to work collaboratively, with complete transparency, in order to find innovative solutions to the challenges facing the industry." Highlights of the agreement include: * Each CAW-represented employee receives a $2,200 productivity and quality bonus upon ratification to recognize their efforts in helping Ford become one of the best in the industry in product quality. * Cost-of-living allowance payments are frozen for the next 16 months. Quarterly COLA adjustments resume in December 2009. * Effective immediately, a unique wage rate has been established -- during the first three years of employment, new employees earn 70% of base wages, COLA payments are suspended, and Supplemental Unemployment Benefits and time- off provisions are phased in. After three years, employees receive 100% of base wages and benefits. * Health care savings generated through a new 10% co-pay program for prescription drugs and a cap on long-term care provisions. * A 40-hour-per-year reduction in vacation pay, offset by a $3,500 cash payment in January 2009. * Production at the St. Thomas Assembly Plant, near London, Ontario is extended by one year to 2011. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for $2.3 billion (before $600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. USINAS SIDERURGICAS: J Mendes To Produce 5 Million Tons in 2008 --------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais SA is expecting from previously acquired iron ore producer J Mendes to produce 5 million tons in 2008, Business News Americas reports, citing Spokesperson Paulo Penido in a conference call. Usiminaas acquired J Mendes hoping to lessen its dependence on third party iron ore producers. J Mendes' first quarter results, however, was weak, according to Mr. Penido. J Mendes recorded BRL10 million (US$6.02 million) of net sales in the first quarter. Usiminas Siderurgicas, in March, estimated that J Mendes will reach an annual production level of 11M-13Mt within three years. The company is also considering a pelletizing facility for J Mendes in 2014-2015 requiring a US$1 billion investment, the report adds. Port Facilities Usiminas' Cosipa in Sao Paulo state's Cubatao, and Sepetiba in Rio de Janeiro, two ports in southeast Brazil, will received J Mendes' output. The company