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 Friday, May 9, 2008, Vol. 11, No. 92 Headlines A U S T R A L I A ACN 005 969 086: Appoints James Patrick Downey as Liquidator BARTHOLOMEUSZ: K. L. Sutherland Appointed as Liquidator BY THE BAY: Placed Under Voluntary Liquidation CAPITOL LITES: Taps Geoffrey Handberg as Liquidator CENTRO PROPERTIES: Financing Arrangements Extended Until Dec. 15 DPRINT PTY: Placed Under Voluntary Liquidation FAWN HEATH: To Declare Dividend on May 19 LANE COVE TUNNEL: Moody's Downgrades Sr. Sec. Rating to Ba3 LARRY NIXON: Liquidator Presents Wind-Up Report MTC LOGISTICS: Placed Under Voluntary Liquidation PIRSUB TILIG: Liquidator Presents Wind-Up Report POWER AVENUE: Member's Final Meeting Slated Today POWER STUDIOS: Liquidator Gives Wind-Up Report POWERBEAM SOLUTIONS: Appoints K. L. Sutherland as Liquidator PRIMUS TELECOM: Posts $3MM Net Loss in 1st Qtr Ended March 31 SHARPER IMAGE: Asks Court to Approve Asset Sale Procedures THE GIFTWARE: Placed Under Voluntarily Liquidation Y R MEATS: Appoints Angelo Gangemi as Liquidator ZINIFEX LTD: Dissolves Century Mining Alliance With Downer EDI C H I N A CITIC GROUP: Banco Bilbao to Double Stake in Company CHINA SOUTHERN: Funds Cut Airline Stake to 144 Million Shares CITY TELE: Infinity Consortium Submits Bid for Broadband Network GREENTOWN CHINA: Launches Villa Development in Guangzhou GREENTOWN CHINA: Moody's Revises Ba3 Rating Outlook to Negative JIANGXI COPPER: JP Morgan Increases Company Stake to 5.12% JINAN IRON: Merges W/ Laiwu Steel to Be China's 2nd-Biggest Mill H O N G K O N G BEST RESOURCES: Declares Dividend for Creditors CATHAY TRADE: Members' Final Meeting Set for May 30 MILE OCEAN: Members' Final Meeting Set for May 26 NEW DIAMOND: Court to Hear Wind-Up Proceedings on June 4 NEW LUCK (Asia): Court to Hear Wind-Up Proceedings on May 28 SANFAR LIMITED: Members' Final Meeting Set for May 26 WAH FAI: Court to Hear Wind-Up Proceedings on June 4 *HONG KONG: Government To Introduce Competition Law I N D I A BALLARPUR INDUSTRIES: Appoints Pramath Raj Sinha as Director BALLARPUR: Emkay Maintains “Buy” Rating on Firm's Shares EMCO LTD: Bags Order for Establishing Substation in Mundka GMAC LLC: R&I Cuts Long-Term Issuer Rating to B+ IMAX CORP: Amends Credit Facility; Sells $18MM in Common Shares PRIDE INT'L: To Sell Platform Rigs to Blake Int'l for US$66 Mil. STATE BANK: Earns INR18.83 Billion in Quarter Ended March 31 TATA POWER: Acquires Stake in Exergen I N D O N E S I A FOSTER WHEELER: Maureen Tart-Bezer Joins Board of Directors J A P A N ALITALIA SPA: May Now Sell Slots for Fund Following EU Directive ALITALIA SPA: Receives EUR300-Million Italian Government Loan JAPAN AIR: 2008 Golden Week Int'l. Reservations Down to 6.2% K O R E A HYNIX SEMICON: Seeks to Regain "Lost" Market Share in Japan HYNIX SEMICONDUCTOR: Inks DRAM Pact With ProMOS M A L A Y S I A TENGGARA OIL: Appoints Foo Siew Loon as Audit Committee Member TENGGARA OIL: Sets General & Court Convened Meetings on May 30 TIME ENGINEERING: Equity Less Than 50% of Paid-Up Share Capital N E W Z E A L A N D AMORE LIMITED: Commences Liquidation Proceedings ARCHITECTURAL ENGINEERING: Shareholders Appoint Liquidators BONTRANZ LIMITED: Creditors Have Until May 30 to File Claims CRYSTAL DREAMS: Court to Hear Wind-Up Petition on May 19 CASPER FREIGHT: Creditors Have Until May 23 to File Claims ENGLEFIELD ENTERPRISES: Creditors Must File Claims by May 30 FIREPLACE SOLUTIONS: Creditors Have Until May 19 to File Claims GRILLE & BUMPER: Creditors Have Until May 22 to File Claims LAKESIDER PUBLISHING: Faces APN Holdings' Petition on May 19 MCBEAU HOLDINGS: Claims Filing Deadline is May 23 NBK LIMITED: Creditors Must File Claims by May 30 NEW LYNN: Creditors Have Until May 23 to File Claims NUPHARM LABORATORIES: Claims Filing Deadline is May 19 PAMLOC TRADING: Creditors Must File Claims by May 19 PARNELL PROPERTY: Court Appoints Liquidators PH DISTRIBUTORS: Court to Hear Wind-Up Petition on May 23 QUANTUM SOFTWARE: Creditors Have Until May 30 to File Claims REGATTA HOLDINGS: De Lacey Appointed as Liquidator SHAFTSPRY LIMITED: Court to Hear Wind-Up Petition on May 30 STEADECRAFT INDUSTRIES: Commences Liquidation Proceedings SWORDFISH LODGE: Creditors Have Until May 21 to File Claims P H I L I P P I N E S FAIRCHILD SEMICONDUCTOR: S&P Lifts Ratings on Debt Refinancing PRC LLC: ACE American et al. Oppose Disclosure Statement PRC LLC: Court Extends Action Removal Period to July 21 PRC LLC: Court Extends Lease Decision Period to August 20 S I N G A P O R E BANGKA OFFSHORE: Court to Hear Wind-Up Petition on May 16 KALMAR LMV: Creditors' Proofs of Debt Due on June 2 ROY EASTERN: Court Enters Wind-Up Order UOB VENTURE: Requires Creditors to File Claims by June 2 T H A I L A N D DOLE FOOD: Posts $28.9 Mil. Net Loss in 1st Qtr. Ended March 22 FEDERAL-MOGUL: Posts $32 Million Net Loss in 2008 First Quarter FEDERAL-MOGUL: PepsiAmericas Asks Court OK on $6M Claims Payment X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= ACN 005 969 086: Appoints James Patrick Downey as Liquidator ------------------------------------------------------------ ACN 005 969 086 Pty Ltd's members agreed on March 17, 2008, to voluntarily liquidate the company's business. James Patrick Downey was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: J P Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia BARTHOLOMEUSZ: K. L. Sutherland Appointed as Liquidator ------------------------------------------------------- Bartholomeusz Design & Construction Pty Ltd's members agreed on March 14, 2008, to voluntarily liquidate the company's business. Keith Laurence Sutherland was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia BY THE BAY: Placed Under Voluntary Liquidation ---------------------------------------------- By The Bay Investments Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. Clyde Peter White and Philip Newman were appointed to facilitate the sale of the company's assets. The liquidators can be reached at: HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne, Victoria 3000 Australia CAPITOL LITES: Taps Geoffrey Handberg as Liquidator --------------------------------------------------- Capitol Lites Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. Geoffrey Handberg was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: G. Handberg Rodgers Reidy Chartered Accountants Level 10, 200 Queen Street Melbourne, Victoria 3000 Australia CENTRO PROPERTIES: Financing Arrangements Extended Until Dec. 15 ---------------------------------------------------------------- Centro Properties Group yesterday reported that its Australian financiers and US private placement noteholders have agreed to a further extension of facilities until December 15, 2008. The facilities are comprised of: * AU$2.3 billion in aggregate owed to the Australian lending group; and * US$450 million owed to US private placement noteholders. In connection with these arrangements, Centro and certain of its wholly owned and some subsidiaries have provided security by way of fixed and floating charges US real estate mortgages to the Australian financiers, US private placement noteholders and US lenders. The extension arrangements are subject to certain conditions being met by: * May 30, 2008 -- Finalisation of an additional liquidity facility; and -- Finalisation of certain inter creditor arrangements between the financiers, concerning: (a) The consent process for refinancings, portfolio or asset sales and the application of such proceeds; and (b) The legal form of the inter creditor security to be given by certain US entities. If these issues are not finalised by May 30, 2008, the further extension arrangements may be terminated. In such circumstances, the financiers would lose the benefit of the security which Centro has granted to them in connection with these extension arrangements. * September 30, 2008 -- The Australian financiers and US private placement noteholders being satisfied as to Centros progress in implementing its strategic plan; and -- The US lending group, which is owed in aggregate US$1.1 billion (AU$1.2 billion) associated with Centros joint venture with Centro Retail Trust (CER), agreeing to further extend those facilities from September 30, 2008, to a date no earlier than December 15, 2008. The US lending group have confirmed their consent to the extension of the Australian facilities outlined above and have confirmed the extension of the US joint venture facilities to September 30, 2008. If these issues are not finalised by September 30, 2008, the extension arrangements may be terminated. Interest Margin No additional interest margins are payable by Centro during the period of the extension above the previously announced margin of 1.75% per annum on each facility subject to the extension arrangements. An additional interest margin of 5.5% per annum will be payable if the extension arrangements are terminated following an event of default. Were this to occur, the additional interest margin would be calculated from May 1, 2008, and capitalised onto the total debt owing to lenders. This additional interest margin will be treated as a contingent liability by Centro. Liquidity Facilities Certain of Centros financiers have recently put in place a liquidity facility and other support for Centro totalling AU$55 million. Security over Centros interests in certain managed funds was granted to the lenders who provided this liquidity facility. Centro is in advanced negotiations with the Australian financiers and US private placement noteholders for additional liquidity facilities of $100 million. The total liquidity facilities of $155 million will be used to primarily fund capital expenditure, adviser fees and higher lender costs incurred as a consequence of the extension arrangements. A margin not exceeding 3.75% per annum will be payable on the additional liquidity facilities. Strategic Plan Update Centro continues to proceed with the strategic planning process it previously announced. The key objectives of Centro through the strategic planning process and during the period of these extensions are to: * Preserve the value of Centros underlying assets and income streams; * Position Centro to raise equity in order to reduce debt and recapitalise its balance sheet; and * Identify other means of reducing debt, including potential portfolio or asset sales (providing appropriate values are obtained). Centro has previously announced initiatives which would assist in meeting these objectives and will continue to pursue these initiatives over the extension period. These include: (1) CAWF Offers received for the Centro Australia Wholesale Fund (CAWF) have been reviewed and management has revised the marketing strategy to include selling CAWF properties in smaller portfolios and/or individually. Discussions are continuing with a number of parties on this revised basis. (2) CAF Management has evaluated the offers received for the Centro America Fund (CAF) portfolio and is in the process of negotiation. A course of action will be decided over the next 30 days; (3) Group Level At the Group level, indicative proposals have been received from a number of qualified investment groups focussed on a recapitalisation and/or stabilisation of the Group. Management will continue to work on certain proposals with a number of these parties; and (4) Group Complexity Management will continue to investigate options to simplify the complexity of the Centro group structure. In pursuing each of these actions, the Board will make decisions on proposals received and potential portfolio or asset sales based on the values to be received and the conditions of any potential transaction. Eddington's Role According to The Australian, the extension was made possible by the intervention of JPMorgan Australia Chairman Rod Eddington. Maurice Dunlevy of The Australian relates that Commonwealth Bank had initially refused to sign the extension agreement on grounds that it was "flawed" and "did not provide adequate security", but Sir Eddington was able to persuade CBA Chief Executive Officer Ralph Norris at the 11th hour. Mr. Dunlevy reports that insiders revealed that it was the CBA that proposed the December 15 extension rather than the September 30 deadline requested by Centro. The Australian relates that when asked, Sir Eddington was unwilling to talk about his role in the refinancing deal. CER Disclosure to ASX Centro Retail Trust (CER) confirmed to the Australian Stock Exchange that the financiers to its US joint venture with Centro Properties Group (Centro) are acting in accordance with the further financing extension arrangements announced by Centro yesterday. As announced on February 15, 2008, the US facilities of US$1.1 billion (A$1.2 billion) were extended to September 30, 2008 subject to similar arrangements being agreed under the Australian extension arrangements related to Centro. Centro has announced that similar arrangements have now been agreed by the Australian financiers. Therefore, the US lending group has confirmed their consent to the extension of Centro's Australian facilities and the extension of the US joint venture facilities to September 30, 2008. CER said it has not provided any additional security as part of these arrangements. 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. Centro owes its creditors as much as AU$6.6 billion and its deadline to repay these debts has been extended four times since December 2007, when the company's market value plunged. * * * 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. DPRINT PTY: Placed Under Voluntary Liquidation ---------------------------------------------- DPrint Pty Ltd's members agreed on January 22, 2008, to voluntarily liquidate the company's business. Keith Laurence Sutherland was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia FAWN HEATH: To Declare Dividend on May 19 ----------------------------------------- Fawn Heath Holdings Pty Ltd will declare dividend on May 19, 2008. Only creditors who were able to file their proofs of debt by April 18, 2008, will be included in the company's dividend distribution. The company's liquidator is: Timothy M. S. Holden Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia LANE COVE TUNNEL: Moody's Downgrades Sr. Sec. Rating to Ba3 ----------------------------------------------------------- Moody's Investors Service has downgraded the underlying senior secured rating of Lane Cove Tunnel Finance Company to Ba3 from Ba1 after continued disappointing levels of traffic over the last few months. The rating remains on review for further possible downgrade. The wrapped rating is unchanged at Aaa, reflecting the claims paying ability of MBIA. Earlier, the rating had been downgraded on April 10 to Ba1 (from Baa3) and kept on review for further downgrade after a disappointing level of traffic flow for early 2008. The downgrade follows continued lower traffic volumes for March and April. Traffic was expected to ramp up after the bus lanes on Epping Road (the surface alternative to the tunnel) became operational on March 10, but this outcome has not materialized. Traffic volumes indicated by Monthly Average Daily Traffic (MADT) were maintained at 59,000 vehicles each for March and April after 62,000 in February. Both March and April traffic volumes were negatively impacted by public and school holidays. Moody's does not currently believe that traffic volumes will increase to sufficient levels to service debt in the long term. However, Connector Motorway Group has sufficient liquidity to service all its cash calls until at least the end of 2009, and further traffic increases will extend this period. In the meantime Connector Motorways Group and its stakeholders, under a formal agreement with its financial guarantor, MBIA, are developing a recapitalisation plan over the next 3 months to address the lower than forecast traffic volumes. The Lane Cove Tunnel Finance Company is the finance company for the Connector Motorways Group, the owner of the Lane Cove Tunnel and the Falcon Street Gateway, situated in the lower Northern suburbs of Sydney. LARRY NIXON: Liquidator Presents Wind-Up Report ----------------------------------------------- Bruce N. Mulvaney, Larry Nixon Pty Ltd'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: Bruce Mulvaney & Co 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia MTC LOGISTICS: Placed Under Voluntary Liquidation ------------------------------------------------- MTC Logistics Pty Ltd's members agreed on Feb. 26, 2008, to voluntarily liquidate the company's business. Keith Laurence Sutherland was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia PIRSUB TILIG: Liquidator Presents Wind-Up Report ------------------------------------------------ Matthew Jess, Pirsub Tilig Pty Ltd's estate liquidator, met with the company's members and creditors on May 6, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: Matthew Jess Worrells Solvency and Forensic Accountants Level 5, 15 Queen Street Melbourne, Victoria 3000 Australia Telephone: (03) 9613 5500 Facsimile: (03) 9614 3233 Email: www.worrells.net.au POWER AVENUE: Member's Final Meeting Slated Today ------------------------------------------------- Power Avenue Holdings Pty Ltd will hold a final meeting for its members at 10:00 a.m. today, May 9, 2008. During the meeting, the company's liquidator, Julie Dixon, at 74 Dunsterville Crescent in Frankston, Victoria, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Julie Dixon 74 Dunsterville Crescent Frankston, Victoria 3199 Australia POWER STUDIOS: Liquidator Gives Wind-Up Report ---------------------------------------------- Russell Peake, Power Studios Pty Ltd's estate liquidator, met with the company's members and creditors on May 6, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: Russell Peake Jenkins Peake Chartered Accountants PO Box 1570 Geelong, Victoria 3220 Australia Telephone: (03) 5223 1000 Facsimile: (03) 5221 4938 POWERBEAM SOLUTIONS: Appoints K. L. Sutherland as Liquidator ------------------------------------------------------------ Powerbeam Solutions Pty Ltd's members agreed on March 18, 2008, to voluntarily liquidate the company's business. Keith Laurence Sutherland was appointed to facilitate the sale of the company's assets. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia PRIMUS TELECOM: Posts $3MM Net Loss in 1st Qtr Ended March 31 ------------------------------------------------------------- PRIMUS Telecommunications Group Incorporated disclosed on Monday results for the first quarter ended March 31, 2008. At March 31, 2008, the company's consolidated balance sheet showed $425.6 million in total assets and $877.1 million in total liabilities, resulting in a $451.5 million total stockholders' deficit. The company's consolidated balance sheet at March 31, 2008, also showed strained liquidity with $191.8 million in total current assets available to pay $228.1 million in total current liabilities. The company reported a $3.0 million net loss for the quarter, compared to a net loss of $2.6 million in the first quarter of 2007. First quarter 2008 net revenue was $227 million, in line with net revenue of $227.0 million in the first quarter of 2007. The net loss in the first quarter of 2008 includes a $2.0 million gain from early extinguishment of debt and a $2.0 million gain on foreign currency transactions. The net loss in the first quarter of 2007 includes a $6.0 million loss on early extinguishment or restructuring of debt and a $3.0 million gain on foreign currency transactions. "We are encouraged by the results in the first quarter, particularly the sequential growth in both overall and retail revenue - a goal that we have been pursuing," said K. Paul Singh, chairman and chief executive officer of PRIMUS. "While we recognize that a single quarter is far from a trend, we hope the results are an early indication that our targeted investments in sales and marketing and infrastructure will lead to further progress in increasing retail revenues. "Despite the positive revenue performance in the first quarter, we believe it is premature to adjust our prior guidance of a 2% to 5% yea-over-year net revenue decline. Similarly, assuming currency exchange rates remain at current levels, we confirm our prior 2008 Adjusted EBITDA guidance to be in the range of $65.0 million to $80.0 million. That outcome will be influenced by the success we achieve in our expanded sales and marketing efforts. In addition, we now expect capital expenditures for the year to be in the $25.0 million to $30.0 million range, approximately $5.0 million lower than our prior guidance," Mr. Singh said. "During the first quarter, we accomplished the following: opened new, and expanded existing, data centers in Canada and Australia; expanded the global DSLAM footprint by 35 to a total of 288 to expand the availability of our broadband services; augmented network capacity to offer higher speed DSL services in Australia and Canada; and continued growth of the company's direct sales force and telemarketing capabilities across its major markets," Mr. Singh stated. "Also, during the quarter, we purchased and retired $15.0 million principal amount of the company's outstanding debt maturing in 2009. In addition, we completed the sales of a minority equity investment in a Japanese entity and surplus fiber assets for an aggregate $3.0 million in cash proceeds. We continue to pursue other potential sales of select assets to improve our liquidity and narrow our geographical focus to our major franchises in the United States, Canada, Australia and Europe. "However, the uncertainty in the capital markets combined with a weak overall economic outlook may extend our time horizon to meet our goal of generating $50.0 million in cash proceeds from assets sales, particularly if valuation parameters are not at acceptable levels," Mr. Singh concluded. First Quarter 2008 Financial Results "First quarter 2008 net revenue was $227.0 million, up 2% or $4.0 million from the prior quarter and in line with the first quarter 2007. The $4.0 million revenue increase as compared to the prior quarter was comprised of a $3.0 million increase in wholesale services revenue and a $1.0 million increase in retail services revenue," said Thomas R. Kloster, chief financial officer. "The growth in retail services revenue reflects continued increases from high-margin broadband, VOIP, local, wireless, data and hosting revenues, which, for the first time in over nine quarters, exceeded the decline in legacy voice and dial-up Internet services revenue. We believe attaining retail revenue growth lends validity to our strategy of making network investments and shifting resources to sales and marketing." Net revenue less cost of revenue was $84.0 million or 37.3% of net revenue in the first quarter as compared to $82.0 million and 36.3% in the year-ago quarter. Selling, general and administrative expense in the first quarter was $69.0 million, up $1.0 million from $68.0 million in the year-ago quarter. Income from operations was $10.0 million in the first quarter of 2008 (including a $3.0 million gain from sale of assets), an improvement of $2.0 million from the first quarter of 2007. First quarter 2008 Adjusted EBITDA was $15.0 million, an increase of $1.0 million from $14.0 million in the year-ago quarter. Interest expense for the first quarter 2008 was $15.0 million, up from $13.0 million in the first quarter 2007. The increase over the year-ago quarter is attributable to the interest related to the 14 1/4% Senior Secured Notes, issued in February and March 2007. Income tax expense for the first quarter was $2.0 million, which includes charges for determination of possible future tax obligations under Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes," and withholding tax expense for intercompany interest and royalty fees owed by certain foreign subsidiaries. Liquidity and Capital Resources PRIMUS ended the first quarter 2008 with a cash balance of $67.0 million ($56.0 million unrestricted) as compared to $91.0 million ($81.0 million unrestricted) as of Dec. 31, 2007. The $25.0 million decrease in unrestricted cash balance is comprised of $7.0 million for capital expenditures primarily to fund the previously announced Australian DSLAM network expansion and the Canadian data center expansion, $16.0 million for interest payments, $11.0 million to purchase and retire $15.0 million principal amount of the company's outstanding debt maturing in 2009, $2.0 million for scheduled debt principal reductions, and $7.0 million for working capital movements. These declines are offset by $15.0 million of Adjusted EBITDA, and $3.0 million from the sale of assets. Free Cash Flow for the first quarter 2008 was negative $14.0 million (comprised of $7.0 million used in operating activities and $7.0 million utilized for capital expenditures) as compared to negative $13.0 million in the year-ago quarter. The principal amount of PRIMUS's long-term debt obligations as of March 31, 2008, was $649.0 million, as compared to $664.0 million at Dec. 31, 2007. About PRIMUS Telecom Headquartered in McLean, Virginia, Primus Telecommunications Group (OTC: PRTL) -- http://www.primustel.com/-- is an integrated communications services provider offering international and domestic voice, voice-over-Internet protocol (VOIP), Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the United States, Canada, Australia, the United Kingdom and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including approximately 500 points-of-presence (POPs) throughout the world, ownership interests in undersea fiber optic cable systems, 18 carrier- grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. * * * As reported in the Troubled Company Reporter on April 17, 2008, Moody's Investors Service downgraded Primus Telecommunications Group Incorporated's corporate family rating to Ca from Caa3. SHARPER IMAGE: Asks Court to Approve Asset Sale Procedures ---------------------------------------------------------- Prior to bankruptcy filing, Sharper Image Corporation began an examination of the performance of its 184 stores to identify unprofitable stores. As a result, the Debtor determined that 96 of its stores and one of its distribution centers were unprofitable and required immediate liquidation to maximize the value of the merchandise. As a consequence of that analysis, the Debtor obtained approval from the Court to conduct store closing sales at the Liquidation Stores. Conducting the Store Closing Sales enabled the Debtor to focus further analysis on its on-going stores and other assets to determine how to maximize value to its estate, Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Wilmington, Delaware, relates. The Debtor has now determined that a sale is necessary to preserve the value of its remaining assets for the benefit of its stakeholders. Mr. Kortanek states that the combination of disappointing sales and limited availability under the DIP Facility has severely hindered the Debtor's ability to improve and continue its retail operations. "The lapse of time only exacerbates the effect of the current liquidity crisis, which now threatens to dissipate the value of Sharper Image's trade name and its other related intellectual property," Mr. Kortanek said. "Delay in realizing the value of the trade name and related intellectual property will result in erosion of that value," he adds. The Debtor believes that an orderly sale process should be established. Mr. Kortanek points out that the proposed process will ensure maximum value is obtained by selling in a competitive market environment (i) the Debtor's assets, including without limitation its trade name and other intellectual property, as soon as practicable, and (ii) as many of its unexpired leases of non-residential real property as may be practicable. The Debtor proposes to solicit offers for the purchase of all, or parts of, its assets, including (i) the purchase of all or substantially all of the Assets and Leases as an on-going operation, or parts thereof, and (ii) bids for the purchase of any of the Leases or owned real property not included in the Asset Purchase Offer. Any and all offers will be considered by the Debtor in consultation with the Statutory Creditors' Committee. Accordingly, the Debtor asks the U.S. Bankruptcy Court for the District of Delaware to approve: (a) proposed procedures in connection with the Sale; (b) the time, date, and place of (i) the auction, and (ii) the hearing to consider entry of the sale order; (c) the form of notice of the Auction and the Procedures Hearing; (d) the form of asset purchase agreement and lease purchase agreement to be used in connection with the solicitation of offers; and (e) the Debtor's entry into customary expense reimbursement arrangements with offerors that may be identified prior to or after the entry of an order authorizing and approving the Sale Procedures at a hearing, scheduled for May 14, 2008. Subsequent to the Auction, the Debtor asks the Court for the: (i) approval of the Sale, free and clear of all liens, claims, and encumbrances; (ii) approval of, if any, sales of Leases, free and clear of all liens, claims, and encumbrances to the party or parties submitting the highest or best Lease Purchase Offers; and (iii) if necessary, the assumption and assignment of executory contracts and Leases. Proposed Sale Procedures The Debtor proposes that on or prior to April 25, 2008, it will have served the Auction and Hearing Notice on (i) the Office of the United States Trustee for the District of Delaware, (ii) the attorneys for the Secured Lender, (iii) the attorneys for the Statutory Creditors' Committee, (iv) all known entities holding or asserting a lien in the Assets or Leases, (v) all parties to Contracts and Leases that the Debtor believes will or may be assumed and assigned, (vi) for each state in which its retail stores are located, (a) the Attorney General's Office, and (b) the applicable taxing authorities, and (vii) all entities entitled to notice in the Chapter 11 case. The Debtor relates that Offers and adequate assurance packages must be submitted so that they are actually received by no later than 12:00 noon, Eastern Time, on May 9, 2008, by (i) the Debtor, (ii) the attorneys for the Secured Lender, and (iii) the attorneys for the Statutory Creditors' Committee -- Offer Notice Parties. Any and all offers will be considered by the Debtor in consultation with the Statutory Creditors' Committee. If any Offer is conditioned upon the assumption and assignment of Contracts or Leases, then the offeror must identify the Contracts or Leases to be assumed and assigned, and provide evidence of its ability to provide adequate assurance of future performance of the Contracts or Leases along with the Offer. After the submission of Offers, the Debtor, in consultation with the Statutory Creditors' Committee, may enter into an agreement, subject to higher or better offers at the Auction, with one or more entities that submit Asset Purchase Offers for substantially all, or a part of, the Debtor's assets,. The Expense Reimbursement Agreement may include reimbursement for costs and expenses incurred by the offeror in connection with its Asset Purchase Offer. The Debtor will seek approval of the Expense Reimbursement at the Procedures Hearing. If an Expense Reimbursement Agreement is entered into after the Procedures Hearing, the Debtor will seek retroactive approval of the Expense Reimbursement at the Sale Hearing. Prior to the Auction, the Debtor will distribute the appropriate Expense Reimbursement Agreement, if any, to the parties submitting the other Qualified Offers. The Auction will be conducted at the offices of Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, on May 28, 2008, at 10:00 a.m., Eastern Time. The Debtor proposes that objections to the Procedures Order must be served so as to be actually received by May 7, 2008, at 4:00 p.m., Eastern Time by (i) the Debtor, (ii) the Office of the United States Trustee for the District of Delaware, (iii) the attorneys for the Secured Lender, and (iv) the attorneys for the Statutory Creditors' Committee. The Sale Hearing will be held in the United States Bankruptcy Court for the District of Delaware, on May 29, 2008, at 2:00 p.m., Eastern Time, or another date and time that the Court may direct. The Sale Hearing may be adjourned without further notice other than by announcement at the Sale Hearing. Objections to the Sale are due May 21, 2008, at 4:00 p.m., Eastern Time. To facilitate the Auction process and assist Interested Parties in preparing Offers for the Assets and Leases, the Debtor will provide a proposed form of asset purchase agreement on which Offers may be predicated. Moreover, Lease Purchase Offers must be submitted pursuant to the terms of a lease purchase agreement. The Court will convene a hearing on May 14, 2008, to consider approval the Debtor's proposed Sale Procedures. EklecCo Objects EklecCo Newco, L.L.C. believes that the Debtor's proposed procedures for the sale of its assets may deny EklecCo any meaningful opportunity to appear and object since the Sale Hearing is only one day after the Auction. Kevin M. Newman, Esq., at Menter, Rudin & Trivelpiece, P.C., in Syracuse, New York, relates that although the Debtor will provide EklecCo with adequate assurance packages it receives regarding future performance by lease assignees, there is no indication as to when this information is to be provided. The Debtor proposes that EklecCo be required to object to a proposed assumption and assignment before it even knows who the proposed assignee is, Mr. Newman points out. EklecCo will not know what the Debtor will be asking the Court to approve at the Sale Hearing until possibly the Sale Hearing, but nevertheless is required to file objections on or before May 21, 2008, Mr. Newman notes. Mr. Newman points out that EklecCo is entitled to have (i) definitive notice of exactly who the Lease is to be assigned to, (ii) adequate assurance information regarding any assignee, (iii) time to determine whether to object to the proposed assignment, (iv) time to conduct expedited discovery regarding the proposed assignment, and (v) time to file an objection. Sharper's Largest Stakeholder Not Keen on Acquiring Company Kaja Whitehouse of the New York Post reports that Sharper Image's largest shareholder, Sun Capital Partners, is expected to be absent during the bidding process. Citing an unnamed source familiar with the situation, the New York Post says certain officials at Sun Capital think acquiring Sharper Image may not be a good move as researchers have calculated that it would cost around $50 million the first year -- including $30 million in operating costs and $20 million in losses -- to run the company. Sharper's Image's statement of financial affairs discloses that Sun Capital has a 19.5% stake in the company. According to the same report, an insider at Sharper Image said parties interested in acquiring the company were mostly strategic buyers, or companies, and not private-equity firms. About 20% of of the roughly 90 parties that have expressed interest are currently conducting due diligence, said the source. A Sun Capital spokesman declined to comment on the matter. About Sharper Image Corp. Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). THE GIFTWARE: Placed Under Voluntarily Liquidation -------------------------------------------------- The Giftware Direct Trust's members agreed on March 13, 2008, to voluntarily liquidate the company's business. Raymond George Tolcher and Rowena Margaret Sigelski were appointed to facilitate the sale of the company's assets. The liquidator can be reached at: Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West NSW 2302 Australia Y R MEATS: Appoints Angelo Gangemi as Liquidator ------------------------------------------------ Y R 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 Australia ZINIFEX LTD: Dissolves Century Mining Alliance With Downer EDI -------------------------------------------------------------- The management of Zinifex Century Mine and Downer EDI Mining disclosed last week that they had mutually agreed to dissolve the successful Century Mining Alliance. To ensure a smooth transition, both Downer EDI Mining and Zinifex have agreed to stage the transition between July 1, 2008, and June 30, 2009. Formed in 2004, the Century Mining Alliance was intended to build the capacity necessary to allow Zinifex to become an owner-operator of the mine. Downer EDI Mining and Zinifex Century Mine are proud of the capacity built by their people during the four years of their Alliance. In that time, Zinifex Century Mine has grown to produce around 1 million tonnes of zinc and lead concentrates annually. It is Australia's largest zinc mine, and one of the world's largest zinc mines. Zinifex Century Mine generated revenues of approximately $1.4 billion in FY07, and employs nearly 1,000 people. Downer EDI Mining will continue to support operations during this business as usual transition phase, and has agreed that its employees on site may become employees of Zinifex Century Mine. General Manager of Zinifex Century Mine, John Lamb, said, "Zinifex Century Mine values the contribution made by Downer EDI employees to the success of the mine. For that reason, Zinifex intends to offer jobs to all current Downer EDI Mining employees. They will be transferred across to Zinifex over this 12-month period and will become Zinifex employees. It is expected that some will choose to continue with Downer. " Job losses are not expected, and very few roles will be duplicated in the transition process. Transmission of business laws commit Zinifex to offer jobs to all Downer EDI Mining employees currently working at Zinifex Century Mine. 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 ========= CITIC GROUP: Banco Bilbao to Double Stake in Company ---------------------------------------------------- Banco Bilbao Vizcaya Argentaria SA. will double its stake in Citic Group before July for about EUR1 billion, Forbes reports, citing ABC.es News. According to the report, Banco Bilbao intends to double its 5% and 15% stakes in Citic Group's units, China Citic Bank and Citic International Financial Holding Limited, respectively. Banco Bilbao CEO Jose Ignacio Goirigolzarri confirmed to the news agency that the bank's expansion plans for the region, noting the stake hikes would take place sometime this year. BBVA first acquired the dual stake in November 2006 for EUR989 million, in a deal which included a strategic partnership exclusive to the Spanish group, the report relates. About CITIC Group State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. * * * The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. CHINA SOUTHERN: Funds Cut Airline Stake to 144 Million Shares ------------------------------------------------------------- China Southern Airlines Co. Limited's first-quarter shares held by funds were cut to 144 million from 400 million shares in the fourth quarter of 2007, Xinhua News reports, citing a TX Investment Consulting Co. report. According to Xinhua News, share-holding proportion held by funds in China Southern has been cut by over 60% by the end of the first quarter. Upon the constant high international oil price, jet fuel oil price in China's domestic market is expected to be adjusted up in the future, which casts cost pressure on Chinese airline companies, Xinhua notes, citing the TX Investment report. Meanwhile, despite the exchange gains brought to airline companies by the appreciation of the Chinese currency, whether appreciation of the currency in the next phase will maintain the earlier speed is unknown so far, Xinhua relates. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. The Outlook on the ratings is Stable. CITY TELE: Infinity Consortium Submits Bid for Broadband Network ---------------------------------------------------------------- The Infinity Consortium, formed among Hong Kong's City Telecom (CTI) and Singapore's M1 and StarHub, has submitted a strong bid to build a state-of-the-art Fibre-to-the-Home (FTTH) broadband network. The network is capable of delivering ultra-high symmetric broadband speeds reaching up to 1Gbps and beyond. The Infinity Consortium proposes to build a new open access network that allows it to leverage on the latest technologies. The Consortium members have the capability and resources to build the new network and extensive experience in competing with entrenched incumbents. The formation of the Infinity Consortium and the proposal is in response to the Infocomm Development Authority (IDA) of Singapore's Request-for-Proposal (RFP) for the Next Gen NBN's Network Company (NetCo) that will design, build and operate the passive infrastructure network in Singapore. "CTI is honoured to partner with M1 and StarHub to form Infinity Consortium. We will ensure smooth and reliable delivery of network solution with advanced and proven technologies, embracing the aim to extend the enjoyment level of broadband connectivity to Singaporeans. Our joint expertise and determination to build this infocomm infrastructure with open access capability will definitely complement Singapore's surging importance in the world," said Ricky Wong, Chairman of CTI. "The Infinity Consortium has a unique blend of solid track records in Singapore and Hong Kong, and the essential qualities, to commit to building a world class and future-proof broadband network for Singapore. With the underpinning principle of true Open Access which we fully support, this project will greatly contribute to the development of a highly competitive and vibrant infocomm industry in Singapore," said Neil Montefiore, CEO of M1 "We fully support the Government's NG-NBN initiative, and we are pleased to participate in the Infinity Consortium," said Terry Clontz, CEO of StarHub. "In addition to the Infinity Consortium having the necessary competencies and a genuine commitment to the establishment of an open access regime, it also offers the industry the best, and maybe the last, opportunity for ownership diversification of critical multi-media broadband infrastructure in Singapore" The Next Gen NBN is part of Singapore's Next Generation National Infocomm Infrastructure (Next Gen NII), formed to entrench Singapore's Infocomm hub status and open the doors to new business and social growth for the country. Next Gen NII comprises complementary wired and wireless networks to ensure Singaporeans enjoy seamless connectivity. About Citi Telecom Hong Kong-based City Telecom (H.K.) Limited -- http://www.ctihk.com/-- is engaged in the provision of international telecommunications services (IDD) and fixed telecommunications network services (FTNS) to customers in Hong Kong and Canada. The company operates in two segments: international telecommunications, which is engaged in the provision of international long-distance calls services, and fixed telecommunications network, which is engaged in the provision of dial up and broadband Internet access services, local voice-over-Internet protocol services and Internet protocol television (IP-TV) services. City Telecom (H.K.) Limited's wholly owned subsidiaries include Attitude Holdings Limited, Automedia Holdings Limited, City Telecom (B.C.) Inc., City Telecom (Canada) Inc., City Telecom Inc., City Telecom International Limited, Credibility Holdings Limited, CTI Guangzhou Customer Services Co. Ltd., CTI Marketing Company Limited, Golden Trinity Holdings Limited, Hong Kong Broadband Network Limited and IDD 1600 Company Limited. * * * Moody's Investors Service on Feb. 1. 2007, affirmed its B2 corporate family rating and senior unsecured bond rating for City Telecom Ltd, and at the same time has revised the company's rating outlook to positive from stable. The Troubled Company Reporter-Asia Pacific reported on December 22, 2006 that Fitch Ratings assigned a Long-term foreign currency Issuer Default rating of 'B+' to Hong Kong- based City Telecom (HK) Limited. The Outlook on the rating is Stable. At the same time, Fitch assigned an instrument rating of 'BB-' to the US$125 million senior unsecured notes due 2015 issued by CTI on the expectation of good recovery prospects given default as denoted by the agency's recovery rating of 'RR3'. GREENTOWN CHINA: Launches Villa Development in Guangzhou -------------------------------------------------------- Greentown China Holdings Limited is launching a large-sized detached villa development in the city of Guangzhou, China, Sinocast News reports. The company has 226 villas in a land area of 273,060 square meters, with a construction area of 90,000 square meters. A Greentown executive said the supply of villas here still falls behind the demand, so the development's sales will not be affected by a periodical upsurge in house supply, the report relates. Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. * * * The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. GREENTOWN CHINA: Moody's Revises Ba3 Rating Outlook to Negative --------------------------------------------------------------- Moody's Investors Service has changed to negative from stable its outlook for Greentown China Holdings Ltd's (Greentown) Ba3 corporate family rating and senior unsecured bond rating. "The outlook change has been prompted by Greentown's acquisition of two pieces of land in Hangzhou for a total sum of RMB2.1 billion," says Moody's lead analyst for Greentown, Kaven Tsang. "The additional cash outflow could further stress the company's liquidity, given it already has a significant amount of committed land payments and operating expenses to service within the next 12 months," says Tsang. "The negative outlook also reflects the uncertainties evident over Greentown's ability to raise the necessary funding and to maintain balance sheet liquidity to support its business operation, in view of the tightened credit environment and the company's relatively geared capital structure," adds Tsang. At the same time, Moody's notes that Greentown recorded strong presales in January-April, and the successful achievement of its business target this year could provide some liquidity support. Greentown China Holdings Ltd (Greentown) is one of the major property developers in China with a primary focus in Hangzhou and Zhejiang Province. It has a land bank spread over 25 cities and with an attributable gross floor area (GFA) of 13.6 million square meters. JIANGXI COPPER: JP Morgan Increases Company Stake to 5.12% ---------------------------------------------------------- JP Morgan Chase & Co. increased its stake in Jiangxi Copper Company Limited to 5.12% by buying 12.7785 million Hong Kong- traded shares of Jiangxi Copper at HK$19.16 each, Sinocast News reports. According to the report, the move came almost a year after JP Morgan reduced its stake in the Jiangxi company to 4.96% at the end of last June. Moreover, the report relates, Deutsche Bank AG bought 5.21 million H shares in Jiangxi Copper at HK$17.706 each, adding its holdings in the company to 6.18%. HSBC Holdings plc also took 2.225 million H shares in Jiangxi Copper at CNY19.393 a share, increasing its shares in company to 70.086 million, representing a 5.05% stake, Sinocast notes. As reported by the Troubled Company Reporter-Asia Pacific on April 25, 2008, Jiangxi Copper's first quarter net profit rose 46.42% year-on-year to CNY1.26 billion yuan after obtaining higher selling prices for its main products. Jiangxi Copper Company Limited -- http://www.jxcc.com/-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. JINAN IRON: Merges W/ Laiwu Steel to Be China's 2nd-Biggest Mill ---------------------------------------------------------------- Jinan Iron & Steel Co. Limited has combined with Laiwu Steel Group Co., as the government wants bigger producers to compete overseas and negotiate for lower raw materials prices, Xiao Yu and Helen Yuan of Bloomberg write. According to the report, the two companies completed the merger on April 26, creating Shandong Iron & Steel Group Co., China's second biggest mill. Zhu Limin, a Shanghai-based analyst with Shanghai Securities Co., was quoted as saying, "The bigger a steel mill is, the easier it will get the Chinese government support on its expansion plans.'' Moreover, Shandong Steel is expected to produce 23.8 million metric tons of steel a year, based on Laiwu and Jinan Steel's 2007 output, according to data from the China Iron and Steel Association in February, Bloomberg notes. About Jinan Iron Headquartered in Jinan, Shandong Province, China, Jinan Iron & Steel Co., Ltd is principally engaged in the manufacture and sale of iron and steel products. The company mainly offers medium to heavy steel plates and deformed steel bars. * * * As of April 29, 2008, the company holds Xinhua Far East China Ratings' BB+ issuer credit rating. ================ H O N G K O N G ================ BEST RESOURCES: Declares Dividend for Creditors ----------------------------------------------- Best Resources Development Limited, which is in liquidation, declared its dividend for its creditors. Only creditors who were able to file their proofs of debt by May 9, 2008, were included in the company's dividend distribution. The company's liquidator is: Chui Koon Shou Club Lusitano, 8th Floor 16 Ice House Street Central Hong Kong CATHAY TRADE: Members' Final Meeting Set for May 30 --------------------------------------------------- Members of Cathay Trade Services, Asia Limited will have their final general meeting on May 30, 2008, at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. No liquidator information was disclosed. MILE OCEAN: Members' Final Meeting Set for May 26 ------------------------------------------------- Members of Mile Ocean Limited will have their final general meeting on May 26, 2008, at Sun Hung Kai Centre, 45th Floor, 30 Harbour Road, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Pun Chun Sun, Bernard Sun Hung Kai Centre, 45th Floor 30 Harbour Road, Hong Kong NEW DIAMOND: Court to Hear Wind-Up Proceedings on June 4 -------------------------------------------------------- On April 2, 2008, Chu Wing Lun, filed a petition to have New Wah Fai Logistic Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 28, 2008, to hear the petition. No solicitor's information was disclosed. NEW LUCK (Asia): Court to Hear Wind-Up Proceedings on May 28 ------------------------------------------------------------ On March 19, 2008, Chow Po Fui, filed a petition to have New Luck (Asia) Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 28, 2008, to hear the petition. The petitioners' solicitor is: Chong Yan-tung Chris Revenue Tower, 30th Floor 5 Gloucester Road Wanchai, Hong Kong SANFAR LIMITED: Members' Final Meeting Set for May 26 ----------------------------------------------------- Members of Sanfar Limited will have their final general meeting on May 26, 2008, at K. Wah Centre, Suite 711, 191 Java Road, North Point, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sytske Helena K. Wah Centre, Suite 711 191 Java Road, North Point Hong Kong WAH FAI: Court to Hear Wind-Up Proceedings on June 4 ---------------------------------------------------- On April 2, 2008, Ting Mun Sheung, filed a petition to have New Wah Fai Logistic Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 28, 2008, to hear the petition. The petitioners' solicitor is: Chong Yan-tung Chris Revenue Tower, 30th Floor 5 Gloucester Road Wanchai, Hong Kong *HONG KONG: Government To Introduce Competition Law --------------------------------------------------- Hong Kong's government plans to urge legislation to pass a competition law and establish an independent commission to investigate anti-competitive practices in an effort to bring its policies into line with global practices, Justin Lau of the Financial Times writes. According to the report, under the proposals: * A cross-sector competition law would be established to cover four "hardcore" anti-competitive conducts: – price-fixing, - bid-rigging, - output restriction, and - market allocation; * A commission would be set up to look into complaints of anti- competitive behavior, with the power to apply civil remedies, including fines of up to HK$10 million; * A tribunal would also be formed to hear applications for reviews of the commission's decisions and private actions taken by anyone who has suffered losses or damages because of alleged antitrust conduct. Mark Williams, associate professor of law at Hong Kong Polytechnic University, told the news agency that the government should go further to include merger provisions in the bill. He also criticized the government for exempting itself from the law, the report notes. The proposal is still subject to a three-month public consultation and approval by the Hong Kong legislative council., the report adds. ========= I N D I A ========= BALLARPUR INDUSTRIES: Appoints Pramath Raj Sinha as Director ------------------------------------------------------------ During a meeting held on April 30, 2008, the Board of Directors of Ballarpur Industries approved the appointment of Dr. Pramath Raj Sinha, as an Additional Director of the Company to hold office up to the date of forthcoming Annual General Meeting. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. BALLARPUR: Emkay Maintains “Buy” Rating on Firm's Shares -------------------------------------------------------- Emkay Research has maintained its “buy” rating on Ballarpur Industries with a price target of INR45 in its May 6, 2008 research report, moneycontrol reports. Moneycontrol relates that Ballarpur's Q3FY08 results were in line with Emkay's expectations. According to moneycontrol, Emkay Research noted that the company's consolidated net revenues increased by 24.7% YoY to INR6.9 billion. EBITDA margins increased by 40 bps to 26.3% and adjusted PAT increased by 18.5% YoY to INR759 million, "We expect Ballarpur to report net revenues of INR32.0 billion in FY09 and INR38.8 billion in FY10. PAT of INR2.8 million in FY09 and INR3.4 million in FY10. EPS works out at INR4.5 for FY09 and INR5.5 for FY10. At present, the stock trades at 7.4x FY09E earnings. We maintain our BUY recommendation on the stock with a price target of Rs 45," Emkay's research report says as cited by Moneycontrol. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of Dec. 2, 2007, the company still carry those ratings. EMCO LTD: Bags Order for Establishing Substation in Mundka ---------------------------------------------------------- In a regulatory filing with the Bombay Stock Exchange, Emco Ltd said it has bagged an Order for Establishment of 400/220/66kV new substation in Mundka on turnkey basis from M/s. Delhi Transco Ltd. The value of the order is INR126 Crores. It is the largest order received till date by the company for establishment of one single substation. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com-- offers transmission and distribution solutions within the power sector in India. Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating, effective May 23, 2007. GMAC LLC: R&I Cuts Long-Term Issuer Rating to B+ ------------------------------------------------ Rating and Investment Information Inc. downgraded GMAC LLC's long-term issue rating on its 6.875% Notes due 2012 to B+ from BB-. The rating remains on watch for possible downgrade. Co-issuers of the notes are GMAC International Finance BV, GMAC Australia LLC, General Motors Acceptance Corporation of Canada Limited, GMAC Bank GMBH and General Motors Acceptance Corporation (NZ) Limited. The rating agency noted that Residential Capital LLC, the wholly owned subsidiary of GMAC LLC, announced on May 5, that it has embarked on debt restructuring including a de facto extension of maturity on unsecured bonds. GMAC intends to provide credit facility worth US$3.5 billion and support ResCap; however, the liquidity of ResCap would remain extremely tight. R&I stated that the financial support for ResCap will continue to weigh considerably on GMAC's financial profile and liquidity. In light of such conditions, R&I downgraded the Foreign Currency Issuer Rating of GMAC to B+ from BB-, and the Rating Outlook remains on the Rating Monitor with a view to downgrading. According to R&I, the main pillars of the debt restructuring consist of: issuance of new Secured Guaranteed Notes due 2010 in exchange for US$3.3 billion old unsecured debts that mature by 2009, and issuance of new Secured Guaranteed Notes due 2015 in exchange for US$9.5 billion old unsecured debts maturing during 2010-2015. In addition, R&I said investors (holders participating in the exchange offers) may opt to receive cash in lieu of the new notes that they would otherwise receive, which is estimated to be far below the face value. The US$3.5 billion credit facility which ResCap is currently negotiating with GMAC will be used for funding the cash required for the exchange offers and repaying term loans borrowed from financial institutions and others. If the debt restructuring proves successful, the rating agency said it may ease ResCap's debt servicing in the medium-long term. Its liquidity, however, will remain rigid and ResCap has announced that additional US$600 million is required by the end of June 2008 through asset sales even if the debt restructuring proceeds well. There is a high possibility that GMAC will have to make further financial support besides the US$3.5 billion credit facility, and the concerns over its financial profile and liquidity are increasing, R&I added. 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 the Troubled Company Reporter on May 7, 2008, Fitch Ratings downgraded the long-term Issuer Default Rating of GMAC LLC and related subsidiaries to 'BB-' from 'BB'. Fitch 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 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. The action follows Moody's rating downgrade of ResCap LLC, GMAC's wholly owned residential mortgage unit, to Caa1 from B2. IMAX CORP: Amends Credit Facility; Sells $18MM in Common Shares --------------------------------------------------------------- IMAX Corporation disclosed Tuesday that it has entered into two significant financing transactions, one with Wachovia Capital Finance Corporation to increase future availability and modify other terms under the company's existing credit facility, and one with the Douglas family, IMAX's largest shareholder, for the sale of approximately 2.73 million common shares in a private placement at an aggregate purchase price of $18 million. The company said that proceeds from these transactions will be used to fund the company's IMAX(R) Digital projection roll-out, slated to begin this summer, and for general corporate purposes. "We have always believed that the attractive returns from existing joint ventures would enable us to finance our broader digital rollout," said IMAX co-chairmen and co-chief executive officers Richard L. Gelfond and Bradley J. Wechsler. "Now our bank and our largest shareholder have each stepped forward to provide us with increased availability of credit and cash, which we believe will enable us to effectively execute on our existing plan. Coupled with our cash on hand, we expect that these deals will ultimately provide us with access to roughly $55 - $60 million in funding." IMAX and Wachovia entered into an amendment on May 5, 2008, which extends the term of the facility to Oct. 31, 2010, removes an EBITDA maintenance covenant provided the company maintains certain minimum liquidity requirements, and is likely to increase the company's borrowing base. "We believe these changes will ensure our access to more money for a longer period of time, mitigating operating risk," added Messrs. Gelfond and Wechsler. "The amended terms of the line allow us to draw down approximately $24.4 million [], and we believe that as our borrowing base increases in accordance with the terms of the agreement we may be able to take down close to $30 million." Additionally, on May 5, 2008, the company entered into an agreement with the Douglas family, IMAX's largest shareholder, for the sale of approximately 2.73 million of the company's common shares for a total purchase price of $18 million, or approximately $6.60 per share (the equivalent of the average closing IMAX common share price over the most recent five trading days). The Douglas family, which will own 19.9% of the company's common shares post-transaction, has agreed to a five-year standstill with the company whereby it will refrain from certain activities, such as increasing its percentage ownership in the company and entering into various arrangements with the company, such as fundamental or change-of-control transactions. The company has granted the Douglas family registration rights in connection with the newly-acquired shares. The rivate placement is expected to close on May 8, 2008, and is subject to customary closing conditions. "The Douglas family has been an extremely supportive shareholder group, and we're pleased that they have recognized the potential in IMAX and the opportunity to invest at this level at this time," said Messrs. Gelfond and Wechsler. "The good news is that as a result of [the] announcements, we do not believe we will need additional financing to fund our digital rollout under the current business model." The company said that exhibitors and other customers have been extremely enthusiastic in their response to IMAX's pending transition to digital, signing deals for 170 IMAX Digital theatre systems in the last two quarters. In December 2007, IMAX announced a joint venture agreement with AMC Entertainment Inc. for 100 IMAX Digital theatre systems. In March 2008, IMAX announced a joint venture agreement with Regal Cinemas Inc. for 31 IMAX Digital theatre systems. These deals, according to the company, will dramatically increase the IMAX(R) theatre footprint in North America and accelerate the momentum behind IMAX's transition to digital projection technology over the next few years. The company expects to deliver the first of those digital theatre systems and open its initial joint venture theatres with AMC in July 2008. Overview of 2007 Operations The company has six reportable segments identified by category of product sold or service provided: IMAX systems; film production and IMAX DMR; film distribution; film post- production; theater operations; and other. The IMAX systems segment designs, manufactures, sells or leases and maintains IMAX theater projection system equipment. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films for which the company has distribution rights. The film post-production segment provides film post-production and film print services. The theater operations segment owns and operates certain IMAX theaters. The other segment includes camera rentals and other miscellaneous items. IMAX Corporation reported a net loss of $26.9 million for the year ended Dec. 31, 2007, compared with a net loss of $16.8 million during the same period ended Dec. 31, 2006. For the year ended Dec. 31, 2007, the company's total revenues decreased to $115.8 million, versus $127.7 million reported for the prior year, primarily as a result of a $13.1 million decline in systems revenue. The decrease was due principally to a slowdown in installations as exhibitors waited to see the company's digital product. As at Dec. 31, 2007, the company's principal sources of liquidity included cash and cash equivalents of $16.9 million, its revolving credit facility, trade accounts receivable of $25.5 million and anticipated collection from financing receivables due in the next 12 months of $11.0 million. The revolving credit facility, which expires on Oct. 31, 2009, permits maximum aggregate borrowings of up to $40.0 million. As at Dec. 31, 2007, the company's current borrowing capacity under the revolving credit facility is $19.4 million after deduction for outstanding letters of credit of $10.9 million and the excess availability reserve of $5.0 million. About IMAX Corporation Based in New York City and Toronto, Canada, IMAX Corporation (NASDAQ: IMAX) -- http://www.imax.com/-- designs, manufactures, sells or leases theater systems for large-format theaters including commercial theaters, museums and science centers, and destination entertainment sites. In addition, the company specializes in digital and film based motion picture technologies, designs and manufactures high-end sound systems and produces, remasters and distributes large-format films. At Sept. 30, 2007, there were 296 IMAX theaters operating in 40 countries. IMAX has locations in Guatemala, India, Italy, among others. * * * At Dec. 31, 2007, the company's consolidated balance sheet showed $208.0 million in total assets and $293.4 million in total liabilities, resulting in a $85.4 million total stockholders' deficit. PRIDE INT'L: To Sell Platform Rigs to Blake Int'l for US$66 Mil. ---------------------------------------------------------------- Pride International Inc. has entered into a definitive agreement to sell its fleet of platform rigs and related equipment to Blake International, LLC for US$66 million in cash. The platform rig fleet consists of eight units in the U.S. Gulf of Mexico, of which four are under contract, two units under contract in Mexico and two units previously retired from service. The sale is expected to close on or before July 15, 2008, subject to certain closing conditions. The sale of the platform rig fleet is consistent with Pride's stated strategic direction to focus its offshore drilling operations in deepwater and other high specification assets. Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on April 29, 2007, Fitch Ratings currently maintained these ratings for Pride International Inc.: Issuer Default Rating at 'BB'; Senior unsecured at 'BB'; Senior secured bank facility at 'BBB-'; and Senior convertible notes at 'BB'. Fitch said the Rating Outlook is Stable. STATE BANK: Earns INR18.83 Billion in Quarter Ended March 31 ------------------------------------------------------------ State Bank of India posted a net profit of INR18.83 billion on revenues amounting to INR163.94 billion in the three months ended March 31, 2008, as compared to the figures earned during the corresponding quarter in 2007 -- INR14.93 billion profit on revenues of INR144.36 billion. With operating expenses of INR32.45 billion and interest expenditure of INR87.76 billion, the bank booked an operating profit of INR43.73 billion in Jan.-March 31, 2008. The bank also recorded INR16.19 billion in provision and contingencies and INR8.71 billion in taxes. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed US$225 million Hybrid Tier I perpetual notes under its US$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. TATA POWER: Acquires Stake in Exergen ------------------------------------- Tata Power has picked up stake in Exergen, an Australian firm that developed a technology to reduce emissions from thermal power plan, reports Economic Times as cited by Iris News Digest. According to the report, Tata Power and Brisbane-based Sedgman have joined founding shareholder Theiss, a unit of Leighton Holdings, as investors in both Exergen and its technology. About Tata Power Tata Power Company Ltd -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds has been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. ================= I N D O N E S I A ================= FOSTER WHEELER: Maureen Tart-Bezer Joins Board of Directors ----------------------------------------------------------- Foster Wheeler Ltd. has elected Maureen B. Tart-Bezer, 52, to its board of directors, effective with May 7's board meeting. Ms. Tart-Bezer, 52, most recently served as the Executive Vice President and Chief Financial Officer of Virgin Mobile USA. Before joining Virgin Mobile USA, she was the Executive Vice President and General Manager of the American Express Company, U.S. Consumer Charge Group. Her background also includes 23 years with AT&T Corporation, where she served in various senior financial positions, including Senior Vice President and Corporate Controller as well as Senior Vice President and Chief Financial Officer for the Consumer Services Group. Tart-Bezer currently serves on the board of directors of The Great Atlantic & Pacific Tea Company, Inc., and is a former member of the board of directors of Playtex Products, Inc. “With an extensive track record of financial leadership in top companies and an astute perspective on business, Maureen is uniquely qualified to make a meaningful contribution to our board,” said Raymond J. Milchovich, chairman and chief executive officer of Foster Wheeler Ltd. “We look forward to working with her.” Ms. Tart-Bezer has a BS in Accounting from St. Peter's College and an MBA from New York University. She has successfully completed the CPA exam in the state of New Jersey. The election expands the size of the Foster Wheeler board to 10 members. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. The company has offices in China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. ========= J A P A N ========= 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. ALITALIA SPA: Receives EUR300-Million Italian Government Loan ------------------------------------------------------------- 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 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. JAPAN AIR: 2008 Golden Week Int'l. Reservations Down to 6.2% ------------------------------------------------------------ Japan Airlines Group announced the passenger traffic results on international and domestic routes for the traditional Japanese “Golden Week’’ vacation, which stretched this year from April 25 to May 6, 2008. Compared to the same period in 2007, the number of international passenger reservations for Japan flight departures was 6.2% down, and the number of domestic passenger reservations was 2.5% down. International: The number of international passenger reservations during the 12-day period, made up by a combination of public holidays and weekends, was 403,638 in total. The seat load factor was 65.6%. Supply measured in available seats was 3.5% down on the same period last year. Passenger demand on long-haul and medium-haul routes was negatively affected by the fragmented nature of this year's Golden Week national holidays. Passenger reservations to short- haul international destinations, however, were favorable. Guam, South Korea and Taiwan passenger numbers were up respectively by 8.9%, 7.7% and 6.8% when compared to the same period last year. JAL Group operated on international routes an additional 44 flights including charter flights to accommodate demand for travel to such destinations as Guam, Honolulu, Macao, Palau, Phuket and Saipan. Last year the airline operated a total of 81 additional flights over the same period. Seat load factors were high on Guam, Hawaii and South Korea routes: 81.2, 78.3 and 77.2% respectively. Domestic: JAL Group domestic Golden Week passenger reservations totaled 1,436,658, 2.5% down on the same vacation period last year. The domestic Japan seat load factor forecast was 65.3%. JAL Group operated an additional 32 flights on domestic Japan routes to accommodate increased demand for travel to Okinawa (Naha), as well as Sapporo, compared to the 25 flights operated during the same period last year. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported in the Troubled Company Reporter on April 17, 2008, Fitch Ratings revised the Outlook on Japan Airlines Corporation and its whollyowned operating subsidiary, JAL International Co., Ltd.'s Long-term Issuer Default ratings to Stable from Negative. At the same time, Fitch affirmed both companies' Long-term IDRs and ratings of outstanding bonds at 'BB-'. The Outlook revision follows JAL's operational turnaround and better liquidity. As reported on Feb. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. ========= K O R E A ========= HYNIX SEMICON: Seeks to Regain "Lost" Market Share in Japan ----------------------------------------------------------- Hynix Semiconductor Inc. is seeking to regain its lost market share in Japan, buoyed by a ruling by the World Trade Organization directing Japan to scrap duties on computer chips from Hynix, Kim Yoo-chul of The Korean Times reports. As reported by the Troubled Company Reporter-Asia Pacific on December 4, 2007, Hynix Semiconductor welcomed the WTO's ruling that Japan's punitive tariffs on imports of its semiconductors are illegal under international trade rules. The TCR-AP recounted that Japan imposed 27.2% tariffs in January 2006 on dynamic random access memory (DRAM) chips produced by Hynix. Furthermore, Japan also accused Hynix of selling subsidised products, the report said. According to The Times, after Japan imposed the tariffs, the company's market share fell to 13.3% from 16% in 2004. Company spokesperson Lee Si-hyun told The Times that they will increase its market share in the Japanese dynamic random access memory (DRAM) chip market to over 16%. About Hynix Semiconductor Inc. Hynix Semiconductor Inc. (HSI) of Icheon, Korea, is a memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) and Flash memory chips to a wide range of established international customers. The company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at http://www.hynix.com/ * * * As reported in the Troubled Company Reporter-Asia Pacific on June 19, 2007, Moody's Investors Service upgraded to “Ba2” from “Ba3” Hynix Semiconductor Inc's senior unsecured bond rating and corporate family rating. At the same time, Moody's assigned a “Ba2” senior unsecured bond rating for Hynix's proposed US$500 million issuance. Moody's said the outlook for the ratings is stable. The rating still applies as of May 9, 2008. Hynix also carries a “BB-” rating from Standard & Poor's. The rating was placed on June 11, 2007, with a stable outlook. In addition, Hynix carries Fitch's “BB” rating which was placed on May 3, 2007. HYNIX SEMICONDUCTOR: Inks DRAM Pact With ProMOS ----------------------------------------------- Hynix Semiconductor Inc. and ProMOS Technologies Inc. signed an amendment to strengthen their existing strategic alliance. According to the Amendment, Hynix licenses to ProMOS 50 nanometer-class DRAM stack process technology, while ProMOS offers to Hynix such DRAM products from its 300mm fab capacity. To achieve timely technology transfer, Hynix plans to commence the government filing process immediately. Additionally, Hynix plans to cooperate with some financial investors to buy 8%-10% portion of shares in ProMOS through private placement to strengthen their long-term cooperation relationship. About Hynix Semiconductor Inc. Hynix Semiconductor Inc. (HSI) of Icheon, Korea, is a memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) and Flash memory chips to a wide range of established international customers. The company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at http://www.hynix.com/ * * * As reported in the Troubled Company Reporter-Asia Pacific on June 19, 2007, Moody's Investors Service upgraded to “Ba2” from “Ba3” Hynix Semiconductor Inc's senior unsecured bond rating and corporate family rating. At the same time, Moody's assigned a “Ba2” senior unsecured bond rating for Hynix's proposed US$500 million issuance. Moody's said the outlook for the ratings is stable. The rating still applies as of May 9, 2008. Hynix also carries a “BB-” rating from Standard & Poor's. The rating was placed on June 11, 2007, with a stable outlook. In addition, Hynix carries Fitch's “BB” rating which was placed on May 3, 2007. =============== M A L A Y S I A =============== TENGGARA OIL: Appoints Foo Siew Loon as Audit Committee Member -------------------------------------------------------------- Foo Siew Loon was appointed as a member of Tenggara Oil Berhad's Audit Committee. On the other hand, Chau Man Kit and Datuk Dr. Kamal Bin Mat Salih tendered their resignations as the members of the company's Audit Committee. With this, the company's Audit Committee now composes of: * Encik Shafril Hadi Bin Kamal – Member; * Lee Kien Fatt – Member; and * Foo Siew Loon – Member Moreover, Foo Siew Loon was appointed as a non-executive director while Chau Man Kit quit in the company for the same position. Tenggara Oil Berhad is undertaking a divestment and restructuring exercise, which will reposition it as a service- oriented and trading group from its current resource-based businesses. Current businesses include investment holding, supply of ready mixed concrete, property holding, management and construction. As part of a corporate revamp exercise, the Company has repositioned itself in the oil and gas business, which will be its core business. The Company is headquartered in Kuala Lumpur, Malaysia. Tenggara is in the process of implementing a debt restructuring scheme with relevant parties. TENGGARA OIL: Sets General & Court Convened Meetings on May 30 -------------------------------------------------------------- Tenggara Oil Berhad will hold its extraordinary general meeting and court convened meetings on May 30, 2008, at Dewan Berjaya, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, in Off Jalan Damansara, 60000 Kuala Lumpur. During the extraordinary general meeting, which will start at 2:30 p.m., these resolutions will be discussed: * Ordinary Resolution 1: Proposed Corporate and Debt Restructuring Scheme; (i) Proposed Incorporation of Newco; (ii) Proposed Share Exchange; (iii) Proposed Disposal of Tenggara Lubricant Sdn. Bhd.; (iv) Proposed Rights Issue; (v) Proposed Acquisitions; (vi) Proposed Exemptions; (vii) Proposed Debt Settlement; (viii) Proposed Placement; (ix) Proposed Liquidation; (x) Proposed Transfer of Listing; and (xi) Proposed Disposal of TOB * Ordinary Resolution 2: Proposed Disposal of Tenggara Lubricant Sdn. Bhd.; * Ordinary Resolution 3: Proposed Exemptions; and * Ordinary Resolution 4: Proposed Transfer of Listing The High Court of Malaya at Kuala Lumpur has also directed an order to convene a meeting for Tenggara's scheme creditors and shareholders at 9:00 a.m. and 11:00 a.m. respectively, to consider and if thought fit, approved the Scheme of Arrangement proposed between the company and all its scheme creditors and shareholders. Tenggara Oil Berhad is undertaking a divestment and restructuring exercise, which will reposition it as a service- oriented and trading group from its current resource-based businesses. Current businesses include investment holding, supply of ready mixed concrete, property holding, management and construction. As part of a corporate revamp exercise, the Company has repositioned itself in the oil and gas business, which will be its core business. The Company is headquartered in Kuala Lumpur, Malaysia. Tenggara is in the process of implementing a debt restructuring scheme with relevant parties. TIME ENGINEERING: Equity Less Than 50% of Paid-Up Share Capital --------------------------------------------------------------- Time Engineering Berhad was considered as an affected listed issuer of the Practice Note No. 17/2005 of Bursa Malaysia Securities Berhad as the auditors have expressed a modified opinion on the company’s going concern status and on its shareholders’ equity, which is less than 50% of its total issued and paid-up share capital. The company's obligations as an Affected Listed Issuer are to: * submit a plan that is substantive and falls within the ambit of Section 212 of the Capital Market and Services Act 2007 to regularize its financial condition to the Securities Commission and other relevant authorities for approval within eight months from May 2008; * implement the Regularization Plan within the timeframe stipulated by the relevant authorities; * announce the status of its Regularization Plan and the number of months to the end of the relevant timeframes on a monthly basis until further notice from Bursa Securities; * announce its compliance or non-compliance with a particular obligation imposed pursuant to the Amended PN 17 on an immediate basis; and * announce the details of the Regularization Plan, which will include timeline for the complete implementation of the Regularization Plan. The Requisite Announcement must &n