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 Monday, May 12, 2008, Vol. 11, No. 93 Headlines A U S T R A L I A ADVANCED MARKETING: Asks $1.8MM From 'Hooked on Phonics' Maker ADVANCED MARKETING: Settles Mascot Books Claim for $266,000 B.L.B. PTY: Commences Liquidation Proceedings BEMOLY PROPERTIES: Stan Traianedes Appointed as Liquidator BALLARAT COLONY: Commences Liquidation Proceedings CHALLENGER POWERBOATS: Jaspers Hall Raises Going Concern Doubt COOL WATER: To Declare Dividend on May 23 CORNELIUS PTY: To Declare Dividend on May 14 CHRYSLER LLC: Revenue Decline Cues Fitch to Cut IDR to B from B+ DIGITAL JUKEBOXES: Commences Liquidation Proceedings ERINA MOTORS: Commences Liquidation Proceedings GODFREY MORGAN: General Meeting Slated for May 16 GREENESTER PROPERTIES: Commences Liquidation Proceedings H.T.C. CLOTHING: Appoints Brent Leigh Morgan as Liquidator JANONA INVESTMENTS: Commences Liquidation Proceedings MGM MIRAGE: S&P Holds 'BB' Rating and Revises Outlook to Stable SHARPER IMAGE: Asks Court to Approve Asset Sale Procedures OPES PRIME: Firm's Collapse Prompts ASIC to Get Advisory Panel PDQR OPERATIONS: Commences Liquidation Proceedings PRIMUS TELECOM: Posts US$3 Mil. Net Loss in Qtr. Ended March 31 RATHSON PROPRIETARY: Commences Liquidation Proceedings RON DOWSON: Commences Liquidation Proceedings SEA CARGO: To Declare Dividend on May 14 SHARPER IMAGE: Asks Court to Approve Asset Sale Procedures ST. GEORGE BANK: Westpac Initiates Talks on Merger STATE PROPERTIES: Commences Liquidation Proceedings TELEPAK PTY: Commences Liquidation Proceedings ZINIFEX LTD: Court Approves June 16 Shareholders' Meeting C H I N A BOMBARDIER INC: Moody's Holds Ba2 Ratings; Outlook Now Positive FIAT SPA: To Source Auto Parts from India by 2010 HAINAN AIRLINES: To Launch Bejing-Seattle Air Route on June 9 HAINAN AIRLINES: Plans CNY3 Billion Bond Issue SHIMAO PROPERTY: Mulls Adding Land Reserve in Beijing & Shanghai SHIMAO PROPERTY: Acquires Prime Site in Lvshunkou District H O N G K O N G CHINA BICYCLE: Declares Dividend for Creditors MAN LUNG: Court to Hear Wind-Up Proceedings on May 21 PEREGRINE INVESTMENT: To Declare Dividend Tomorrow PERFECT COTTON: Court to Hear Wind-Up Proceedings on May 28 RIVER PEARL: Creditors' Proofs of Debt Due June 6 ROAD KING: Names Chow Ming as Independent Non-Executive Director SURPLUS EXPRESS: Creditors' Proofs of Debt Due June 6 SVO EQUITY: Court to Hear Wind-Up Proceedings on June 11 TITAN PETROCHEMICALS: Forecasts Record Profit in 2008 TITAN PETRO: Selling Two Crude Carriers to Avin for US$59 Mil. ULTRASOUND TECH: Court to Hear Wind-Up Proceedings on June 11 WAH KING: Court to Hear Wind-Up Proceedings on May 28 WYLIE INDUSTRIAL: Court to Hear Wind-Up Proceedings on June 18 I N D I A AMERICAN AXLE: Gets $200MM Aid from GM to Resolve Labor Dispute GENERAL MOTORS: Fitch Says Ratings Could Face Likely Downgrade GENERAL MOTORS: Liquidity Negatively Impacted by $2.1 Billion GENERAL MOTORS: To Provide $200 Million to Axle to End Strike GENERAL MOTORS: In Talks on $750 Mil. Pledge for ResCap Bailout GMAC LLC: Parents In Talks on $750 Mil. Bailout for ResCap IMAX CORP: Amends Facility; Sells US$18 Mil. in Common Shares IMAX CORPORATION: Shareholders' Meeting Scheduled for June 18 QUEBECOR WORLD: Seeks Extension of the CCAA Stay Until July 25 QUEBECOR WORLD: Ernst & Young Gives Updates on CCAA Proceedings I N D O N E S I A FOSTER WHEELER: Earns US$138.1 Million in Quarter Ended March 31 HILTON HOTELS: To Terminate Lease Pact for Tobago Unit on May 15 MOBILE-8: Moody's Downgrades Ratings to B3; Outlook Negative SEMEN GRESIK: To Maintain Product Prices Despite High Costs J A P A N ALITALIA SPA: Unicredit Denies Possible Bid With Lufthansa FORD MOTOR: Fitch Says Ratings Outlook Remains Negative JAPAN AIRLINES: FY2007 Fourth Qtr. Net Loss Down to JPY3.527BB KONICA MINOLTA: To Pay JPY1.2 Billion on Undisclosed Income ON SEMICONDUCTOR: Moody's Lifts Corp. Family Rating to Ba3 SOLO CUP: Moody's Holds B2 CF Rating, Revises Outlook to Stable SPANSION INC: Fitch Holds CCC-/RR6 $207MM Sr. Debentures Rating SPANSION INC: Fitch Affirms Issuer Default Rating at B- K O R E A HYUNDAI MOTORS: Drops Plan to Produce Pickup Trucks in U.S. KOREA HINET: Wins KRW1.9 Billion Contract from Chongkundang YOUNGCHANG SILUP: Sets Initial Offer Price for Rights Issuance M A L A Y S I A CNLT (FAR EAST): Receives Wind-Up Petition from Vearrian CNLT: Bank Lenders Appoint Ferrier as Investigative Accountant WWE HOLDINGS: Appoints Ghazilla and Yusoff as Directors N E W Z E A L A N D 123 METALS: Faces Manukau's Wind-Up Petition on June 6 ACCESSORY STREET: Faces Hart Department's Petition AIR NEW ZEALAND: Has No Immediate Plan to Hike Domestic Fares ALLBANX MORTGAGES: Creditors Have Until July 18 to File Claims ASHBY HOLDINGS: Creditors Must File Claims by July 11 CENTURY HOMES: Faces Smith Timber's Petition on July 18 CLEAR CHANNEL: Judge OKs Breach of Contract Suit Against Banks DEVOTED VINE: Claims Filing Deadline on July 16 DOMANI GROUP: Claims Filing Deadline is July 18 G W & S B DESIGN: Court Appoints Liquidators GARY SMITH: Fatupaito and McCloy Appointed as Liquidators HENDERSON GROUP: Claims Filing Deadline is June 14 KIWI VITICULTURE: Creditors Must File Claims by July 16 PRIMAXA (NZ): Court to Hear Wind-Up Petition on July 4 P H I L I P P I N E S FAIRCHILD SEMICONDUCTOR: Debt Refinancing Cues S&P to Up Ratings PRC LLC: Court Extends Action Removal Period to July 21 PRC LLC: Court Extends Lease Decision Period to August 20 PRC LLC: ACE American et al. Oppose Disclosure Statement SWIFT FOODS: Sets Regular Stockholders' Meeting on June 26 S I N G A P O R E CHEMTURA CORP: S&P Cuts Ratings to BB; Retains Developing Watch GLEXCHEM (S) PTE: Court to Hear Wind-Up Petition on May 16 HOLA DEVELOPMENT: Pays Dividend to Unsecured Creditors KONSTRUCT BUILDING: Wind-Up Petition Hearing Set for May 16 LE ROYAUME: Court to Hear Wind-Up Petition on May 16 REFCO INC: TH Lee Partners, et al., Want Access to Secret Docs REFCO INC: Claim Transfers Between Feb. 13 and May 2, 2008 T H A I L A N D BLOCKBUSTER INC: State Street Bank Reports 5.1% Stake Ownership DOLE FOOD: Credit Protection Remains Weak for Fitch's B- Rating DOLE FOOD: Posts US$28.9 Million Net Loss in Qtr. Ended March 22 FEDERAL-MOGUL: Posts US$32 Million Net Loss in 2008 1st Quarter FEDERAL-MOGUL: PepsiAmericas Seeks Okay on US$6MM Claims Payment - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Asks $1.8MM From 'Hooked on Phonics' Maker -------------------------------------------------------------- Bankruptcylaw360.com reports that Advanced Marketing Services Inc. filed a complaint against the producers of "Hooked on Phonics" for wrongfully withholding funds. Advanced Marketing has asserted a claim for $1,860,000 against the defendants, Bankruptcylaw360 relates. The Debtor is hoping to recoup money for customer returns on several educational book products, Bankruptcylaw360 notes. Hooked on Phonics creates educational products that help teach English, Math and other skills to children. Educate, Inc. acquired the company, now known as Smarterville Productions LLC., in 2005. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of $213,384,791 and total debts of $216,608,357. Publishers Group West disclosed total assets of $39,699,451 and total debts of $83,272,493. Publishers Group Inc. disclosed zero assets but $41,514,348 in liabilities. On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On September 26, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. On Nov. 13, 2007, the Debtors filed a Third Amended Plan and that plan was confirmed by the Court on November 15. The Plan became effective December 4 and Curtis R. Smith was appointed Plan Administrator. ADVANCED MARKETING: Settles Mascot Books Claim for $266,000 ----------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware approved a stipulation settling reclamation and all other claims asserted by Mascot Books, Inc. against the bankruptcy estates of Advanced Marketing Services Inc., Publishers Group Incorporated and Publishers Group West Incorporated. The Debtors agreed that Mascot Books has a $266,293 general unsecured claim against Advanced Marketing Services. The allowed claim will be paid pursuant to the Debtors' confirmed Third Amended Joint Chapter 11 Plan of Liquidation. The parties executed mutual releases. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of $213,384,791 and total debts of $216,608,357. Publishers Group West disclosed total assets of $39,699,451 and total debts of $83,272,493. Publishers Group Inc. disclosed zero assets but $41,514,348 in liabilities. On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On September 26, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. On Nov. 13, 2007, the Debtors filed a Third Amended Plan and that plan was confirmed by the Court on November 15. The Plan became effective December 4 and Curtis R. Smith was appointed Plan Administrator. B.L.B. PTY: Commences Liquidation Proceedings --------------------------------------------- At the final meeting of the members of B.L.B. Pty Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia BEMOLY PROPERTIES: Stan Traianedes Appointed as Liquidator ---------------------------------------------------------- On March 20, 2008, Bemoly Properties Pty Limited's members agreed to voluntarily liquidate the company's business and appointed Stan Traianedes as the company's liquidator. The liquidator can be reached at: Stan Traianedes Mclean Delmo Hall Chadwick Accountants & Business Advisers Level 12, 459 Collins Street Melbourne VIC 3000 Australia BALLARAT COLONY: Commences Liquidation Proceedings -------------------------------------------------- At the final meeting of the members of Ballarat Colony Operations Pty. Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia CHALLENGER POWERBOATS: Jaspers Hall Raises Going Concern Doubt -------------------------------------------------------------- Jaspers + Hall, P.C., raised substantial doubt about the ability of Challenger Powerboats, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. Jaspers + Hall reported that Challenger Powerboats' current liabilities exceed the current assets by $1,722,562 as of Dec. 31, 2007. The company had operating losses of $7,046,691 and $5,211,514 in 2007 and 2006, respectively and has ceased operations. The auditing firm also pointed to the company's recurring losses from operations and its difficulties in generating sufficient cash flow to meet its obligation and sustain its operations. The company posted a net loss of $4,656,940 on total revenues of $7,399,703 for the year ended Dec. 31, 2007, as compared with a net loss of $6,815,407 on total revenues of $238,171 in the prior year. At Dec. 31, 2007, the company's consolidated balance sheet showed $6,408,050 in total assets and $11,301,142 in total liabilities, resulting in $4,893,092 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $2,769,550 in total current assets available to pay $4,492,112 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2b95 About Challenger Powerboats Washington, Missouri-based Challenger Powerboats Inc. (OTC: CPBI) -- http://www.challengerpowerboats.com/-- designs and manufactures boats, family sport cruisers, jet boats and water ski tow boats under the brands Challenger Powerboats, Sugar Sand and Gekko. The company is a design-to-manufacturing organization, creating or licensing designs, and creating tooling, molds, and parts necessary to assemble its products in- house. The company markets its products through a dealer network comprising more than 100 dealers throughout the United States, Canada, Mexico, Europe, Australia, the Middle East and Japan. On Jan. 1, 2007, the company acquired International Marine and Recreation, and Gekko Sports Corporation. COOL WATER: To Declare Dividend on May 23 ----------------------------------------- Sea Cargo Equipment Pty Ltd will declare a final and first dividend to creditors on May 23, 2008. Only creditors who were able to file their proofs of debt by April 24, 2008, will be included in the company's dividend distribution. The Liquidator can be reached at: I. C. Francis Taylor Woodings Chartered Accountants Level 6, 30 The Esplanade Perth WA 6000 Australia CORNELIUS PTY: To Declare Dividend on May 14 -------------------------------------------- Cornelius Pty Ltd will declare a final and first dividend to creditors on May 14, 2008. Only creditors who were able to file their proofs of debt by April 29, 2008, will be included in the company's dividend distribution. The Liquidator can be reached at: B. L. Morgan Rodgers Reidy Chartered Accountants Level 10, 200 Queen Street Melbourne VIC 3000 Australia CHRYSLER LLC: Revenue Decline Cues Fitch to Cut IDR to B from B+ ---------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Chrysler LLC to 'B' from 'B+', with a Negative Rating Outlook. Fitch has also downgraded the senior secured bank facilities as listed below, based on the downgrade of the IDR and Fitch's recovery rating methodology. The downgrade reflects the decline in unit volumes and revenues resulting from weak economic conditions, modest share losses, certain strategic initiatives, and the effect of these factors on the company's operating performance. Chrysler's restructuring efforts remain on track, and liquidity is expected to remain adequate over the near term to fund restructuring costs and operating losses through a period of economic weakness. Since 2000, Chrysler's market share losses have been more moderate than at Ford and GM, requiring fewer reductions in assembly capacity and the associated fixed costs. In a stable revenue environment, this would allow cost reductions to flow more quickly to the bottom line. However, the severe impact of weakening economic conditions has made this more challenging, and has extended the timeline projected for a potential reversion to positive cashflow. The steep decline in 2008 unit sales also results from strategic initiatives undertaken at Chrysler following its management changes, including reduced fleet sales, product eliminations and inventory reductions, steps that are viewed positively for the company's long-term prospects. Unit volumes in 2008 and into 2009 will be aided by the new Dodge and Chrysler minivan offerings, the Dodge Journey crossover, the low-volume Dodge Challenger, as well as the fall launch of the redesigned Dodge Ram pickup. Several products at the smaller end of Chrysler's lineup, including the Dodge Caliber and Jeep Patriot, have supported unit volumes as consumers migrate to smaller, fuel-efficient vehicles. On a consolidated basis, however, these factors will be more than offset by weakness in the larger end of the company's product portfolio -- the effect of a depressed residential construction market on Chrysler's key pickup lineup, high gas prices, and the impact of general economic conditions on industry sales. Chrysler's efforts to sharply curtail fleet sales and to convert its sales/production strategy to a 'demand-pull' model from a 'production-push' model will further affect sales declines in 2008. International sales, representing approximately 10% of production, are likely to continue to grow at double-digit rates, providing modest support to consolidated sales and capacity utilization. Chrysler's cash flow will remain negative in 2008, due to capital investments, restructuring costs and other one-time items. The company is realizing substantial reductions to its fixed-cost structure, the bulk of which have resulted from salaried and hourly headcount reductions. Variable purchasing, material and other efficiencies have been more difficult to realize as rising commodity costs have offset other progress. Cost reductions and the new UAW contract have positioned the company to moderate operating losses during the current economic weakness, but a return to positive free cash flow is likely to require continued execution on the company's cost reduction efforts and a stabilization in market share and industry sales. Chrysler also faces pending CAW contract negotiations. Liquidity levels (supported by incremental debt from a delayed- draw term loan and a $1.6 billion note to the UAW as part of the VEBA agreement), are expected to be sufficient to weather weak economic conditions and finance operating and restructuring costs over the near term. New management has resulted in a number of strategic and product adjustments that are quickly being brought to market. Fitch expects that Chrysler will continue to employ an 'asset-lite' approach that could involve additional assembly plant shutdowns. Alliances and/or contract manufacturing will play a role in this decision, and Chrysler is expected to continue to pursue such arrangements on a global basis. Tie-ins with other global OEMs are expected to focus on growth in the company's brand, engineering and distribution capabilities, but requiring minimal capital investment. The relationship with Daimler, which owns 19.9% of Chrysler, remains a modest positive to the rating because of Chrysler's access to certain Daimler technology. The Recovery Rating on the second lien has been downgraded from 'BB+/RR1' to 'CCC+/RR6' based on lower asset value assumptions and associated recoveries in the event of a stress scenario. Fitch has downgraded these : -- IDR to 'B' from 'B+'; -- Senior secured first-lien bank loan to 'BB/RR1' from 'BB+/RR1'; -- Senior secured second-lien bank loan to 'CCC+/RR6' from 'BB+/RR1'. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. DIGITAL JUKEBOXES: Commences Liquidation Proceedings ---------------------------------------------------- At the final meeting of the members of Digital Jukeboxes Pty Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia ERINA MOTORS: Commences Liquidation Proceedings ----------------------------------------------- At the final meeting of the members of Erina Motors Pty Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia GODFREY MORGAN: General Meeting Slated for May 16 ------------------------------------------------- Godfrey Morgan & Co. Pty. Ltd will hold a general meeting on May 16, 2008, at 372 Stenner Street, in Toowoomba. During the meeting, Cornelis A. Roggeveen, the appointed liquidator, will provide the attendees with winding-up reports. GREENESTER PROPERTIES: Commences Liquidation Proceedings -------------------------------------------------------- At the final meeting of the members of Greenester Properties Pty Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia H.T.C. CLOTHING: Appoints Brent Leigh Morgan as Liquidator ---------------------------------------------------------- On March 19, 2008, H.T.C. Clothing Pty Ltd's members agreed to voluntarily liquidate the company's business and appointed Brent Leigh Morgan as the company's liquidator. The liquidator can be reached at: B. L. MORGAN Rodgers Reidy Chartered Accountants Level 10, 200 Queen Street Melbourne VIC 3000 Australia JANONA INVESTMENTS: Commences Liquidation Proceedings ----------------------------------------------------- At the final meeting of the members Janona Investments held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia MGM MIRAGE: S&P Holds 'BB' Rating and Revises Outlook to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Las Vegas-based MGM MIRAGE to stable from positive. Ratings on the company, including the 'BB' corporate credit rating, were affirmed. "The outlook revision reflects our assessment that rating upside potential is unlikely over the intermediate term, given current weak operating trends on the Las Vegas Strip, which accounted for 84% and 74% of MGM MIRAGE's revenue and property level EBITDA, respectively, during the 12 months ended March 31, 2008," said Standard & Poor's credit analyst Ben Bubeck. In addition, the company has taken a more aggressive posture toward share repurchases in recent months than S&P had previously anticipated, having spent $1.1 billion on buybacks during the quarter ended March 31, 2008 (about $430 million more than S&P expected). A 12% year-over-year decline in property level EBITDA in the March 2008 quarter (or 10% when Monte Carlo is excluded), combined with the largely debt-financed share repurchase activity, has meaningfully weakened credit measures. Operating lease-adjusted total debt to EBITDA, excluding income from unconsolidated affiliates, has increased to an estimated 5.9x as of March 31, 2008, from 4.9x as of Dec. 31, 2007. The 'BB' rating reflects MGM MIRAGE's active growth strategy, reliance on the Las Vegas Strip for a majority of its cash flow, and moderate debt leverage. In addition, the company's capital spending will increase significantly over the next several years, as spending for the MGM Grand Atlantic City ramps up. Still, MGM maintains a satisfactory business risk profile, with a significant position on the Las Vegas Strip. Furthermore, the company's business risk profile stands to improve over time, as the recent openings of MGM Grand Detroit and MGM Grand Macau, combined with MGM Grand Atlantic City (anticipated to open in 2012), will lessen the company's reliance on the Las Vegas Strip and substantially grow the cash flow base. Joint ventures overseas, such as the MGM Grand Abu Dhabi, also have the potential to grow and diversify MGM MIRAGE's cash flow base over time. Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) -- http://www.mgmmirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and Australia, and has investments in three other casino resorts in Nevada, New Jersey, and Macau. 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 have been submitted so that they are actually received 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 US$50 million the first year -- including Us$30 million in operating costs and US$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. 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) OPES PRIME: Firm's Collapse Prompts ASIC to Get Advisory Panel -------------------------------------------------------------- Facing accusations it didn't do enough to identify and alert investors to the woes of collapsed broker Opes Prime Group Limited, the Australian Securities and Investments Commission said it will appoint an external advisory panel to advise it on market developments, cut senior management positions to 41 from 54 and devote more resources to supervising traders, the Australian Associated Press reports. According to the AAP, ASIC Chairman Tony D'Aloisio said: "I really don't think there's any basis for the statement that what's occurred with Opes Prime and some of the other issues that have occurred in the market (are) regulatory driven. . . . You need to understand that at the end of the day that CEOs, directors, design business models, people buy them. . . . So in a sense there's a responsibility at that level when some of these collapses occur, and at this stage there is in my mind no real evidence that this was regulatory failure." Stuart Washington of the Sydney Morning Herald relates that Mr. D'Aloisio said the Opes Prime collapse was not an example of regulatory failure and that the ASIC has not identified weaknesses in the regulatory regime or weaknesses in the way it is enforcing the law, despite the fact that the Australian Securities Exchange failed to detect problems in Opes Prime during capital adequacy checks in February even though ASX and ASIC were notified by Opes Prime that it was in difficulty in February. About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group's wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi-professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter Asia-Pacific reported on April 1, 2008 that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. PDQR OPERATIONS: Commences Liquidation Proceedings -------------------------------------------------- At the final meeting of the members of PDQR Operations Pty Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia PRIMUS TELECOM: Posts US$3 Mil. Net Loss in 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 US$425.6 million in total assets and US$877.1 million in total liabilities, resulting in a US$451.5 million total stockholders' deficit. The company's consolidated balance sheet at March 31, 2008, also showed strained liquidity with US$191.8 million in total current assets available to pay US$228.1 million in total current liabilities. The company reported a US$3.0 million net loss for the quarter, compared to a net loss of US$2.6 million in the first quarter of 2007. First quarter 2008 net revenue was US$227 million, in line with net revenue of US$227.0 million in the first quarter of 2007. The net loss in the first quarter of 2008 includes a US$2.0 million gain from early extinguishment of debt and a US$2.0 million gain on foreign currency transactions. The net loss in the first quarter of 2007 includes a US$6.0 million loss on early extinguishment or restructuring of debt and a US$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 US$84.0 million or 37.3% of net revenue in the first quarter as compared to US$82.0 million and 36.3% in the year-ago quarter. Selling, general and administrative expense in the first quarter was US$69.0 million, up US$1.0 million from US$68.0 million in the year-ago quarter. Income from operations was US$10.0 million in the first quarter of 2008 (including a US$3.0 million gain from sale of assets), an improvement of US$2.0 million from the first quarter of 2007. First quarter 2008 Adjusted EBITDA was US$15.0 million, an increase of US$1.0 million from US$14.0 million in the year-ago quarter. Interest expense for the first quarter 2008 was US$15.0 million, up from US$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 US$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 US$67.0 million (US$56.0 million unrestricted) as compared to US$91.0 million (US$81.0 million unrestricted) as of Dec. 31, 2007. The US$25.0 million decrease in unrestricted cash balance is comprised of US$7.0 million for capital expenditures primarily to fund the previously announced Australian DSLAM network expansion and the Canadian data center expansion, US$16.0 million for interest payments, US$11.0 million to purchase and retire US$15.0 million principal amount of the company's outstanding debt maturing in 2009, US$2.0 million for scheduled debt principal reductions, and US$7.0 million for working capital movements. These declines are offset by US$15.0 million of Adjusted EBITDA, and US$3.0 million from the sale of assets. Free Cash Flow for the first quarter 2008 was negative US$14.0 million (comprised of US$7.0 million used in operating activities and US$7.0 million utilized for capital expenditures) as compared to negative US$13.0 million in the year-ago quarter. The principal amount of PRIMUS's long-term debt obligations as of March 31, 2008, was US$649.0 million, as compared to US$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. The company has operations in Brazil and Mexico. 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. RATHSON PROPRIETARY: Commences Liquidation Proceedings ------------------------------------------------------ At the final meeting of the members of Rathson Proprietary Limited held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia RON DOWSON: Commences Liquidation Proceedings --------------------------------------------- At the final meeting of the members of Ron Dowson Sunraysia Pest Control Pty. Ltd. held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia SEA CARGO: To Declare Dividend on May 14 ---------------------------------------- Sea Cargo Equipment Pty Ltd will declare a final and first dividend to creditors on May 14, 2008. Only creditors who were able to file their proofs of debt by April 22, 2008, will be included in the company's dividend distribution. The Liquidator can be reached at: Robert Hutson KordaMentha (Qld) Level 4, 2 Corporate Court Bundall QLD 4217 Telephone (07) 5574 1322 Facsimile (07) 5574 1433 Australia SHARPER IMAGE: Asks Court to Approve Asset Sale Procedures ---------------------------------------------------------- Prior to the Petition Date, 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 have been submitted so that they are actually received 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 US$50 million the first year -- including Us$30 million in operating costs and US$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. 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) ST. GEORGE BANK: Westpac Initiates Talks on Merger -------------------------------------------------- Westpac Banking Corporation said in a media release that it is in merger discussions with St.George Bank Limited concerning an all-scrip merger to create Australia's leading financial services company. According to Westpac, together, Westpac and St.George would have a strong AA credit-rating, a larger balance sheet and greater access to funding. This would lower risk and costs for St.George, and position the combined business to withstand challenging funding markets and take advantage of opportunities created by the dislocation in capital markets. Westpac believes the respective brands would be better able to compete and flourish by belonging to the same larger, stronger, entity. Both organisations are strong businesses, with iconic brands, strong and highly complementary cultures and long track records of delivering for customers, employees, shareholders and the community, Westpac said. The proposed combination states that: * All Westpac and St.George brands, including Bank SA, and branch/ATM networks would be retained. The intention is that there will be no net reduction in branch or ATM numbers. The focus will be on investing more in front-line services; * The combined 10 million customers would benefit from an enhanced offering in terms of product range, expanded distribution and financial strength while preserving their relationships with employees, products, customer touchpoints and branding; and * Shareholders would own the premier AA rated financial institution in Australia, with leading market positions across key lines of business, and share in the benefits of substantial revenue synergies going forward. Westpac outlined that the combined business would be a market leader in Australia. Specifically, St.George and Westpac would be: * Australia's leading provider of home lending, with a market share of 25% * Australia's largest wealth platform provider with funds under administration of $108 billion Westpac Chairman, Ted Evans, said: "St.George and Westpac are two highly successful banks, but we believe they would be stronger together in a way which allows both to harness the strength of each, while maintaining their unique identities and market positions. "The proposal continues Westpac's focus on Australia and New Zealand and would help Westpac achieve its strategic priorities sooner � building greater strength in distribution and transforming our operations through the integration process." Westpac CEO, Gail Kelly said that Westpac believes this is a unique opportunity to bring these iconic brands together in a way that will benefit both banks and their customers. "It would create Australia's leading financial institution with regard to meeting customer needs, distribution, strong brands, scale, financial strength and the best products," Mrs Kelly said. "For customers it would make it more convenient to access customer touchpoints, including the largest distribution network with over 1,200 branches and in-stores as well as more than 2,700 ATMs. "It would also provide greater diversity and choice of products from both organisations. This would ensure that the best of each bank's product and service capabilities can be extended across customer segments, driving significant revenue growth." Mrs Kelly said the combined strength would enable the group to more effectively compete while sharing investment across a broader customer base. "The increased scale and integration of operations would drive further investment in our back office processes ensuring more reliable, consistent and improved customer service," she added. The merger would require the approval of a range of regulatory authorities as well as the Federal Treasurer. Westpac has engaged Caliburn Partnership as financial adviser and Gilbert + Tobin as legal adviser. About Westpac Headquartered in Sydney, New South Wales, Australia -- http://www.westpac.com.au/-- Westpac Banking Corporation provides a range of banking and financial services, including retail, commercial, and institutional banking, as well as wealth management services to individuals and business customers in Australia, New Zealand, and the Pacific region. About St. George Bank Headquartered in Kogarah, New South Wales, Australia -- http://www.stgeorge.com.au-- St. George Bank Limited is a banking company. The Company operates in four business segments: Retail Bank (RB), Institutional and Business Banking (IBB), BankSA (BSA) and Wealth Management (WM). RB is responsible for residential and consumer lending, provision of personal financial services including transaction services, call and term deposits, small business banking and financial planners. This division manages retail branches, call centers, agency networks and electronic channels, such as electronic funds transfer at point of sale (EFTPOS) terminals, automated teller machines (ATMs) and Internet banking. On September 28, 2007, it disposed of its 100% interest in Scottish Pacific Business Finance Holdings Pty. Limited. * * * The Troubled Company Reporter-Asia Pacific reported on March 28, 2008 that Fitch Ratings assigned a 'B' rating on the AU$1.0 million Class E bond of St. George. A subsequent TCR-AP report on April 2, 2008, said Fitch Ratings rated St. George's AU$1.7 million Class D bond a 'BB'. STATE PROPERTIES: Commences Liquidation Proceedings --------------------------------------------------- At the final meeting of the members of State Properties Pty. Ltd held May 8, 2008, Richard Judson, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham VIC 3192 Australia TELEPAK PTY: Commences Liquidation Proceedings ---------------------------------------------- At the joint annual and final meeting of the members and creditors of Telepak Pty Ltd held May 2, 2008, A. R. Yeo, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company has been disposed of. The liquidator can be reached at: A. R. Yeo Pitcher Partners Level 19, 15 William Street Melbourne VIC 3000 Australia ZINIFEX LTD: Court Approves June 16 Shareholders' Meeting --------------------------------------------------------- The Supreme Court of Victoria approved on Friday a meeting of Zinifex Limited shareholders being held on Monday, June 16, 2008, to vote on the Scheme of Arrangement for the proposed merger of Zinifex Limited and Oxiana Limited. The Court approved for distribution the Scheme Booklet. The Scheme Booklet setting out information for Zinifex shareholders on the proposed Merger has been registered with the Australian Securities & Investments Commission and filed with the Australian Securities Exchange. Scheme Booklets are expected to be dispatched to all Zinifex shareholders by Friday, May 16, 2008, with receipt during the following week. A copy of the Scheme Booklet may also be found on the Zinifex Web site at http://www.zinifex.com/media/schemeBooklet.aspx Zinifex Directors unanimously recommend that Zinifex shareholders vote in favour of the Scheme, in the absence of a superior proposal. The Scheme Booklet sets out the benefits of the Merger, including: * Strength -- Strong financial position, cash flow and earnings capability -- Highly efficient operations and attractive development and exploration portfolios -- Skilled and experienced Board, management and workforce -- Enhanced investor attractiveness resulting from increased scale, liquidity and diversification * Diversity -- Increased commodity and geographic spread of assets -- Improved earnings diversification -- Skills applied to a greater set of opportunities * Growth -- Delivers a long and balanced pipeline of development opportunities -- Increased capability to accelerate value delivery from the existing asset portfolio -- Enhanced capability to pursue both an organic and acquisitive growth strategy In addition, the Independent Expert has concluded that the Scheme is in the best interests of Zinifex shareholders. Andrew Michelmore, Zinifex's Chief Executive Officer (CEO) and CEO-elect for the merged group said "The outlook for metals demand is extremely strong, and the merged group will be significantly more capable than either Zinifex or Oxiana alone to benefit from this situation. It is a great time to be building a business with such strength and opportunities." "Our preparations for the Merger are on track not only in terms of obtaining Court approval for shareholders to vote on the Scheme but also our plans to integrate the companies once all approvals are received. I am delighted to announce that a highly capable and experienced senior management team has been selected to run the merged group and they are named in the Scheme Booklet. The team and I are excited by the opportunities in front of us." The Scheme Meeting will be held at 2 p.m. on Monday, June 16, 2008, at the Function Centre, Melbourne & Olympic Parks, Batman Avenue, Melbourne. All proxy voting instructions must be received no later than 48 hours before the commencement of the Scheme Meeting. Zinifex shareholders are encouraged to lodge proxy voting instructions with Zinifex's share registry by 2 p.m. on Saturday, June 14, 2008, in accordance with the directions set out in the proxy form accompanying the Scheme Booklet. Shareholders should read the entire Scheme Booklet, which sets out more information about the proposed Merger, including disadvantages and risks. Xstrata Rumor Andrew Trounson of The Australian reported last week that Oxiana shares increased once again on speculation that Swiss-based giant Xstrata is poised to launch a bid before Oxiana can consummate its AU$10 billion-plus merger with Zinifex. But Zinifex CEO Andrew Michelmore said he had seen nothing in the market to suggest an imminent takeover bid for either company, Mr. Trounson relates. Executive Team Mr. Michelmore, who will be leading the merged company, will have a new executive team comprising of officers from both companies, The Australian reports. According to Mr. Trounson: 1. Zinifex head of strategy Stewart Howe will be leaving to make way for his Oxiana counterpart Peter Lester; 2. Zinifex CFO Tony Barnes is retiring but while Oxiana CFO Jeff Sells remains in the frame, Mr. Michelmore is still considering external candidates; 3. Zinifex chief operations officer Brett Fletcher will stay on as head of the Australian operations and marketing; 4. Oxiana's COO, John Nitshke, will become head of projects and technical service with key supervision of the expansion projects that are mainly Oxiana projects; 5. Oxiana's head of Asia, Peter Albert, retains his position, given the Asian porfolio is all Oxiana's; 6. Oxiana's Tony Manini will become head of exploration and Zinifex's John Larson will report to him; 7. Zinifex's company secretary Francesca Lee will stay while her counterpart at Oxiana, David Forsyth, will leave; 8. Zinifex's Jill Lever will be the chief of human resources; and 9. Oxiana's Bruce Loveday will be the overall head of external communications, risk management and procurement. 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 ========= BOMBARDIER INC: Moody's Holds Ba2 Ratings; Outlook Now Positive --------------------------------------------------------------- Moody's Investors Service changed the rating outlook for Bombardier Inc. to positive from stable and affirmed the company's Ba2 corporate family, Ba2 senior unsecured and SGL-2 liquidity ratings. The outlook change reflects Moody's belief that Bombardier's record backlog levels and strong demand from international end-markets positions the company for continued revenue growth, profitability improvements and cash flow generation into the medium term. Coupled with the meaningful reduction in debt levels that occurred towards the end of the company's last fiscal year, the balance of the company's key credit metrics are likely to evidence continuing improvement, bolstering support for upwards rating momentum. These ratings have been affirmed: -- Corporate family rating at Ba2 -- Probability of default rating at Ba2 -- Senior unsecured debt rating at Ba2 (to LGD4, 52% from LGD4, 54%) -- Speculative grade liquidity rating at SGL-2 Outlook Actions: -- Outlook, Changed To Positive From Stable Darren Kirk, lead analyst with Moody's, said that "Bombardier's sizeable backlog in each of its two business segments positions the company for further growth and margin improvement beyond the gains achieved in fiscal 2008". Bombardier's fiscal 2008 operating results evidenced continued improvement driven by strong demand for business jets, turboprops and Transportation segment products and services. A prolonged period of declining demand for regional jet products appears to have stabilized, which also contributed to the good results. Despite the poor financial condition of the airline industry and challenging economic backdrop in the U.S., reducing dependence on the U.S. market for cyclical aerospace activity and record backlog levels in each of Bombardier's business segments, provide the basis for continued operating momentum. Targeted operating margins of 8% in the Aerospace segment have essentially been attained while Transportation segment margins continue to improve toward the company's goal of 6% by fiscal 2010. The company's ability to further enhance current coverage and cash flow metrics through sustained margin improvement remains a key factor influencing the rating. Lower interest costs associated with recent debt reductions should amplify improvement to key credit metrics through fiscal 2009 from levels that have in recent history constrained the Ba2 rating. Bombardier's liquidity profile is good summarized by significant balance sheet cash with no near term debt maturities, and a positive free cash flow profile. Lack of committed bank operating lines for funded borrowing constrains the liquidity rating at SGL-2. The Company's good liquidity profile and favorable cash flow trends may eventually be counterbalanced by incremental financial and operating risks associated with the potential investment in the CSeries mainline aircraft. Kirk added, "The company's improving credit profile should nonetheless provide the capacity to absorb these risks within context of its rating and outlook". Bombardier Inc., headquartered in Montreal, Quebec, is a diversified manufacturing company involved in the aerospace and transportation markets. FIAT SPA: To Source Auto Parts from India by 2010 ------------------------------------------------- Fiat SpA intends to import EUR250 million worth of auto parts from India by 2010. This is eight times the current importation of EUR30 million, the Economictimes reports. The Economictimes adds that the move would enable Fiat to cut costs since parts from India are around 10-15% cheaper. Further, it could also aid Fiat "broadbase its global market for sourcing," Economictimes says. Citing Fiat Group Purchasing SRL CEO Gianni Coda, Economictimes relates that the sourcing would be implemented for the automaker's Europe, Brazil and North America manufacturing plants. About Fiat S.p.A. Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/-- designs, manufactures, and sells automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. HAINAN AIRLINES: To Launch Bejing-Seattle Air Route on June 9 ------------------------------------------------------------- Hainan Airlines Co. Limited will launch its first direct air route between Beijing and Seattle on June 9, People Daily Online reports. According to the report, the new route will be the "fastest air link" between China and the United States. The new route, the report relates, will be operated by Airbus A330-200s on Mondays, Wednesdays, Fridays and Saturdays. Hainan Airlines will use Boeing787s, on the route after delivery next year, People Daily relates. Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HAINAN AIRLINES: Plans CNY3 Billion Bond Issue ---------------------------------------------- Hainan Airlines Co. Limited planned to issue up to CNY3 billion (US$429 million) in five- and 10-year corporate bonds to pay back bank debt and supplement working capital, Reuters reports. According to the report, the airline also planned to pay CNY515 million in cash to buy a 6.44 percent stake in Shenzhen Financial Leasing Co. The company's plans, the report relates, still need the approval of shareholders and regulators. Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. SHIMAO PROPERTY: Mulls Adding Land Reserve in Beijing & Shanghai ---------------------------------------------------------------- Shimao Property Holdings Limited is considering adding land reserve in Beijing and Shanghai in 2008, Sinocast News reports, citing Zhuo Yalan, assistant to Chairman with ShiMao Group. Mr. Yalan told the news agency that the projects in the second- tier and third-tier cities across China will still be the major profit contributor for Shimao Property in 2008. The company expects to launch 19 property projects across 16 cities, covering about 2.47 million square meters, mainly situated around the Yangtze River Delta region and the Economic Zone around the Bohai Sea, the report relates. Currently, Shimao Property has had land reserve of 26.5 million square meters, in terms of floor area, throughout 22 cities in China. This can meet the need for development in the next five to six years, the report says. As reported by the Troubled Company Reporter-Asia Pacific on April 23, 2008, Shimao Property reported an 80% increase in its 2007, profit as it sold more apartments amid surging home prices in China. According to the TCRAP, the company recorded a net profit of CNY4.1 billion (US$586 million), or CNY1.26 a share, from CNY2.28 billion, or CNY0.85, in 2006, while sales rose 34% to CNY9.28 billion. Revenue from hotels and commercial properties soared 260% to CNY645 million, Sinocast News relates. About Shimao Property Shimao Property Holdings Limited -- http://www.shimaogroup.com/ -- is a large-scale developer of real estate projects in China, specializing in high-end developments in prime locations. The company's business portfolio comprises the development of residential properties, retail properties, offices and hotels. The company has 15 projects at various stages of development located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou, Kunshan, Changshu, Shaoxing and Wuhu. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 17, 2008, Moody's Investors Service changed the outlook for Shimao Property Holdings Limited's Baa3 issuer and bond ratings to negative from stable. The rating action followed Shimao's announcement that it acquired new property projects in Hangzhou and Dalian for CNY3.07 billion and CNY1.65 billion respectively. "The negative outlook is due to concerns that the aggressive nature of Shimao's strategy for acquiring land could increase its financial leverage and weaken its liquidity profile in the near term," said Peter Choy, a Moody's Vice President and Senior Credit Officer. In July 2007, Fitch Ratings assigned a Long-term Foreign Currency Issuer Default Rating of 'BB+' to China-based Shimao Property Holdings Limited. Simultaneously,Fitch assigned issue ratings of 'BB+' to Shimao's US$350 million senior notes due 2016 and USD250m senior floating rate notes due 2011, respectively. The Outlook for the IDR is Stable. In June 2007, Standard & Poor's Ratings Services said that its rating on Shimao Property Holdings Ltd. (BB+/Stable/--) was not immediately affected by the company's recent proposal to inject most of its retail and commercial assets into A- sharelisted Chinese property company, Shanghai Shimao Co. Ltd., in return for ultimate controlling ownership in the company. SHIMAO PROPERTY: Acquires Prime Site in Lvshunkou District ---------------------------------------------------------- Shimao Property Holdings Limited has acquired a prime site alongside Longhe River in Lvshunkou district, Dalian, Liaoning Province at a consideration of CNY1.65 billion. Subsequent to the prime land acquisition in an integrated re- development of Beishan Hotel and Mudanjiang Textile Factory (land cost of CNY220 million with aggregated planned GFA of 0.7 million sq.m.) in Mudanjiang, Heilongjiang Province, this acquisition is a significant move of the Group's strategic plans in Bohai Rim and expansion of its land bank. Located at the southmost of the Liaodong Peninsula in Northeast China, the city of Dalian is the most important gateway to Northern China and a harbourfront with a combination of harbour, trading, industry, tourism. Lvshunkou district, which is governed under the jurisdiction of the city of Dalian, is a scenic spot area at national level. Lvshunkou district, in line with the expansion of Dalian to the west and the north, becomes another hotspot of the city with its abundant natural cultural resources, convenient transportation and enormous potential for further development. Longhe River, flowing through the old city of Lvshun and the new and the old regions, becomes an important part of Lvshun in the development of the city and its economy. The aggregated planned GFA of the land site is 1.6 million sq.m., and is designated to be developed into a complex that integrates international conference centres, five-star hotels, shopping malls, commercial streets and high-end residential properties. The residential properties, which accounts for 80% or above of the whole project, exhibit an enormous commercial potential and immense room for development, further ameliorating and strengthening the comprehensiveness of Dalian. About Shimao Property Shimao Property Holdings Limited -- http://www.shimaogroup.com/ -- is a large-scale developer of real estate projects in China, specializing in high-end developments in prime locations. The company's business portfolio comprises the development of residential properties, retail properties, offices and hotels. The company has 15 projects at various stages of development located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou, Kunshan, Changshu, Shaoxing and Wuhu. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 17, 2008, Moody's Investors Service changed the outlook for Shimao Property Holdings Limited's Baa3 issuer and bond ratings to negative from stable. The rating action followed Shimao's announcement that it acquired new property projects in Hangzhou and Dalian for CNY3.07 billion and CNY1.65 billion respectively. "The negative outlook is due to concerns that the aggressive nature of Shimao's strategy for acquiring land could increase its financial leverage and weaken its liquidity profile in the near term," said Peter Choy, a Moody's Vice President and Senior Credit Officer. In July 2007, Fitch Ratings assigned a Long-term Foreign Currency Issuer Default Rating of 'BB+' to China-based Shimao Property Holdings Limited. Simultaneously,Fitch assigned issue ratings of 'BB+' to Shimao's US$350 million senior notes due 2016 and USD250m senior floating rate notes due 2011, respectively. The Outlook for the IDR is Stable. In June 2007, Standard & Poor's Ratings Services said that its rating on Shimao Property Holdings Ltd. (BB+/Stable/--) was not immediately affected by the company's recent proposal to inject most of its retail and commercial assets into A- sharelisted Chinese property company, Shanghai Shimao Co. Ltd., in return for ultimate controlling ownership in the company. ================ H O N G K O N G ================ CHINA BICYCLE: Declares Dividend for Creditors ---------------------------------------------- China Bicycle Holdings Limited, which is in liquidation, declared its dividend for its creditors. Only creditors who were able to file their proofs of debt by May 13, 2008, were included in the company's dividend distribution. The company's liquidators are: Dermot Agnew Joseph K. C. Lo MAN LUNG: Court to Hear Wind-Up Proceedings on May 21 ----------------------------------------------------- On March 14, 2008, Man Lung Hong Securities Limited, filed a petition to have its operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on May 21, 2008, to hear the petition. The petitioners' solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway, Hong Kong PEREGRINE INVESTMENT: To Declare Dividend Tomorrow -------------------------------------------------- Peregrine Investments Holdings Limited, which is in liquidation, will declare seventh dividend for its creditors tomorrow, May 13, 2008. The company will pay its creditors 0.1% from Hong Kong liquidation and 2.4% from the Bermudian liquidation. PERFECT COTTON: Court to Hear Wind-Up Proceedings on May 28 ----------------------------------------------------------- On March 26, 2008, Industrial and Commercial Bank of China (Asia) Limited, filed a petition to have Perfect Cotton Yarn Company 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: Deacon Alexander House, 5th Floor 18 Charter Road Central, Hong Kong RIVER PEARL: Creditors' Proofs of Debt Due June 6 ------------------------------------------------- Creditors of River Pearl Properties Limited are required to file their proofs of debt by June 6, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 23, 2008. The company's liquidator is: Li Wai Chi Franky Champion Building, Room 1213 301-309 Nathan Road Jordan, Kowloon ROAD KING: Names Chow Ming as Independent Non-Executive Director ---------------------------------------------------------------- Road King Infrastructure Limited's Board of Directors has appointed Dr. Chow Ming Kuen, Joseph as independent non- executive director and a member of the audit committee and the remuneration committee of the company, effective April 15, 2008. Dr. Chow Ming Kuen, Joseph, OBE, JP, aged 66, is a professional civil and structural engineer. He is also a fellow of The Hong Kong Institution of Engineers, the Institution of Civil Engineers and the Institution of Structural Engineers. He is the Chairman of Joseph Chow and Partners Limited, a professional consulting engineers firm. Dr. Chow is the Chairman of the Construction Workers Registration Authority and served as President of The Hong Kong Institution of Engineers from 2001 to 2002 and Chairman of the Hong Kong Engineers' Registration Board from 1996 to 1998. Dr. Chow is a Hon Senior Superintendent of the Auxiliary Police Force. He served in many public services including Chairman of the Hong Kong Examinations Authority, Deputy Council Chairman of Hong Kong Polytechnic University, member of Hospital Authority, Hong Kong Housing Authority and Hong Kong University Court. H He is also the Independent Non-executive Chairman of PYI Corporation Limited, an Independent Non-executive Director of Chevalier International Holdings Limited and Build King Holdings Limited (a subsidiary of Wai Kee Holdings Limited which in turn is the controlling shareholder of the company) and a Non- executive Director of Wheelock Properties Limited, the shares of these four companies are listed on the Main Board of The Stock Exchange of Hong Kong Limited. Save as disclosed above, Dr. Chow did not hold any directorships in any listed public companies in the last three years and does not have any relationships with any directors, senior management or substantial or controlling shareholder of the Company nor hold any other positions with the company or any of its subsidiaries. Dr. Chow has not entered into any service contract with the Company. There is no fixed term or proposed length of service except that he is subject to retirement in accordance with the Bye-laws of the Company. Dr. Chow is entitled to a director's fee of HK$180,000 per annum for acting as an Independent Non- executive Director, HK$95,000 per annum for acting as a member of the Audit Committee and HK$25,000 per annum for acting as a member of the Remuneration Committee. The director's fees of Dr. Chow will be reviewed and determined by the Board annually with the authorization granted by the shareholders at an annual general meeting of the company and taking reference to his duties and responsibilities with the company, the company's performance and the prevailing market situation. Dr. Chow does not have any interests in the shares in the company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) as at the date of this announcement. Save as disclosed above, Dr. Chow is not aware of any other matters that need to be brought to the attention of the shareholders of the company nor is there any information to be disclosed by the company pursuant to any of the requirements under rules 13.51(2)(h) to 13.51(2)(v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. About Road King Road King Infrastructure Limited -- http://www.roadking.com.hk/ -- is a Hong Kong listed company with its core business in the investment, development, operation and management of toll roads and property projects in China. Road King has a toll road portfolio of HK$6 billion, comprising 19 toll road and bridge projects spanning approximately 1,000 kilometers in 8 provinces of China. Road King has commenced the property development business in China since 2004. Projects are located in Guangdong Province and Jiangsu Province, with total developable gross floor area of approximately 2.9 million square metres. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 14, 2008, Moody's Investors Service affirmed the Ba2 corporate family and bond ratings of Road King Infrastructure Limited. The rating action follows Road King's announcement of litigation with respect to its disputes with the former majority shareholders in Sunco Property Holdings Company Limited, and the company's failure to exert control over the management of two Tianjin property subsidiaries acquired from Sunco Property. The outlook for both ratings is negative. SURPLUS EXPRESS: Creditors' Proofs of Debt Due June 6 ----------------------------------------------------- Creditors of Surplus Express Limited are required to file their proofs of debt by June 6, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 29, 2008. The company's liquidator is: Cheung Ka Ho SUP Tower, 23rd Floor Room 2301-2, 75-83 King's Road Fortress Hill, Hong Kong SVO EQUITY: Court to Hear Wind-Up Proceedings on June 11 -------------------------------------------------------- On April 1, 2008, Overseas Advisory Inc., filed a petition to have Svo Private Equity Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June 11, 2008, to hear the petition. The petitioners' solicitors are: Keith Lam Lau & Chan The Chinese Club Building, 5th & 7th Floor 21-22 Connaught Road, Central Central Hong Kong TITAN PETROCHEMICALS: Forecasts Record Profit in 2008 ----------------------------------------------------- Titan Petrochemicals Group Limited expects to return to profit in 2008, with the growth coming from its China shipyard, Reuters reports. As reported by the Troubled Company Reporter-Asia Pacific on April 30, 2008, Titan Petrochemicals' results for the year ended December 31, 2007, showed higher revenues, but significantly lower earnings and a net loss for the Group, impacted largely by extremely difficult operating conditions during the year. The company posted a net loss of HK$29 million (US$3.72 million) in 2007. According to the TCR-AP, the Group's balance sheet strengthened considerably, with a much stronger cash position as at December 31, 2007, of HK$2,111 million, compared to HK$373 million twelve months ago. About Titan Petrochemicals Titan Petrochemicals Group Limited is a fully integrated downstream oil logistics company, providing end-to-end sourcing, transportation, storage and wholesale distribution on a single platform. Through this, we help oil companies and oil users such as power utilities make their supply chain more efficient and their business more competitive. In addition, the Group operates a rapidly expanding multi- functional shipyard in Quanzhou, a strategic location in China off the Taiwan Strait. Built to be one of the most advanced facilities of its kind, the yard's ship building unit began operations in 2006 and has a strong order book of high performance vessels. This will soon be complemented by major ship repair and offshore engineering operations capable of handling latest generation container ships and oil rigs. Titan operates in China, Hong Kong, Singapore and Malaysia. * * * The Troubled Company Reporter-Asia Pacific reported on April 28, 2008, that Moody's Investors Service placed on review for possible downgrade Titan Petrochemicals Group Ltd's B2 corporate family rating and B3 senior unsecured bond rating. TITAN PETRO: Selling Two Crude Carriers to Avin for US$59 Mil. -------------------------------------------------------------- Titan Petrochemicals Group Limited has agreed to sell two of its very large crude carriers (Titan Leo and Titan Venus) to Avin International SA for a total consideration of US$59 million (approximately HK$460 million). "The sales will generate more cash for the Group," said Mr. Tsoi Tin Chun, Chairman and Chief Executive of Titan. "The disposals are another step in optimizing our asset base and group business, and further reducing our dependency on the volatile Very Large Crude Carrier (VLCC) market, in pursuit of our objective of building a stable earnings base." After completion of the transaction, the Group will operate nine VLCCs, two of them deployed as Floating Storage Units (FSUs), versus 11 VLCCs including three FSUs previously. The total fleet capacity including VLCCs, FSUs and product tankers will be approximately 2.65 million deadweight tons. "Following the disposals, Titan will be able to maintain its presence in the global oil transportation market through chartering in VLCCs as needed. The disposals also keep on track our program to gradually replace our single-hulled vessels with double-hulled tankers," added Mr. Tsoi. About Titan Petrochemicals Titan Petrochemicals Group Limited is a fully integrated downstream oil logistics company, providing end-to-end sourcing, transportation, storage and wholesale distribution on a single platform. Through this, we help oil companies and oil users such as power utilities make their supply chain more efficient and their business more competitive. In addition, the Group operates a rapidly expanding multi- functional shipyard in Quanzhou, a strategic location in China off the Taiwan Strait. Built to be one of the most advanced facilities of its kind, the yard's ship building unit began operations in 2006 and has a strong order book of high performance vessels. This will soon be complemented by major ship repair and offshore engineering operations capable of handling latest generation container ships and oil rigs. Titan operates in China, Hong Kong, Singapore and Malaysia. * * * The Troubled Company Reporter-Asia Pacific reported on April 28, 2008, that Moody's Investors Service placed on review for possible downgrade Titan Petrochemicals Group Ltd's B2 corporate family rating and B3 senior unsecured bond rating. ULTRASOUND TECH: Court to Hear Wind-Up Proceedings on June 11 ------------------------------------------------------------- On April 1, 2008, Overseas Advisory Inc., filed a petition to have