/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061226.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, December 26, 2006, Vol. 9, No. 255 Headlines A U S T R A L I A 2TM MANAGEMENT: Schedules Members' Final Meeting on Jan. 30 ANSETT AUSTRALIA: Administrators Distribute AU$27-Mil. Dividend ANSETT AUSTRALIA: Winds Up Five Super Plans & Sets Up New Fund ARBT PTY: To Hold Final Meeting on January 19 AWB LIMITED: Renews AU$750 Million Syndicated Loan Facility BDI PTY LTD: Court Prevents Sale of Assets at ASIC's Request GLOBAL ENGINEERED: Taken Over by Specifix Fasteners HOLLENBERG KAY: Members' Final Meeting Slated for Jan. 19 NIGHT OWL: To Declare First and Final Dividend on Jan. 18 NM (PROPERTIES): Liquidator to Present Wind-Up Report NORDISK AVIATION: Enters Voluntary Wind-Up PERLITE CORPORATION: Members to Receive Wind-Up Report QEST CONSULTING: Placed Under Voluntary Wind-Up R & J CONN: Members Opt to Liquidate Business SPUDS SURF: Members and Creditors to Receive Wind-Up Report WATTS PUBLISHING: Undergoes Voluntary Liquidation WONSANA PTY: Court Issues Wind-Up Order C H I N A & H O N G K O N G ASSOCIATED CONSULTING: Joint Liquidators Cease to Act BRIDGELEY LTD: Members to Hear Liquidators' Report on Jan. 22 BYTEPOWER TECHNOLOGY: Faces Wind-Up Proceedings CHINA STAR: Members Decide to Close Business DAH CHUNG BILLS: Fitch Affirms 'C' Individual Rating FLOAT SPARK: Shareholders Opt to Wind Up Firm FORTUNE TOWER: Creditors' Proofs of Debt Due on January 22 HUA NAN COMMERCIAL BANK: Fitch Affirms 'C/D' Individual Rating INTERNATIONAL BILLS: Fitch Affirms 'C' Individual Rating NEW GAGNEUR: Final Meeting Slated for January 23 PACE MICRO: Appoints Joint Liquidators SKYLINE VIEW: Members to Receive Wind-Up Report on Jan. 25 WATERLAND FINANCIAL: Fitch Affirms 'C' Individual Rating WATERLAND SECURITIES: Fitch Affirms 'BB' Long-Term Rating WEIHAI SHIPPING: Placed Under Voluntary Wind-Up I N D I A AES CORP: Entering Into Electric Transmission Business INDIAN OIL: Fitch Gives 'BBB-' Long-Term Foreign Currency IDR NTPC LTD: Inks JV Pact to Build Coal Power Plant in Haryana ORIENTAL BANK: Plans to Focus on Resource Mobilization ORIENTAL BANK: Names V Vijayasai Reddy as Non-Official Director POWER FINANCE: Submits Red Herring Prospectus with SEBI RELIANCE INDUSTRIES: DGH Oks Addendum to KG-D6 Development Plan VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO I N D O N E S I A ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom BANK DANAMON: To Issue IDR 1.5-2 Trillion Bonds in 2007 BEARINGPOINT: Completes SAP Utility Project for Light Servicos INTERNATIONAL NICKEL: Expects To Meet 71, 000 Tons Nickel Output PT PERTAMINA: Can't Speed Up Gas Production in Cepu Block in '09 K O R E A ARAMARK INC: Shareholders Approve Investors' Buyout of Firm CLOROX CO: To Buy Colgate's Canada & Latin America Bleach Assets DURA AUTOMOTIVE: Gets Final Nod to Pay Non-Debtor Affiliates DURA AUTOMOTIVE: Moody's Withdraws Ratings on Chapter 11 Filing DURA AUTO: Wants to Enter Into Senior Executive Employment Pact PANTECH CO: Pantech&Curitel Fails to Honor KRW2-Billion Debt M A L A Y S I A AKER KVAERNER: Unveils Updated Corporate Responsibility Policies COGNIS GMBH: Fitch Junks Senior Unsecured Debt NORTH BORNEO: Posts MYR50.487-Mil. Net Profit in 3rd Qtr. 2006 PSC INDUSTRIES: Files Proposed Restructuring Scheme SOLUTIA INC: Receives Commitment for US$1.1-Billion DIP Loan M O N G O L I A * S&P Raises Long-Term Sovereign Credit Ratings to 'B+' N E W Z E A L A N D ABOUT CEILINGS: Shareholders Resolve to Liquidate Business BELL MACINTOSH: Creditors Must Lodge Claims by January 3 COASTLINES LTD: Creditors' Proofs of Debt Due on Jan. 26 FOREIGN WHOLESALE: Creditors to File Claims by Jan. 3 METRO AIR: Liquidators to Accept Claims Until Jan. 3 MONEY EXPRESS: Creditors' Proofs of Claim Due on Jan. 19 MOTOMAHOE FARMS: Shareholders Agree to Close Business R F AND C A: Creditors Must Lodge Claims by Dec. 28 T F LTD: Court Appoints Joint Liquidators P H I L I P P I N E S * Pres. Arroyo Receives US$653 Mln. in Loans & Grants from ADB * Philippine Economy to Grow 5.7% in 2007, NEDA says S I N G A P O R E ARMSTRONG INDUSTRIAL: Share Registrar Moves to Another Place AVAGO TECHNOLOGIES: Posts US$405 Mil. Revenue in 2006 4th Qtr. CHINA AVIATION: Closes January 2007 Fuel Tender CHINA AVIATION: Relocates Share Registrar and Place of Index HLG ENTERPRISE: Classic Exercises Option to Purchase Tristar HLG ENTERPRISE: Subsidiary to Sell Two Shops to Noble Pte SEE HUP SENG: Merrill Lynch Take Shares SEE HUP SENG: Completes Placement Agreements T H A I L A N D DAIMLERCHRYSLER AG: Truck Unit Eyes US$300-Mln Plant in Mexico DAIMLERCHRYSLER AG: Applauds ITC's Order to Revoke Steel Duties FEDERAL-MOGUL: Bankruptcy Court Okays Ernst & Young as Advisors FEDERAL-MOGUL: Trizec to Serve on Asbestos Claimants Panel * BOND PRICING: For the Week 18 December to 22 December 2006 - - - - - - - - ================= A U S T R A L I A ================= 2TM MANAGEMENT: Schedules Members' Final Meeting on Jan. 30 ----------------------------------------------------------- 2TM Management Pty Ltd, which is in members' voluntary liquidation, will hold a meeting for its members on Jan. 30, 2007, at 11:00 a.m. During the meeting, the members will receive Liquidator J. Morgan's account of the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia About 2TM Management 2TM Management Pty Ltd provides business services. The company is located in New South Wales, Australia. ANSETT AUSTRALIA: Administrators Distribute AU$27-Mil. Dividend --------------------------------------------------------------- The distribution of Ansett Australia Pty Ltd's seventh dividend -- AU$27.0 million -- has started on Dec. 14, 2006, through electronic transfer, the company's administrators Mark Korda and Mark Mentha discloses. The seventh dividend consists of: -- AU$16.4 million to former Ansett employees; and -- AU$10.6 million to the Federal Government to repay staff entitlements previously paid under the Commonwealth SEESA scheme. A dividend is being paid as AU$22 million of assets have been sold since September 2006 and various contingent liabilities resolved, Mr. Korda explains. Assets sold include aircraft and aircraft parts and spares. "The seventh dividend payment is 15% of each employee's outstanding entitlements," Mr. Korda says. "It is an average of approximately AU$1,700 per employee, with some employees receiving more than AU$17,000." Accordingly, the seventh dividend brings to: -- AU$666.9 million the total payments made to Ansett's 15,000 former staff; and -- AU$132.5 million the total of dividends paid by the Ansett Administrators during the 2006 calendar year. Ansett continues to sell off the spare parts inventory and the remaining assets. Currently there is in excess of 9 million units of inventory across 217,000 line items to be sold and two remaining properties. Further dividends will be paid over the next one to two years dependent on further asset sales. Mr. Korda expects that on average, employees will receive over 90 cents on the dollar of their entitlements. Employees Protest However, a report from ABC News Online relates that former Ansett employees and their families called on the Federal Government to release more than AU$90 million still owing to more than 9,000 workers. They demanded the entitlements left unpaid since the airline's collapse in 2001, the report relates. The Transport Workers Union asserted that the Federal Government has raised more than enough money to pay the entitlements with the help of the Ansett ticket levy, ABC News says. The paper cites TWU's Wayne Forno, as saying it is unethical for the Government to have charged the public the ticket tax without passing on the money to the workers. "The reality is they haven't been paid that AU$93 million, so that's another broken commitment given by John Howard at the time," Mr. Forno said. "The reality is there's AU$220 million sitting in the Treasury coffers, and AU$93 million still outstanding to pay for the Ansett workers," Mr. Forno added. Mr. Forno noted that they will continue to protest "until such time as the Federal Government lives up to its promise." About Ansett Australia Ansett Australia Pty Ltd. -- http://www.ansett.com.au/-- was a major Australian domestic and international airline at its height in 1996. Ansett operated for 66 years and 11 days after its first take off from Hamilton in Western Victoria. On September 12, 2001, the acting chairman of Air New Zealand, Jim Farmer, announced that Ansett Holdings and a number of its subsidiary businesses, including airlines, have resolved into voluntary administration. Gregory Hall, Peter Hedge and Allan Watson of PricewaterhouseCoopers were appointed as administrators to take control of Ansett. On September 17, 2001, Mr. Hedge stood down as administrator. Accordingly, Mark Korda and Mark Mentha of KordaMentha Pty Ltd were named as the new administrators of the Ansett Group of Companies. The new administrators estimated Ansett's debt to be as high as AU$2 billion. On May 2, 2002, 36 Ansett companies under administration executed Deeds of Company Arrangement. Copies of the DOCAs can be accessed for free at: http://www.ansett.com.au/administrator/doca.htm Since March 4, 2002, flights operated by the Ansett Australia Group ceased. A timeline of announcements made by the Ansett Administrators from the time of Ansett's resolve into Voluntary Administration is available for free at: http://www.ansett.com.au/timeline/timeline_f.htm ANSETT AUSTRALIA: Winds Up Five Super Plans & Sets Up New Fund -------------------------------------------------------------- All outstanding superannuation contributions to former employees of Ansett Australia Pty Ltd have been paid in full, the Australian Associated Press cites Assistant Treasurer Peter Dutton as saying. The Australian Prudential Regulation Authority supervised the funds, AAP says. According to Mr. Dutton, Ansett's five stand-alone super plans have since been wound-up, The Daily Telegraph relates. A new fund -- Ansett Residual Superannuation Fund -- was established on July 1, 2004, to represent the residual assets and liabilities of two of the wound-up plans: 1. the Ansett Australia Ground Staff Superannuation Plan; and 2. the Flight Attendants' Benefits Scheme APRA continues to supervise the administration of the new fund. "APRA continues to supervise the administration of this fund, which is intended to be wound up once all outstanding insurance claims have been settled and surplus assets have been distributed amongst the members," Mr. Dutton said. About Ansett Australia Ansett Australia Pty Ltd. -- http://www.ansett.com.au/-- was a major Australian domestic and international airline at its height in 1996. Ansett operated for 66 years and 11 days after its first take off from Hamilton in Western Victoria. On September 12, 2001, the acting chairman of Air New Zealand, Jim Farmer, announced that Ansett Holdings and a number of its subsidiary businesses, including airlines, have resolved into voluntary administration. Gregory Hall, Peter Hedge and Allan Watson of PricewaterhouseCoopers were appointed as administrators to take control of Ansett. On September 17, 2001, Mr. Hedge stood down as administrator. Accordingly, Mark Korda and Mark Mentha of KordaMentha Pty Ltd were named as the new administrators of the Ansett Group of Companies. The new administrators estimated Ansett's debt to be as high as AU$2 billion. On May 2, 2002, 36 Ansett companies under administration executed Deeds of Company Arrangement. Copies of the DOCAs can be accessed for free at: http://www.ansett.com.au/administrator/doca.htm Since March 4, 2002, flights operated by the Ansett Australia Group ceased. A timeline of announcements made by the Ansett Administrators from the time of Ansett's resolve into Voluntary Administration is available for free at: http://www.ansett.com.au/timeline/timeline_f.htm ARBT PTY: To Hold Final Meeting on January 19 --------------------------------------------- ARBT Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Jan. 19, 2007, at 10:00 a.m. At the meeting, the members and creditors will receive the liquidator's account regarding the company's wind-up proceedings and property disposal exercises. The liquidator can be reached at: R. W. Whitton c/o Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 8346 6000 About ARBT Pty ARBT Pty Ltd -- trading as Heartland Communications -- is a subsidiary of Maxis Corporation. The company specializes in the delivery of broadband telecommunications to regional and remote Australia using a 2-way satellite and wireless local loop solutions. Its initial target market is the regional Australian towns of up to 40,000 people where population is sparse and offers a greater opportunity for satellite applications. It planned to expand later to larger towns and use alternative hybrid wireless solutions, in conjunction with vsats. The company is located in New South Wales, Australia. AWB LIMITED: Renews AU$750 Million Syndicated Loan Facility ----------------------------------------------------------- In a filing with the Australian Securities Exchange, AWB Limited discloses that it has secured ongoing funding commitment from its banking syndicate for a AU$750 million Syndicated Loan Facility for the commercial business operations. As part of this commitment, AWB and its Australian subsidiaries -- excluding AWB International, AWB Harvest Finance, AWB Services and the assets of the Rural Master Trust -- have agreed to provide the banking syndicate with security over its assets. The charge also provides security to the trustee of Landmark's interest bearing deposit notes. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. In late 2005, AWB was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. However, after auditing AWB's financial results for the fiscal year ended September 30, 2006, Brett Kallio, a partner at Ernst & Young, disclosed that there is inherent uncertainty surrounding the consolidated entity with regard to matters associated with the Federal Inquiry into certain Australian companies in relation to the United Nations Oil-for-Food Programme. Mr. Kallio noted that there is uncertainty as to the nature of the findings of the Oil-for-Food Inquiry and the resultant impact, if any, on the company's financial position, financial performance, cash flows and its operations arising directly or indirectly from the Inquiry. * * * The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that six American wheat farmers have launched a AU$1-billion class action against AWB in the United States, claiming its dealings in overseas markets damaged their own incomes. More farmers followed suit. The TCR-AP also previously reported that Australian law firm Maurice Blackburn Cashman was considering a class action against AWB on behalf of shareholders who lost money in the wake of the Cole Inquiry. AWB's September 30, 2006, balance sheet showed total assets of AU$5.65 billion and total liabilities of AU$4.52 billion resulting to total shareholders' equity of AU$1.12 billion. BDI PTY LTD: Court Prevents Sale of Assets at ASIC's Request ------------------------------------------------------------ The Australian Securities and Investments Commission sought and obtained ex parte orders from the Supreme Court of New South Wales preventing Jennifer Lee Robbins and BDI Pty Ltd from selling or disposing of certain properties without first having given the ASIC 14 clear days written notice of its intention to do so. The ASIC became aware that certain property of BDI had been sold or was currently on the market. The Court issued the orders on December 20, 2006. The issuance was part part of proceedings against Neil Austin Burnard and Palentia Pty Ltd, formerly known as Kebbel (NSW) Pty Ltd (Palentia). Ms. Robbins -- the only shareholder of BDI -- is also the wife of Mr. Burnard. The couple is the sole director of the company. BDI is the trustee of several trusts of which members of the Burnard family are beneficiaries. In relation to other properties which have already been sold, Justice Brereton directed BDI to pay the proceeds of sales into an interest-bearing account with the National Australia Bank in the name of BDI and to not transfer or otherwise deal with the proceeds without first having given the ASIC 14 clear days written notice of its intention to do so. The ASIC has previously obtained orders from the Supreme Court of NSW to restrain Mr. Burnard from leaving the country and to deliver up all passports, as well as orders preventing Mr. Burnard and Palentia from disposing of their assets until 5:00 p.m. on January 29, 2007, subject to the payment of certain expenses as authorized by the Court. The parties have liberty to apply to the Court in relation to these orders. The matter will return to the New South Wales Supreme Court for further hearing at 10:00 a.m. on January 29, 2007. GLOBAL ENGINEERED: Taken Over by Specifix Fasteners --------------------------------------------------- Former workers at Ajax Fasteners' Melbourne factory, which produced automotive and industrial fasteners for Ford, General Motors, Holden, Toyota and Mitsubishi, will re-open production on Jan. 1, 2007, under a proposed takeover deal that will save some jobs, the Australian Associated Press reports. The report says that the workers unanimously voted to accept the deal, which would see the company taken over by Specifix Fasteners Pty Ltd. As reported in the Troubled Company Reporter - Asia Pacific on December 18, 2006, Ajax Engineered Fasteners went into liquidation after a meeting of its creditors, leaving 189 people unemployed. The workers had hoped the company could be sold to an Indian-based consortium -- the Uma Group -- but it will now be wound down because it is not viable in its current form. According to The Age, the workers received a total of AU$5.86 million in redundancy payments, and it is expected that 60-70 will be rehired under the deal. Those rehired will be able to keep their redundancy pay-out, the paper adds. There was written confirmation from all stakeholders that the deal with Specifix should go-ahead, AAP quotes AWU Victorian secretary Cesar Melham. Mr. Melham hoped the deal would be signed December 29, 2006, or earlier. "The lawyers are drafting the final paperwork, the actual sale contract. Until that is actually signed, sealed and delivered, this one is not over," Mr. Melham noted. Stephen Longley from Ajax's liquidator PricewaterhouseCoopers said the deal was the "best offer on the table" and should be accepted, AAP relates. About GEF Based at the Ajax plant in Braeside, Victoria, Global Engineered Fasteners -- http://www.ajaxfast.com.au/-- wholly owns Ajax Engineered Fasteners. GEF also owns the full-service automotive supplier Global Automotive Logistics. Allen Capital Private Equity and a team of company directors jointly own GEF. GEF was established in 2004 to acquire the assets of Ajax EF and GAL from the Nylex Group. GEF supplies customers, including GM Holden, Pacifica Group, and Textron, with nuts and bolts for engines and suspension parts as well as fasteners for other vehicle parts. The Troubled Company Reporter - Asia Pacific reported on Aug. 9, 2006, that Allen Capital, the private equity owner of Global Engineered Fasteners, called in administrators to try to engineer a turnaround after the Company's battle with rising costs and falling volumes failed. The report noted that the action was due to the Company's more than AU$5 million in debt and the inability to convince Holden and brakes-maker Pacifica to agree to price rises. The directors of GEF appointed Stephen Longley and David McEvoy, of PricewaterhouseCoopers, as the Company's voluntary administrators. A TCR-AP report on Dec. 18, 2006, related that GEF's division Ajax Engineered Fasteners has gone into liquidation after a meeting of its creditors, leaving 189 people unemployed. HOLLENBERG KAY: Members' Final Meeting Slated for Jan. 19 --------------------------------------------------------- The final meeting of the members of Hollenberg Kay Pty Ltd, which is in liquidation, will be held on Jan. 19, 2007, at 10:00 a.m. During the meeting, the members will receive an account of the company's wind-up proceedings and property disposal exercises from Liquidator R. G. Tolcher. The Liquidator can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle, West New South Wales 2303 Australia About Hollenberg Kay Hollenberg Kay Pty Limited manufactures home furnishings. The company is located in New South Wales, Australia. NIGHT OWL: To Declare First and Final Dividend on Jan. 18 --------------------------------------------------------- Night Owl Plumbing Pty Ltd, which is in liquidation, will declare its first and final dividend on Jan. 18, 2007. In this regard, creditors are required to submit their proofs of debt by Jan. 4, 2007, or they will be excluded from the dividend distribution. The liquidator can be reached at: P. Newman HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia About Night Owl Night Owl Plumbing Pty Ltd provides plumbing, heating, and air- conditioning services. The company is located in Victoria, Australia. NM (PROPERTIES): Liquidator to Present Wind-Up Report ----------------------------------------------------- The members of NM (Properties) Pty Ltd, which was placed under members' voluntary liquidation, will meet on Jan. 30, 2007, at 11:00 a.m. At the meeting, Liquidator John Morgan will present the report of the company's wind-up proceedings and property disposal activities. The Liquidator can be reached at: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia About NM (Properties) NM (Properties) Pty Ltd manufactures durable goods. The company is located in New South Wales, Australia. NORDISK AVIATION: Enters Voluntary Wind-Up ------------------------------------------ On Dec. 7, 2006, the shareholders of Nordisk Aviation Products Australia Pty Ltd resolved by a special resolution to voluntarily wind up the company's operations and John Lord was appointed as liquidator. The Liquidator can be reached at: John Lord PKF Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia About Nordisk Aviation Nordisk Aviation Products Australia Pty Limited runs repair shops and provide related services. The company is located in New South Wales, Australia. PERLITE CORPORATION: Members to Receive Wind-Up Report ------------------------------------------------------ The members of Perlite Corporation (O'Seas) Pty Ltd will meet on Jan. 19, 2007, at 11:00 a.m., to receive a report regarding the company's wind-up proceedings from Liquidator G. D. Olling. As reported by the TCR-AP, the company was placed under voluntary liquidation on Aug. 23, 2006. The Liquidator can be reached at: G. D. Olling Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia About Perlite Corporation Perlite Corporation (O/Seas) Pty Ltd is a distributor of beer and ale. The company is located in New South Wales, Australia. QEST CONSULTING: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 6, 2006, the members of Qest Consulting Pty Ltd met and resolved to voluntarily liquidate the company's operations. Accordingly, Nicholas Martin was appointed as liquidator at the creditors' meeting held subsequently that same day. The Liquidator can be reached at: Nicholas Martin PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Qest Consulting Qest Consulting Pty Ltd -- trading as Qest Consulting Engineers Pty Ltd -- provides engineering services. The company is located in Victoria, Australia. R & J CONN: Members Opt to Liquidate Business --------------------------------------------- The members of R & J Conn Pty Ltd, on Nov. 30, 2006, passed a special resolution to liquidate the company's business and to distribute the proceeds of its assets disposal. The liquidator can be reached at: Sinclair Wilson Accountants & Business Advisors 177 Koroit Street Warrnambool, Victoria 3280 Australia About R & J Conn R & J Conn Pty Ltd operates miscellaneous food stores. The company is located in Victoria, Australia. SPUDS SURF: Members and Creditors to Receive Wind-Up Report ----------------------------------------------------------- The members and creditors of Spuds Surf North Rocks Pty Ltd will meet on Jan. 30, 2007, at 11:00 a.m., to receive Liquidator Scott Pascoe's final report regarding the company's wind-up. As reported in the Troubled Company Reporter - Asia Pacific, the company was placed under creditors' voluntary wind-up on June 30, 2006. The Liquidator can be reached at: Scott Pascoe Sims Partners Level 24, Australia Square 264 George Street Sydney, New South Wales 2001 Australia Telephone: 9241 3422 About Spuds Surf Spuds Surf North Rocks Pty Limited is a distributor of Women's outerwear. The company is located in New South Wales, Australia. WATTS PUBLISHING: Undergoes Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on Dec. 1, 2006, the members of Watts Publishing Australia and New Zealand Pty Ltd passed a special resolution to voluntarily liquidate the company's business and appointed David Cocking as liquidator. The Liquidator can be reached at: David Cocking 24 Simla Road Denistone, New South Wales 2114 Australia About Watts Publishing Watts Publishing Australia and New Zealand Pty Limited is a publisher of books, periodicals, and newspapers. The company is located in New South Wales, Australia. WONSANA PTY: Court Issues Wind-Up Order --------------------------------------- The Federal Court of New South Wales issued an order on Dec. 6, 2006, to wind up the operations of Wonsana Pty Ltd and appointed Daniel Civil as the official liquidator. The Official Liquidator can be reached at: Daniel Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 About Wonsana Pty Wonsana Pty Ltd -- trading as Tower Taxi Trucks; Tower Taxi Trucks & Removals -- operates local trucks with storage. The company is located in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ ASSOCIATED CONSULTING: Joint Liquidators Cease to Act ----------------------------------------------------- Shek Chun Wilfred and Yu Tak Yee Beryl ceased to act as joint and several liquidators of Associated Consulting Engineers Ltd on Dec. 7, 2006. As reported in the Troubled Company Reporter - Asia Pacific, Mr. Shek presented the company's wind-up report during the final meeting of the company's members held on Dec. 7, 2006. The former Liquidators can be reached at: Wu Shek Chun Wilfred Yu Tak Yee Beryl YWC & Partners 17/F, Punfet Building 701 Nathan Road, Kowloon Hong Kong BRIDGELEY LTD: Members to Hear Liquidators' Report on Jan. 22 ------------------------------------------------------------- The members of Bridgeley Ltd will meet on Jan. 22, 2007, at 10:00 a.m., to receive the liquidators' report of the company's wind-up proceedings and property disposal activities. The Liquidators can be reached at: Wong Poh Weng Bruce William Dunlop 7/F, Allied Kajima Building 138 Gloucester Road Hong Kong BYTEPOWER TECHNOLOGY: Faces Wind-Up Proceedings ----------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Bytepower Technology Ltd -- formerly Associate Century Ltd -- on Jan. 24, 2007, at 9:30 a.m. Net-Tech Products Ltd filed the petition against the company on Nov. 21, 2006. The solicitors for the Petitioner can be reached at: Chui and Lau Room 42, 4/F New Henry House 10 Ice House Street, Central Hong Kong About Bytepower Technology Bytepower Technology Ltd -- http://www.bytepower.com.hk/-- is a distributor of LCD Monitor, Bytepro PMP and Bytepro Digital Partner. The company is located in Kwai Chung NT, Hong Kong. CHINA STAR: Members Decide to Close Business -------------------------------------------- On Dec. 15, 2006, the members of China Star Oilfield Materials Trading Ltd passed a special resolution to voluntarily wind up the company's operations. In this regard, Lau Wing Ling was appointed as liquidator and was authorized to divide the company's assets. DAH CHUNG BILLS: Fitch Affirms 'C' Individual Rating ---------------------------------------------------- Fitch Ratings has affirmed the ratings of Taiwan-based Dah Chung Bills Finance Corporation as follows: * Long-term foreign currency Issuer Default rating of 'BBB-'; * National Long-term rating of 'A(twn)'; * Short-term foreign currency rating of 'F3'; * National Short-term rating of 'F1(twn)'; * Individual rating of 'C'; and * Support rating of '4'. The Outlook on all the ratings remains Stable. These affirmations follow an annual review of the company. The ratings also reflect DCBF's solid capitalisation and adequate asset quality. While its investment portfolio has a relatively low risk profile, this is offset by weaknesses such as the relatively concentrated credit exposure and the potential liquidity risk arising from the maturity timing mismatch between assets and liabilities. DCBF's exposure to the real estate and construction sector has grown substantially since 2003; at 8M06, the sector accounted for 39.2% of the total guarantee portfolio, compared to 18.8% in 2003. The growth has created a potential concentration risk and the company's asset quality could be affected if the domestic property market experiences a sudden downturn. Nevertheless, the company applied stringent risk assessment and collateral policies when extending credit lines; at 73%, the company's secured guarantee lines as a proportion of total credit exposure are relatively higher than that of its peers (50% to 60%). It also seeks diversification within the property market and progressively increased its undertaking of commercial property financing, which often has reasonably good rental yield to secure interest payment. The company's profitability remained relatively stable thanks to the management's decision to avoid investing in the bond market. Most bills finance corporations saw a substantial decline in their bottom lines due to an abrupt rate hike in April 2006, but DCBF's H106 pre-provision profit improved moderately from FY05. Capitalisation remained robust at end-H106, a capital adequacy ratio of 16.9% is above the industry average of 15% and the 8% legal requirement. DCBF is one of the new bills finance corporations founded after the industry was deregulated in 1995. Far Eastern International Bank (rated 'BBB', Negative Outlook) and Taishin International Bank (rated 'BBB') are its major institutional shareholders with stakes of 22.5% and 18.8% respectively. DCBF's core businesses are bills and bond underwriting, trading and providing guarantees for local corporations seeking short-term financing. FLOAT SPARK: Shareholders Opt to Wind Up Firm --------------------------------------------- At an extraordinary general meeting held on Dec. 11, 2006, the shareholders of Float Spark Ltd passed a special resolution to voluntarily wind up the company's operations. In this regard, Chan Cheuk Ying and Lee Cho Yiu Julia were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Chan Cheuk Ying Lee Cho Yiu Julia Suite 1, 8/F New Henry House, 10 Ice House Street Central, Hong Kong FORTUNE TOWER: Creditors' Proofs of Debt Due on January 22 ---------------------------------------------------------- Liquidator Lee Siu Leung requires the creditors of Fortune Tower Ltd, which is in members' voluntary liquidation, to submit their proofs of debt by Jan. 22, 2007. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Lee Siu Leung Room 1702, 17/F Tung Hip Commercial Building 248 Des Voeux Road, Central Hong Kong HUA NAN COMMERCIAL BANK: Fitch Affirms 'C/D' Individual Rating -------------------------------------------------------------- Fitch Ratings affirmed the ratings of Taiwan-based Hua Nan Commercial Bank and upgraded the Long- and Short-term foreign currency, National Long- and Short-term, and Support ratings of its affiliate Hua Nan Bills Finance Corp. and affirmed its Individual Rating. Both are subsidiaries of Hua Nan Financial Holding Co. HNCB: -- Long-term Issuer Default rating of 'BBB+', -- Short-term foreign currency rating of 'F2', -- National Long-term rating of 'AA-(twn)', -- National Short-term rating of 'F1(twn)', -- Individual rating of 'C/D', and -- Support rating of '2'. The Outlook on the ratings remains Stable. HNBFC: -- Long-term IDR upgraded to 'BBB-' from 'BB+', -- Short-term foreign currency rating upgraded to 'F3' from 'B', -- National Long-term rating upgraded to 'A(twn)' from 'A-(twn)', -- National Short-term rating upgraded to 'F1(twn)' from 'F2(twn)', -- Individual affirmed at 'D/E', and -- Support rating upgraded to '2' from '3'. The Outlook on the ratings is Stable. The ratings on HNCB reflect its sound overall asset quality, established market position, its systemic importance to the local banking sector, and expected strong government support in event of need. HNCB has generated steady net interest income and pre-provision profits since 2003, and its net income has been boosted by strong recoveries from sales of collaterals after its large NPL write-off in 2002. Its loan portfolio grew 6% year-on-year in H106, and had balanced growth across different sectors. Corporate lending makes up over 50% of the loan portfolio, while consumer lending, mostly in the form of mortgages, accounts for 30%. The NPL level has been steady and nearly 50% of NPLs is secured by real estate. HNCB has strong liquidity and reasonable capital adequacy. HNBFC's IDR and Short-term ratings have been upgraded to reflect stronger likelihood of business and liquidity support from its parent HNFHC and HNCB. Its Individual rating reflects weak, though improving asset quality, increasing diversity of its revenue source and its asset/liability maturity mismatch, which is typical among bills finance corporations. HNBFC incurred trading losses of over TWD200 million in H106 as government bond yields spiked in April and May. However, net interest income and fee income have offset the trading losses and allowed HNBFC to book a small profit before provision expenses by end-Q306. HNBFC's guarantee portfolio shrank by 13.6% between end-2005 and end-Q306. Its guarantee-to-equity ratio is in-line with the sector average at end-Q306. HNBFC's problem exposure to guarantee ratio dropped to 15.2% at end-Q306 from 38.0% at end- 2004. HNBFC plans to write off additional problem credits by end-2006. HNCB is Taiwan's fourth-largest bank with a 6.3% market share in deposits and 5.9% market share in loans, and has a network of 182 domestic branches at end-Q306. Through a share swap in 2001, it became a wholly-owned subsidiary of HNFHC. HNCB is the principal subsidiary of HNFHC. The government owns 35% of HNFHC. HNBFC is the successor of Central Bills Finance Corporation. In December 2002, HNFHC injected fresh capital and took control of the company with beneficiary shares totaling 99.9%, including 42.4% held by HNCB. The company adopted its present name in July 2003 to reflect its new identity. HNBFC has its headquarters in Taipei and a branch office in southern Taiwan. INTERNATIONAL BILLS: Fitch Affirms 'C' Individual Rating -------------------------------------------------------- Fitch Ratings has affirmed the ratings of International Bills Finance Corporation as follows: -- Long-term foreign currency Issuer Default rating of 'BBB-', -- Short-term foreign currency rating of 'F3', -- National Long-term rating of 'A+(twn)', -- National Short-term rating of 'F1(twn)', -- Individual rating of 'C', and -- Support rating of '4'. The Outlook for all the ratings is Stable. Fitch has affirmed the rating of IBF to reflect its robust risk management, sound asset quality and adequate capitalisation. Its ROE dropped to a rather modest level of 8.8% in H106 as a result of the continued interest margin attrition and a depreciation in value of its bond portfolio due to a sudden surge in long term bond yield in April 2006. IBF's problem exposure continues to decline given a well- established credit line evaluation and approval process and market risk exposure limits are well defined and controlled. IBF's reported CAR (13.76% as at end-H106) has been well above the regulatory requirement of 8% and Fitch views it is sufficient to absorb any unexpected loss from daily business operation and investment. Waterland Financial Holdings, founded in 2002, is a relatively small financial holding company in Taiwan. It wholly-owns International Bills Finance, the second largest bills finance corporation and has a 55% stake in Waterland Securities Co., a medium-sized securities company. WFH's core competence is in the fixed income market and to date, interest related- and trading income have been the group's major source of earnings through IBF's business operations. NEW GAGNEUR: Final Meeting Slated for January 23 ------------------------------------------------ The final meeting of the members and creditors of New Gagneur Ltd will be held on Jan. 23, 2007, at 10:30 a.m. and 10:45 a.m., respectively. During the meeting, the liquidators will present an account of the company's wind-up proceedings and property disposal exercises. According to the TCR-AP, the members and creditors of the company met on Oct. 12, 2006, to receive the liquidators' final account. The Joint and Several Liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong PACE MICRO: Appoints Joint Liquidators -------------------------------------- Alan C W Tang and Wong Kwok Man were appointed as joint and several liquidators of Pace Micro Technology (Asia Pacific) Ltd by virtue of a special resolution passed on Dec. 15, 2006. The Joint and Several Liquidators can be reached at: Alan C W Tang Wong Kwok Man Grant Thornton Certified Public Accountants 13/F, Gloucester Tower The Landmark 15 Queen's Road, Central Hong Kong SKYLINE VIEW: Members to Receive Wind-Up Report on Jan. 25 ---------------------------------------------------------- The members of Skyline View Ltd will meet on Jan. 25, 2007, at 10:30 a.m., to receive a report regarding the company's wind-up proceedings from Liquidator Lin Lai Har Wendy. The Liquidator can be reached at: Lin Lai Har Wendy 1301 Eton Tower 8 Hysan Avenue, Causeway Bay Hong Kong WATERLAND FINANCIAL: Fitch Affirms 'C' Individual Rating -------------------------------------------------------- Fitch Ratings has affirmed the ratings of Waterland Financial Holdings as follows: -- Long-term foreign currency Issuer Default rating of 'BBB-', -- Short-term foreign currency rating of 'F3', -- National Long-term rating of 'A(twn)', -- National Short-term rating of 'F1(twn)', -- Individual rating of 'C', and -- Support rating of '5'. The Outlook for all the ratings is Stable. The ratings of Waterland Financial reflect the Waterland Group's strong capitalisation and limited leverage. Compared to its "bank-centric" financial holding peers, WFH's business scope is relatively restrictive to the operations of bills finance and securities companies. As International Bills Finance Corporation makes up 94% of WFH's asset base and contributes an equivalent proportion of group net income, WFH's ratings mainly hinge on IBF's financial strength and risk profile. Waterland Financial Holdings, founded in 2002, is a relatively small financial holding company in Taiwan. It wholly-owns International Bills Finance, the second largest bills finance corporation and has a 55% stake in Waterland Securities Co., a medium-sized securities company. WFH's core competence is in the fixed income market and to date, interest related- and trading income have been the group's major source of earnings through IBF's business operations. WATERLAND SECURITIES: Fitch Affirms 'BB' Long-Term Rating --------------------------------------------------------- Fitch Ratings has affirmed the ratings of Waterland Securities Co. as follows: -- Long-term foreign currency Issuer Default rating of 'BB+', -- Short-term foreign currency rating of 'B', -- National Long-term rating of 'A-(twn)', -- National Short-term rating of 'F2(twn)', -- Individual rating of 'D', and -- Support rating of '3'. The Outlook for all the ratings is Stable. The ratings of Waterland Securities reflect the expected strong support from its parent, Waterland Financial Holdings. The Individual rating incorporates its weaker market position and a less diversified business operation, but solid capitalisation. Its reported CAR was 677% as at end-H106, far exceeding the regulatory 150%. WSC experienced a major reshuffle of management in its proprietary trading and research department. Fitch views the changes as positive for WSC's operating profile, its operations having hitherto been concentrated in its brokerage division. WSC's profitability has recovered from the previous year's loss and the company reported an annualised ROE of 1.5% at end-Q306 thanks to the increased turnover of Taiwan's stock market. Waterland Financial Holdings, founded in 2002, is a relatively small financial holding company in Taiwan. It wholly-owns International Bills Finance Corp., the second largest bills finance corporation and has a 55% stake in Waterland Securities Co., a medium-sized securities company. WFH's core competence is in the fixed income market and to date, interest related- and trading income have been the group's major source of earnings through IBF's business operations. WEIHAI SHIPPING: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 15, 2006, the members of Weihai Shipping Service Ltd passed a special resolution to voluntarily wind-up the company's operations. Accordingly, Lau Wing Ling was appointed as liquidator and authorized to divide the company's assets. ========= I N D I A ========= AES CORP: Entering Into Electric Transmission Business ------------------------------------------------------ The AES Corp. is entering the electric transmission business as part of its overall growth strategy for North America. Through a new wholly owned subsidiary, AES said it has acquired the development pipeline and trade name from Trans-Elect, LLC, a leading transmission developer. In addition, AES disclosed that the new subsidiary has entered into an agreement with Trans- Elect's former management team to jointly develop projects across North America to extend and improve the nation's electricity grid. "We see significant potential for transmission development in North America with grid investment expected to nearly double by 2010. Increasing congestion costs in many high demand areas of the country, the growing development of renewable generation located far from load centers, and enhanced regulatory support at the state, regional, and federal levels are driving this growth," said David Gee, President of AES North America. "Independent electric transmission is a natural complement to our existing generation development business. We also see significant synergy and opportunity in working with Trans- Elect's development team as they are proven and respected in the transmission business." Trans-Elect was formed in 1999 as the first independent transmission company in North America to pursue the development of independently owned electric transmission with the goal of increasing the reliability of the system and lowering costs to consumers. Since 2002, Trans-Elect has acquired an interest in the AltaLink transmission system in Alberta, Canada, purchased Consumers Energy's Michigan transmission system and secured financing to construct the expansion of the Path 15 transmission line in California. Before being sold to third parties, these assets totaled 12,600 miles of transmission assets under management. "Trans-Elect is proud to have pioneered independent electric transmission ownership and new transmission development in this country," said Bob Mitchell, Chief Executive Officer of Trans- Elect Development, LLC, and a former executive at Trans-Elect. "We are excited about this new relationship with AES as they have been a creative force in developing independent generation in the US. Additionally, we believe that AES's development skills, industry relationships, and financing capabilities will enhance our efforts to meet the nation's electricity needs." Transmission investment in the United States has increased dramatically since the late 1990's from US$2.5 billion in 1998 to US$5.5 billion in 2005. According to the Edison Electric Institute, transmission investment could reach US$8.0 billion per year by 2008 and US$10.0 billion or more by 2010. About AES Corp. AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has presence in India, China and Sri Lanka. * * * As reported in the Troubled Company Reporter - Asia Pacific on Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- Given-Default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. INDIAN OIL: Fitch Gives 'BBB-' Long-Term Foreign Currency IDR ------------------------------------------------------------- Fitch Ratings assigned on Dec. 22, 2006, a 'BBB-' Long-term foreign currency Issuer Default rating and an 'AAA(ind)' National Long-term issuer rating to Indian Oil Corporation Limited. The Outlook on the ratings is Stable reflecting Fitch's expectation that IOC, as the largest corporation in India, will maintain a credit profile appropriate for the rating category and will continue to be supported by the government of India. The ratings reflect IOC's position as the largest downstream oil and gas company in India with the largest refining capacity, marketing network and pipeline infrastructure in the country. The ratings are supported by IOC's majority GoI ownership, its strong linkage with and strategic importance to the GoI, for controlling this important sector, given that oil accounts for 34% of India's energy requirements. The strong implicit support from the GoI is evident from the sharing mechanism, including the issue of oil bonds and direct subsidies to IOC and other public sector oil marketing companies to compensate for the losses caused by GoI's price caps on select fuels. Public sector upstream oil companies also share a part of these under recoveries on GoI's instructions. While the standalone rating profile of IOC is not constrained by the sovereign ceiling, Fitch expects IOC to continue receiving GoI's support given its role as an extended arm of GoI for policy implementation. The ratings also factor in IOC's status as the largest company in India in terms of revenues and its past record of maintaining a conservative financial profile. IOC's profitability is supported by its competitive refining margins and extensive pipeline network, reducing logistics costs. The strong economic growth expected in India is likely to lead to steady increase in demand for refined products in the medium to long term. The ratings take into account IOC's reduced debt protection measures over the last two years as a result of lower profitability due to under recoveries caused by GoI's fuel pricing policy. These are unlikely to improve materially if under recoveries continue at similar levels. The company has a substantial capital expenditure plan, the implementation of which will depend upon continued GoI support if under recoveries persist. Importantly, a large part of the capex is planned for upgrading refineries, increasing pipeline network and forward integrating into petrochemicals, steps which are expected to improve its profitability and business risk profile in the long run. Moreover, the company holds substantial marketable equity investments with a current market value of around US$3 billion and has good access to external financing sources, which can provide a cushion to its liquidity, if required. Increased competition from the private sector may reduce IOC's dominance of the industry in the future. IOC may also consider expanding its exploration and production activities through the acquisition of a mid-sized upstream overseas oil company. Should such a transaction proceed, Fitch would weigh up the vertical integration benefits that may arise from less exposure to volatile international oil prices against the funding arrangements, in light of Fitch's expectation of ongoing support from the GoI. IOC, formed in 1964, is the largest oil refining and marketing company in India. It controls 10 of India's 18 oil refineries, accounting for 41% of the country's refining capacity of 132.5 million metric tonnes per annum in FY06 and had a 47% share of the country's refined products market in FY06. It owns 51% of the petroleum product pipeline capacity and 100% of the crude oil pipeline capacity in the country. During FY06, IOC registered consolidated revenues of US$36bn on which it earned a net income of US$1.1bn. * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Indian Oil to positive from stable. At the same time, S&P affirmed the 'BB+' issuer credit rating on the Company. The outlook revision follows the revision in the outlook on the sovereign credit ratings on India (BB+/Positive/B) on April 19, 2006. NTPC LTD: Inks JV Pact to Build Coal Power Plant in Haryana ----------------------------------------------------------- NTPC Ltd. signed a joint venture agreement with Indraprastha Power Generation Company Ltd. and Haryana Power Generation Corporation Ltd on Dec. 15, 2006, NTPC disclosed in its Web site. The joint venture is formed to set up a 1,500-MW Coal-Based Power Plant at Jhajjar in Haryana, New Delhi. About NTPC Ltd Headquartered in New Delhi, India, NTPC Limited -- http://www.ntpc.co.in/-- formerly known as National Thermal Power Corporation Limited, is engaged in generation and sale of bulk power. It operates in two business segments: Generation and Other business. The company is also engaged in providing consultancy, project management and supervision, oil and gas exploration and coal mining. NTPC Limited operates coal stations and gas stations. On February 2, 2005, Standard and Poor's Ratings Service gave NTPC Ltd's long-term foreign issuer credit a BB+ rating. ORIENTAL BANK: Plans to Focus on Resource Mobilization ------------------------------------------------------ Oriental Bank of Commerce plans to focus on resource mobilization, The Hindu reports citing a statement made by the bank's Executive Director Allen C A Pereira. Additionally, the bank also intends to concentrate on: -- credit expansion to small and medium enterprises; -- giving credit to the agriculture sector; and -- extend the benefits of information technology to customers through computerized banking system. The bank has also chalked out a special plan to contact villagers in the low-income group, with a view to stress on rural banking, Mr. Pereira was quoted as saying. About Oriental Bank of Commerce Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. The bank has introduced products and services, such as Anywhere Branch Banking, Cash Management Service, Telebanking, automated teller machines and Internet banking through select branches. During the fiscal year ended March 31, 2006, the Bank had a total of 1,148 branches. * * * The Troubled Company Reporter - Asia Pacific reported on August 21, 2006, that Fitch Ratings assigned a long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. ORIENTAL BANK: Names V Vijayasai Reddy as Non-Official Director --------------------------------------------------------------- Oriental Bank of Commerce informed the Bombay Stock Exchange that the Central Govt. has appointed V Vijayasai Reddy, Chartered Accountants, Chennai, as part time non-official director under chartered accountant category on its board of directors. The appointment is for a period of three years with effect from Dec. 14, 2006. About Oriental Bank of Commerce Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. The bank has introduced products and services, such as Anywhere Branch Banking, Cash Management Service, Telebanking, automated teller machines and Internet banking through select branches. During the fiscal year ended March 31, 2006, the Bank had a total of 1,148 branches. * * * The Troubled Company Reporter - Asia Pacific reported on August 21, 2006, that Fitch Ratings assigned a long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. POWER FINANCE: Submits Red Herring Prospectus with SEBI ------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Dec. 7, 2006, Power Finance Corp. Ltd. sees the initial public offering of its shares by March 2007. The company, the TCR-AP report noted, has already received government approval and is just waiting for the Securities and Exchange Board of India to give the go signal. In an update, equitybulls.com says that Power Finance has filed the Draft Red Herring Prospectus with SEBI for the forthcoming IPO. A SEBI press release shows that it has received Power Finance's offer documents on Dec. 11. According to equitybulls.com, Power Finance will offer for a public issue of up to 117,316,700 equity shares of INR10 each for cash at a price to be decided through 100% book-building process. The issue comprises an issue of up to 114,816,700 equity shares by PFC and a reservation of up to 2,500,000 equity shares for subscription by employees at the issue price, the Web site states. The issue will constitute 10.22% of the fully diluted post-issue capital of the company. The lead managers for the issue are ENAM Financial Consultants Pvt Ltd, ICICI Securities Ltd and Kotak Mahindra Capital Company. Karvy Computershare Pvt Ltd is the registrar for the issue. About Power Finance Corp. Ltd. Power Finance Corporation Ltd http://www.pfcindia.com/is a financial institution in the power sector committed to the integrated development of the power and associated sectors by channeling the resources and providing financial, technological and managerial services. The company's products and services include term loan, buyer's line of credit, loan to equipment manufacturers, equipment leasing and consultancy services. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 28, 2005, Standard & Poor's Ratings Services gave Power Finance a BB+ long-term foreign and local currency issuer credit rating. The outlook is stable. RELIANCE INDUSTRIES: DGH Oks Addendum to KG-D6 Development Plan --------------------------------------------------------------- The Directorate General of Hydrocarbons approved the addendum to the initial development plan for the Deepwater Block KG-DWN-98/3 in Krishna - Godavari Basin off the East coast of India in Bay of Bengal (referred to as KG-D6) on Dec. 12, 2006. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 6, 2006, Reliance Industries filed an amendment to the initial development plan for with the DGH's approval. The KG-D6 Block was awarded to Reliance Industries and NIKO Resources Limited, Calgary, Canada under NELP-1 bidding round. RIL, as operator of the block holds 90% of the participating interest and NIKO the remaining 10%. As per the approved addendum the capital expenditure for initial phase of development to produce 80 mmscmd of gas is revised to US$5.2 billion. The block covers an area of 7645 sq kms and its north-western boundary is about 40-60 kms southcast of Kakinada in Andhra Pradesh, Reliance says in a press release. Water depth in the block ranges up to 2700 m. According to Reliance, it made the world's largest gas discovery in 2002 in this block. About Reliance Industries Reliance Industries Ltd -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D --------------------------------------------------------- Fitch Ratings affirmed the ratings of Russia-based JSC Vneshtorgbank and its London-, Paris- and Cyprus-based subsidiaries, respectively VTB Europe plc, VTB Bank France SA. and Russian Commercial Bank (Cyprus), at: * JSC Vneshtorgbank: -- Foreign currency Issuer Default rating: 'BBB+', Short-term foreign currency 'F2', Individual 'C/D', Support '2', National Long-term 'AAA(rus)', Local currency IDR 'BBB+'. The Outlooks on the bank's IDRs and National Long-term rating are Stable. VTB's IDRs, Short-term and Support ratings are underpinned by its majority state ownership, importance to the Russian banking system, and Fitch's view of the high probability of support from the Russian state in case of need. However, the bank's support floor continues to depend on its status, ownership and importance to the Russian banking system. Upside potential for the Individual rating is currently limited given VTB's exposure to political risk, pressured capitalization, transparency issues surrounding the bank's largest credit exposures and increasing operational and credit risks. * VTB Europe plc: -- Foreign currency IDR 'BBB', Short-term foreign currency, 'F3', Individual 'C' and Support '2'. The Outlook on the bank's IDR is Stable mirroring that assigned to VTB's IDR. In light of VTBE's 89%-owner, VTB, which is Russia's second largest, state-owned bank, as well as the comfort letter Fitch understands that VTB has provided to the UK's Financial Services Authority in respect of VTBE (which although not legally binding provides a strong moral obligation to support VTBE), there is a high probability that support for VTBE would be forthcoming from VTB, if needed, flowing ultimately from the Russian state. Fitch does not expect an upgrade of VTBE's Individual rating in the near future. Downward movement could result from failure to offset revenue pressures, a decline in asset quality or an increase in risk appetite. * VTB Bank France SA.: -- Foreign currency IDR 'BBB', Short-term foreign currency 'F3', Individual 'C/D' and Support '2'. The Outlook on the bank's IDR is Stable mirroring that assigned to VTB's IDR. The Issuer Default, Short-term and Support ratings of VTBF reflect Fitch's view of the high probability of support from VTB, if needed, flowing ultimately from the Russian government. This is based on VTBF's 87%- ownerhip by VTB, as well as the assurances provided by VTB to the French authorities in respect of VTBF's solvency and by the Central Bank of Russia (VTBF's former majority owner) in respect of VTBF's liquidity (up until end-2007). Fitch does not expect an upgrade of VTBF's Individual rating in the near future. However, downward movement could result from failure to offset revenue pressures or should VTB channel upstream a large amount of capital from VTBF. * Russian Commercial Bank (Cyprus): Foreign currency IDR 'BBB', Short-term foreign currency 'F3' and Support '2'. The Outlook on the bank's IDR is Stable mirroring that assigned to VTB's IDR. RCBC's Individual rating of 'D/E' is affirmed and withdrawn. RCBC's ratings reflect the high probability of support being forthcoming from its 100% shareholder, VTB, in case of need. Under the terms of RCBC's banking license granted by the Cypriot authorities, its obligations are guaranteed by VTB in the case of RCBC being wound up. However, in light of possible timeliness issues relating to enforcement of the guarantee, and also its cross-border nature, Fitch maintains a one-notch differential between the ratings of VTB and RCBC. The withdrawal of RCBC's Individual rating reflects the extent of integration between RCBC and its parent, which makes an analysis of RCBC on a standalone basis difficult. Fitch is informed that RCBC will remain a direct subsidiary of VTB for the foreseeable future, notwithstanding the ongoing restructuring of VTB's western European subsidiaries. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO ---------------------------------------------------------------- JSC Vneshtorgbank aims to raise up to RUB120 billion from its planned initial public offering in 2007, Bloomberg News reports. VTB will offer to the public 20% to 22% of its total shares, which could earn around RUR90-RUR120 billion for the company, Economy Minister German Gref said in a televised government meeting. As reported in the TCR-Europe on Dec. 6, the Russian government eyes beneficial terms for initial public offerings of state- controlled banks OAO Sberbank Rossii and Vneshtorgbank. As reported, the government plans an IPO for Sberbank in the first quarter of 2007, and for Vneshtorgbank in the second quarter. Russia intends to gradually reduce its holdings in the two banks. Mr. Gref said VTB's IPO will occur in May or June 2007, after President Vladimir Putin signs the necessary decree. Bloomberg suggests that Russian banks are raising capital to boost lending as the country enters a ninth year of economic expansion and embarks on a multibillion-dollar overhaul of Soviet-era infrastructure. The need for capital will swell in 2007, thus investors are encouraged to invest in state-owned institutions like OAO Sberbank, Renaissance Capital investment bank told Bloomberg News. Sberbank is seeking to raise around US$7 billion in 2007 via a secondary share sale to raise its legal lending limit. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * In Dec. 2006, Fitch Ratings affirmed JSC Vneshtorgbank's 'C/D' Individual Rating. Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Pascal Bantegnie to Lead Investor Relations Team ---------------------------------------------------------------- Alcatel-Lucent revealed that Pascal Bantegnie would lead the Investor Relations team, responsible for communication towards the investment community, including institutional investors and retail shareholders. Pascal Bantegnie will report to Scott Ashby, Alcatel-Lucent's deputy CFO, with regional support in the Paris office from Maria Alcon for Europe and Asia, and in the Murray Hill office from John DeBono for North America. With six years experience in Investor Relations, Pascal was Vice President, Investor Relations of Alcatel prior to this appointment. Previously, he held various engineering positions in the space industry and was responsible for the space risks underwriting activity at the AGF insurance company. He holds an engineering degree in Aeronautics and a Master of Science in Space. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent also has operations in Indonesia. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel- Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006 research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom ------------------------------------------------------------- Hawaiian Telcom has selected Alcatel-Lucent's Triple Play Service Delivery Architecture as the blueprint for network transformation that will enable the delivery of new and innovative consumer and enterprise service offerings. Hawaiian Telcom will deploy Alcatel-Lucent's access and IP routing solutions to replace the existing high-speed Internet infrastructure, and to provide the scalability, reliability and speeds necessary to deliver compelling new service offerings such as IPTV, advanced and interactive Internet and premium Ethernet and IP VPN services. "By offering innovative and advanced services to our consumer, small business and enterprise customers, Hawaiian Telcom is strengthening its competitive position," Michael McHale, Chief Marketing Officer for Hawaiian Telcom, said. "The deployment of Alcatel-Lucent's Triple Play Service Delivery Architecture is a significant element of our ongoing network transformation strategy to IP-based technologies." "The transformation of operator networks is something that we continue to see in all regions around the world as our customers strive to maintain an edge in a competitive marketplace," Tim Krause, Alcatel-Lucent's Chief Marketing Officer, North America, said. "We are pleased to continue working with Hawaiian Telcom as it transforms its network and business in a way that will benefit both consumers and enterprises." Alcatel-Lucent will provide Hawaiian Telcom with its state-of- the-art ISAM product family a modular and flexible platform (including the Alcatel 7330 ISAM FTTN and the Alcatel 7342 ISAM FTTU) to extend the bandwidth potential of fiber from the network core to the subscriber premises, as well as the 7750 Service Router and Alcatel 7450 Ethernet Service Switch to address its service routing requirements. Worldwide, more than 150 service providers in over 65 countries, including AT&T, BT, Telia Sonera, Telefonica and China Telecom, have selected the Alcatel IP portfolio. Alcatel-Lucent's ISAM product family is the industry's first IP broadband services access platform, accommodating a wide range of access technologies and network topologies. The ISAM family is specifically designed to minimize the complexity and ensure profitability as service providers transform their broadband access networks to support full triple play service adoption. In addition to Hawaiian Telecom, more than 100 service providers worldwide have chosen Alcatel-Lucent's ISAM family of products, including AT&T, China Telecom, Swisscom, and TELUS. About Hawaiian Telcom Hawaiian Telcom -- http://www.hawaiiantel.com/-- is the Hawaii's leading telecommunications provider, offering a wide spectrum of telecommunications products and services, which include local and long distance service, high-speed Internet, wireless services, and print directory and Internet directory services. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent also has operations in Indonesia. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel- Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel- Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence, expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non- US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings is stable. This rating action concludes the rating reviews initiated on April 3, 2006. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent -- to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006 research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. BANK DANAMON: To Issue IDR 1.5-2 Trillion Bonds in 2007 ------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on Oct. 2, 2006, that PT Bank Danamon Indonesia Tbk is planning to issue rupiah bonds in the first quarter of 2007 to support its loan expansion program, citing bank president Sebastian Paredes. The TCR-AP report noted that the size of the bond issue is still being assessed by the bank's management. In an update, Reuters relates that Bank Danamon indicated plans of issuing IDR1.5-2 trillion worth of bonds in the first quarter of next year. A senior official of the bank explained that the bonds issued may be worth IDR1.5 trillion, but if market conditions are good then it could go up to IDR2 trillion, adding that the bonds will mature in five years, Reuters relates. Reuters, citing Bisnis Indonesia Newspaper, says that Bank Danamon had appointed three brokerage firms -- PT Deutsche Securities Indonesia, PT DBS Securities Indonesia and PT Premier Securities -- as underwriters. The report notes that the official did not elaborate on how the funds will be used, but analysts said banks usually issue bonds to raise funds to finance loan expansion and to strengthen their capital structure. Reuters points out that Bank Danamon posted a nine-month net profit of IDR914 billion compared with IDR1.88 trillion in the same period a year ago. Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The Bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 15, 2006, that Fitch Ratings has affirmed all the ratings of Bank Danamon as follows: -- Long-term foreign currency Issuer Default Rating at 'BB-'; -- Short-term foreign currency rating at 'B'; -- National Long-term rating at 'AA-(idn)'; -- Individual rating at 'C/D'; and -- Support rating at '4'. The TCR-AP reported on July 5, 2006, that Moody's Investors Service has placed Bank Danamon's D- bank financial strength rating on review for possible upgrade. These ratings were unaffected: -- Subordinated debt of Ba3. The outlook is stable; and -- Long-term/short-term deposit of B2/Not Prime. The outlook is stable. BEARINGPOINT: Completes SAP Utility Project for Light Servicos -------------------------------------------------------------- BearingPoint, Inc., has completed a large-scale SAP application- based implementation for Light Servicos Electricidade SA, a Brazilian energy company with more than 3.8 million consumers in 31 cities in the city and state of Rio de Janeiro. Light invested heavily over two years to complete the implementation of the new commercial system, which is designed to optimize and streamline customer service and commercial processes. Utilizing SAP's solution for the utilities industry, BearingPoint delivered a customized solution -- one of the largest in the Americas -- that provides a consolidated view of Light's clients, integrates communication channels, such as the call center, the company's self-service website and agencies, manages billing and collection, and provides managerial information. Additionally, customers have direct online access to their past and present information, resulting in personalized and faster service. The project objectives included increasing Light's billing efficiency, as well as providing faster and better-controlled field services, contributing to fraud prevention. "We will have more precision in fraud inspections that are expensive for the company," said Mauro Andrade, Light's project director. The solution, implemented by BearingPoint, had an initial pilot for 80,000 residential customers and 20,000 commercial and governmental customers in March of this year. Between Sept. 23 and Oct. 8 the migration of Light's complete customer base took place. "After a two-week cutover, during which we migrated the technical, financial and commercial data of 3.8 million consumers, we finished the complete implementation of SAP's solution," said Jan Vrins, a managing director in the utilities practice of BearingPoint. About Light Light is the electricity distribution company for 31 cities in the State of Rio de Janeiro, including the state capital and the Metropolitan Region. The company is controlled by Rio Minas Energia Participacoes S.A. since Aug. 10, 2006, holding 79.4% of the total social and voting capital of the company. The remaining 20.6% is with minority shareholders and Electricite de France, Light's former controlling company, holding 10% of Light's total social and voting capital. RME is controlled by Companhia Energetica de Minas Gerais, Andrade Gutierrez Concessoes S.A., Pactual Energia Participacoes S.A. and Luce Brasil Fundo de Investimentos em Participacoes, corporate groups with proven competence and knowledge of the Brazilian energy market. All shareholders of RME have equal participation in the voting and total capital of RME and are represented in Light's Management Council. About BearingPoint Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations including in Indonesia, Australia, Austria, China, India, Japan, Mexico, Portugal, Singapore and Thailand. * * * On Oct. 10, 2006, Moody's Investor Service downgraded and placed these ratings on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2. INTERNATIONAL NICKEL: Expects To Meet 71, 000 Tons Nickel Output ---------------------------------------------------------------- PT International Nickel Indonesia expects to meet its nickel production target of 71,000 metric tons this year because of more rain in recent days, Bloomberg News reports. Bloomberg recounts that International Nickel earlier stated that its output for the so-called nickel-in-matte may be cut because a lack of rainfall caused less power to be generated from its hydro-electric dam. As reported in the Troubled Company Reporter - Asia Pacific on December 18, 2006, International Nickel disclosed that lower-than-average rainfall since October and an apparent delay in the arrival of the rainy season (December to March) have resulted in reduced electricity and falling reservoir levels. A subsequent TCR-AP report on Dec. 21 said that the company was set to clarify the extent to which 2006 output may miss a target. Bloomberg notes that International Nickel President and Chief Executive Officer Arif C. Siregar had said that they might cut production if there is no change in the weather, but now he thinks that they can stick to their target. Mr. Siregar said that the water level in their hydroelectric dam kept steady, even when they boosted production, adding that this is something they didn't expect. Headquartered in Jakarta, Indonesia, PT International Nickel Indonesia Tbk -- http://www.pt-inco.co.id/-- is a nickel producer with a production facility and mine are in Sorowako, Sulawesi, where it has a contract agreement until 2025. It produces nickel matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Sorowako on the island of Sulawesi. Inco Limited of Canada holds a 60.8% stake of the company and Sumitomo Metal Mining Co Ltd. holds a 20.1% stake. * * * Standard and Poor's gave the company's long-term foreign and local issuer credit both a BB- rating. The company carries Fitch Ratings' BB long-term issuer default and foreign currency long-term debt ratings. PT PERTAMINA: Can't Speed Up Gas Production in Cepu Block in '09 ---------------------------------------------------------------- PT Pertamina (Persero) said that it could not speed up the production of gas in the Cepu Block in 2009, Antara News reports. Antara cites Pertamina President Director Ari Soemarno as saying that the gas production of the Cepu Block is included in the company's mid-term program, so the company can produce it after 2009. According to Mr. Soemarno, some wells must be drilled first and a program should be made for gas production. The report relates that the Government wishes to speed up the gas production of the Cepu Block in 2009 to meet the needs of consumers in Java Island. Mr. Soemarno, however, said that the company would maximize the speeding up of gas production in its own fields, Antara says. The report points out that Pertamina operates fields in Jambaran, Alas Tuo and Kedung Tuban while the field in the Cepu Block is to be operated with ExxonMobil. PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state- owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, with the rest being me by imports. In 2003, PT Pertamina finance director Alfred Rohimone disclosed that the Company's financial condition was in critical condition because its expenses had surpassed its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on the international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. ========= K O R E A ========= ARAMARK INC: Shareholders Approve Investors' Buyout of Firm ----------------------------------------------------------- ARAMARK Corp. voted at a special meeting to adopt the merger agreement entered into on Aug. 8, 2006, providing for the acquisition of ARAMARK by an investor group led by Joseph Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC. Adoption of the merger agreement was subject to two votes. Under Delaware law, the merger agreement was required to be adopted by shareholders holding at least a majority in combined voting power of the company's common stock outstanding on the record date of Nov. 3, 2006. In addition to the vote required under Delaware law, the transaction was required to be approved by a majority of the combined voting power of the company's common stock voted at the special meeting. For purposes of the second vote, each share of Class A common stock beneficially owned by Mr. Neubauer and other members of the company's management committee was counted as only one vote, rather than the ten votes to which each such share is otherwise entitled. Based on the preliminary tally of shares voted, for purposes of the vote required under Delaware law, 606 million votes were cast at the special meeting, representing 88% of the total voting power of ARAMARK's outstanding voting shares. Of those votes cast, 592 million votes were cast in favor of the adoption of the merger agreement, representing 86% of the total voting power of ARAMARK's outstanding voting shares and 97% of the votes cast. For the purposes of the second vote, 375 million votes were cast at the special meeting. Of those votes cast, 360 million votes were cast in favor of the adoption of the merger agreement, representing 96 percent of the total votes cast at the meeting. Under the terms of the merger agreement, ARAMARK shareholders will receive US$33.80 in cash for each share of ARAMARK common stock held. Subject to the satisfaction of customary closing conditions, the transaction is anticipated to close at the end of January 2007. Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation (NYSE:RMK) -- http://www.aramark.com/-- is a leader in professional services, providing award-winning food services, facilities management, and uniform and career apparel to health care institutions, universities and school districts, stadiums and arenas, and businesses around the world. In FORTUNE magazine's 2006 list of "America's Most Admired Companies," ARAMARK was ranked number one in its industry, consistently ranking since 1998 as one of the top three most admired companies in its industry as evaluated by peers and industry analysts. The company was also ranked first in its industry in the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000 employees serving clients in 20 countries, including Japan and Korea. * * * Standard & Poor's Ratings Services lowered on Aug. 8, 2006, its ratings on Philadelphia-based ARAMARK Corp. and its subsidiary, ARAMARK Services Inc., including its corporate credit rating to 'BB+' from 'BBB-'. Fitch downgraded on Aug. 8, 2006, the Issuer Default Rating and senior unsecured debt ratings for both ARAMARK Corporation and its wholly owned subsidiary, ARAMARK Services, Inc., to 'BB-' from 'BBB'. The ratings remain on Rating Watch Negative. Moody's Investors Service downgraded on Sept. 20, 2006, the 5% senior notes due 2012 of ARAMARK Services, Inc., to B2 from Baa3, confirmed the Baa3 ratings on the senior notes due 2007 and 2008, and assigned a corporate family rating of Ba3 to ARAMARK Corp., ARAMARK Services' holding company parent. The B2 rating on the 5% senior notes due 2012 and the Ba3 corporate family rating are under review for possible downgrade. CLOROX CO: To Buy Colgate's Canada & Latin America Bleach Assets ---------------------------------------------------------------- The Clorox Co. entered into a definitive agreement to purchase Colgate-Palmolive Co.'s bleach businesses in Canada, Colombia, Dominican Republic, Ecuador, Uruguay and Venezuela for an aggregate price of US$126 million plus inventory. "These acquisitions extend our position as the bleach market leader in the Americas," said Don Knauss, Clorox's chairman and chief executive officer. "They provide a platform for growth with proven laundry and home cleaning products and provide a great opportunity to further build our health-and-wellness platform." Included in the transaction are: -- Javex bleach in Canada, -- the Nevex brand in Venezuela and -- the Agua Jane brand in Uruguay. Additionally, Colgate is granting to Clorox a license to their Ajax trademark for bleach for a transition period in Colombia, the Dominican Republic and Ecuador. The brands, which will generate estimated sales of about US$77 million for the calendar year ending Dec. 31, 2006, are the branded category leaders in each of these countries, with the exception of Colombia where Clorox holds the No. 1 market position for bleach. Clorox will acquire two manufacturing facilities, one in Alberta, Canada, and one in Venezuela; and employees at these facilities will transfer to Clorox. Colgate will provide transition services to Clorox for varying periods of time in each country to ensure a smooth transition. Reuben Mark, Colgate's Chairman and CEO said, "As with the sale of our detergent businesses, this move divests a non-core business in favor of our oral and personal care businesses, which have more than double the rate of sales and profit growth in the countries affected." The sale is subject to regulatory and other customary approvals in Colombia. The transaction is expected to close in Canada during fourth quarter 2006. In the Latin American countries, the transaction is expected to close during first quarter 2007, although the sale of the Colombian business will be subject to regulatory approval. It is estimated that these bleach business sales will result in a cumulative after tax gain of approximately US$70 million and will be fully offset by previously disclosed restructuring charges under the company's 2004 Restructuring Program in all periods. Mr. Mark concluded, "This simplification of our portfolio will improve gross profit margins in our Latin American and North American divisions and should facilitate the stronger growth of our highly profitable oral and personal care businesses." The transaction will be structured as an all cash acquisition. The companies anticipate closing the purchase and sale of the Canada business later this month and the Latin America businesses in the first calendar-year quarter of 2007. The purchase is subject to regulatory and other customary approvals and closing conditions. Clorox anticipates the transaction will be modestly dilutive to earnings for a period of 12-18 months as the company invests to transition and revitalize the brands. Specifically, Clorox anticipates the acquisition will reduce diluted earnings per share in a range of 3-4 cents in the second half of its current fiscal year, which ends June 30, 2007. The earnings impact of this transaction was not included in the company's outlook communicated on Nov. 1, 2006. About Colgate-Palmolive Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom's of Maine, Ajax, Axion, Soupline, and Suavitel, as well as Hill's Science Diet and Hill's Prescription Diet pet foods. About The Clorox Co. Headquartered in Oakland, California, The Clorox Company -- http://www.thecloroxcompany.com/-- provides household cleaning products and reaches beyond bleach. Although best known for bleach (leader worldwide), Clorox makes laundry and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step), car care products (Armor All, STP), the Brita water-filtration system (in North America), and charcoal briquettes (Kingsford). The company has locations worldwide, including the Philippines and South Korea. At Sept. 30, 2006, the company's balance sheet showed US$3,539,000,000 in total assets and US$3,594,000,000 in total liabilities resulting in a US$55,000,000 in stockholders' deficit. At Sept. 30, 2005, the company disclosed a US$156,000,000 stockholders' deficit. DURA AUTOMOTIVE: Gets Final Nod to Pay Non-Debtor Affiliates ------------------------------------------------------------ DURA Automotive Systems Inc. and its debtor affiliates' request to pay their prepetition payables to foreign non-debtor affiliates were granted, on a final basis, by the Honorable Kevin J. Carey of the United States Bankruptcy Court for the District of Delaware. The Debtors owed prepetition payables to the Foreign Non-Debtor Affiliates of approximately US$625,000. The Prepetition Payables are the result of inter-company transactions made in the ordinary course of business, including receipts from customers accepted by the Debtors on behalf of Foreign Non- Debtor Affiliates and payments for services rendered or products supplied by the Foreign Non-Debtor Affiliates to the Debtors. The Court also authorized the Debtors to loan estate property to the foreign non-debtor affiliates provided that: (a) the amounts loaned will be recorded on the Debtors' books and records as loans; and (b) the Debtors will provide three business days' written notice to the U.S. Trustee and the Official Committee of Unsecured Creditors prior to transferring any funds to the Foreign Non-Debtor Affiliates. The Court rules that the amounts recorded as loans should not, at any time, exceed US$10,000,000 in aggregate amounts outstanding. The loan periods should not exceed 120 days. Judge Carey directs the Debtors and their advisors to cooperate with the Creditors Committee, the Committee of Second Lien Lenders, and their advisors, to provide reasonable information to assist with understanding the Foreign Non-Debtor Affiliates' financial information and business plans. The Debtors' equity interests in, and intercompany claims against, the Foreign Non-Debtor Affiliates are some of the most valuable assets of their estates, Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, related. The Debtors project the Foreign Non-Debtor Affiliates' aggregate 2006 EBITDA will be approximately US$81,000,000. Due to country-specific restrictions and procedures, the Foreign Non-Debtor Affiliates may be unable to transfer funds, including where short-term financing is required by a Foreign Non-Debtor Affiliate, between and amongst themselves on a timely basis or upon short notice. "If one or more of those Foreign Non-Debtor Affiliates does not receive required short-term financing on a timely basis from either the Debtors or other Foreign Non-Debtor Affiliates, it could become subject to foreign insolvency proceedings, thereby endangering the Debtors' valuable equity interests in the Foreign Non-Debtor Affiliates," Mr. DeFranceschi said. Without that short-term financing, especially in the event of foreign insolvency proceedings, Mr. DeFranceschi says, the Foreign Non-Debtor Affiliates could be unable to satisfy their commitments to existing original equipment manufacturers and first-tier supplier customers. "Any such inability would, aside from endangering the value of the Debtors' equity interests in the Foreign Non-Debtor Affiliates, jeopardize the Debtors' relationships with OEMs and first-tier supplier customers worldwide." Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The rating outlook is negative. * * * The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Moody's Withdraws Ratings on Chapter 11 Filing --------------------------------------------------------------- Moody's Investors Service withdrew the ratings for of Dura Automotive Systems Inc. and Dura Operating Corp. in conjunction with the company and its U.S. and Canadian subsidiaries having filed for Chapter 11 protection of the U.S Bankruptcy Code on Oct. 30. Moody's has withdrawn the rating because the issuer has entered bankruptcy. Ratings withdrawn: Dura Automotive Systems, Inc.: * Corporate Family Rating, Ca; * Probability-of-Default, D; * Stable outlook; and * SGL-4 Speculative Grade Liquidity Rating. Dura Operating Corp.: * US$150 million guaranteed senior secured second-lien term loan due 2011, Caa2 (LGD2, 23%); * US$75 million guaranteed senior secured second-lien add-on term loan due 2011, Caa2 (LGD2, 23%); * US$400 million of 8.625% guaranteed senior unsecured notes due 2012 (consisting of US$350 million and US$50 million tranches), Ca (LGD4, 52%); * US$456 million of 9% guaranteed senior subordinated notes due 2009, C (LGD5, 89%); * EUR100 million of 9% guaranteed senior subordinated notes due 2009, C (LGD5, 89%); and * Stable outlook. Dura Automotive Systems Capital Trust: * US$55.25 million of 7.5% convertible trust preferred securities due 2028, C (LGD6, 98%); and * Stable outlook. Dura Automotive's US$175 million guaranteed senior secured first-lien asset-based revolving credit is not rated by Moody's. The last rating action was on Oct. 18 when the ratings were lowered. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. DURA AUTO: Wants to Enter Into Senior Executive Employment Pact --------------------------------------------------------------- DURA Automotive Systems Inc. and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to enter into an employment agreement with a senior executive who will report to their chief executive officer. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors have discussed the need to retain the senior executive, and the contemplated terms of employment with the ad hoc committee of certain of the Prepetition Second Lien Lenders, and the Official Committee of Unsecured Creditors. The Debtors have also discussed their request to employ a senior executive with the U.S. Trustee. Pursuant to Section 107(b) of the Bankruptcy Code, as amended, and Rule 9018 of the Federal Rules of Bankruptcy Procedure, the Debtors also ask Judge Carey to enter a protective order authorizing them to file their Employment Agreement Motion and related documents under seal. Mr. DeFranceschi explains that the Employment Agreement Motion and its exhibits contain confidential information that, if revealed, could jeopardize the Debtors' ability to effectively recruit and implement effective management -- a critical component of their efforts to reorganize. In addition, the Debtors ask the Court to set an expedited hearing on their request to enter into the Employment Agreement. Mr. DeFranceschi tells Judge Carey that the senior executive will fill an unidentified void in Dura's senior management structure, thereby materially assisting with ongoing restructuring efforts. U.S. Trustee Objects To Seal Motion & Motion to Shorten Kelly Beaudin Stapleton, the United States Trustee for Region 3, says, other than convenience and the Debtors' desire to control the dissemination of information related to the timing of the announcement of the hiring, there does not appear to be any valid reason for the lack of disclosure. In fact, she avers, the Debtors most likely will disclose the information in a future filing with the Securities and Exchange Commission or otherwise. The U.S. Trustee believes that the Seal Motion: (i) is not supported by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure; and (ii) violates the policy of public access to bankruptcy proceedings and records. William K. Harrington, trial attorney at the Office of the U.S. Trustee, notes, among others, In Nixon v. Warner Communications, Inc., 435 U.S. 589, 591 (1978), the Supreme Court stated, "[i]t is clear that the courts of this country recognize a general right to inspect and copy public records and documents, including judicial records and documents." Mr. Harrington also notes, pursuant to Section 107(b) of the Bankruptcy Code, "On request of a party in interest, the bankruptcy court . . . may (1) protect an entity; with respect to a trade secret or confidential research, development, or commercial information; or (2) protect a person with respect to scandalous or defamatory matter contained in a paper filed in a case under this title." In addition, Rule 9018 of the Federal Rules of Bankruptcy Procedure provides, " . . . governmental matters that are made confidential by statute or regulation" to the type of matters subject to seal. There is no showing that any of the information sought to be protected falls within any of the enumerated categories under Bankruptcy Rule 9018 and Section 107(b), Mr. Harrington points out. Mr. Harrington asserts that the entirety of the Employment Agreement should not be sealed when a carefully circumscribed redaction of the appropriate provisions of the Agreement may protect the items falling within the purview of the applicable Code Section or Rule. The U.S. Trustee also opposes the Debtors' request to have their Employment Motion heard on four days' notice. Mr. Harrington notes that (i) the Seal Motion and Motion are devoid of any information necessary for the parties-in-interest to properly evaluate the relief sought in the Employment Motion; and (ii) the Debtors have provided no evidence that there is any critical urgency to have their request heard on an expedited basis. Accordingly, the U.S. Trustee insists that the Motion to Shorten should be vacated so all parties-in-interest will have an opportunity to properly digest the information contained in the Debtors' request. The U.S. Trustee is cognizant of the Debtors' need to effectively recruit qualified individuals for their management team and has no general objection to the Debtors' request to hire a senior executive. The U.S. Trustee, however, believes that certain specific terms of the Employment Agreement run afoul of the limitations provided for in Section 503(c)(1) and (2) of the Bankruptcy Code. While the U.S. Trustee has been provided copies of the Employment Motion and the Employment Agreement, the Debtors filed the documents under seal and provided the documents to the U.S. Trustee on a confidential basis under Section 107(c). The Court has not yet ruled on the seal issue. Accordingly, in lieu of filing her response under seal, the U.S. Trustee reserves her right to raise substantive issues related to the specific terms of the Employment Agreement at the hearing. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. Standard & Poor's Ratings Services lowered its corporate credit rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The rating outlook is negative. * * * The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). PANTECH CO: Pantech&Curitel Fails to Honor KRW2-Billion Debt ------------------------------------------------------------ Pantech&Curitel Communications Inc., an affiliate of Pantech Co. Ltd., failed to repay KRW2 billion (US$2.2 million) in maturing debts, The Korea Herald reports citing a Dec. 25 statement made by company officials. As reported in the Troubled Company Reporter - Asia Pacific, the trading of Pantech&Curitel's stock in the Korea Exchange was suspended on Dec. 19, 2006, amid bankruptcy rumors. It resumed trading the following day after the company explained to the exchange that it avoided bankruptcy because creditors agree to a bailout. In earlier TCR-AP reports, Pantech&Curitel and Pantech Co. sought creditors' bailout due to increasing debts and mounting losses. On Dec. 15, the creditors rescued the companies by approving a debt-work out program. The creditors, including the Korea Development Bank, decided to offer a two-month grace period on the company's matured debts. In return, creditors ask Pantech's management to accept their proposals for restructuring and take drastic measures to improve profitability A failure in repaying KRW$2 billion of commercial paper does not mean that Pantech & Curitel will cease business operations instantly, The Herald points out. According to Pantech&Curitel officials, the company will still be able to continue financial transactions as long as its creditors work on the debt- restructuring program. Pantech Co. Ltd. and Pantech&Curitel Communications, Inc. are flagship units of Pantech Group -- http://www.pantech.com/-- responsible for mobile manufacturing. Pantech Co. manages exporting GSM mobile phones and selling SKY brand phones in Korea. Pantech&Curitel manages exporting CDMA phones and selling CURITEL brand phones in Korea. The two units are facing a liquidity crisis due to mounting losses and maturing debts. To get back on track, they sought and obtained creditors' approval of a debt-workout program. =============== M A L A Y S I A =============== AKER KVAERNER: Unveils Updated Corporate Responsibility Policies ---------------------------------------------------------------- Aker Kvaerner A.S.A. released its Values Driven Business 2006, the company's annually updated presentation of corporate responsibility policies. In this report Aker share its policies, achievements and challenges in four key areas -- People, Environment, Integrity and Community. Corporate responsibility is an integrated part of the Policy System and as such reviewed and updated annually. The Policy System consists of a set of policies with related procedures and factual information. It is a tool that ensures that principles are reflected in business practices and helps achieve the vision of being the preferred partner in the energy sector. About Aker Kvaerner Headquartered in Lysaker, Norway, Aker Kvaerner ASA -- http://www.akerkvaerner.com/-- through its subsidiaries and affiliates, is a leading global provider of engineering and construction services, technology products and integrated solutions. The company has operations in Malaysia, China, India, Indonesia, Japan, Singapore, South Korea, and Thailand, among others. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. * * * Moody's Investors Service, in April 2006, upgraded the of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to reflect the sustainable strong recovery in profitability and cash flow generation of the ring-fenced oil and gas group over the past two years, coupled with the clear reduction in senior debt, repaid from internally generated funds. Ratings affected: Aker Kvaerner Oil & Gas Group AS -- Corporate family rating: upgraded to Ba1 from Ba3 Aker Kvaerner AS -- Rating of the second priority lien notes due 2011: upgraded to Ba1 from Ba3. COGNIS GMBH: Fitch Junks Senior Unsecured Debt ---------------------------------------------- Fitch Ratings assigned Germany-based Cognis GmbH an Issuer Default rating of 'B' with Stable Outlook. At the same time, Fitch has assigned ratings of 'BB'/'RR1' to the senior secured facilities and 'B-'/'RR5' to the second lien facilities issued by Cognis Deutschland GmbH & Co.KG and its local subsidiaries. Fitch also assigned ratings of 'CCC+'/'RR6' to the senior unsecured debt issued by Cognis GmbH and 'CCC'/'RR6' to the payment-in-kind notes issued by Cognis Holding GmbH. The ratings apply to EUR1.744 billion cash-pay debt and EUR592 million PIK notes. The IDR reflects Cognis's global leading position in care chemicals and nutrition and health, which together represent approximately 50% of its sales. The rating also takes into account the company's stabilizing operating performance in its remaining business segments. The rating is constrained by Cognis's high financial leverage as a result of the recapitalisation in 2004, a lack of EBITDA improvement since then and higher cash interest costs. These have constrained the company's cash flow and delayed its de-leveraging during the last two years. As of June 2006, Cognis generated operating cash flow of approximately EUR248 million (LTM basis), which corresponds to a relatively weak debt service coverage ratio of 2.3x (cash from operations/debt service). The company has manageable capital expenditure requirements and historically, its working capital requirements have not resulted in material cash outflows. Fitch understands that Cognis's restructuring is not expected to result in any material outflows in the medium term. However, its cash flow generation is relatively weak and would need to improve substantially before a positive rating action on the IDR can be considered. Nonetheless, Cognis's liquidity is ensured by a EUR250 million revolving credit facility, of which EUR47 million was drawn at the first half of 2006 under issued letters of credit and anciliary facilities. As of June 2006 cash-on-balance sheet was EUR139 million (EUR142 million at Cognis Holding GmbH). Furthermore, the company has only a modest amount (EUR70 million per annum) of debt amortising over the next three years. The liquidity profile supports the 'B' rating. At June 2006, LTM interest coverage (EBITDA- capital expenditure/cash interest) was 2.2x and total cash-pay leverage was 4.7x (or 6.3x including the PIK notes). For the full year 2006, Fitch expects a slight improvement in Cognis's leverage as a result of stabilising-to-improving EBITDA, although no material debt pay-down is expected. Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries, including Malaysia, Australia, Brazil, and France. Cognis generated revenues of EUR1.7 billion and EBITDA of EUR214m (margin 12.5%) in the first half of 2006. NORTH BORNEO: Posts MYR50.487-Mil. Net Profit in 3rd Qtr. 2006 -------------------------------------------------------------- For the quarter ended Sept. 30, 2006, The North Borneo Corporation Bhd posted a net profit of MYR50.487 million on revenues of MYR52.390 million. In the corresponding quarter last year, the company reported MYR1.379-million net loss on zero revenues. The company's balance sheet as of Sept. 30, 2006, shows a problem in liquidity with current assets totaling MYR1.103 million available to pay INR114.072 million in current liabilities. The Sept. 30, 2006 balance sheet also showed insolvency with the shareholders funds' deficit of MYR112.969 million. A full-text copy of the company's financial results for the quarter ended Sept. 30, 2006, is available for free at: http://bankrupt.com/misc/NorthBorneoSept302006.xls Headquartered in Sabah, Malaysia, The North Borneo Corporation Berhad engages in the management of forest management unit and investment holding. The Group operates in Malaysia and Bermuda. Due to its continuous losses, the Kuala Lumpur Stock Exchange placed the Company under the Practice Note 4/2001 category in April 2001 and was ordered to start regularizing its financial condition. On April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of the Company's efforts to regularize its finances and restructure its debts. The Plan, however, met objections from creditors. On March 6, 2006, two scheme creditors of North Borneo -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew their support of the Company's proposed debt restructuring, saying that they are no longer agreeable to the terms of the planned business disposal as part of the restructuring program. The company's balance sheets as of Sept. 30, 2006, showed insolvency with shareholders funds' deficit of MYR112.969 million. PSC INDUSTRIES: Files Proposed Restructuring Scheme --------------------------------------------------- On Dec. 15, 2006, PSC Industries Berhad filed with the Bursa Malaysia Securities Berhad a restructuring scheme pursuant to which the company proposes to implement: -- capital reconstruction comprising the Proposed Share Capital Reduction, Proposed Share Capital Consolidation and Proposed Share Premium Account Reduction; -- settlement of liabilities due and owing by PSCI and Penang Shipbuilding & Construction Sdn Bhd to their respective creditors; and -- renounceable rights issue of new ordinary shares of MYR1.00 each in PSCI. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 8, 2006, PSCI's wholly owned subsidiary, PSC Asset Holdings Sdn Bhd, entered into a conditional sale and purchase agreement with Boustead Holdings Berhad to dispose three pieces of land. According to PSCI, the Proposed Restructuring Scheme is conditional on the Proposed Disposal. The Proposed Disposal, however, is not conditional on the Proposed Restructuring Scheme. Rationale of Proposed Restructuring The PSCI Group is at present in a precarious financial position and may not be able to continue its operations under tight funding constraints given its debt obligation of approximately MYR586 million and accumulated losses of approximately MYR771 million as at the Cut-Off Date. As a step to alleviate the financial constraints and to turnaround the PSCI Group, its board of directors proposes to undertake the Proposed Restructuring Scheme as the regularization plan for PSCI required under PN17. Hence, the Proposed Capital Reconstruction is intended to reduce the accumulated losses to a more manageable level and to better reflect the present value of the PSCI Group. The Proposed Debt Settlement will reduce the PSCI Group's borrowings and accumulated losses, thus lowering its interest expense burden and to enable the PSCI Group to return to profitability and continue its operation as a going concern. The borrowings will also be reduced to a more affordable level and be more aligned to the PSCI Group's payment capability. In addition, the Proposed Rights Issue would provide the much needed funds for the working capital of the PSCI Group. The Proposed Rights Issue will also offer an opportunity for the shareholders to continue to participate in the equity of the Company and capitalize on the potential long-term growth of the PSCI Group after the Proposed Restructuring Scheme. The renouncement of the Settlement Shares by the Scheme Creditors to Boustead and the prospective investors will provide an avenue for the Scheme Creditors to dispose their shareholding expeditiously and enable Boustead to emerge as the controlling major shareholders in PSCI. The board believes the Proposed Restructuring Scheme will alleviate the PSCI Group's heavy debt burden and mitigate the impending threat of liquidation. Affin Investment has been appointed as Adviser for the Proposed Restructuring Scheme while RHB Investment Bank Berhad was appointed to act as the independent adviser to advise the minority shareholders of PSCI on the Proposed Scheme. Details of Proposed Restructuring Scheme The details of the Proposed Restructuring Scheme are: A. Proposed Capital Reconstruction 1. Proposed Share Capital Reduction The Proposed Share Capital Reduction will involve the reduction of the issued and paid-up share capital of PSCI of MYR174,083,348 comprising 174,083,348 ordinary shares of MYR1.00 each in this manner: -- 3 ordinary shares of MYR1.00 each in the issued and paid-up capital of PSCI which are held by Boustead will be cancelled; -- the remaining 174,083,345 ordinary shares of MYR1.00 each in the issued and paid-up capital of PSCI after the cancellation will be reduced by MYR0.80 per share to become 174,083,345 ordinary shares of MYR0.20 each. 2. Proposed Share Capital Consolidation Afterwards, the issued and paid-up share capital of PSCI of MYR34,816,669 comprising 174,083,345 ordinary shares of MYR0.20 each will be consolidated such that every five ordinary shares of MYR0.20 each will constitute one ordinary share of MYR1.00 each credited as fully paid-up and the issued and paid-up share capital of PSCI of MYR34,816,669 will comprise 34,816,669 ordinary shares of MYR1.00 each. 3. Proposed Share Premium Account Cancellation As of Aug. 31, 2006 Cut-Off Date, the share premium account of PSCI amounted to MYR70,242,785. The provisions of the Act relating to the reduction of share capital will apply as if the Share Premium Account were paid-up share capital of PSCI pursuant to Section 60(2) of the Act. The Proposed Share Capital Reduction, Proposed Share Capital Consolidation and Proposed Share Premium Account Cancellation will give rise to an aggregate credit of approximately MYR209.5 million which will be utilized to reduce the PSCI Group's accumulated losses from approximately MYR771 million as at the Cut-Off Date to approximately MYR561 million. B. Proposed Debt Settlement The Proposed Debt Settlement involving PSCI and PSCSB will be implemented by way of a scheme of arrangement under Section 176 of the Act in respect of the amount owing to the Scheme Creditors of PSCI and PSCSB. The Scheme Creditors are collectively the secured financial institution creditors, the unsecured financial institutions creditors or trade and other creditors and the corporate guarantee creditors of PSCI and PSCSB. As at Cut-Off Date, the audited aggregate outstanding debt of PSCI and PSCSB under the Proposed Debt Settlement amounts to approximately MYR540 million. Upon the Proposed Debt Settlement becoming binding on the Scheme Creditors pursuant to Section 176(3) of the Act, all the encumbrances relating to the assets of the PSCI Group which are collateralized in favor of the Scheme Creditors including guarantees or indemnities given by PSCI and PSCSB to the Scheme Creditors, will be discharged and released save and except for the non-operating assets pursuant to the Collateral Set-Off to be foreclosed (or otherwise acquired) by the Secured Creditors. For Scheme Assets, which are under hire purchase, the relevant Scheme Creditors will transfer title of the Scheme Assets to PSCI or PSCSB. The Scheme Creditors and Scheme Debt are subject to a proof of debt exercise later. 1. Secured Creditors The Secured Creditors comprise financial institutions creditors of PSCI and PSCSB with security over tangible or intangible assets. The debt of approximately MYR177 million owed to the Secured Creditors as at the Cut-Off Date will be settled in this manner: -- Waiver of all interests accruing on the outstanding debt after the Cut-Off Date; -- Full settlement of secured debt up to the collateral value, and the portion of a debt exceeding the collateral value will be referred to as "Partially Unsecured Debt"; -- Debts secured on non-operating assets will be settled by way of requiring the creditor to foreclose (otherwise acquiring) the non-operating asset or extinguishing all rights of the PSCI Group in relation to the said assets as settling the debt to the extent of the collateral value -- Collateral Set-off; -- Debts secured on operating assets will be settled by way of issuance of new PSCI Shares as full settlement for the secured debt to the extent of the collateral value or outstanding debt whichever is lower; whereupon, the Secured Creditors will discharge (or otherwise extinguish) its security interest over the said assets; and -- The Partially Unsecured Debt will be treated as an unsecured debt and will be settled in a manner similar to that for the Unsecured Creditors. The Partially Unsecured Debt of the Secured Creditors amounting to approximately MYR138 million will be settled in this manner: -- Waiver of all interests accruing on the outstanding debt up to and including the Cut-Off Date; -- Waiver of all interests accruing on the outstanding debt after the Cut-Off Date; -- A waiver of 70% of the principal amount of all the Partially Unsecured Debt (the post-waiver principal amount of the Partially Unsecured Debt will be called the Restructured Debt); -- Issuance of new PSCI Shares as full settlement for the Restructured Debt; and -- The Settlement Shares to be allotted to the Secured Creditors as full settlement for the debts will be renounced entirely to Boustead. The consideration for the renouncement is MYR1.00 per Settlement Share, to be paid by Boustead within 3 market days of the listing and quotation of the Settlement Shares or other payment terms as may be mutually agreed between the Scheme Creditors and Boustead. 2. Unsecured Creditors The Unsecured Creditors are financial institution creditors, trade and other creditors of PSCI and PSCSB without any security. The debt of approximately MYR363 million owed to the Unsecured Creditors as at the Cut-Off Date will be settled this manner: -- Waiver of all interest up to and including the Cut-Off Date, for all the unsecured debts; -- Waiver of all interest post Cut-Off Date, for all the unsecured debts; -- A waiver of 70% of the principal amount of all the unsecured debts (the post-waiver principal amount of the unsecured debts will also be called the Restructured Debt); -- Issuance of new PSCI Shares as full settlement for the Restructured Debt; and -- The Settlement Shares to be allotted to the Unsecured Creditors of PSCSB as full settlement for the debts will be renounced to Boustead and the prospective investors as the Board may identify and approve later in the proportion of 36.7% and 63.3%, while the Settlement Shares to be allotted to the Unsecured Creditors of PSCI will be renounced to Boustead entirely. The consideration for the renouncement is MYR1.00 per Settlement Share, to be paid by Boustead and the prospective investors within three market days of the listing and quotation of the Settlement Shares or such other payment terms as may be mutually agreed between the parties . 3. Corporate Guarantee Creditors The corporate guarantee creditors are financial institution creditors of PSCI and PSCSB which have the benefit of corporate guarantee issued by PSCI or PSCSB for loans granted to PSCI or PSCSB. As at the Cut-Off Date, the corporate guarantee given amounted to approximately MYR389 million. The outstanding amount owing to the Corporate Guarantee Creditors will be fully settled by a cash payment of a nominal amount of MYR1.00 only per Corporate Guarantee Creditor. In consideration of the cash payment of MYR1.00 for each corporate guarantee creditor, these Scheme Creditors will release PSCI and PSC from their respective obligations under the corporate guarantees. 4. Basis of Arriving at an Issue Price The issue price of MYR1.00 per Settlement Share was arrived at after taking into account the higher of the five-day weighted average market price of PSCI shares of MYR0.35 up to the Cut-Off Date, five-day WAMP of PSCI shares of MYR0.32 up to Dec. 14, 2006, and the par value. The cash consideration of MYR1.00 per Renounced Share was based on the issue price of MYR1.00 each for the Settlement Shares. 5. Ranking of New Shares The Settlement Shares will upon allotment and issue, rank pari passu in all respects with the existing ordinary shares of PSCI after the Proposed Capital Reconstruction except that they will not be entitled to any dividends, rights, allotments or other form of distribution that may be declared, made or paid prior to the date of allotment and issue of the Settlement Shares and not entitled to participate in the Proposed Rights Issue. C. Proposed Rights Issue PSCI proposes to undertake a renounceable rights issue of 69,633,338 new ordinary shares of MYR1.00 each at an issue price of MYR1.00 per Rights Share on the basis of two Rights Shares for every one existing ordinary share of MYR1.00 each held after the Proposed Share Capital Reduction. The issue price of the Rights Shares is payable in full upon acceptance by the entitled shareholders of PSCI. The Rights Shares will be offered to the shareholders of PSCI (except those shares issued pursuant to the Proposed Debt Settlement) as per the Record of Depositors or the Registrar of Members on the entitlement date to be announced in due course after obtaining the approvals required from all the relevant authorities. The Rights Shares will upon allotment and issue, rank pari passu in all respects with the existing ordinary shares of PSCI after the Proposed Capital Reconstruction except that they will not be entitled to any dividends, rights, allotments or other form of distribution that may be declared, made or paid prior to the date of allotment and issue of the Rights Shares. The Company will arrange for the portion of the Rights Shares for which no written irrevocable undertaking to subscribe had been procured, to be fully underwritten. Based on the issue price of MYR1.00 per share, the Proposed Rights Issue will raise proceeds amounting to approximately MYR69.6 million which are proposed to be utilized as working capital for PSCI and its subsidiaries and to defray the estimated expenses to be incurred for the Proposed Restructuring Scheme. Mandatory General Offer Upon completion of the Proposed Restructuring Scheme, Boustead's shareholding in PSCI will exceed 33%. Accordingly, Boustead would be obliged to undertake a mandatory general offer for the remaining shares in PSCI shares not already owned by it after the Proposed Restructuring Scheme. In this respect, Boustead will make an application to the Securities Commission for an exemption from having to undertake the mandatory general offer. The Proposed Restructuring Scheme is inter-conditional with the Proposed Exemption. Required Approvals The Proposed Restructuring Scheme and Proposed Exemption are subject to the approval of: * the Securities Commission; * the SC under the Foreign Investment Committee Guidelines on the Acquisition of Interests, Mergers and Take-overs by Local and Foreign Interests; * the SC for the Proposed Exemption; * the shareholders of PSCI at an Extraordinary General Meeting to be convened; * the Scheme Creditors at the Court Convened Meetings to be convened for the Proposed Debt Settlement; * the confirmation of the High Court of Malaya for the Proposed Capital Reduction and the Proposed Share Premium Account Cancellation pursuant to Sections 64 and 60 of the Act, as well as the requisite sanction of the High Court of Malaya for the Proposed Debt Settlement pursuant to Section 176 of the Act; * Bursa Securities for the listing of and quotation for the new PSCI Shares to be issued pursuant to the Proposed Restructuring Scheme on the Main Board of Bursa Securities; And * other relevant parties or authorities, if any. The application to the SC in relation to the Proposed Restructuring Scheme will be made by Dec. 31, 2006. Barring unforeseen circumstances, the Proposed Restructuring Scheme is expected to be completed by the third quarter of 2007. SOLUTIA INC: Receives Commitment for US$1.1-Billion DIP Loan ------------------------------------------------------------ Solutia Inc. has received a fully underwritten commitment for US$1.075 billion of debtor-in-possession financing, maturing March 31, 2008. This represents a US$250 million increase and a one-year extension over Solutia's current DIP financing. The increased availability under the DIP financing provides Solutia with further liquidity for operations and the ability to fund mandatory pension payments that come due in 2007. The agreement also allows for Solutia to purchase Akzo Nobel's stake in Flexsys, the 50%/50% joint venture between Azko Nobel and Solutia. As reported in the Troubled Company Reporter on Dec. 20, 2006, Solutia reached an agreement in principle to purchase Akzo Nobel N.V.'s stake in Flexsys as well as Akzo Nobel's Crystex, a "non-blooming vulcanizing agents for unsaturated elastomers" business in Japan. To facilitate the Flexsys acquisition, up to US$150 million of additional funds could be raised under this DIP financing through an accordion feature, bringing the total to US$1.225 billion. The DIP financing can be repaid by Solutia at any time without prepayment penalties. Citigroup is acting as lead arranger. This amendment requires the approval of the U.S. Bankruptcy Court for the Southern District of New York. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium and Colombia. The company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. =============== M O N G O L I A =============== * S&P Raises Long-Term Sovereign Credit Ratings to 'B+' ------------------------------------------------------- Standard & Poor's Ratings Services had raised its foreign and local currency long-term sovereign credit ratings on Mongolia to 'B+' from 'B'. The outlook remains positive. "The upward revision in the ratings on Mongolia and continued positive outlook is mainly a reflection of the country's considerably improved growth prospects on the back of a burgeoning mining sector, as well as progress in economic liberalization toward an open and market-oriented economy," said Standard & Poor's credit analyst Agost Benard. "These factors, coupled with generally prudent economic and fiscal management, are expected to maintain improvements in the country's debt-to- GDP ratio, which has fallen to a projected 56% (expressed as general government debt to GDP), from a peak of 110% in 2003." Mongolia is experiencing a resources boom, given its rich mineralization, high world commodities prices, and its fortuitous location near booming Asian economies. Notwithstanding the recent implementation of the windfall profit tax law for copper and gold that eats into profits, and some lingering uncertainties regarding the state's share of mineral resources deemed as "strategic deposits," the expectation is that Mongolia will continue to capitalize on these favorable factors, driven by increasing foreign participation in its mining sector. As a result, growth is expected to average 7% in 2007-2009, although should copper and gold prices fall, growth could underperform projections. The ratings are also supported by strong donor country and multilateral support, which underpins government finances, eases the debt servicing burden, and conditions Mongolian policy formulation. A remaining concern for the ratings, however, is the country's relatively high financial sector vulnerabilities owing to still high credit growth, relatively high level of past due loans, and inadequate banking supervision. These vulnerabilities need to be addressed through prudent monetary policies aimed at curtailing excessive credit growth, combined with continued improvements in banking supervision and regulation. The ratings could be raised if fiscal consolidation and higher growth prospects continue to result in a material reduction in government indebtedness. However, the recent cuts in tax rates, and continued government wage and welfare expenditure pressures, may dilute fiscal consolidation. The ratings could revert back to stable if fiscal deficits widen beyond expectations or if a fall in donor commitment affects Mongolia's ability to finance these deficits and maintain adequate foreign exchange reserves. ===================== N E W Z E A L A N D ===================== ABOUT CEILINGS: Shareholders Resolve to Liquidate Business ---------------------------------------------------------- On Nov. 28, 2006, the shareholders of About Ceilings Residential Ltd resolved by a special resolution to liquidate the company's business and appointed Grant Bruce Reynolds as liquidator. The Liquidator can be reached at: Grant Bruce Reynolds Reynolds & Associates Limited Insolvency Practitioners P.O. Box 259-059, Burswood East Tamaki, Auckland New Zealand Telephone:(09) 577 0162 Facsimile:(09) 576 5503 BELL MACINTOSH: Creditors Must Lodge Claims by January 3 -------------------------------------------------------- David Donald Crichton and Keiran Anne Horne were appointed as liquidators of Bell MacIntosh Ltd by order of the High Court on Nov. 27, 2006. The Liquidators fixed Jan. 3, 2007, as the last day for which the creditors are to make their claims and to establish any priority claims they may have. The Liquidators can be reached at: David Donald Crichton Keiran Anne Horne Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978) Christchurch New Zealand Telephone:(03) 379 7929 COASTLINES LTD: Creditors' Proofs of Debt Due on Jan. 26 -------------------------------------------------------- On Nov. 27, 2006, the High Court appointed John Howard Ross Fisk and Craig Alexander Sanson as joint and several liquidators of Coastlines Ltd. In this regard, Liquidators Fisk and Sanson will be receiving creditors' proofs of debt until Jan. 26, 2007. The Liquidators can be reached at: John Howard Ross Fisk Craig Alexander Sanson PricewaterhouseCoopers 113-119 The Terrace (P.O. Box 243) Wellington New Zealand Telephone:(04) 462 7489 Facsimile:(04) 462 7492 FOREIGN WHOLESALE: Creditors to File Claims by Jan. 3 ----------------------------------------------------- Liquidators David Donald Chrichton and Keiran Anne Horne require the creditors of Foreign Wholesale Ltd to file their claims by Jan. 3, 2007, and to establish any priority claims they may have. According to the Troubled Company Reporter - Asia Pacific, the High Court of Christchurch received a liquidation petition against the company on Nov. 27, 2006, filed by the Commissioner of Inland Revenue. The Joint and Several Liquidators can be reached at: David Donald Chrichton Keiran Anne Horne Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978) Christchurch New Zealand Telephone:(03) 379 7929 METRO AIR: Liquidators to Accept Claims Until Jan. 3 ---------------------------------------------------- David Donald Crichton and Keiran Anne Horne were appointed as liquidators of Metro Air Ltd by order of the High Court on Nov. 27, 2006. Accordingly, the Liquidators fixed Jan. 3, 2006, as the last day creditors are to make their claims and to establish any priority claims they may have. The Liquidators can be reached at: David Donald Crichton Keiran Anne Horne Crichton Horne & Associates Ltd Old Library Chambers 109 Cambridge Terrace, Christchurch New Zealand Telephone:(03) 379 7929 MONEY EXPRESS: Creditors' Proofs of Claim Due on Jan. 19 -------------------------------------------------------- Creditors of Money Express Ltd are required by Liquidator Robin M. Seal to submit their claims by Jan. 19, 2007, and to establish any priority claims they may have. The Liquidator can be reached at: Robin M. Seal BKR Walker Wayland Limited P.O. Box 2175 Auckland 1140 New Zealand MOTOMAHOE FARMS: Shareholders Agree to Close Business ----------------------------------------------------- The shareholders of Motomahoe Farms Ltd resolved by a special resolution to liquidate the company's business and appointed Michael Crawford as liquidator. The Liquidator can be reached at: Michael Crawford P.O. Box 17, Hamilton New Zealand Telephone:(07) 838 4800 Facsimile:(07) 838 4810 R F AND C A: Creditors Must Lodge Claims by Dec. 28 --------------------------------------------------- Liquidators Henry David Levin and Barry Jordan are receiving proofs of claim from the creditors of R F and C A Keegan Sheetmetals Ltd until Dec. 28, 2006. As reported in the Troubled Company Reporter - Asia Pacific, the High Court of Auckland heard the liquidation petition against the company on Nov. 30, 2006, filed by the Commissioner of Inland Revenue. The Joint and Several Liquidators can be reached at: Henry David Levin Barry Jordan PPB McCallum Petterson Level Eleven, Forsyth Barr Tower 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 T F LTD: Court Appoints Joint Liquidators ----------------------------------------- The High Court of Auckland appointed Henry David Levin and Barry Jordan as joint and several liquidators of T F Ltd on Nov. 30, 2006. The liquidators fixed Dec. 28, 2006, as the last day for the company's creditors to make their claims and to establish any priority claims they may have. The Joint and Several Liquidators can be reached at: Henry David Levin Barry Jordan PPB McCallum Petterson Level Eleven, Forsyth Barr Tower 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 ===================== P H I L I P P I N E S ===================== * Pres. Arroyo Receives US$653 Mln. in Loans & Grants from ADB -------------------------------------------------------------- On December 21, 2006, Philippines President Gloria Macapagal- Arroyo formally received US$653 million in loans and grants from the Asian Development Bank. Finance Secretary Gary Teves said that of the US$653 million: -- US$450 million in loan will be made accessible nationwide for the strengthening of the power sector to ensure the development of cheaper electricity; -- US$200 million in loan will be made accessible for small business entrepreneurs to encourage more business activities and the creation of more jobs; and -- US$3 million is a grant for the building and repairs of farm to market roads, hospitals, and schools in Southern Leyte, which suffered massive damages from landslide in 2006. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." On November 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. * Philippine Economy to Grow 5.7% in 2007, NEDA says ---------------------------------------------------- The National Economic and Development Authority has downplayed concerns that the expected slowdown of the United States economy next year would dampen exports and overall growth of the Philippine economy. The NEDA stressed that the Philippines' export markets were already well diversified and a slack in demand by American consumers would not significantly hurt Philippine export earnings. "It is not correct to say that we are highly dependent on the United States. Our exports already have many growth drivers," said Dennis Arroyo, NEDA director for policy and planning. The NEDA has projected that exports would sustain in 2007 the double-digit growth seen this year, forecasting a 10.5% rise year-on-year. As of the first 10 months of 2006, exports grew 16.4% to US$39.32 billion from a year ago, better than the 10% full-year growth target. The growth was largely attributed to the huge global demand for electronics. President Gloria Macapagal-Arroyo said exports would be one of the growth drivers for the Philippines in 2007. The NEDA is sticking to its target that the economy would grow by at least 5.7% next year. The official also said the NEDA is keeping its 2006 projection of an economic growth of at least 5.5%. In the first three quarters of the year, the economy grew 5.4% year-on-year. Pres. Arroyo noted that gone were the days when the United States accounted for bulk of the Philippines' export earnings. While the United States is still the Philippines' biggest export market, its contribution to the total export earnings had dwindled over the years. As of the first nine months of this year, the United States accounted for 18.3% of the Philippines' export earnings. Japan followed with 16.9%. Main Asean countries -- Indonesia, Malaysia, Thailand and Singapore -- together accounted for another 16.9% of the Philippines' export earnings, while the European Union had an 18.4% share. Pres. Arroyo likewise refuted projections by some analysts that global demand for electronics -- the Philippines' major export product -- would subside next year. The NEDA official noted a forecast by California-based Semiconductor Industry Association that global demand for consumer electronics like iPods, MP3 players, and the like would continue to increase. While the U.S. economy might be headed for a slowdown, demand from other markets like Japan, China, and other Asian countries was seen to rise. Aside from exports, other growth drivers for the Philippine economy next year, according to the NEDA, are higher: (a) dollar inflows from remittances of overseas Filipino workers; (b) investments in real estate, continued growth of the call center industry; and (c) government spending for infrastructure. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." On November 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= ARMSTRONG INDUSTRIAL: Share Registrar Moves to Another Place ------------------------------------------------------------ Armstrong Industrial Corp Ltd disclosed that the share registrar and the place where the Register of Members and Index are kept has been relocated to: 3 Church Street #08-01 Samsung Hub Singapore 049483 About Armstrong Industrial Armstrong Industrial Corp. Ltd -- http://www.armstrong.com.sg-- manufactures and sells precision die-cut foam and rubber moulded components for a range of applications, including insulating, dampening, cushioning, and sealing. The company also provides architectural and engineering activities and related technical consultancy. The company has manufacturing presence in Singapore, Malaysia, Thailand, China, Indonesia and Vietnam. * * * Moody's Investors Service gave Armstrong Industrial's senior unsecured debt a Ba2 rating effective on December 16, 1991, and its subordinated debt a B1 rating effective on October 23, 1986. AVAGO TECHNOLOGIES: Posts US$405 Mil. Revenue in 2006 4th Qtr. -------------------------------------------------------------- Avago Technologies Holdings Pte. Ltd. has released its financial results for the fourth quarter, ended Oct. 31, 2006. For the quarter under review, net revenue was recorded at US$405 million, compared with US$423 million in the previous quarter, reflecting an inventory correction among many industrial customers and decelerating demand in certain consumer markets. The recorded 2006, fourth quarter gross margin was 27%, which was due to several factors that include less favorable product mix as well as the impact of lower revenue. In addition, driven by concerns of weaker consumer demand going forward, manufacturing output declined, resulting in an under absorption of overhead costs of the US$8 million. Also, inventory reserves and losses from the disposal of fixed assets unfavorably impacted fourth quarter gross margin by US$10 million. Moreover, the company's total operating expenses amounted to US$153 million for the fourth quarter ending Oct. 2006, which include a US$21 million charge related to a legal settlement, as against the US$137 million total operating expenses in the previous quarter. The cash balances of US$272 million was recorded at the end of October, up from the recorded US$200 million cash balances at the end of July. This was due to the US$85 million cash generated from operations. "We have achieved better than expected financial results in our first year as a company, including generating a US$322 million of Adjusted EBITDA and lowering our total debt load from US$1.7 billion to US$1 billion," said Hock E. Tan, president and CEO of Avago Technologies. "While we see opportunities for further improvement, I am confident that we have established a solid foundation for continued operational and financial success as we head into fiscal 2007", added Mr. Tan. About Avago Technologies Headquartered both in San Jose, CA, and in Singapore, Avago Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/-- is a semiconductor company, with approximately 6,500 employees worldwide. Avago provides an extensive range of analog, mixed- signal and optoelectronic components and subsystems to more than 40,000 customers. The company's products serve four end markets: industrial and automotive, wired networking, wireless communications, and computer peripherals. It has manufacturing and marketing centers in Singapore, United States, Italy, Germany, Korea, China, Japan and Malaysia. Avago Technologies is the successor to the Semiconductor Products Group of Agilent. Avago Technologies purchased the business of SPG as of December 1, 2005, for US$2.6 billion in cash. As reported by the Troubled Company Reporter - Asia Pacific on Oct. 2, 2006, Moody's Investors Service has affirmed these ratings for Avago: -- US$250 million Senior Secured Revolver due on 2012, from B1 to Ba2, LGD1, 4%; -- US$500 million 10.125% Senior Unsecured Notes due on 2013, from B3 to B2, LGD3, 47%; -- US$250 million Floating Rate Senior Unsecured Notes due on 2013, from B3 to B2, LGD3, 47%; and -- US$250 million 11.875% Senior Subordinated Notes due on 2015, from Caa2 to Caa1, LGD6, 91%. CHINA AVIATION: Closes January 2007 Fuel Tender ----------------------------------------------- China Aviation Oil (Singapore) Corporation Ltd said that it closed its physical Jet Fuel tender for delivery in January 2007. In the Jan. 2007, tender, China Aviation received responses from 17 physical jet-fuel suppliers. It has awarded cargoes to 5 suppliers. For this tender, a total volume of 355,000 metric tonnes of A-1 Grade Jet Fuel was awarded. The cover ratio for the awarded cargos has increased to 4.2 times from 3.4 in last tender. The tender was awarded to the most competitive suppliers. The company expresses its appreciation to all suppliers for their continued support of its jet fuel procurement business. About China Aviation Oil (Singapore) Incorporated in 1983, China Aviation Oil (Singapore) Corp. Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. The company is undergoing restructuring. Its Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. The company, according to a TCR-AP report on Nov. 10, 2006, is currently working with an insolvent balance sheet, with a US$390.07 million shareholder's deficit on total assets of US$211.96 million. CHINA AVIATION: Relocates Share Registrar and Place of Index ------------------------------------------------------------ China Aviation Oil (Singapore) Corporation Ltd disclosed that effective on Dec. 18, 2006, the office of its Share Registrar, Lim Associates (Pte) Ltd, at which the company's Register of members and Index are kept, was relocated to: Lim Associates (Pte) Ltd 3 Church Street, #08-01 Samsung Hub Singapore 049483 Telephone: 6536 5335 Facsimile: 6536 1360 About China Aviation Oil (Singapore) Incorporated in 1983, China Aviation Oil (Singapore) Corp. Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. The company is undergoing restructuring. Its Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. The company, according to a TCR-AP report on Nov. 10, 2006, is currently working with an insolvent balance sheet, with a US$390.07 million shareholder's deficit on total assets of US$211.96 million. HLG ENTERPRISE: Classic Exercises Option to Purchase Tristar --------------- -------------------------------------------- HLG Enterprises disclosed on Dec. 18, 2006, that Classic Holdings Pte Ltd has exercised its options to purchase Tristar Inn. As reported by the Troubled Company Reporter - Asia Pacific on Dec. 7, 2006, Joo Chiat Holding Pte Ltd, the company's indirect wholly owned subsidiary, has granted an option in favor of Classic Holdings to purchase Tristar Inn for a cash consideration of SGD18,300,000. Pursuant to the company's shareholder circular, it states that an approval has been given to the company's directors to sell off or procure the sale of the Class Two Assets and the Class Three General Mandate Assets, in which Tristar Inn constitutes the Class Two Asset. About HLG Enterprise Limited HLG Enterprise Limited -- formerly known as LKN-Primefield Company Pte Ltd -- is a Singapore-based company involved in investment holding and investing in property for rental. Through a number of subsidiaries, the company is engaged in building and civil engineering construction; the construction of crude oil tanks and piping systems; commercial and home repair works and the provision of related maintenance services; property development, investment and management; property rental; the operation of hotels and restaurants, and the provision of hotel management and consultancy. LKN- Primefield is also involved in the manufacture, retail sale, distribution, import and export of computer hardware (including computer peripherals) and software, and the development of multimedia transactional payphone kiosks. In addition, it is an ESDN electronic service delivery network provider that owns and operates a large network of public broadband transactional terminals. The company's operations are mainly concentrated in Singapore, China and Indonesia. On November 29, 2004, HLG Enterprise and certain of its subsidiaries entered into a debt restructuring plan with the company's bondholders. HSBC Trustee (Singapore) Ltd. acted as the trustee for the bondholders; KPMG Business Advisory Pte. Ltd. acted as New Restructuring Agent/Independent Special Consultant/Paying Agent. The company's Sept. 30, 2006 consolidated balance sheet showed total assets of US$177.62 million and total liabilities of US$189.1 million, resulting in a shareholders' equity deficit of US$11.5 million. As of Oct. 12, 2006, the company has shareholders' deficit of US$12.72 million, on total assets of US$150.70 million as reported by the Troubled Company Reporter - Asia Pacific on Oct. 13. HLG ENTERPRISE: Subsidiary to Sell Two Shops to Noble Pte --------------------------------------------------------- Pursuant to the approval given to the directors of HLG Enterprise Limited, to sell off or procure the sale of any of the Class Two Assets and the Class Three General Mandate Assets, Joo Chiat Holding Pte Ltd, an indirect wholly-owned subsidiary of the company has granted Noble Properties Pte Ltd and Noble Estates Pte Ltd an option each, to purchase the two shop units located at #02-01 and #02-02 970 Geylang Road, Singapore for a cash consideration of SGD430,000 each. The two shop units belongs to the Class Two Assets. The consideration was arrived at a willing-buyer and willing- seller basis. Key terms of the Options (i) The date of completion of the Proposed Sale is March 12, 2007, and on the date of completion Joo Chiat will be required to deliver the Properties subject to the existing tenancies; (ii) The Proposed Sale is subject to the satisfactory replies to the Purchaser's solicitors' legal requisitions to the various Government Departments; (iii) The Properties are sold on an "as is where is" basis and the Purchaser is deemed to have inspected the Properties before the grant of the Options and was satisfied to the conditions; (iv) The completion of the proposed sale and purchase of Unit #02-01 is conditional upon the concurrent completion of the proposed sale and purchase of Unit #02-02 and vice versa. The entire net proceeds of approximately SGD839,000 after taking into account the legal fees and other relevant transaction costs from the sale of the Properties will be applied in accordance with the Group's restructuring scheme. About HLG Enterprise Limited HLG Enterprise Limited -- formerly known as LKN-Primefield Company Pte Ltd -- is a Singapore-based company involved in investment holding and investing in property for rental. Through a number of subsidiaries, the company is engaged in building and civil engineering construction; the construction of crude oil tanks and piping systems; commercial and home repair works and the provision of related maintenance services; property development, investment and management; property rental; the operation of hotels and restaurants, and the provision of hotel management and consultancy. LKN- Primefield is also involved in the manufacture, retail sale, distribution, import and export of computer hardware (including computer peripherals) and software, and the development of multimedia transactional payphone kiosks. In addition, it is an ESDN electronic service delivery network provider that owns and operates a large network of public broadband transactional terminals. The company's operations are mainly concentrated in Singapore, China and Indonesia. On November 29, 2004, HLG Enterprise and certain of its subsidiaries entered into a debt restructuring plan with the company's bondholders. HSBC Trustee (Singapore) Ltd. acted as the trustee for the bondholders; KPMG Business Advisory Pte. Ltd. acted as New Restructuring Agent/Independent Special Consultant/Paying Agent. The company's Sept. 30, 2006, consolidated balance sheet showed total assets of US$177.62 million and total liabilities of US$189.1 million, resulting in a shareholders' equity deficit of US$11.5 million. As of Oct. 12, 2006, the company has shareholders' deficit of US$12.72 million, on total assets of US$150.70 million as reported by the Troubled Company Reporter - Asia Pacific on Oct. 13. SEE HUP SENG: Merrill Lynch Take Shares --------------------------------------- See Hup Seng Limited disclosed that Merrill Lynch & Co Inc and Merrill Lynch International have taken shares in the company on Dec. 20, 2006. Presently, Merrill Lynch & Co Inc. holds 17,000,000 deemed shares with 5.63% issued share capital. On the other hand, Merrill Lynch International holds 17,000,000 direct shares with 5.63% issued share capital. Moreover, Merrill Lynch & Co is deemed to be interested in the 17,000,000 shares held by Merrill Lynch International by virtue of Section 7 of the Companies Act Cap. 50. About See Hup Seng See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. Significant Doubt As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, after reviewing the company's full year financials for the year 2005, Moore Stephens -- See Hup Seng's independent auditors -- expressed, on April 7, significant doubt in the company's ability to continue as going concern, citing the company's losses and net current liabilities. Moore Stephens adds that the ability of the group and the company to continue as going concerns is dependent the company's debt restructuring exercise. SEE HUP SENG: Completes Placement Agreements -------------------------------------------- As reported by the Troubled Company Reporter - Asia Pacific on Dec. 19, 2006, the Singapore Exchange Securities Trading Limited has granted See Hup Seng Limited to list and quote 28,000,000 new ordinary shares in the SGX-Sesdaq. In relation to this, See Hup Seng disclosed that the completion of the Placement Agreements had taken place on Dec. 20, 2006. The company placed out the Placement Shares as: (a) 17,000,000 of the Placement Shares have been placed out to Merrill Lynch International or its nominees; and (b) 11,000,000 of the Placement Shares have been placed out to SBI E2-Capital Asia Securities Pte Ltd or its nominees. The listing and quotation of the Placement Shares on the SGX- Sesdaq is expected to take place on Dec. 26, 2006. About See Hup Seng See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. Significant Doubt As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, after reviewing the company's full year financials for the year 2005, Moore Stephens -- See Hup Seng's independent auditors -- expressed, on April 7, significant doubt in the company's ability to continue as going concern, citing the company's losses and net current liabilities. Moore Stephens adds that the ability of the group and the company to continue as going concerns is dependent the company's debt restructuring exercise. =============== T H A I L A N D =============== DAIMLERCHRYSLER AG: Truck Unit Eyes US$300-Mln Plant in Mexico -------------------------------------------------------------- Freightliner LLC, the truck division of DaimlerChrysler AG, plans to build a US$300 million truck manufacturing plant in Coahuila, Mexico, Terry Kosdrosky writes for Dow Jones Newswires. The 740-acre facility is Freightliner's second plant in Mexico after building the Santiago Tianguistenco plant. The new facility could produce up to 30,000 trucks a year and employ up to 1,600 production and management personnel, Dow Jones reports. The company plans to begin production of its Freightliner and Sterling trucks in the new site by early 2009. The company's announcement came after Freightliner disclosed of plans to cut up to 4,000 jobs in North America due to the expected downturn in heavy truck building, Dow Jones relates. According to the report, buyers have been prompted to push its truck orders this year as new emission regulations would go into effect in 2007, which will add costs to commercial truck production. Freightliner President and Chief Executive Chris Patterson wants to prepare for a surge in demand, which could come before 2010 when the next round of new emissions regulations goes into effect. "Frankly, we were not able to produce what we could have sold in 2006 due to capacity constraints," Mr. Patterson said. Truck buyers in all markets are showing hesitation to purchase trucks equipped with the new engine technology necessary to meet the diesel exhaust emissions standards that go into effect in Canada and the United States on Jan. 1, 2007. Depending on specification and weight class, Freightliner LLC vehicles are subjected to price increases ranging from US$4,600 to US$12,500, before application of taxes, for the new engines. It is clear that all residents of North America benefit from the cleaner atmosphere that will ultimately result, but it is equally obvious that the costs associated with this worthy initiative are borne almost entirely by the truck manufacturing industry's employees, suppliers, shareholders, and dealers. About Freightliner LLC Headquartered in Portland, Ore., Freightliner LLC -- http://www.freightliner.com/-- is a medium- and heavy-duty truck manufacturer in North America. Freightliner produces and markets Class 3-8 vehicles and is a company of DaimlerChrysler. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia and Thailand. DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion (US$1.2 billion) for its Chrysler Group. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. DAIMLERCHRYSLER AG: Applauds ITC's Order to Revoke Steel Duties --------------------------------------------------------------- The six largest automobile companies -- DaimlerChrysler AG, Ford Motor Corp., General Motors Corp., Honda, Nissan, and Toyota Motor North America -- with manufacturing facilities in the United States has applauded a decision by the U.S. International Trade Commission to revoke anti-dumping and countervailing duty orders on "corrosion resistant steel" from Australia, Canada, France, and Japan. The ITC left orders in place on imports from Germany and Korea. "We are pleased that the ITC revoked most of the duties," said Stephen E. Biegun, Vice President, International Governmental Affairs, Ford Motor Company. "All of these duties are outdated and hurt American manufacturing competitiveness and U.S. jobs while needlessly helping a steel industry that is now profitable and healthy." "[The] decision is a major step forward in restoring needed competition to the U.S. steel market," Toyota Motor North America group vice president Josephine Cooper said. "The ITC's decision supports both a strong steel industry and a strong auto industry, and we look forward to working with our colleagues in the steel industry to continue to strengthen manufacturing in the United States." The duties on corrosion resistant steel have been in place since 1993 on imports from six countries. As a result of [the] vote, duties on imports from Australia, Canada, France, and Japan are revoked, while duties on imports from Germany and Korea will be retained until the next review in 2011. The six auto manufacturers -- DaimlerChrysler, Ford, General Motors, Honda, Nissan and Toyota -- joined together for the first time as a group in a trade case to urge revocation of duties on corrosion-resistant steel because of their serious concern regarding access to, and availability of, competitively- priced steel. During the hearing, the companies demonstrated that the U.S. steel industry is now profitable, has healthy long-term prospects, and no longer needs government protection. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia and Thailand. DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion (US$1.2 billion) for its Chrysler Group. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. FEDERAL-MOGUL: Bankruptcy Court Okays Ernst & Young as Advisors --------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the United States Bankruptcy Court for the District of Delaware approved Ernst & Young LLP's continued employment as the Debtors' accounting, tax, valuation, and actuarial advisors, and independent auditors. The Debtors asked the Court to clarify that the scope of Ernst & Young LLP's continued employment as their independent auditors and as accounting, tax, valuation, and actuarial advisors encompasses the services similar to what the firm has provided in previous years: -- international tax advisory services, -- individual employee tax compliance, -- international assignment services, and -- international assignment compliance advisory tax services. The Debtors also want Ernst & Young to provide their non-Debtor affiliates with certain international assignment compliance and advisory tax services, which encompass the preparation of tax returns, annual tax reimbursement calculations, tax gross-ups, estimated tax payment requests, and tax return extension requests. The services will be provided to and paid for by certain non-Debtor affiliates located outside of the United States, and will be rendered by member firms of Ernst & Young's global network. Ernst & Young has asked the Debtors to seek Court approval for those services to the non-Debtor affiliates to preclude any contention that its services somehow conferred a benefit on the Debtors that required retention under Section 327(a) of the Bankruptcy Code. Ernst & Young's fees for the Continued Services will be billed in specified amounts and at its current rates, which, in some instances, reflect ordinary course adjustments to the firm's previous hourly rates. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. In the Asian Pacific region, the company has operations in Malaysia, Australia, China, India, Japan, Korea and Thailand. The company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) FEDERAL-MOGUL: Trizec to Serve on Asbestos Claimants Panel ---------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, appoints Trizec Properties Inc. to serve on the Official Committee of Asbestos Property Damage Claimants in Federal-Mogul Corporation and its debtor-affiliates' Chapter 11 cases. According to Andrew R. Vara, Assistant United States Trustee, two members voluntarily resigned from the Asbestos PD Committee: (a) The Hill School, effective Oct. 30, 2006; and (b) Richard Blythe, effective Dec. 6, 2006. Moxie Real Estate is also out of the Asbestos PD Committee because it is no longer eligible to serve on the committee. Moxie's asbestos property damage claim was expunged, and it is no longer a creditor by virtue of a Court order dated June 13, 2006, which sustained the Debtors' objection to asbestos property damage claims that failed to comply with the Court's Bar Date Order. The Asbestos PD Committee is now composed of: (1) Anderson Memorial Hospital c/o Speights & Runyan Attn: Daniel A. Speights P. O. Box 685 200 Jackson Avenue, East Hampton, South Carolina 29924 Tel: 803-943-4444 Fax: 803-943-4599 (2) Jacksonville College c/o Dies & Hile, LLP Attn: Martin W. Dies 1009 West Green Avenue Orange, Texas 77630 Tel: 409-883-4394 Fax: 409-883-4814 (3) Trizec Properties, Inc. c/o Philip J. Goodman 280 N. Old Woodward, Ste 407 Birmingham, Michigan 48009 Tel: 248-647-9300 Fax: 248-647-8481 Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. In the Asian Pacific region, the company has operations in Malaysia, Australia, China, India, Japan, Korea and Thailand. The company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * BOND PRICING: For the Week 18 December to 22 December 2006 ------------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA & NEW ZEALAND ----------------------- Ainsworth Game 8.000% 12/31/09 AUD 0.78 Alinta Networks 5.750% 09/22/10 AUD 6.71 APN News & Media Ltd 7.250% 10/31/08 AUD 5.50 A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.40 Arrow Energy NL 10.000% 03/31/08 AUD 1.23 Babcock & Brown Pty Ltd 8.500% 12/31/49 AUD 8.00 Becton Property Group 9.500% 06/30/10 AUD 0.65 BIL Finance Ltd 8.000% 10/15/07 NZD 9.00 Capital Properties NZ Ltd 8.500% 04/15/07 NZD 8.55 Capital Properties NZ Ltd 8.500% 04/15/09 NZD 7.90 Capital Properties NZ Ltd 8.000% 04/15/10 NZD 8.50 Cardno Limited 9.000% 06/30/08 AUD 5.10 CBH Resources 9.500% 12/16/09 AUD 0.58 Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.02 Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 0.29 Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.50 Evans & Tate Ltd 8.250% 10/29/07 AUD 0.44 Fletcher Building Ltd 8.600% 03/15/08 NZD 8.00 Fletcher Building Ltd 8.850% 03/15/10 NZD 7.75 Fletcher Building Ltd 7.550% 03/15/11 NZD 7.90 Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.39 Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 8.15 Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 11.40 Hutchison Telecoms Australia 5.500% 07/12/07 AUD 0.53 IMF Australia Ltd 11.500% 06/30/10 AUD 0.75 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 NZD 8.40 Infratil Ltd 8.500% 11/15/15 NZD 8.10 Kagara Zinc Ltd 9.750% 05/06/07 AUD 6.86 Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.23 Minerals Corporation Ltd 10.500% 09/30/07 AUD 0.86 Nuplex Industries Ltd 9.300% 09/15/07 NZD 8.05 Pacific Print Group Ltd 10.250% 10/15/09 NZD 11.00 Salomon SB Australia 4.250% 02/01/09 USD 7.81 Silver Chef Ltd 10.000% 08/31/08 AUD 1.05 Software of Excellence 7.000% 08/09/07 NZD 1.80 Speirs Group Ltd. 10.000% 06/30/49 NZD 61.00 Structural Systems 11.000% 06/30/07 AUD 1.60 Tower Finance Ltd 8.750% 10/15/07 NZD 8.20 TrustPower Ltd 8.300% 09/15/07 NZD 8.50 TrustPower Ltd 8.300% 12/15/08 NZD 8.05 TrustPower Ltd 8.500% 09/15/12 NZD 8.25 TrustPower Ltd 8.500% 03/15/14 NZD 8.00 Vision Systems Ltd 9.000% 12/15/08 AUD 3.50 KOREA ----- Korea Development Bank 7.350% 10/27/21 KRW 49.01 Korea Development Bank 7.450% 10/31/21 KRW 48.98 Korea Development Bank 7.400% 11/02/21 KRW 48.97 Korea Development Bank 7.310% 11/08/21 KRW 48.93 Korea Development Bank 8.450% 12/15/26 KRW 69.74 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.78 AHB Holdings Bhd 5.500% 03/06/07 MYR 0.15 Asian Pac Bhd 4.000% 12/21/07 MYR 0.23 Berjaya Land Bhd 5.000% 12/30/09 MYR 0.63 Bumiputra-Commerce 2.500% 07/17/08 MYR 1.03 Camerlin Group Bhd 5.500% 07/15/07 MYR 2.29 Crescendo Corporation Bhd 3.000% 08/25/07 MYR 0.90 Dataprep Holdings Bhd 4.000% 08/06/07 MYR 0.43 Denko Industrial Corp. Bhd 5.000% 03/15/07 MYR 0.60 Eastern & Oriental Hotel 8.000% 07/25/11 MYR 1.77 Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 0.70 EG Industries Bhd 5.000% 06/16/10 MYR 0.61 Equine Capital Bhd 3.000% 08/26/08 MYR 0.36 Greatpac Holdings Bhd 2.000% 12/11/08 MYR 0.33 Gula Perak Bhd 6.000% 04/23/08 MYR 0.49 Hong Leong Industries Bhd 4.000% 06/28/07 MYR 0.85 Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.59 I-Berhad 5.000% 04/30/07 MYR 0.52 Insas Bhd 8.000% 04/19/09 MYR 0.70 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.32 Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.57 Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.53 Kumpulan Jetson 5.000% 11/27/12 MYR 0.43 LBS Bina Group Bhd 4.000% 12/29/06 MYR 0.51 LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.48 LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.48 LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.48 Lebar Daun Berhad 2.000% 01/06/07 MYR 5.00 Media Prima Bhd 2.000% 07/18/08 MYR 1.59 Mithril Bhd 8.000% 04/05/09 MYR 0.39 Mithril Bhd 3.000% 04/05/12 MYR 0.62 Mutiara Goodyear Dev't Bhd 2.500% 01/15/07 MYR 0.33 Pantai Holdings Bhd 5.000% 07/31/07 MYR 2.50 Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 1.34 Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 1.34 Poh Kong Holdings Bhd 3.000% 01/20/07 MYR 0.73 Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.87 Ramunia Holdings 1.000% 12/20/07 MYR 0.89 Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.14 Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.32 Rhythm Consolidated Bhd 5.000% 12/17/08 MYR 0.44 Senai-Desaru Exp. 3.500% 12/09/19 MYR 74.33 Senai-Desaru Exp. 3.500% 05/09/20 MYR 73.34 Senai-Desaru Exp. 3.500% 12/09/20 MYR 71.99 Senai-Desaru Exp. 3.500% 06/09/21 MYR 71.01 Senai-Desaru Exp. 3.500% 12/09/21 MYR 70.05 Senai-Desaru Exp. 3.500% 12/09/22 MYR 68.53 Senai-Desaru Exp. 3.500% 06/09/23 MYR 67.60 Senai-Desaru Exp. 3.500% 12/08/23 MYR 66.69 Senai-Desaru Exp. 3.500% 06/07/24 MYR 65.79 Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.31 Southern Steel 5.500% 07/31/08 MYR 1.27 Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.24 Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 0.73 WCT Land Bhd 3.000% 08/02/09 MYR 1.09 Wah Seong Corp 3.000% 05/21/12 MYR 3.00 YTL Cement Bhd 4.000% 11/10/15 MYR 1.50 SINGAPORE --------- Sengkang Mall 8.000% 11/20/12 SGD 1.00 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***