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, March 6, 2007, Vol. 10, No. 46 Headlines A U S T R A L I A A1 TEL: Liquidator to Present Wind-Up Report A.G. KERR: Members and Creditors to Receive Wind-Up Report A.P. GLOVER: Creditors Must Prove Debts by March 8 ABF CARPETS: Commences Liquidation Proceedings ADVANCED MARKETING: Inks Asset Purchase Pact with Baker & Taylor AGENIX LIMITED: Sells Diagnostic Products for AU$3.9 Mil. to BBI ALL FRESH: Members and Creditors to Meet on March 30 BELMORE CONSTRUCTIONS: To Declare Dividend on March 28 COMPARE NOMINEES: Members and Creditors to Hear Wind-Up Report NAP ACOUSTICS: To Hold Final Meeting on March 30 PRIMELIFE CORPORATION: Posts AU$2-Mil. Loss for HY-Ended Dec. 31 PRIMELIFE CORPORATION: McKinnon Road Retains Claremont Ownership SUNCORP-METWAY: Promina Shareholders Support Merger Proposal SYNDAL WAY: Members Decide to Shut Down Operations TRIANGLE FASHIONS: Placed Under Voluntary Wind-Up C H I N A & H O N G K O N G BEIJING SHOUGANG: Parent to Invest CNY66.8 Billion in New Plant CHAODA MODERN: Moody's Upgrades Ratings to Ba2 CHINA CONSTRUCTION: No Current Plans for Mainland Listing FANJI FOUNDATION: Will Receive Proofs of Debt Until April 3 CHINA EASTERN: Eyes Membership with Oneworld Alliance GOLD TRIUMPH: Members and Creditors to Meet on April 3 HARMONY DEVELOPMENT: Members' Final Meeting Set for April 3 IN-WORK INTERNATIONAL: Shareholders to Hear Wind-Up Report INDUSTRIAL BANK: Profit in 2006 Up 51% on China's Growth MOGU INTERNATIONAL: Members and Creditors to Meet on April 3 PARKSON RETAIL: Fiscal-Year 2006 Net Profit Up 86% SUPER LUCK: Balance Sheet Upside Down by US$33,806 in 2006 TAK WO: Liquidator to Present Wind-Up Report TREASURE PROPERTIES: Final Meeting Slated for April 3 XINAO GAS: Plans CNY1B Outlay to Increase Distribution Outlets YONG XUN: Placed Under Creditors' Voluntary Wind-Up ZION CRUADE: Liquidator Quits Post I N D I A AFFILIATED COMPUTER: Moody's Holds Ba2 Rating, Outlook Stable GENERAL MOTORS: Reports Increase in U.S. Sales for February RELIANCE INDUSTRIES: Fitch Afiirms BBB- Ratings, Outlook Stable SYNDICATE BANK: Names K. Seetharamu as New Director TATA MOTORS: February 2007 Sales Up 19% from Last Year TATA POWER: 4th Quarter 2006 Net Profit Ups 23% to INR2.80 Bil. TATA POWER: Gets Stake in Chemical Terminal Trombay and IEPL I N D O N E S I A ALCATEL-LUCENT: To Build Taiwan's First Universal WiMAX Network ALCATEL-LUCENT: To Deploy France's First Urban WiFi Network ALLIANCE ONE: To Sell US$150 Mil. in Unsecured Senior Notes ALLIANCE ONE: Moody's Rates Proposed US$385-Mil. Sr. Loan at B1 AVNET INC: Increases Offering Size of Senior Notes to US$300-M AVNET INC: Moody's Holds Ba1 Rating and Says Outlook is Positive BANK NEGARA: Aims to Expand Outstanding Loans by 20% FREEPORT-MCMORAN: Moody's Rates US$6 Billion Notes at B2 GENERAL NUTRITION: Launches US$365 Million Cash Tender Offering NORTEL NETWORKS: To File 2006 Annual Reports mid March J A P A N DELPHI CORP: Court Approves Barclays Bank Settlement Agreement FORD MOTOR: Estimates US$11.18 Billion in Restructuring Costs KOBE STEEL: Releases Earnings Forecast For Fiscal Year 2006 KOBE STEEL: Board of Directors Approves Share Buyback Program NIKKO CORDIAL: To Finalize Talks With Citigroup Over Buyout Bid SANYO ELECTRIC: To Liquidate 3 Subsidiaries in 2nd Half of 2007 SANYO ELECTRIC: KGS Investigates Company on Behalf of Investors SANYO ELECTRIC: Lenovo Recalls Sanyo-Built Batteries XM SATELLITE: Posts US$718.9 Million Loss in Year Ended Dec. 31 K O R E A CURON INC: Enters Strategic Alliance with Celrun Co. CURON INC: Signs KRW181-Million Contract with LG-CNS CURON INC: Announces Adjusted Conversion Price of Second CB KENERTEC CO: Amends Convertible Bonds Issue Requirements KENERTEC CO: Signs KRW4-Billion Contract with STX Engine LG TELECOM: Regulator Looks Into Competitors' Alleged Collusion LG TELECOM: Adds 58,975 Subscribers in February 2007 PANTECH CO: Wins Koninklijke Philips Electronics Patent Suit PUSAN BANK: Declares Dividends on 2.8% Rise in Profit For 2006 SK CORP: SK Trading (Beijing) Now a Wholly Owned Subsidiary SK CORP: Sells Special Polymer Div. to Hyundai Eng'g Plastics TEXCELL-NETCOM CO: Individual Investor Acquires 10.02% Stake TEXCELL-NETCOM CO: Issues 11,072,779 New Shares on Feb. 28 TEXCELL-NETCOM CO: Enters Into KRW1.3-Billion Deals with 2 Banks TONG YANG: Acquires Korea-Based Clothing Companies M A L A Y S I A AMSTEEL CORP: Posts MYR40.56MM Net Profit in Dec. '06 Quarter ANTAH HOLDINGS: Unit Faces Wind-Up Petition from ECK Bhd ANTAH HOLDINGS: Provides Updates on Restructuring Scheme ARK RESOURCES: Updates on Default Status as of February 2007 ARK RESOURCES: Net Loss Almost at MYR30 Million in 4Q 2006 ARK RESOURCES: Unit Gets Notice of Demand from Concrete Engr. ASIAN PAC: Earns MYR8.08 Million in Third Quarter 2006 N E W Z E A L A N D ALPHA 1 CONTRACTORS: Taps Brown and Rodewald as Liquidators ESSIKA LTD: Commences Liquidation Proceedings FAIRVIEW DEVELOPMENTS: Will Receive Claims Until March 12 HARRISON ENGINEERING: Appoints Kenneth Oliver as Liquidator PAUL MEREDITH: Appoints Bruce Stormer as Liquidator PERIMAC NEW ZEALAND: Creditors Must Prove Debts by March 30 SUPERIOR PRODUCTS: Creditors Must Prove Debts by April 30 WOOL EQUITIES: Shareholders Want to Remove Current Board P H I L I P P I N E S ATLAS CONSOLIDATED: Berong Unit in Full Commercial Production CLIENTLOGIC: Expands Customer Service Pact with XM Satellite DEL MONTE: Earns US$45.5 Million in Quarter Ended January 28 EPIXTAR CORP: Wants Plan Filing Period Extended to April 29 PHIL. LONG DISTANCE: Unit Sets Aside PHP5 Billion for Expansion RIZAL COMMERCIAL: Revises Record Date of Stock Dividend S I N G A P O R E CHEMTURA CORP: Posts US$144.3 Mil. Net Loss in 2006 4th Quarter LEVI STRAUSS: Debt Agreement Cues Fitch to Hold Low-B Ratings STATS CHIPPAC: Offer Cues S&P to Put BB Rating on Watch Positive STATS CHIPPAC: Temasek Launches US$1.9-Billion Takeover Bid T H A I L A N D BANK OF AYUDHYA: Donavanik Quits Business Mktg. & PR Post DAIMLERCHRYSLER AG: Magna Interested in Chrysler's Future FEDERAL-MOGUL: Wants Court Approval on Citigroup Exit Financing KRUNG THAI: To Extend THB2BB in Loans for Environment Projects TRUE CORP: Telekom Malaysia Expresses Interest in Partnership TRUE MOVE: To Offer THB100,000 Insurance to Post-Paid Customers * BOND PRICING: For the Week 26 February to 2 March 2007 - - - - - - - - ================= A U S T R A L I A ================= A1 TEL: Liquidator to Present Wind-Up Report -------------------------------------------- The members and creditors of A1 Tel Australia Pty Ltd will hold a meeting on March 30, 2007, at 9:40 a.m. At the meeting, Liquidators V. R. Dye and N. Giasoumi will present the accounts of the company's wind-up proceedings and property disposal. The Troubled Company Reporter - Asia Pacific previously reported that the company underwent liquidation on Dec. 21, 2006. The company's Liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About A1 Tel Australia Located in Victoria, Australia, A1 Tel Australia Pty Ltd is a special trade contractor. A.G. KERR: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------- The members and creditors of A.G. Kerr & Son Proprietary Limited will have their final meeting on March 30, 2007, at 9:20 a.m., to receive the liquidators' report regarding the company's wind- up proceedings and property disposal. As reported by the Troubled Company Reporter - Asia Pacific, the company went into liquidation on May 1, 2006. The company's liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About A.G. Kerr & Son A.G. Kerr & Son Proprietary Limited -- also trading as Kerr & Ronec Fabrics -- is a distributor of women's, children's, and infants' clothing and accessories. The company is located in Victoria, Australia. A.P. GLOVER: Creditors Must Prove Debts by March 8 -------------------------------------------------- A.P. Glover Pty. Ltd. will declare a first and final dividend for its creditors on March 30, 2007. Accordingly, creditors are asked to prove their debts by March 8, 2007, to be included in the company's distribution of dividend. The company's liquidator can be reached at: V. R. Dye Dye & Co. Pty. Ltd. Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About A.P. Glover A.P. Glover Pty Ltd is engaged with masonry and other stonework. The company is located in Victoria, Australia. ABF CARPETS: Commences Liquidation Proceedings ---------------------------------------------- At an extraordinary general meeting held on Feb. 12, 2007, the members of ABF Carpets Pty Ltd resolved to liquidate the company's business. In this regard, Clyde Peter White and Philip Newman were appointed as liquidators. The company's Liquidators can be reached at: Clyde Peter White Philip Newman HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia About ABF Carpets Located in Victoria, Australia, ABF Carpets Pty Ltd operates floor-covering stores. ADVANCED MARKETING: Inks Asset Purchase Pact with Baker & Taylor ---------------------------------------------------------------- Advanced Marketing Services Inc., and Baker & Taylor Inc. entered into an Asset Purchase Agreement on Feb. 16, for the sale of majority of the company's assets, Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, notified the Court. Under the agreement, Baker & Taylor will acquire all of AMS' right, title, and interest in certain of its assets including: (i) certain assigned contracts, (ii) certain tangible property owned or used by AMS in connection with the conduct of its business, (iii) all trade accounts receivable of AMS' business, including unbilled accounts receivable, (iv) an inventory of Advantage Publishers Group selected by Baker & Taylor, (v) the capital stock of Advanced Marketing Services Investments Inc.; Advanced Marketing S. de R.L, de C.V.; and Advanced Marketing (Europe) Ltd., and (vi) product prepayments with respect to APG. Baker & Taylor will pay: (i) US$20,000,000; (ii) the Selected APG Inventory Price; (iii) the APG Product Prepayment Price; and (iv) the Accounts Receivable Price; plus or minus (v) the net proration of the Apportioned Obligations determined in accordance with the agreement. Baker & Taylor will pay to AMS 50% of the Purchase Price on the Closing Date; 25% no later than 60 days after the Closing Date; and the remaining 25% no later than 90 days after the Closing Date. The Closing Date will occur on March 13. A full-text copy of the agreement is available for free at: http://bankrupt.com/misc/AMSandB&TAPA.pdf About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom, and Australia, and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a Chapter 11 Plan will expire on Apr. 28, 2007. AGENIX LIMITED: Sells Diagnostic Products for AU$3.9 Mil. to BBI ---------------------------------------------------------------- Agenix Limited has signed an agreement to sell the assets related to its Simplify and SimpliRED (point-of-care) range of Human Health D-dimer diagnostic products to BBI Holdings Plc of Cardiff, United Kingdom, for AU$3.9 million. The sale of the point-of-care products follows the previously announced sale of the Human Health D-dimer laboratory-based products to American Diagnostica Inc., closed on Feb. 28, 2007. Agenix and BBI have a long-standing history of cooperation through existing supplier agreements. The agreement was both signed and completed on March 2 after the market closed, with Agenix receiving an initial payment of AU$2.7 million at settlement. A further AU$1.2 million will be received progressively over the next two years once manufacturing transfer obligations are satisfied. There are no additional performance obligations related to this amount. In addition, Agenix may also receive up to an additional AU$1.0 million by way of cash or tradable shares plus a 5% royalty on related product sales if BBI exercises an option to acquire additional intellectual property related to the human health products. The option is exercisable solely at the discretion of BBI. Agenix is also expecting to generate a further AU$0.8 million in cash through realization of working capital and a short-term product manufacturing requirement. Agenix CEO and Managing Director Neil Leggett, stated "this transaction represents the continuing implementation of Agenix's transformational strategy and we have now completed the rationalization of the Animal Health and Human Health in vitro diagnostic test businesses. We will book profits on disposal of AU$4.1 million in the second half year to June 30, 2007." Mr. Legget also revealed that as of March 5, 2007, the company has AU$7.5 million in the bank after having paid a AU$1.3 million deposit for our proposed acquisition of Shanghai Rui Guang Bio-Pharma Development Co., Ltd, Agenix's China bio- pharmaceutical company acquisition. "We also have cash receivable of up to a further AU$6.5 million, or AU$7.5 million if the option on the point-of-care IP is exercised, from transactions already announced. Therefore, the company has cash and cash receivable of approximately 7 cents per share," Mr. Legget concluded. Thromboview Trial Agenix wholly owned subsidiary, Agen Biomedical, is focused on the design of the proposed ThromboView(R) Phase II Pulmonary Embolism trial. "There has been market disappointment about the failure to negotiate a ThromboView(R) licensing deal to date. However, the reality is that ThromboView(R) continues to deliver strong clinical trial results," Mr. Leggett said. Replication in this coming Phase II PE trial of the image quality achieved already in the Phase Ib PE trial would be a significant step forward. "The proposed investment by Agenix in SHRG also has the potential to generate significant shareholder returns and shareholders will shortly be forwarded information outlining what a great deal this is for them," Me. Leggett added. About Agenix Agenix Limited -- http://www.agenix.com/-- is a global health and biotechnology Company based in Brisbane, Australia. The Company runs a suite of established businesses in human and animal health diagnostics, and is focused on growing its world- leading molecular diagnostic imaging R&D program. Agenix's lead candidate is its high-technology ThromboView blood clot-imaging project, which is currently undergoing Phase II human trials in the United States and Canada. ThromboView uses radio-labeled antibodies to locate blood clots in the body, and could revolutionize the US$3 billion global clot diagnostic imaging market. ThromboView is being developed with the assistance of the Federal Government through its START scheme. Agenix employs 110 staff and sells its products to more than 50 countries. ThromboView is a registered trademark of AGEN Biomedical. The Troubled Company Reporter - Asia Pacific reported on Nov. 3, 2006, that Agenix's consolidated net loss for FY 2005-06 fell to AU$3.721 million from the previous year's AU$13.616 million. Agenix ended 2003 with a AU$811,000 net loss, owing to huge R&D expense on Thromboview. The Company had announced a AU$14.3- million loss for the six months ending June 30, 2004, largely due to increased investments and one-off items including legal fees associated with the Synbiotics patent case which was resolved earlier, costs associated with the terminated Peptech merger, additional licenses, improvements made to manufacturing and regulatory infrastructure and losses associated with Milton Pharmaceuticals. ALL FRESH: Members and Creditors to Meet on March 30 ---------------------------------------------------- A joint meeting will be held for the members and creditors of All Fresh Produce Pty. Ltd on March 30, 2007, at 9:50 a.m. At the meeting, the members and creditors will receive the liquidator's report regarding the company's wind-up proceedings and property disposal. In a report by the TCR-AP, the company was placed under liquidation on Sept. 1, 2006. The joint liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About All Fresh Headquartered in Victoria, Australia, All Fresh Produce Pty Ltd is a distributor of fresh fruits and vegetables. BELMORE CONSTRUCTIONS: To Declare Dividend on March 28 ------------------------------------------------------ Belmore Constructions Pty Ltd, which is subject to a deed of company arrangement, will declare a first and final dividend on March 28, 2007. Accordingly, creditors are asked to prove their debts by March 21, 2007, to be included in the company's distribution of dividend. The deed administrator can be reached at: C. P. White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia About Belmore Constructions Belmore Constructions Pty Ltd is an operative builder. The company is located in Victoria, Australia. COMPARE NOMINEES: Members and Creditors to Hear Wind-Up Report -------------------------------------------------------------- The members and creditors of Compare Nominees Pty Ltd will hold a meeting on March 30, 2007, at 10:40 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About Compare Nominees Compare Nominees Pty Ltd operates household appliance stores. The company is located in Victoria, Australia. NAP ACOUSTICS: To Hold Final Meeting on March 30 ------------------------------------------------ The members and creditors of Nap Acoustics Pty Ltd hold their final meeting on March 30, 2007, at 10:00 a.m., to receive the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidators can be reached at: B. N. Mulvaney Bruce Mulvaney & Co 1st Floor, 613 Canterbury Road Surrey Hills Victoria 3127 Australia Telephone:(03) 9896 9000 Facsimile:(03) 9896 9001 About Nap Acoustics Located in Victoria, Australia, Nap Acoustics Pty Ltd provides engineering services. PRIMELIFE CORPORATION: Posts AU$2-Mil. Loss for HY-Ended Dec. 31 ---------------------------------------------------------------- Improved performances by Primelife Corporation Limited's (ASX: PLF) Retirement Living and Aged Care business in the six months to Dec. 31, 2006, and the strong reservation pipeline for its new broadacre developments, have set the company on course for a strong second half with the company positioned to better the 2006 net result of AU$6.2 million in the full 2007 year, according to Managing Director John Martin. While the underlying businesses of Primelife showed improved performance, the company was affected by a number of one-off costs in relation to staff departures and the resolution of several unregistered managed investment schemes, which resulted in a net after tax loss of AU$2.2 million for the period. However, Mr. Martin noted "these one-off costs are not reflective of the improving underlying performance of Primelife's operational divisions, including a 37% increase in NTA "over the period reflecting a strengthening of Primelife's balance sheet consistent with its strategy of being an owner of assets." Mr. Martin further noted that the company has not declared a dividend. As of Dec. 31, 2006, the company's balance sheet revealed strained liquidity with AU$97,029,000 in total current assets available to pay AU$237,489,000 of total current liabilities coming due within the next 12 months. Yet, in the Directors' Declaration, it was noted that there are reasonable grounds to believe that Primelife will be able to pay its debts as and when they become due and payable. The company's Dec. 31, 2006 balance sheet also showed total liabilities of AU$398,516,000 and total assets of AU$483,588,000, resulting to total equity of AU$85,072. Development According to Mr. Martin, there has been a strong focus on sales and execution of the developments with the introduction of new sales initiatives and sales processes. Primelife has focused on the quality of the reservation pipeline, which resulted in reduced cancellation rates from 37% to 25%. Ongoing improvements are expected to achieve a targeted 20% cancellation rate, Mr. Martin said. These various operational initiatives are expected to lead to stronger sales in the second half of FY2007. Discussion with Babcock & Brown Primelife continues to be in discussions with its major shareholder Babcock & Brown Limited about its interest in creating a specialized investment vehicle in the Retirement Living and Aged Care sector, which would include Primelife and PLT, an acquisition joint venture between Primelife, Babcock & Brown, and MFS Limited. Various acquisitions are being considered by the relevant parties which may impact the structure and timing of the finalization of any proposal although MTM Funds Management Limited (ASX:MTM) has ceased to be part of the discussions. Settlement of Managed Investment Scheme Issues In September 2004, the Australian Securities and Investments Commission alleged breaches by Primelife and other defendants relating to the involvement of Primelife and others in the promotion and operation of managed investment schemes entered into between 1998 and 2002. The proceedings related to investments schemes established to invest in the development and management of 23 Primelife aged care and retirement facilities. Primelife settled all ASIC proceedings on April 1, 2005. Under the terms of settlement, Primelife agreed to pay up to AU$1 million for the preparation of an Independent Accountant's report into the winding-up of the schemes and has paid AU$600,000 t defray ASIC's costs. These amounts were brought to account in the 2005 financial year. Primelife will remain a party to the various proceedings as a matter of record to assist ASIC in the ongoing resolution of the proceedings with the non-Primelife defendant. As at Feb. 15, 2007, the schemes yet to be in or agreed to be in the winding up process relate to two Primelife facilities. This means that in relation to the balance of the schemes, 15 have been wound up and six have agreed to or are currently in the winding up process. The Court appointed Independent Account concluded in his various disclosure reports that each scheme being wound up is solvent. Outlook In respect of the full year, Primelife anticipates that this year's results will outperform the AU$6.2 million profit in the previous year. Primelife expects strong contributions from growth in unit sales at Primelife's new broad acre developments, strong earnings growth in the Retirement Living business, increasing occupancy and further efficiencies in its Aged Care business and running down costs associated with residual legacy litigation and winding up the remaining unregistered investment schemes. Going forward, Primelife continues to reduce corporate costs and is on track to achieve its normalized target of AU$13 million - AU$14 million next financial year, Mr. Martin notes. About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au/-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. The ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. The Troubled Company Reporter - Asia Pacific's Distressed Bonds Column on Feb. 9, 2007, showed that Primelife Corporation's bond, with a coupon of 10.000% and maturity date of Jan. 31, 2008, trades at 1.03 cents on the dollar. PRIMELIFE CORPORATION: McKinnon Road Retains Claremont Ownership ---------------------------------------------------------------- Primelife Corporation Limited's 50/50 joint venture with Ulter Pty Ltd -- McKinnon Road Developments Pty Limited -- will retain ownership of Claremont Terrace retirement and aged care facility, after entering an agreement with the liquidator appointed to wind up the managed investment schemes formed to invest in the development of the facility. The liquidator of the schemes has agreed to terminate the contractual arrangements relating to the incomplete sale, development, and management of Claremont Terrace for a total consideration of AU$3 million. It is expected that settlement will occur in mid April 2007. Claremont Terrace is a high quality integrated retirement and aged care facility managed by Primelife comprising 79 serviced apartments coupled with a 56 low care bed hostel located in McKinnon in Melbourne. Primelife Managing Director, John Martin, said "Primelife is pleased to have resolved the outstanding contractual issues relating to the facility and looks forward to managing the facility and creating further value for the joint venture." About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au/-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. The ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. The Troubled Company Reporter - Asia Pacific's Distressed Bonds Column on Feb. 9, 2007, showed that Primelife Corporation's bond, with a coupon of 10.000% and maturity date of Jan. 31, 2008, trades at 1.03 cents on the dollar. SUNCORP-METWAY: Promina Shareholders Support Merger Proposal ------------------------------------------------------------ Shareholders of insurer, Promina Group, have approved an AU$8-billion merger with Suncorp-Metway, the Sydney Morning Herald reports, citing the Australian Associated Press. According to Promina Chairman Leo Tutt, Promina had not received a superior offer, the paper relates. The report notes that there have been 707.3 million proxy votes for the deal and 1.64 million against. In a statement posted at its Web site, 94.21% of the Promina shareholders who voted a scheme meeting held on March 5, 2007, supported Suncorp-Metway Limited's merger proposal. This represented 99.76% of the shares that were voted, significantly above the minimum required to approve the scheme of arrangement. On Jan. 30, 2007, the Troubled Company Reporter - Asia Pacific reported that Suncorp's proposal to acquire Promina Group Limited has received regulatory clearance after being approved under the Financial Sector (Shareholdings) Act 1998. The company has earlier obtained the Australian Competition and Consumer Commission's approval for the merger, the TCR-AP noted. Suncorp Chairman John Story said the merger would benefit customers, shareholders and employees of both companies. Suncorp is offering 0.2618 Suncorp shares and AU$1.80 cash for each Promina share, the AAP relates. The next step in the merger process is for the Federal Court of Australia's second hearing on the scheme of arrangement, which is scheduled to take place on March 12, 2007. If approval is given at that hearing, the effective date of the scheme will be March 13 with the implementation date on March 20. Suncorp shares issued under the scheme are expected to begin trading on the Australian Stock Exchange on March 16 on deferred settlement basis. Suncorp chief executive John Mulcahy said his immediate priorities after completion of the merger would be the appointment of the executive team and the development of a business model designed to capture the best of both organizations. "We will be undergoing a rigorous process to identify the strongest possible management team." Promina Group's chief executive officer Mike Wilkins has brushed aside criticism that the insurer's merger with rival Suncorp- Metway Ltd will be too expensive and too difficult to implement, AAP relates. It is appropriate that Suncorp has not yet announced the composition of the management team of the merged entity because, up until the merger is approved, the companies are still competing organizations, AAP cites Mr. Wilkins, as saying. About Suncorp-Metway Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in retail and business banking, general insurance, life insurance, superannuation and funds management with a focus on retail consumers and small to medium businesses. Its brand offering includes Suncorp and GIO, with GIO being the main insurance brand outside of Queensland. Standard and Poor's gave the company a B financial strength rating on July 10, 2005. SYNDAL WAY: Members Decide to Shut Down Operations -------------------------------------------------- On Feb. 16, 2007, the members of Syndal Way Pty Ltd held a general meeting and agreed to shut down the company's operations. The company's liquidator can be reached at: Robert W. Morton Mortons Accountants 5th Floor, 347 Flinders Lane Melbourne Australia About Syndal Way Located in New South Wales, Australia, Syndal Way Pty Ltd is an investor relation company. TRIANGLE FASHIONS: Placed Under Voluntary Wind-Up ------------------------------------------------- On Feb. 8, 2007, the members of Triangle Fashions Pty Ltd held a general meeting and resolved to close the company's business. Accordingly, Stephen Robert Dixon and Laurence Andrew Fitzgerald were appointed as the joint and several liquidators. The Liquidators can be reached at: Stephen Robert Dixon Laurence Andrew Fitzgerald Horwath BRI (Victoria) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia About Triangle Fashions Located in Victoria, Australia, Triangle Fashions Pty Ltd operates miscellaneous apparel and accessory stores. ================================ C H I N A & H O N G K O N G ================================ BEIJING SHOUGANG: Parent to Invest CNY66.8 Billion in New Plant --------------------------------------------------------------- Shougang Corp will inject the assets of its new planned plant into its Shenzhen-listed arm, Beijing Shougang Co Ltd, to enable it to list in its entirety, Jongo News says, citing China Daily. Jongo relates that the parent company, Shougang and Tangshan Iron & Steel Corp, will start building the new plant this month in Caofeidian, Bohai Bay, with a total investment of CNY66.8 billion. According to Jongo, Zhu Jimin, the group's chairman, told China Daily that the new plant will be put into Beijing Shougang "when construction reaches a certain stage". Mr. Zhu, however, did not provide a specific timeframe, the paper notes. Shougang Corp will hold a 51% stake in the plant due to be completed by 2010, with an annual production capacity of 9.7 million tons. The plant will make car and home appliance plates and other high value-added products, Jongo says. * * * Based in Beijing, China, Beijing Shougang Co., Ltd. -- http://www.sggf.com.cn/index-1.asp-- is principally engaged in the iron and steel industry. The company mainly produces steel wire rods, square steel billets, steel plates, chemical products, gas, coke, pig iron and granulating slag. The company also provides compact discs, software, color-coated boards and building materials, through its subsidiaries. As of December 31, 2005, the Company had three major subsidiaries and three major associates. Xinhua Far East China Ratings gave Beijing Shougang a BB+ issuer credit rating. CHAODA MODERN: Moody's Upgrades Ratings to Ba2 ---------------------------------------------- Moody's Investors Service on March 1, 2007, has upgraded Chaoda Modern Agriculture (Holdings) Ltd's corporate family rating and its foreign currency debt rating to Ba2 from Ba3. This concludes the review for possible upgrade, which began on Dec. 11, 2006. The outlook for both ratings is stable. "Moody's acknowledges the ongoing positive developments in Chaoda's operational performance and a clean opinion for its financial statements from the company's auditors since listed in HK -- as the reliability of the company's financial reporting has been an area of uncertainty in the past," notes Ken Chan, Moody's lead analyst for the company. Moreover, Moody's expects Chaoda's management to be prudent in its cash management and financial discipline, with future investments focusing on the company's core agriculture-related businesses. This is especially crucial given the ample cash reserves on hand and large planned capex ahead. Chaoda has a vertically integrated business model with a strong R&D capacity as well as large-scale and diversified production bases and distribution network. These factors continue to support the company's strong growth momentum and high margin, thereby also supporting the higher ratings. On the other hand, the ratings also take into account the company's aggressive expansion plan and projected negative free cash flow position over the next few years -- the result of its aggressive expansion plan to double its cultivation area by FY2008. Should the company continue with its heavy capex going forward, Moody's expects there will be potential funding needs in FY2009. When compared with the rated Ba credits in the region, Chaoda has a stronger financial profile. However, its rating is constrained by ongoing material related-party transactions for purchasing fertilizer. Even though the company has obtained a waiver from the stock exchange, these transactions have raised concerns over its corporate governance and potential cash leakage to fund group companies. Upward rating pressure would occur if the company demonstrates the ability to manage and execute its expansion plans over the next 2-3 years while maintaining its sound EBIT margin. Credit metrics that Moody's would consider for an upgrade are: * retained cash flow/adjusted debt of above 35-40%, * adjusted EBIT/interest of over 8-10x, and * positive free cash flow on a sustainable basis. An improvement in its corporate governance structure and demonstration of strong financial discipline in pursuing its growth strategy would also be positive for the rating. On the other hand, downward rating pressure would emerge if: * there is evidence of cash leakage to fund related companies, * the company pursues a more aggressive debt-funded expansion plan, and/or * there is significant margin erosion and deterioration of Chaoda's financial profile as the business expands, such that adjusted EBIT margin lowers to 35-40% and retained cash flow/adjusted debt decreases to 20-25%. Any further evidence of increased investment in non-core businesses or deviation from Chaoda's stated cash management policy would also have a negative impact on the ratings. Chaoda Modern Agriculture (Holdings) Ltd is a vertically integrated agricultural company. It produces and distributes fruit and vegetables in China. It is also involved in livestock breeding and sales. CHINA CONSTRUCTION: No Current Plans for Mainland Listing --------------------------------------------------------- China Construction Bank Corp has no current specific plans to list in the mainland or make any overseas acquisitions, Dow Jones reports, citing Guo Shuqing, the chairman of the bank. Mr. Guo made the remarks on the sidelines of the annual meeting of the Chinese People's Political Consultative Conference, an advisory body to the Chinese government, Dow Jones relates. * * * The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954 under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. The Troubled Company Reporter - Asia Pacific reported on Nov. 20, 2006 that Fitch Ratings affirmed the bank's D individual ratings. FANJI FOUNDATION: Will Receive Proofs of Debt Until April 3 ----------------------------------------------------------- On Feb. 6, 2007, the members of Fanji Foundation Limited resolved to liquidate the company's business. Accordingly, Liquidator Poon Cho Yiu, Ronald requires the company's creditors to prove their debts by April 3, 2007, to be included in the company's distribution of dividend. The company's Liquidator can be reached at: Poon Cho Yiu, Ronald 1/F., 99 Caine Road Hong Kong CHINA EASTERN: Eyes Membership with Oneworld Alliance ----------------------------------------------------- China Eastern Airlines is in talks with the oneworld airline alliance to become a member carrier, various reports say, citing alliance Managing Partner John McCulloch during a briefing with reporters. According to Der Mobilitaets Manager, oneworld alliance, led by American Airlines and British Airways, hopes to expand its network in the growing Chinese market by recruiting an airline on the mainland. Hong Kong's Cathay Pacific Airways is a member. Der Mobilitaets relates that Japan Airlines, Royal Jordanian, and Hungary's Malev will join the alliance from April. * * * Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The outlook on the IDRs is stable. GOLD TRIUMPH: Members and Creditors to Meet on April 3 ------------------------------------------------------ A final meeting will be held for the members and creditors of Gold Triumph Development on April 3, 2007, at 3:30 p.m. and 4:00 p.m., respectively, at 17/F, Shing Lee Commercial Building, 6-12 Wing Kut Street in Central, Hong Kong. At the meeting, the members and creditors will receive the company's wind-up report and property disposal exercises. In a report by the Troubled Company Reporter - Asia Pacific, the company entered wind-up proceedings on Nov. 8, 2006. The Liquidator can be reached at: Chin Kwok Keung Tsang & Ng Certified Public Accountants 17/F, Shing Lee Commercial Building 6-12 Wing Kut Street, Central Hong Kong HARMONY DEVELOPMENT: Members' Final Meeting Set for April 3 ----------------------------------------------------------- The members of Harmony Development (H.K.) Company Ltd will hold their final meeting on April 3, 2007, at 3:30 p.m., at Room 1103, 11/F., C C Wu Building, 302-308 Hennessy Road in Wanchai, Hong Kong. At the meeting, the members will receive the liquidator's report regarding the company's wind-up proceedings and property disposal. In report by the Troubled Company Reporter - Asia Pacific, the company was placed under liquidation on Oct. 3, 2006. The liquidator can be reached at: Pang Siu Kei Room 1103, 11/F., C. C. Wu Building 302-308 Hennessy Road, Wanchai Hong Kong IN-WORK INTERNATIONAL: Shareholders to Hear Wind-Up Report ---------------------------------------------------------- The shareholders of In-Work International (2003) Limited will meet for their general meeting on April 19, 2007, at 11:00 a.m., at Rooms 2107-8, 21/F., Kai Tak Commercial Bldg., in 317-319 Des Voeux Road Central, Hong Kong. At the meeting, the shareholders will receive the report regarding the company's wind-up proceedings and property disposal. INDUSTRIAL BANK: Profit in 2006 Up 51% on China's Growth -------------------------------------------------------- Industrial Bank's profit growth accelerated to 51% in 2006 as China's economic expansion raised loans and services demand, Bloomberg News reports, citing a statement from the bank. A preliminary earning statement filed by the bank with the Shanghai Stock Exchange, revealed that the bank's net income climbed to CNY3.72 billion while its operating profit, including net interest and fee income as well as charges against bad debt, climbed 42% to CNY5 billion. "A rising tide lifts all boats," Bloomberg cites Qiu Zhicheng, a banking analyst at Haitong Securities in Shanghai, referring to China's fast growing economy. "Industrial Bank is no exception." * * * Headquartered in southeastern China's Fujian province, The Industrial Bank Co Ltd, is partly owned by Hang Seng Bank. The bank recorded a capital adequacy ratio of 7.17%, below the minimum regulatory requirement of 8% as of June 30, 2006. On Sept. 13, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed the Individual D/E and support 4 ratings of Industrial Bank. The ratings outlook is stable. MOGU INTERNATIONAL: Members and Creditors to Meet on April 3 ------------------------------------------------------------ The members and creditors of Mogu International Limited will meet on April 3, 2007, at 10:00 a.m., at the offices of Ferrier Hodgson Limited, 14th Floor, Hong Kong Club Building, 3A Chater Road in Central, Hong Kong. At the meeting, the members and creditors will receive the company's wind-up report and property disposal. PARKSON RETAIL: Fiscal-Year 2006 Net Profit Up 86% -------------------------------------------------- Parkson Retail Group Ltd's 2006 net profit climbed 86% on strong same-store-sales growth, the Wall Street Journal reports, adding that the company plans to open five stores this year to cash in on China's booming consumer demand. In a disclosure, Parkson Retail said its net profit rose to CNY460.8 million yuan, from CNY248 million in 2005, while revenue rose to CNY1.94 billion from CNY1.13 billion in 2005. Wall Street, citing the company's disclosure, notes that sales at stores open for at least a year rose 17% last year. Meanwhile, Chief Financial Officer Clarence Wong was cited by the paper as saying that Parkson plans to spend between CNY125 million and CNY150 million to open new stores this year in Beijing, Shanghai, Chengdu, Xian, and Hangzhou. In addition, the company will earmark between CNY60 million and CNY80 million each year for renovating existing stores. * * * Parkson Retail Group Limited is listed on the Hong Kong Stock Exchange. It is one of the largest national retailers in China, operating 23 self-owned and 15 managed stores in over 26 cities. For the year end-2005, revenues were CNY1.2 billion while net income was CNY248 million. On Dec. 4, 2006, Moody's Investors Service has affirmed Parkson Retail Group Ltd's Ba1 senior secured bond rating following the successful closing of its US$200 million bond issuance. The rating has had its provisional status removed. The rating outlook is stable. On Nov. 8, 2006, Standard & Poor's assigned its BB long-term corporate credit rating to Parkson Retail Group Ltd. The outlook is stable. SUPER LUCK: Balance Sheet Upside Down by US$33,806 in 2006 ---------------------------------------------------------- Super Luck, Inc.'s balance sheet went upside down in the financial year ended Nov. 30, 2006, with total assets of US$94,807 and total liabilities of US$119,496, resulting to a stockholders' deficit of US$33,806. The company posted a net loss of US$29,788 for the year ended November 2006 compared to a net loss of US$4,018 from Aug. 10, 2005 (Date of inception) to Nov. 30, 2005. PKF, an independent public accounting firm based in Hong Kong, noted that the company's financial statement have been prepared assuming that Super Luck will continue as a going concern. After reviewing the company's annual financial statement, PKF noted that Super Luck is a development stage company and has an accumulated deficit as of Nov. 30, 2006. These factors, PKF said, raise substantial doubt about the company's ability to continue as a going concern. * * * Super Luck, Inc., a development stage company, was incorporated under the laws of the State of Delaware on August 10, 2005. It markets, sell and support financial software products. The company's executive office is located at Room 1901-02, Lucky Building, 39 Wellington Street, Central, Hong Kong. TAK WO: Liquidator to Present Wind-Up Report -------------------------------------------- The members and creditors of Tak Wo Metal Industries Limited will meet on March 21, 2007, at 3:00 p.m. and 3:30 p.m., respectively, at Room 1601-2, 16th Floor, One Hysan Avenue in Causeway Bay, Hong Kong. During the meeting, the members and creditors will hear the liquidator's report about the company's wind-up proceedings and property disposal. TREASURE PROPERTIES: Final Meeting Slated for April 3 ----------------------------------------------------- The members and creditors of Treasure Properties Limited will hold a final meeting on April 3, 2007, at 11:00 a.m., at the offices of Ferrier Hodgson Limited, 14th Floor, Hong Kong Club Building, 3A Chater Road, in Central, Hong Kong. At the meeting, the liquidator will present the final accounts of the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Desmond Chiong c/o Ferrier Hodgson Limited 14/F., Hong Kong Club Building 3A Chater Road, Central Hong Kong XINAO GAS: Plans CNY1B Outlay to Increase Distribution Outlets -------------------------------------------------------------- Xinao Gas Holdings will invest CNY1 billion to widen its piped- gas distribution network in the mainland, Zoom China says, citing a report from the Xscoal. The company's finance director Yu Jianchao said the investment will increase the number of compressed natural gas refueling stations to 200 by next year, expanding its pipe network. Mr. Yu told Xscoal that the refueling stations will account for 20% of piped-gas sales in the next three to five years. The company currently has 60 refueling stations, Zoom China notes. Zoom China relates that in the first half of last year, Xinao's sales of piped-gas soared 109% to CNY696 million. According to Mr.Yu, Xinao has set a total sales target of CNY1.5 billion for this year, doubling the revenue last year. * * * Xinao Gas -- www.xinaogroup.com/ -- principal activities are investment in gas pipeline infrastructure and provision of piped gas. Other activities include distribution of bottled liquefied petroleum gas, manufacture of stored value card gas meter and sourcing of compressed pipeline gas. The Group also provides after sale services such as repairs and maintenance in connection with gas supply. Operations are carried out in Hong Kong, the British Virgin Islands and the People's Republic of China. The Troubled Company Reporter - Asia Pacific reported on May 22, 2006, that a lower than expected financial performance and deteriorating credit metrics for Xinao Gas led Moody's Investors Service to change its Ba1 corporate family rating and senior unsecured bond rating to negative from stable. A rating upgrade is unlikely in the next 12 months, Moody's said. YONG XUN: Placed Under Creditors' Voluntary Wind-Up --------------------------------------------------- At an extraordinary general meeting held on Feb. 16, 2007, the creditors of Yong Xun International Trading Limited resolved to voluntarily wind up the company's operations. In this regard, Lo Wing Hung was appointed as the company's liquidator. Mr. Lo can be reached at: Lo Wing Hung Room 401, 4th Floor China Insurance Group Building 141 Des Voeux Road Central Hong Kong ZION CRUADE: Liquidator Quits Post ---------------------------------- Kwan Yiu Chung ceased to act as the liquidator of Zion Cruade Association Limited on Feb. 23, 2007. As reported by the TCR-AP, Mr. Kwan presented his final accounts of the company's wind-up report on Nov. 19, 2006. The company's former Liquidator can be reached at: Kwan Yiu Chung Unit 1305, Tai Tung Building 8 Fleming Road, Wanchai Hong Kong ========= I N D I A ========= AFFILIATED COMPUTER: Moody's Holds Ba2 Rating, Outlook Stable ------------------------------------------------------------- Moody's Investors Service has confirmed Affiliated Computer Services' Ba2 corporate family rating and assigned a stable rating outlook, following the company's conclusion of an internal investigation into its options granting practices and restoration to current SEC financial reporting. This rating confirmation concludes a review for possible downgrade initiated on Oct. 2, 2006, which was prompted by the company's internal options granting investigation and a related delay in filing its SEC financial statements. ACS' Ba2 rating is supported by the company's size and profitability as measured by its pretax income of US$450 million and net profit returns on assets adjusted for pensions and leases of about 4% for LTM December 2006. In addition, the company's business profile, as measured collectively by its geographic, business line, and client diversity, is estimated by Moody's to be greater than certain of its I/T services peers. The rating is constrained by management's aggressive growth goal to achieve US$10 billion total revenues for 2010, the company's sluggish internal/organic revenue growth rate, declining commercial operating margins, a legal overhang related to prior improper stock options granting practices, and sizable capital expenditures as a percentage of EBITDA. Moody's believes the company's financial leverage and interest coverage as measured by debt to EBITDA and free cash flow to debt, respectively, may deteriorate as the company pursues further acquisitions and possibly conducts further share repurchases. However, the Ba2 rating assumes that the company's leverage will not exceed 7.2x and that its EBIT to interest ratio will not decline to less than 2x. The stable outlook reflects the company's relatively steady internal revenue growth and healthy operating margins, which are supported by its competitively positioned and well diversified BPO business portfolio. The company's equity value as well as new business award signings has been negatively affected by the stock option backdating investigations and late financial statement filings. The stable outlook assumes that the company's market value and asset book value will converge and that its new business awards will improve over the next twelve months. The ratings could experience upward pressure if the company is able to exhibit continued internal revenue growth, consistent client retention rates, growth of new business signings, and operating margin stability and if its ratio of debt to EBITDA less capital expenditures were to remain below 5.5x. The rating could experience downward pressure if internal revenues and new business signings were to decline or debt to EBITDA less capital expenditures were to increase to over 7.2x, possibly due to realized material legal exposure related to shareholder activity along with acquisition spending and share repurchases. Ratings confirmed include: * Ba2 Corporate Family Rating * US$500 million Senior Secured Notes due 2010 and 2015, Ba2 * US$3800 million Senior Secured Term Loan facility due 2013, Ba2 * US$1000 million Senior Secured Revolving Credit Facility, Ba2 Headquartered in Dallas, Texas, Affiliated Computer Services, with US$5.5 billion LTM December 2006 revenues, is a leading provider of business process outsourcing and I/T outsourcing to commercial clients as well as state and local governments. Dallas-based Affiliated Computer Services Inc. has operations in India, Brazil, China, Dominican Republic, Guatemala, Ireland, Philippines, Poland and Singapore. GENERAL MOTORS: Reports Increase in U.S. Sales for February ----------------------------------------------------------- Despite an expected decline in U.S. industry sales, General Motors Corp. reported a 3.4% total sales increase, compared with February 2006. The sales gain was due to an 11% retail sales increase. Retail and fleet sales by GM dealers in the United States totaled 311,763 vehicles, compared with sales of 301,545 in February 2006. Fleet sales were down 18% due to a planned 25% reduction in daily rental sales. "Our pickup, SUV and crossover business was terrific across the board," Mark LaNeve, vice president, GM North American Sales, Service and Marketing, said. "Our customers are telling us that we have the winning formula -- the best products, industry- leading fuel economy and the best value." February's performance was led by the new GMC Sierra and the North American Truck of the Year Chevrolet Silverado full-size pickups. Silverado had its best February sales month in five years, total full-size pickup sales were up 29% and total truck sales were up more than 7% compared with last February. The critically acclaimed new GMC Acadia and Saturn Outlook drove a 97% retail increase in the mid-crossover segment. "With GM offering the best coverage in our 5 year/100,000 mile power train limited warranty with roadside assistance and courtesy transportation, we believe customers see our vehicles as having outstanding value and quality that is better than the competition," Mr. LaNeve added. "With a less than stellar industry performance, our February sales results stand out." The Chevrolet, GMC, Saturn and Pontiac divisions all saw retail increases in February. Retail truck sales were up 16% compared with February 2006 and total truck sales were up 7%. Leading the retail sales gains were full-size pickups, up 36% compared with February 2006, with positive showings by Chevrolet Avalanche, up 110% and Silverado, up 34%. GMC Sierra retail sales volume was up 27% compared with last February. Retail increases by the Cadillac Escalade ESV and Escalade EXT, compared with February 2006, pushed GM's large luxury utilities segment up 7% compared with last February. Driven by an increase in Chevrolet Aveo retail sales, GM's economy car segment retail volume was up 17% compared with February 2006. A 45% retail increase in Pontiac G6 and a 65% increase in Chevrolet Impala retail sales, compared with the same month a year ago, pushed GM's mid-car segment retail volume up 25%. In February, GM's mix of total fleet to retail sales continued to improve significantly. Retail sales were 78.5% of total sales, compared with 73% last February; fleet sales were 21.5%, compared with 27% last year. GM February sales reflected the continuing strength of the new product portfolio with competitive incentive spending, balanced with ongoing reductions in daily rental fleet sales. Certified Used Vehicles February 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles and HUMMER Certified Pre-Owned Vehicles, were 42,855 units, up nearly 6% from last February. Year-to-date sales for all certified GM brands are up nearly 8% from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted February sales of 37,840 units, up nearly 7% from February 2006. Year-to-date sales are 75,390 units, up 8%. Cadillac Certified Pre-Owned Vehicles posted February sales of 3,111 units, comparable to last February. Saturn Certified Pre- Owned Vehicles sold 1,262 units in February, down 11%. Saab Certified Pre-Owned Vehicles sold 540 units, up 7%, and HUMMER Certified Pre-Owned Vehicles sold 102 units, up 183%. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, Mexico, and its vehicles are sold in 200 countries. * * * Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed on March 29, 2006. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 31, 2007, S&P said that the company's announcement that it is restating financial results from 2002 through the third quarter of 2006 raises new concerns about the integrity of the company's financial reporting and internal controls, but has no immediate effect on the ratings on GM, GMAC LLC (BB+/Developing/B-1), or GMAC unit Residential Capital LLC (ResCap; BBB/Negative/A-3). As reported in TCR-AP on Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan. The term loan is expected to be secured by a first priority perfected security interest in all of the US machinery and equipment, and special tools of GM and Saturn Corporation. RELIANCE INDUSTRIES: Fitch Afiirms BBB- Ratings, Outlook Stable --------------------------------------------------------------- Fitch Ratings, on March 2, affirmed the 'BBB-' Long-term foreign currency and local currency Issuer Default ratings as well as the 'AAA(ind)' National Long-term issuer rating of India-based Reliance Industries Limited. Fitch has also affirmed the 'AAA(ind)' rating of RIL's INR130 billion non-convertible debenture programme. The Outlook on the ratings is Stable. The ratings reflect RIL's dominant position in the domestic petrochemicals sector, its efficient refining operations, its scale of operations in key product lines and its comfortable capital structure, which is supported by robust cash generation from its core businesses. RIL's international ratings are constrained by a maximum of one notch by India's country ceiling of 'BBB-'. The Stable Outlook reflects Fitch's expectation that RIL's petrochemical and refining margins will remain strong despite some volatility. Also, debt protection measures are likely to remain consistent with the rating assigned, even after taking into consideration the substantial capital expenditures underway. Although refining margins tend to be volatile, RIL has been able to consistently maintain its margins above global benchmarks due to the high complexity of its refinery; this has enabled it to process heavier and sourer crude oil while achieving a relatively higher yield of light and middle distillates. RIL has been helped by higher than historical average refining margins globally over the last few years along with increased light-heavy crude oil differentials and an increased demand for light distillates -- all factors which have made complex refineries more profitable. A favorable demand-supply scenario in the domestic petrochemicals market coupled with RIL's dominant domestic position and global scale of operations have aided the high profitability of the company. Given the commodity nature of its business, RIL is exposed to cyclicality, but "through the cycle" (FY02 to FY06) credit metrics are comfortable with average Funds-from-operation, adjusted net leverage at 2.04x, adjusted net debt/ EBITDA at 1.88x and total adjusted debt/total adjusted capitalisation at 37.8%. The effect of RIL's substantial investment plans including those for its retailing, special economic zone, new refinery and petrochemical units are moderated by its strong cash flows and equity infusion plans, which are expected to keep the credit profile consistent with the rating assigned. RIL has recently announced the setting up of a new petrochemicals unit (cost US$3 billion), investment details of which have yet to be finalized; issue of equity warrants worth approximately US$3.74 billion on exercise, is expected to cushion impact on credit ratios. RIL is the largest private sector company in India with FY06 revenues equivalent to 2.8% of India's GDP and exports accounting for 8% of the country's exports. RIL is primarily an oil refining and petrochemicals company, which is gradually integrating its operations upstream and downstream into exploration and production and retailing of petroleum products respectively. The company is also diversifying into new areas, through different subsidiaries, such as retailing and development of an SEZ. The company is also executing a project for near-doubling of its refining capacity through another subsidiary, Reliance Petroleum Limited. In FY06, RIL recorded revenues of INR812 billion (approximately US$18bn) and a net income of INR91 billion (approximately US$2bn). * * * Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. SYNDICATE BANK: Names K. Seetharamu as New Director --------------------------------------------------- Syndicate Bank Ltd. has named K. Seetharamu as director on its board, replacing Salim Gangadharan with immediate effect and until further orders. The Indian Government nominated Mr. Seetharamu for the director post by notice dated Feb. 27, 2007. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 7, the Government has recently named Shobha Oza as part- time non-official director on the board. Syndicate Bank Ltd -- http://syndicatebank.in/-- provides a range of banking services. The bank's services include deposits, loans, recoveries and electronic funds transfer. The bank has also tied up with United India Insurance Company to provide general insurance. As of March 31, 2006, the bank had 2006 branches. The bank has 38 specialized branches, which focus on business segments, such as small and medium enterprises. Fitch Ratings, on June 1, 2005, gave Syndicate Bank a 'D' individual rating. TATA MOTORS: February 2007 Sales Up 19% from Last Year ------------------------------------------------------ Tata Motors reported a total sale of 53,707 vehicles (including exports) for the month of February 2007, a growth of 19% over 45,113 vehicles sold in February last year. Cumulative sales for the company at 5,16,599 units are growing by 30%. Commercial Vehicles The company's sales of commercial vehicles in February 2007 in the domestic market were 27,859 units, an increase of 22% over 22,885 vehicles sold in February last year. Medium and Heavy Commercial Vehicle sales stood at 16,306 units, a growth of 19% over February 2006, while Light Commercial Vehicle sales were 11,553 units, a growth of 25% over February 2006. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 2,68,453 units, an increase of 43% over last year. Cumulative M&HCV sales stood at 1,55,708 units, an increase of 40% over last year, while LCV sales for the fiscal were 1,12,745 units, an increase of 48% over last year. Passenger Vehicles The passenger vehicle business reported total sales of 21,322 vehicles in the domestic market in February 2007, an increase of 19% over February 2006. The Indica reported sales of 12,580 units, a growth of 19% over February 2006. The Indigo family registered sales of 3,436 units, a decline of 6% over February 2006, but an increase of 7% over January 2007 (last month) due to the growing units of the new Indigo XL which has been received well in the market. The Sumo and Safari accounted for sales of 5,306 units, a growth of 41% over February 2006, with Utility Vehicles reporting their highest ever sales for any month. Safari sales at 2009 units grew by 258% over last February. Cumulative sales of passenger vehicles in the domestic market for the fiscal were 2,01,133 units, an increase of 21% over the previous year. The Company therefore has crossed last fiscal's total sales of 188,856 in the 11th month of this fiscal. Cumulative sales of the Indica at 129,407 units registered a growth of 31% over the previous year, while cumulative sales of the Indigo family at 29,942 units registered a decline of 14% over last year, but lesser than the decline of the entry mid- size segment. Cumulative sales of Sumo and Safari were 41,784 units, a growth of 27% over last year. Safari sales at 13666 units have been growing by 241% this fiscal. Exports The company's sales from exports were 4,526 vehicles in February 2007 as compared to 4,257 vehicles in February 2006, an increase of 6%. The cumulative sales from exports in the current period at 47,013 units have recorded a 7% growth over the corresponding figures for the previous About Tata Motors Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. * * * As reported in the Troubled Company Reporter - Asia Pacific on Dec. 13, 2006, Standard & Poor's Ratings Services raised its corporate credit ratings for Tata Motors to 'BB+' from 'BB'. The outlook is stable. At the same time, Standard & Poor's has raised its rating on Tata Motors' senior unsecured notes to 'BB+' from 'BB'. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA POWER: 4th Quarter 2006 Net Profit Ups 23% to INR2.80 Bil. --------------------------------------------------------------- Despite decreased revenues, Tata Power Company Ltd posted higher net profit in the quarter ended Dec. 31, 2006 -- INR2.80 billion, a 23% increase from the INR2.28 billion gained in the corresponding quarter in 2005. Tata Power's income for the fourth quarter of 2006 totaled INR12.46 billion, 11% lower than the INR14.08 booked in the December 2005 quarter. Operating expenses also went dwon from the INR10.35 billion incurred in the quarter ended Dec. 31, 2005, to INR9.90 billion recorded in the December 2006 quarter. Interest charges, however, soared 20% from INR424.2 million in the December 2005 quarter to INR510.3 million in the quarter under review. The higher net profit figure in the quarter under review was brought about by the turnaround in tax provisions -- (INR321.3) million in the December 2005 quarter compared to INR1.48 billion in the December 2006 quarter. A copy of Tata Power's financial results for the quarter ended Dec. 31, 2006, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?198b Tata Power Company Ltd. is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81 MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Moody's Investors Service, on Jan. 30, 2007, placed its Ba1 corporate family rating and Ba2 senior unsecured debt rating for Tata Power Company Ltd on review for possible downgrade. The Troubled Company Reporter - Asia Pacific reported on Nov. 10, 2005, that Standard & Poor's Ratings Services affirmed its 'BB+' long-term foreign and local currency corporate credit ratings for Tata Power. The outlook is stable. TATA POWER: Gets Stake in Chemical Terminal Trombay and IEPL ------------------------------------------------------------ Tata Power Company Ltd has acquired 59,136 equity shares of Chemical Terminal Trombay Ltd of INR100 each and 7,400 equity shares of Industrial Energy Pvt Ltd of INR10 each, a filing with the Bombay Stock Exchange reveals. The acquired interest in Chemical Terminal represents 28% of the paid-up share capital of CTTL while those of IEPL represents 74% paid-up share capital. With the acquired stakes, the two companies have become wholly owned subsidiaries of Tata Power. Tata Power Company Ltd. is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81 MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Moody's Investors Service, on Jan. 30, 2007, placed its Ba1 corporate family rating and Ba2 senior unsecured debt rating for Tata Power Company Ltd on review for possible downgrade. The Troubled Company Reporter - Asia Pacific reported on Nov. 10, 2005, that Standard & Poor's Ratings Services affirmed its 'BB+' long-term foreign and local currency corporate credit ratings for Tata Power. The outlook is stable. ================= I N D O N E S I A ================= ALCATEL-LUCENT: To Build Taiwan's First Universal WiMAX Network --------------------------------------------------------------- Alcatel-Lucent was selected by Taiwan's largest telecommunications provider, Chunghwa Telecom, to deploy Taiwan's first Universal WiMAX network. The new wireless broadband network will enable Chunghwa Telecom customers in the central commercial district of the densely populated metropolitan area of Taoyuan county to access applications such as high-speed Internet, video streaming and Voice over IP using their laptops, computers, modems or wireless handheld terminals. It is expected that the deployment of this WiMAX network will play a role in accelerating the realization of the Mobile Taiwan project, whose goal is to bring local government and private sector partners together to create the infrastructure necessary to make wireless broadband service available across the island. In the future, Chunghwa Telecom and the Taoyuan county government plan to develop and introduce applications such as remotemedical services and e-learning for use by county residents. "Alcatel-Lucent is a leading proponent of Universal WiMAX technology and committed early to developing it," said Frederic Rose, President Alcatel-Lucent Asia Pacific region. "The experience we have acquired along the way has enabled us to develop a solution that is stable, scalable and offers a clear migration path to future applications. Customers such as Chunghwa Telecom are confident in our solution and are partnering with us to provide their users with access to high- speed wireless applications." To stimulate the rapid adoption of Universal WiMAX in Taiwan, Alcatel-Lucent will work closely with local manufacturers to help develop requisite customer premise equipment, and is establishing a WiMAX interoperability testing center to enhance the global exposure and competitiveness of Taiwan's CPE industry. Chunghwa Telecom's Universal WiMAX network will fully comply with the IEEE 802.16e-2005 standard for fixed, nomadic and mobile usage. Under the terms of the contract, Alcatel-Lucent will provide its end-to-end WiMAX solution, including 2X2 multiple input/multiple output technology, which can help increase capacity and coverage. Alcatel-Lucent will also be providing Chunghwa Telecom multi-vendor network integration, engineering and installation support. This agreement follows Alcatel-Lucent's commercial WiMAX 802.16e-2005 contracts announced in Latin America and the Caribbean. Alcatel-Lucent is among the world's leading WiMAX vendors, with more than 40 operators worldwide deploying its WiMAX equipment. About Univeral WiMAX WiMAX stands for Worldwide Interoperability for Microwave Access. Universal WiMAX enables voice and broadband connectivity for fixed, nomadic or mobile use in urban, suburban and rural areas. About Chunghwa Telecom Chunghwa Telecom -- http://www.cht.com.tw-- operates both domestic and international telecom businesses. It also invests in related businesses, and other ventures as authorized by the Ministry of Transportation and Communications. 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 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. The company has operations in Indonesia. 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. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: To Deploy France's First Urban WiFi Network ----------------------------------------------------------- Alcatel-Lucent revealed that the city of Paris has jointly awarded Alcatel-Lucent and SFR, the second largest mobile telecommunications operator in France, a contract to supply and integrate the first urban WiFi network in France. Alcatel- Lucent will integrate and deploy the turnkey WiFi network. SFR, with Alcatel-Lucent as its WiFi technological partner for the past three years, will be responsible for the operation, monitoring and maintenance of the WiFi network, as well as the customer service and the Web portal. The launch of this network will take place in the third quarter of 2007. The WiFi network enables the city of Paris to offer broadband wireless access to Internet in 400 new access points. Citizens and visitors will benefit from access to WiFi services, free of charge. "We are very pleased to have been selected for this unique initiative. Our success confirms Alcatel-Lucent's leading position as turnkey provider of broadband access solutions to Cities and Regions, and as the leading network integrator worldwide." said Olivier Picard, President of Alcatel-Lucent's Europe and South activities. 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 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. The company has operations in Indonesia. 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. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB ALLIANCE ONE: To Sell US$150 Mil. in Unsecured Senior Notes ----------------------------------------------------------- Alliance One International, Inc., proposes to make a private offering of US$150.0 million in aggregate principal amount of unsecured senior notes due 2012. Alliance One intends to use the proceeds of the proposed offering to repay outstanding borrowings under its existing senior secured term loans. The offering of the notes is subject to certain customary closing conditions. The senior notes proposed to be offered have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. No assurance can be given that the proposed offering can be completed on acceptable terms. About Alliance One Based in Morrisville, North Carolina, Alliance One International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported on Sept. 29, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for Alliance One International, Inc., and upgraded its B2 rating on the company's US$300 million senior secured revolver to B1. In addition, Moody's assigned an LGD3 rating to notes, suggesting noteholders will experience a 37% loss in the event of a default. ALLIANCE ONE: Moody's Rates Proposed US$385-Mil. Sr. Loan at B1 --------------------------------------------------------------- Moody's Investors Service affirmed Alliance One International, Inc.'s long-term debt ratings, including the company's B2 corporate family rating and revised the outlook to stable from negative. Moody's also assigned a B1 rating to the company's proposed US$385 million senior secured revolving credit and term loan facilities and a B2 rating to the company's US$150 million senior notes offering. The stable outlook reflects: 1) the significant improvement in profitability and credit metrics over the last twelve months, 2) the successful completion and achievement of merger lated synergies, and 3) the prospective benefits to the company from the proposed refinancing including the extension of the maturity dates for its bank facilities and the elimination of sizable amortization payments. Final ratings are subject to review of final documentation. Ratings on the company's existing bank facilities will be withdrawn upon closing. AOI's B2 corporate family rating and stable outlook reflect the company's financial metrics and the potential for volatility in sales and earnings as a result of its commodity orientation and its difficult position between tobacco growers and strong cigarette manufacturers. This position has been challenged over the last several years due to the structural change away from the auction markets to "contracted" markets, which shifts inventory risk to AOI. AOI's ratings are supported by its leading market share position in the leaf tobacco trading and processing industry, its well established relationships with large cigarette companies, and global procurement and processing network that provides a significant defense to new competitors. However, AOI faces the ongoing challenge of ensuring high quality and a diverse supply of leaf tobacco for its customers by often pre-funding farmer activity, guaranteeing loans for its suppliers, committing to purchase entire crops within a price range while funding significant capital requirements of its own to process the leaf tobacco. Despite these measures, AOI's customers often dictate the timing and pricing of their purchases, which may result in large working capital investments, weak cash flow, and higher debt levels. Nevertheless, Moody's notes that recent support in the form of customer advances have been significant from AOI's significant customers which is indicative of the close and long-standing relationships AOI maintains with its key customers. Ratings assigned: * Alliance One International, Inc. -- US$250 million senior secured revolving credit facility due 2010 at B1, LGD3, 35%; -- US$150 million senior notes due 2012 at B2, LGD4, 50% Intabex Netherlands, B.V. -- US$135 million senior secured term loan B due 2011 at B1, LGD3, 35%; Ratings affirmed: * Alliance One International, Inc. -- Corporate family rating of B2 -- Probability of default rating of B2 -- US$315 million 11% senior notes due 2012 at B2, LGD4, 50% -- US$100 million 12 _% senior subordinated notes due 2012 at Caa1, LGD6, 95% About Alliance One Based in Morrisville, North Carolina, Alliance One International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. AVNET INC: Increases Offering Size of Senior Notes to US$300-M -------------------------------------------------------------- Avnet, Inc. revealed the pricing of its offering of US$300 million aggregate principal amount of 5-7/8% Notes due 2014 in a registered offering. Upon pricing, the offering size was increased from the US$250 million aggregate principal amount, which was offered on March 2, 2007. The offering is expected to close on March 7, 2007, subject to customary closing conditions. Avnet intends to use all of the net proceeds to repay amounts outstanding under its revolving credit facility and/ or its accounts receivable securitization program. The offering is lead-managed by Banc of America Securities LLC and Credit Suisse Securities LLC. About Avnet Inc. Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in these Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. technology semiconductor and distributor sector, the rating agency affirmed its Ba1 corporate family rating on Avnet, Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400MM 8.00% Sr. Unsecured Notes due 2006 Ba1 Ba1 LGD3 49% US$250MM 6.00% Sr. Unsecured Notes due 2015 Ba1 Ba1 LGD3 49% US$300MM 6.625% Sr. Unsecured Notes due 2016 Ba1 Ba1 LGD3 49% US$300MM 2.00% Convertible Sr. Debentures due 2034 Ba1 Ba1 LGD3 49% Shelf - Sr. Unsecured (P)Ba1 (P)Ba1 LGD3 49% Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97% AVNET INC: Moody's Holds Ba1 Rating and Says Outlook is Positive ---------------------------------------------------------------- Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. "The positive outlook reflects our expectation that Avnet's operating performance will continue to benefit from the secular outsourcing trend underway in the semiconductor space, improved product mix, an expanded line card from recent acquisitions and increasing geographic diversity that collectively support operating margins at or above the 4% level," according to Moody's Vice President & Senior Analyst Gregory Fraser, CFA. The positive outlook considers the solid execution and realized operating efficiency improvements that have exceeded expectations resulting in operating margin and ROA expansion, improved credit protection measures, higher gross cash flow levels and an enhanced business model that has the propensity to deliver consistent levels of positive free cash flow especially during periods of industry weakness. "We expect Avnet to maintain a focus on balance sheet deleveraging via either free cash flow generation targeted towards debt reduction and/or higher operating cash flow," Fraser added. The outlook revision also recognizes the company's enhanced market position as the leading distributor for Sun Microsystems' full line of computing solutions following the Access Distribution acquisition. The US$412.5 million acquisition was funded through a combination of debt and cash-on-hand. Although debt has increased, the purchase is not expected to materially weaken credit protection measures and internal liquidity given Avnet's higher operating cash flow levels plus the additive cash flow generated by Access. Moody's expects pro forma debt to EBITDA to increase modestly to 2.5x on a Moody's adjusted basis compared to 2.2x as of LTM Dec. 30, 2006. With approximately US$2 billion in revenues, Access is expected to deepen Avnet's existing Sun relationship, adding complementary product lines and expanding the Technology Solution Group's geographic coverage. In addition to improved scale, US$15 million of anticipated cost synergies and immediate accretion to earnings, the acquisition is expected to generate sales synergies via cross-selling opportunities into the customer bases of both Access and Avnet. Ratings affirmed: * Corporate Family Rating, Ba1 * Senior Unsecured Notes with various maturities, Ba1, LGD3, 49% * Senior/Subordinated shelf ratings, Ba1 / Ba2 The outlook is positive. About Avnet Inc. Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in these Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. BANK NEGARA: Aims to Expand Outstanding Loans by 20% ---------------------------------------------------- PT Bank Negara Indonesia Tbk is aiming to expand its outstanding loans by 20% this year, Reuters News reports, citing Bank Director Ahmad Baiquini. According to the report, Mr. Baiquini said that the state bank's outstanding loans reached IDR66.4 trillion and most of the loans were expected to help finance palm oil and rubber plantations. The report notes that the bank also plans to lend more to back the country's infrastructure projects. Mr. Baiquini told reporters that over the next five years, the bank will allocate IDR21 trillion of loans for infrastructure financing and in 2007 they are setting aside between IDR4.5 to IDR5 trillion, the report relates. The report adds that Indonesian banks, hit by high lending rates last year, are expected to achieve higher loan growth and lower their bad debt ratios this year as interest rates gradually decline from three-year highs. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, a securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 6, 2007, Moody's Investors Service revised the outlook from positive to stable the ratings of PT Bank Negara Indonesia's senior debt and foreign currency long-term deposit ratings to positive from stable. The bank's short-term deposit rating and long-term subordinated debt rating continue to carry the rating agency's stable outlook and the bank financial strength rating a positive outlook. The bank's detailed ratings are: -- senior/subordinated debt of Ba3/Ba3; -- foreign currency long-term/short-term deposit of B2/Not Prime; and -- bank financial strength of E. TCR-AP reported on Feb. 1, 2007, Fitch Ratings has affirmed all the ratings of PT Bank Negara Indonesia (Persero) Tbk as follows: * Long-term foreign and local currency Issuer Default ratings 'BB-' * Short-term rating 'B', * National Long-term rating 'A+(idn)', * Individual 'D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. Standard & Poor's Ratings Services revised the outlook on the local currency counterparty credit rating on Bank Negara to stable from positive. At the same time, Standard & Poor's affirmed its foreign and local currency ratings on BNI (B+/Stable/B). FREEPORT-MCMORAN: Moody's Rates US$6 Billion Notes at B2 -------------------------------------------------------- Moody's Investors Service assigned a B2, LGD5, 88% senior unsecured rating to Freeport-McMoRan Copper & Gold Inc.'s US$6 billion notes issue. The notes will be unsecured and unguaranteed obligations of Freeport. Moody's also affirmed Freeport's Ba3 corporate family rating and its other ratings: -- the Baa3, LGD1, 1.0% senior secured rating on Freeport's US$500 million secured revolver; -- the Ba2, LGD2, 29% senior secured ratings on each of Freeport's $1 billion secured revolver, US$2.5 billion secured Term Loan A, and US$7.5 billion secured Term Loan B; and, -- the Ba2, LGD2, 29% rating on Freeport's existing 6.875%, 10.125% and 7.20% senior unsecured notes. Moody's also affirmed the B1, LGD4, 63% rating on Phelps Dodge's Cyprus Amax notes and on Phelps Dodge's other existing senior unsecured notes. The ratings actions are based on the assumption that Freeport completes the acquisition of Phelps Dodge on substantially the terms agreed. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba3, LGD4, 50%. The ratings outlook for both Freeport and Phelps Dodge is stable. The Ba3 corporate family rating reflects Freeport's very high debt level of approximately US$19 billion and what Moody's believes will be a protracted time frame for debt reduction in the face of softening metals prices and continued high cost challenges. The rating also considers the high concentration in copper and resultant variability in earnings and cash flow, significant capital expenditures, and a high level of reliance on the Grasberg mine in Indonesia. The rating also reflects the cultural challenges inherent in the acquisition of the larger Phelps Dodge by Freeport, and the execution and political risk of Phelps Dodge's development project in the Congo. The Ba3 rating favorably considers the company's leading positions in copper and molybdenum, a significant amount of gold production, the low cost, long-life reserves at PT-FI, and improved operating and political diversity. Rating assigned: * Freeport-McMoRan Copper & Gold Inc. -- Senior Unsecured Notes: B2, LGD5, 88% Ratings affirmed: * Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba3 -- Probability of Default Rating: Ba3 -- $0.5 billion Senior Secured Revolving Credit facility, Baa3, LGD1, 1.0% -- US$1.0 billion Senior Secured Revolving Credit Facility, Ba2, LGD2, 29% -- US$2.5 billion Senior Secured Term Loan A, Ba2, LGD2, 29% -- US$7.5 billion Senior Secured Term Loan B, Ba2, LGD2, 29% -- US$340 million 6.875% Senior Unsecured Notes due 2014, Ba2, LGD2, 29% -- US$272 million 10.125% Senior Unsecured Notes due 2010, Ba2, LGD2, 29% -- US$0.2 million 7.20% Senior Unsecured Notes due 2026, Ba2, LGD2, 29% * Cyprus Amax Minerals Company -- US$60.1 million 7.375% Senior Notes due 2007, B1, LGD4, 63% * Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, B1, LGD4, 63% -- US$115 million 7.125% Senior Notes due 2027, B1, LGD4, 63% -- US$150 million 6.125% Senior Notes due 2034, B1, LGD4, 63% -- US$193.8 million 9.50% Senior Notes due 2031, B1, LGD4, 63% About Freeport-McMoRan Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper & Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries, engages in the exploration, mining, and production of copper, gold, and silver. The company has operations in Indonesia. GENERAL NUTRITION: Launches US$365 Million Cash Tender Offering --------------------------------------------------------------- General Nutrition Center Inc. has commenced a cash tender offers to purchase any and all of each of its outstanding 8-5/8% Senior Notes due 2011 and 8-1/2% Senior Subordinated Notes due 2010. The aggregate principal amount of the outstanding Centers Senior Notes is US$150,000,000, and the aggregate principal amount of the outstanding Centers Senior Sub Notes is US$215,000,000. In conjunction with these tender offers, General Nutrition Centers is soliciting noteholder consents to effect certain amendments to the indentures governing the respective General Nutrition Centers Notes similar to those sought by Parent in connection with the GNC Parent Notes. In addition, GNC Parent Corporation, the parent company of General Nutrition, has commenced a cash tender offer to purchase any and all of its outstanding Floating Rate Senior PIK Notes due 2011. The aggregate principal amount at maturity of the outstanding GNC Parent Notes is US$425,000,000. In conjunction with the tender offer, the GNC Parent is soliciting noteholder consents to effect certain amendments to the indenture governing the Notes to eliminate substantially all of the restrictive covenants as well as certain events of default. The tender offers for each of the GNC Parent Notes and the General Nutrition Centers Notes are scheduled to expire at 12:00 midnight, New York City time, on March 15, 2007, unless extended or earlier terminated. Hold