/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070712.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, July 12, 2007, Vol. 10, No. 137 Headlines A U S T R A L I A ANDERSON PETROLEUM: Final Meeting of Members Set for July 25 AUSTRALIAN CAPITAL: Investor Vents Anger on ASIC BOTTOM OF THE HARBOUR: Members Opt to Wind Up Operations BULGA INVESTMENTS: Members Resolve to Liquidate Business DENOON PTY: Members' Final Meeting Set for August 6 FORTESCUE METALS: Signs Infrastructure Sharing Deal with BC Iron GNPL PTY: Commences Liquidation Proceedings MACEDON BALLUSTRADING: Inability to Pay Debts Prompts Wind-Up NMRB PTY: James Patrick Downey Named as Liquidator OCEANAIR LTD: Undergoes Wind-Up Proceedings ORECK CORPORATION: Moody's Drops Corporate Family Rating to Caa1 PRIMUS TELECOMM: Concludes Sale of 22.5MM Shares of Common Stock PSIVIDA LIMITED: Entered Into Agreements to Sell ADS & Warrants PSIVIDA LIMITED: Enters Into Evaluation Deal w/ Med. Devise Firm SWIFT & COMPANY: Moody's Keeps Ratings Under Review TESCOL-TWO: To Declare Third Interim Dividend on Aug. 9 WILD HOLDINGS: Enters Voluntary Liquidation WOMBOIN PTY: Members to Receive Wind-Up Report on Aug. 7 C H I N A & H O N G K O N G ALERIS INTL: Inks Deal to Buy Wabash Alloys for US$194 Million ASAHI GLASS: Liquidators Quit Posts BENQ CORP: To Sell Office Buildings to Shin Kong for NT$5.04BB CHINA CONSTRUCTION: To Start Stock Incentive Plans to Employees CHINA TRADE: Liquidator to Give Wind-Up Report on Aug. 10 CITIC RESOURCES: United Star Sells US110 Million in Shares CITIC RESOURCES: Temasek to Buy United Star's Shares in Company DANA CORPORATION: Reaches Agreement with USW and UAW DANA CORP: Mauritius Unit Closes 4% Capital Buy of Dongfeng Dana DIGITAL CREATION: Members to Hold General Meeting on Aug. 10 EUROPEAN TRANSPORT: Creditors to Meet on July 30 FIBAN LIMITED: Receiving Proofs of Debt Until August 6 GOLDEN NET: Members to Hold Final Meeting on Aug. 8 LIANG HUAT: Liquidator Quits Post NEO-CHINA: Deutsche Bank, BOC to Handle Dollar Bond Issue PACIFIC RIM: Creditors' Meeting Set for July 27 PEPSON INVESTMENT: Members to Receive Wind-Up Report on Aug. 8 TRELOCK HONG KONG: Members to Hold Final Meeting on Aug. 10 WIDE STRONG: Members' Final Meeting Set for August 8 I N D I A AES CORP: Says Commission Improperly Gets Proof for Zoning Law BANK OF BARODA: Shareholders Approve 30% Final Dividend BHARTI AIRTEL: Ranked 3rd by BusinessWeek for Best Returns BRITISH AIRWAY: Panmure Gordon Puts Hold Rating on Firm's Shares CANARA BANK: Considering Slashing Interest Rates on Deposits EMCO LTD: Schedules Annual General Meeting on August 18 PRIDE INT'L: Inks US$612 Mil. Purchase Pact with Samsung Heavy PRIDE INT'L: Increases Salaries & Bonuses of Executive Officers TATA STEEL: S&P Cuts Corporate Credit Rating From 'BBB' to 'BB' TATA STEEL: S&P Gives 'B' Short-Term Debt Rating to U.K. Unit TATA STEEL: To Hold Members' Annual General Meeting on July 18 I N D O N E S I A ANEKA TAMBANG: Seeks Partner for Alumna Smelter Plan in Bintan AVNET INC: Unit Signs Distribution Agreement With Diodes Inc. BANK NEGARA: Books IDR8.7 Trillion in New Loans for 1st Half BANK NEGARA: To Advertise Planned Secondary Public Offering FOSTER WHEELER: To Join NASDAQ-100 Index Starting July 12, 2007 LIPPO BANK: S&P Assigns 'B+' Long-Term Credit Ratings PARKER DRILLING: Appoints David Mannon as Company President PERTAMINA: Develops Sudanese Oil Block With China National J A P A N ALL NIPPON: New Boeing 787 Will Augment Revenue to About JPY6BB RESONA HOLDINGS: To Sell Shares to Nippon Life and T&D Holdings K O R E A CORECROSS INC: CNH Wood Systems Acquires 10.38% Stake CURON INC: Acquires Patent on July 9 KOREA DEVELOPMENT: Gov't Transfers Investment-Banking Business M A L A Y S I A FCW HOLDINGS: Extends Completion of Sale and Purchase Agreement MOL.COM BERHAD: Securities Commission OKs Kenanga's Appointment N E W Z E A L A N D BRIDGECORP: Receivers Slash 13 Workers, Including 2 Senior Execs LUVIT FOODS: Commences Liquidation Proceedings MRS WASH: Requires Creditors to File Claims by Aug. 31 PC RECYCLING: Names Fisk and Sanson as Liquidators PCR CONTRACTING: Enters Wind-Up Proceedings PCRC PROPERTY: Taps Fisk and Sanson as Liquidators PREPFESSIONALS MARINE: Names Fatupaito and Agnew as Liquidators TILES ON THE MOVE: Names Fatupaito and Agnew as Liquidators TRU FREIGHT: Court to Hear Wind-Up Petition on July 12 VENDOR TRADING: Fixes August 10 as Last Day to File Claims ZAFFRE HOLDINGS: Creditors' Proofs of Debt Due on Sept. 7 P H I L I P P I N E S AFP-RSBS: Ombudsman OKs Graft Charges v. Former Executives BANCO DE ORO-EPCI: Annual Stockholders' Meeting Set for July 27 MANILA ELECTRIC: Energy Commission OKs Time-of-Use Rating Scheme NAT'L POWER: Energy Regulator Acquits PSALM; Turns on NAPOCOR * Gov't Earns PHP17.1 Billion From Sale of 20% PNOC-EDC Stake * Coalition Blames ADB's Energy Programs for Huge Gov't Debts S I N G A P O R E 333 SUPERMARKET: Pays First & Final Dividend AAR CORP: Posts US$17.7-Mil. Net Income in 4th Qtr. Ended May 31 INNOVATIVE STRUCTURAL: Court to Hear Wind-Up Petition on July 20 MARK-ASIA: Enters Wind-Up Proceedings PETROLEO BRASILEIRO: Resumes Oil Production in P-50 Platform PETROLEO BRASILEIRO: Workers Want Unit to Extend Union Benefits SEA CONTAINERS: Gives Update on FSD Warning from U.K. Regulator T H A I L A N D TMB BANK: Predicts 40% Decline in Loan Portfolio for 2007 TONGKAH HARBOUR: Faces THB52.8MM Fine for Illegal Gold Shipment TONGKAH HARBOUR: SET Lifts Suspension on Trading of Stocks - - - - - - - - ================= A U S T R A L I A ================= ANDERSON PETROLEUM: Final Meeting of Members Set for July 25 ------------------------------------------------------------ Anderson Petroleum Company Esp Pty Ltd will hold a final meeting for its members on July 25, 2007, at 10:00 a.m. John Bouwman, the company's liquidator, will give, at the meeting, a report about the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John Bouwman Sinclair Wilson Accountants & Business Advisors 177 Koroit Street Warrnambool, Victoria 3280 Australia About Anderson Petroleum Located in Victoria, Australia, Anderson Petroleum Company ESP Pty Ltd is an investor relation company. AUSTRALIAN CAPITAL: Investor Vents Anger on ASIC ------------------------------------------------ Australian Capital Reserve Limited "preyed on vulnerable people. . .and older pensioners" claims investor Mauro Folghera to Vanda Carson of the Sydney Morning Herald. Mr. Folghera, a retired Air Force aircraft technician, vents out his anger at the Australian Securities and Investments Commission for not warning potential investors of the volatility of their investments, conveys Ms. Carson. According to the SMH article, Mr. Folghera invested his AU$450,000 compensation payout to ACR confident that the trustee was responsible for refunding his investment should the company default based on ACR's television advertisement. Before investing, Mr. Folghera looked up the ASIC Web site and only found that the ASIC was a registered company and nothing else to bring his "attention to the fact that things were wrong" and assumed things were okay. Ms. Carson quotes Mr. Folghera as saying, "[ASIC] allowed us to place our trust and our future in the hands of wolves, then they pulled the plug and are now about to leave us with nothing, although the secured creditors, such as Investec, will make sure they get their money, at the cost of the noteholders' future. "In this day and age I would have thought there were checks and balances in place and enough protection for the Government or government agencies to look after investors, particularly vulnerable people like pensioners, but there obviously isn't," Mr. Folghera adds. As reported in the Troubled Company-Reporter in June 7, 2007, ACR was placed in voluntary administration in late May amid fears that 7,000 noteholders could lose substantial amounts of money. Reportedly, ACR has been running out of cash with less than AU$10 million left at the end of 2006. An ASIC report on May 29, 2007, stated that the finance company, which finances the activities of Estate Property Group, raises money from the public by issuing unsecured deposit notes to public investors and loans those funds to EPG to finance its various property activities. As a result of the funding, ACR was able to raise over AU$300 million between 2000 and 2007 through the issue of nine prospectuses. However, the report related, the funding was stopped by ASIC on March 9, 2007, when it issued and Interim Stop Order on the 9th prospectus due to some concerns relating to disclosure in the prospectus. ACR and Estate Property Samuel Pogson apologized to investors saying that they will be coordinating with the administrators "to get the best result for them," the report added. About Australian Capital Reserve Australian Capital Reserve Limited - http://www.acrlimited.com.au/-- an investment group based in North Sydney New South Wales, Australia, was placed in voluntary administration on the last week of May 2007. BOTTOM OF THE HARBOUR: Members Opt to Wind Up Operations -------------------------------------------------------- At an extraordinary general meeting held on June 18, 2007, the members of Bottom of the Harbour (Carlton) Pty Ltd resolved to wind up the company's operations. William Bernard Abeyratne and Loke Ching Wong were appointed as liquidators. The Liquidators can be reached at: William Bernard Abeyratne Loke Ching Wong c/o Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Victoria 3205 Australia Telephone:(03) 9696 2885 About Bottom of the Harbour Bottom of the Harbour (Carlton) Pty Ltd operates meat and fish markets. The company is located in Victoria, Australia. BULGA INVESTMENTS: Members Resolve to Liquidate Business -------------------------------------------------------- During a general meeting held on June 1, 2007, the members of Bulga Investments Pty Limited resolved to liquidate the company's business and appointed David Levi of Levi Consulting as liquidator. The Liquidator can be reached at: David Levi c/o Levi Consulting GPO Box 4681 Sydney, New South Wales 2001 Australia Telephone:(02) 9223 9044 Facsimile:(02) 9231 5288 About Bulga Investments Located in ACT, Australia, Bulga Investments Pty Limited is an investor relation company. DENOON PTY: Members' Final Meeting Set for August 6 --------------------------------------------------- The members of Denoon Pty Limited will have their final meeting on August 6, 2007, at 9:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: David Shehade c/o Edney Ryan Chartered Accountants Level 2, 357 Military Road Mosman, New South Wales 2000 Australia About Denoon Pty Located in ACT, Australia, Denoon Pty Limited is an investor relation company. FORTESCUE METALS: Signs Infrastructure Sharing Deal with BC Iron ---------------------------------------------------------------- Fortescue Metals Group Limited has signed an infrastructure sharing agreement with iron ore explorer BC Iron Ltd., reports Australian Associated Press. According to the report, the non-binding memorandum allows BC Iron to negotiate the use of Fortescue's rail haulage, port and ship loading facilities on commercial terms to transport its ore because BC Iron's Nullagine project, which is still in the exploration phase, is located northeast of Fortescue's Cloud Break deposit and close to its rail line. This is the second time that Fortescue has made arrangements with another iron ore company in allowing them to use its port handling, ship loading and rail haulage services at its project. Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006, Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure. GNPL PTY: Commences Liquidation Proceedings ------------------------------------------- The members of GNPL Pty Ltd met on June 19, 2007, and agreed to voluntarily liquidate the company's business. James Patrick Downey was appointed as liquidator. The Liquidator can be reached at: James Patrick Downey J. P. Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About GNPL Pty GNPL Pty Ltd is involved with the livestock business. The company is located in New South Wales, Australia. MACEDON BALLUSTRADING: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------------- On June 20, 2007, the members and creditors of Macedon Ballustrading Pty Limited met and passed a resolution to wind up the company's operations due to its inability to pay its debts when it falls due. The company's liquidator is: Mitchell Ball c/o Paladin Partners Suite 102, 118 Great North Road Five Dock, New South Wales 2046 Australia Telephone:(02) 9712 8195 About Macedon Ballustrading Macedon Ballustrading Pty Limited is involved with architectural metalwork. The company is located in New South Wales, Australia. NMRB PTY: James Patrick Downey Named as Liquidator -------------------------------------------------- During a meeting held on June 19, 2007, the members of NMRB Pty Ltd resolved to voluntarily liquidate the company's business and appointed James Patrick Downey as liquidator. The Liquidator can be reached at: James Patrick Downey J. P. Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About NMRB Pty NMRB Pty Ltd operates offices of holding companies. The company is located in Victoria, Australia. OCEANAIR LTD: Undergoes Wind-Up Proceedings ------------------------------------------- Oceanair Ltd went into liquidation on June 19, 2007, and Geoffrey Handberg was appointed as liquidator. The Liquidator can be reached at: Geoffrey Handberg c/o Rodgers Reidy Chartered Accountants 10/200 Queen Street Melbourne Australia ORECK CORPORATION: Moody's Drops Corporate Family Rating to Caa1 ---------------------------------------------------------------- Moody's Investors Service lowered its Corporate Family Rating and first lien bank loan ratings for Oreck Corporation to Caa1 from B2 and the probability of default rating to Caa2 from B2. All ratings are under review for a further possible downgrade. At the same time Moody's withdrew its B1 and Caa1 ratings previously assigned to the proposed US$150 million first lien credit facility and the proposed US$50 million second lien credit facility, respectively as the company does not intend to proceed with these transactions. The downgrade resulted from expectations that liquidity of the company will remain challenged following the company's decision not to proceed with closing of the previously proposed 1st and 2nd lien credit facilities, which Moody's had anticipated would provide the company with adequate levels of liquidity. The company's existing first lien term loan and revolving credit facilities remain in default of financial covenants and as a result the company is unable to access the revolving credit facility. At the same time the downgrade reflects Moody's concerns that the pace of recovery of the direct response business may be more protracted than anticipated and efforts to improve performance of this business may prove challenging. At the same the limited level of liquidity may impede the ability of the company to increase investment in marketing, product development as well as facility consolidation. The ratings have been placed under review for a further possible downgrade as an inability to reach agreement with the lenders in its existing credit facilities could further negatively impact liquidity and reduced liquidity could create challenges for the company's ongoing operations. If covenants are not waived and some form of restructuring becomes more likely ratings could be lowered further. These ratings were lowered and assessments were amended: -- Corporate Family Rating to Caa1 from B2 -- Probability of Default Rating to Caa2 from B2 -- US$20m first lien revolving credit facility to Caa1 (LGD 3 ' 32%) from B2 (LGD 3 -- 31%) -- US$177 million first lien term loan to Caa1 (LGD 3 -- 32%) from B2 (LGD 3 -- 31%) These ratings have been withdrawn: -- US$130 million first lien term loan facility (was B1) -- US$50 million second lien term loan facility (was Caa1) Oreck Corporation, based in New Orleans, Louisiana, is a leading manufacturer and marketer of premium priced vacuum cleaners and air purifiers under the "Oreck" brand name. Oreck sells throughout the world, including South America, the United Kingdom and Australia. PRIMUS TELECOMM: Concludes Sale of 22.5MM Shares of Common Stock ---------------------------------------------------------------- PRIMUS Telecommunications Group Incorporated has concluded the sale of 22.5 million shares of registered common stock at a price of US$0.915 per share to existing and new qualified institutional buyers and institutional accredited investors. The US$18.9 million of net proceeds, after fees and expenses, will be used for general corporate purposes including the repurchase, repayment or redemption of outstanding debt. "We are pleased that existing and new investors participated in this transaction which further enhances our financial flexibility," Thomas R. Kloster, chief financial officer, stated. "Additionally, as a result of raising new equity in this transaction, the accelerated maturity provisions in PRIMUS's 5% Exchangeable Senior Notes are eliminated, thereby establishing June 2010 as the stated maturity for these notes." CRT Capital Group LLC served as sole placement agent for the offering. About PRIMUS Telecommunications Headquartered in McLean, Virginia, PRIMUS Telecommunications Group Inc. (OTCBB:PRTL) -- http://www.primustel.com/-- offers international and domestic voice, voice-over-Internet protocol, Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the U.S., Canada, Australia, the U.K. and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including about 350 points-of-presence throughout the world, ownership interests in undersea fiber optic cable systems, 16 carrier-grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. As reported in the Troubled Company Reporter on May 7, 2007, PRIMUS Telecommunications Group, Incorporated, reported total assets of US$432.6 million and total liabilities of US$904.8 million, resulting in a total stockholders' deficit of US$472.3 million as of March 31, 2007. PSIVIDA LIMITED: Entered Into Agreements to Sell ADS & Warrants --------------------------------------------------------------- On June 29, 2007, pSivida Limited (NASDAQ:PSDV, ASX:PSD, Xetra:PSI), entered into definitive agreements to raise approximately US$18.0 million (AU$21.3 million) in gross proceeds in a registered direct offering through the sale of its NASDAQ-traded ADSs and warrants to purchase ADSs, including US$6.5 million (AU$7.7 million) to Pfizer Inc. Pfizer's investment is pursuant to the terms of the Collaborative Research and License Agreement, dated as of April 3, 2007. The company estimates that net proceeds from the offering will be approximately US$16.3 million (AU$19.4 million), after deducting placement agent fees and estimated offering expenses. pSivida has entered into subscription agreements with primarily institutional investors pursuant to which it has agreed to sell a total of 14,402,000 units, for a purchase price of US$1.25 (AU$1.48) per unit. Each unit consists of: (i) one ADS, representing 10 ordinary shares; and (ii) one warrant to purchase 0.40 ADSs, with a warrant exercise price of US$1.65 (A$1.96) per ADS. Units will not be issued or certificated. The ADSs and warrants are immediately separable and will be issued separately. The warrants will be exercisable from the date of issuance through the fifth anniversary of the issuance. Cowen and Company, LLC, acted as lead placement agent and JMP Securities LLC acted as co-agent in this offering. The ADSs and warrants were offered under pSivida's effective shelf registration statement previously filed with the Securities and Exchange Commission on March 6, 2007, which registration statement became effective on March 9, 2007. First Tranche of ADS Offering Closed In a follow-up disclosure on July 6, pSivida said that it closed the first tranche of its registered direct offering. Net of placement agents' commissions, the company received approximately US$10.7 million (AU$12.5 million) in proceeds from the first tranche of the offering, which related to 9,202,000 units. About pSivida pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. PSIVIDA LIMITED: Enters Into Evaluation Deal w/ Med. Devise Firm ---------------------------------------------------------------- pSivida Limited (NASDAQ:PSDV, ASX:PSD, Xetra:PSI) announced that it has entered into an evaluation agreement with an undisclosed large global medical device company to evaluate cardiovascular delivery of drugs using pSivida's drug delivery technologies. The agreement follows the expiration of a previous evaluation agreement with the same medical device company. About pSivida pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. SWIFT & COMPANY: Moody's Keeps Ratings Under Review --------------------------------------------------- Moody's Investors Service prospectively assigned a (P)Caa2 rating to new senior unsecured notes totaling $600 million to be issued by J&F I Finance Co., which will be a subsidiary of J&F Participacoes, S.A. Moody's also prospectively assigned a (P)B3 corporate family rating, a B3 probability of default rating, and a speculative grade liquidity rating of SGL-2 to New Swift. The rating outlook is stable. The ratings are subject to review of final documentation and subject to a US$500 million equity component in the approximately US$1.46 billion consideration for the acquisition of Swift. Should the equity amount be less than $500 million or should any other terms of the transaction change, Moody's may revise the prospective ratings and/or outlook of New Swift. The ratings of the existing Swift & Company remain on review for possible upgrade pending completion of the acquisition. When Old Swift is acquired and its existing debt repaid, ratings will be withdrawn. Ratings assigned prospectively with a stable outlook: J&F I Finance Co., to be renamed Swift & Company: -- Corporate family rating at (P)B3 -- Probability of default rating at B3 -- New $200 million senior unsecured guaranteed notes due 2015 at (P)Caa2 (LGD5, 81%) -- New US$200 million senior unsecured guaranteed toggle notes due 2015 at (P)Caa2 (LGD5, 81%) -- New US$200 million senior unsecured guaranteed floating rate notes due 2014 at (P)Caa2 (LGD5, 81%) -- Speculative grade liquidity rating at SGL-2 Ratings continuing on review for possible upgrade: Swift & Company: -- Corporate family rating at B3 -- Probability of default rating at B3 -- Existing senior unsecured notes at Caa1 -- Existing subordinated notes at Caa1 Swift will be acquired by J&F, a Brazilian company that is the majority owner of Latin America's largest beef producer, JBS. JBS has annual revenues of about US$2.1 billion and EBITDA of $304 million. J&F I Finance Co., which will be a subsidiary of J&F, will issue US$600 million in new senior unsecured notes and will merge into Swift & Company, currently a subsidiary of Swift Foods Company, with Swift & Company as the surviving entity. Swift & Company will assume the obligations of J&F I Finance under the notes, and Swift & Company will merge into S&C Holdco, 3 Inc, with S&C Holdco, 3 Inc. continuing as the surviving entity to be renamed Swift & Company. Swift's B3 corporate family rating reflects the company's highly volatile earnings and cash flow, very high enterprise leverage, low margins and weak credit metrics, and the continuing challenging conditions in the volatile US beef industry overall. New Swift's ratings are supported by its scale as the third largest beef and pork processor in the US, by Swift's strong Australian operations, and by the company's solid liquidity. Moody's analyzes Swift's operations in the context of the Rating Methodology for Global Natural Product Processors - Protein and Agriculture. Using the 22 rating factors cited in this methodology -- and proforma financials for fiscal 2007 and Moody's projected financials for 2008 and 2009 -- all proforma for the new capital structure -- Swift's rating would score at B2, one notch above its actual rating level. The company's actual rating reflects the significant weight that Moody's places on Swift's currently high leverage and weak credit metrics and on the possibility of challenges faced by new management with little experience in the US market. Moody's view is that Swift has not yet completely recovered from the challenges of the last few years that negatively impacted operating results. Despite the equity component in the consideration, the reduction in funded debt upon acquisition is modest; post-acquisition funded debt of US$957 million will be only about US$200 million less than the current funded debt at Old Swift of about US$1.16 billion. The stable rating outlook for New Swift reflects Moody's expectation that -- although earnings will continue to modestly rebound as beef volumes strengthen in the US and Australia and as the company is able to realize some of the benefits of recent operational restructuring moves -- near term improvements in debt protection measures are likely to be modest. The SGL-2 rating of New Swift is based on Moody's anticipation that the company's liquidity over the next twelve months will be good, with moderate usage of its unrated US$700 million senior secured revolving credit and modest seasonal variations in internal cash flow generation for a protein company. Cash flow available to service debt is projected by Moody's to be breakeven or slightly negative over the next four quarters as Swift strengthens its operating performance. Borrowing base availability is expected to be ample. The single covenant in the revolving credit agreement is not tested unless availability is less than US$75 million; it is not at all likely that availability will be this low, so it is unlikely that the covenant will be tested. Alternative liquidity is limited as assets are encumbered. Swift & Company is one of the world's leading beef and pork processing companies. Its largest business segments are domestic beef processing (Swift Beef, 59% of consolidated sales for the first 39 weeks ended February 25, 2007), domestic pork processing (Swift Pork, 22%) and beef operations in Swift Australia (19%). Consolidated sales for the twelve months ended Feb. 25, 2007 were about US$9.5 billion. TESCOL-TWO: To Declare Third Interim Dividend on Aug. 9 ------------------------------------------------------- Tescol-Two Pty Ltd, which is in liquidation, will declare the third interim dividend on August 9, 2007. Creditors are required to file their proofs of debt by July 25, 2007, to be included in the company's dividend distribution. The company's liquidator is: Wayne Benton c/o PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Tescol-Two Tescol-Two Pty Ltd is in the trucking business, except local. The company is located in Victoria, Australia. WILD HOLDINGS: Enters Voluntary Liquidation ------------------------------------------- Wild Holdings Pty Ltd entered voluntary liquidation on June 14, 2007, and Ronald Leslie Male was appointed as liquidator. The Liquidator can be reached at: Ronald Leslie Male 220 Chesterville Road Moorabbin, Victoria 3189 Australia About Wild Holdings Wild Holdings Pty Ltd is a distributor of electrometallurgical products. The company is located in Queensland, Australia. WOMBOIN PTY: Members to Receive Wind-Up Report on Aug. 7 -------------------------------------------------------- A final meeting will be held for the members of Womboin Pty Ltd on August 7, 2007, at 10:00 a.m. The members will receive, at the meeting, a report about the company's wind-up proceedings and property disposal. The company's liquidator is: Adam Shepard c/o Star Dean-Willcocks Level 1, 32 Martin Place Sydney, New South Wales 2000 Australia Telephone:(02) 9223 2944 Facsimile:(02) 9223 3011 About Womboin Pty Womboin Pty Ltd, which is also trading as Girilambone Station, is in the business of livestock, mainly sheep and goats. The company is located in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ ALERIS INTL: Inks Deal to Buy Wabash Alloys for US$194 Million -------------------------------------------------------------- Aleris International Inc. has entered into a definitive agreement to acquire Wabash Alloys from Connell Limited Partnership. Aleris will pay approximately US$194 million, with certain adjustments for working capital and other items. Aleris expects the acquisition to be neutral to accretive to its leverage ratio prior to any benefits from synergies, and anticipates financing the acquisition from a combination of cash flows from operations, additional draws of its revolving credit facility, or the incurrence of additional debt, which may include term credit facilities or bonds. "Closing is expected to occur in the third quarter and is subject to regulatory approvals and customary closing conditions," Steve Demetriou, chairman and chief executive officer, stated. "We believe the acquisition of Wabash Alloys will be an excellent strategic fit with Aleris's existing specification alloy operations." "The transaction provides outstanding opportunities to broaden our customer base, optimize processing capabilities and enhance our ability to meet the needs of our customers." Mr. Demetriou added. About Wabash Alloys Founded in 1958, Wabash Alloys-- http://www.wabashalloys.com/-- produces aluminum casting alloys and molten metal at its eight plants located in Canada, Mexico and the United States. About Aleris International Inc. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 50 production facilities worldwide, including China. * * * Standard & Poor's assigned Aleris International Inc. a B+ senior secured first-lien term loan rating and gave the company a '2' recovery rating after the report that the company increased the term loan by US$125 million. With the add-on, the total amount of the facility is now US$1.23 billion. ASAHI GLASS: Liquidators Quit Posts ----------------------------------- On June 26, 2007, Rainier Hok Chung Lam and John James Toohey quit as the liquidators of Asahi Glass Hong Kong Limited. The former Liquidators can be reached at: Rainier Hok Chung Lam and John James Toohey Prince's Building, 22nd Floor Central, Hong Kong BENQ CORP: To Sell Office Buildings to Shin Kong for NT$5.04BB -------------------------------------------------------------- BenQ Corp. has agreed to sell two of its office buildings in Taipei to Shin Kong Life Insurance Co. Ltd. for NT$5.04 billion (US$153.6 million), Reuters reports. The company, according to the report, expects to gain NT$1.2 billion on the sale of the buildings and the transaction would be completed in 40 to 60 days. After the completion of the agreement, BenQ would then lease back the buildings from Shin Kong Life Insurance, a unit under the larger Shin Kong Financial Holding Co. Ltd, the news agency relates. "This is part of the ongoing plan to improve the overall financial strength of the company," BenQ spokesman Eric Yu was quoted by Reuters as saying. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. CHINA CONSTRUCTION: To Start Stock Incentive Plans to Employees --------------------------------------------------------------- China Construction Bank Corp disclosed in a filing with the Hong Kong Stock Exchange that it will start a stock incentive plan for its employees, covering about 270,000 staff and involving CNY800 million of the bank's shares. According to the bank's statement, the incentive plan will cover all contract employees that have been working at the bank for more than three years. Sources of funds for the incentive plan will include voluntary payments by participating employees, a special performance fund and an incentive fund provided by the bank, the statement said. The plan will be administered by an independent trustee. An employee's voluntary payment will be 5% to 10% of his annual payment. The plan aims to "increase employees' sense of belonging to the company and to attract and retain employees to serve the bank over the long term", according to the statement. 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 rating. On May 4, 2007, Moody's Rating Agencies rates Construction Bank Corporation's Bank Financial Strength Rating at D-. The outlook for BFSR is stable. CHINA TRADE: Liquidator to Give Wind-Up Report on Aug. 10 --------------------------------------------------------- China Trade International (HK) Limited will hold the final meeting for its members on August 10, 2007, at 10:30 a.m., on Room 509 of Bank of America Tower at 12 Harcourt Road in Central, Hong Kong. Chan Bing Chung, the company's liquidator, will give at the meeting a report about the company's wind-up proceedings and property disposal. CITIC RESOURCES: United Star Sells US110 Million in Shares ---------------------------------------------------------- United Star International, a top shareholder in CITIC Resources Holdings Ltd., has sold 150 million shares it held in the company for US$110 million (HK$857 million), a person familiar with the matter told Reuters. United Star, according to Reuters' data, owned 522 million shares in Citic Resources prior to the sale. The shares were priced at HK$5.71 each. Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. Standard & Poor's Ratings Services on May 9, 2007, assigned its BB long-term corporate credit rating to CITIC Resources Holdings Ltd. The outlook is developing. At the same time, it issued its BB issue rating to a proposed intermediate-term U.S. dollar benchmark issue of senior unsecured notes by Citic Resources Finance (2007) Ltd. CITIC RESOURCES: Temasek to Buy United Star's Shares in Company --------------------------------------------------------------- Temasek Holdings, the investment arm of the Singapore government, plans to increase its stake in CITIC Resources Holdings Ltd., as it aims to strengthen its position in the company, Reuters relates, citing a report from the South China Morning Post. According to the report, Temasek will buy a quarter of the 200 million shares offered by CITIC Resources' third-largest shareholder, United Star International. The shares were being sold at HK$5.64 and HK$5.88 each. UBS is the sole bookrunner of the offering, Reuters notes. Temasek owns an 11.28% stake in CITIC Resources, short of the 52.4% held by China state-owned CITIC Group. Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. Standard & Poor's Ratings Services on May 9, 2007, assigned its BB long-term corporate credit rating to CITIC Resources Holdings Ltd. The outlook is developing. At the same time, it issued its BB issue rating to a proposed intermediate-term U.S. dollar benchmark issue of senior unsecured notes by Citic Resources Finance (2007) Ltd. DANA CORPORATION: Reaches Agreement with USW and UAW ---------------------------------------------------- Dana Corporation on Friday disclosed a series of interrelated agreements that will substantially reduce the company's operating costs and provide important momentum toward its emergence from bankruptcy as a competitive, sustainable business. The agreements consist of: -- A settlement agreement with each of the United Steel Workers and the United Auto Workers, which will lower Dana's labor costs and replace the company's health care and long-term disability obligations for retirees and employees represented by these unions with Voluntary Employees' Beneficiary Association trusts to which Dana will contribute in aggregate approximately US$700 million in cash, less certain benefit payments made prior to the effective date of the company's plan of reorganization, and approximately US$80 million in common stock of the reorganized Dana; -- An agreement with Centerbridge Capital Partners, L.P., and its affiliates on the terms under which the firm will invest up to US$500 million in cash for convertible preferred stock in the reorganized Dana and facilitate an additional investment by other investors of up to US$250 million in convertible preferred stock; and -- A plan support agreement with the USW, the UAW, and Centerbridge, under which these parties will support a plan of reorganization filed by Dana that includes both the labor settlements and the Centerbridge investment agreement. These agreements are subject to approval by the Bankruptcy Court for the Southern District of New York, where the company's Chapter 11 bankruptcy proceeding is pending. The union settlement agreements are also subject to ratification by Dana's USW and UAW employees, which the unions will seek in the near term. "Through our negotiations with the USW and the UAW, and negotiations with Centerbridge for the investment that will contribute to our ability to fund the VEBAs, we have reached what we believe are fair and constructive agreements," said Mike Burns, Dana's chairman and chief executive officer. "I am particularly pleased that these agreements were reached as a result of a shared commitment - from all of the involved parties -- to the long-term success and viability of Dana Corporation." "We welcome the investment by Centerbridge, a private equity investor with considerable expertise in the automotive industry and complex restructurings. Centerbridge brings a long-term perspective and a strong commitment to assisting us in building a solid future for Dana," Mr. Burns added. "While there is a good deal of work yet to be done, we are on track to file a reorganization plan by the beginning of September and to emerge from bankruptcy by year end." Settlements with USW and UAW Encompassed in the settlements with the USW and UAW are four- year extensions of Dana's collective bargaining agreements with all of its USW- and UAW-organized facilities in the United States and new agreements with several recently organized facilities. Among other items, the extended and new bargaining agreements will provide for the establishment of a two-tier wage structure at certain affected U.S. operations, changes in disability benefits, and a freeze on credited service and benefit accruals under the pension plans for active employees represented by the USW and UAW. "These agreements will resolve significant ongoing cost issues when implemented and they provide important momentum toward our completion of a reorganization plan that will position us to operate as a competitive, sustainable business after emergence," Mr. Burns said. Each of the union settlement agreements also calls for the establishment of a VEBA to replace the company's current retiree health care plans and long- term disability obligations for employees covered by USW and UAW collective bargaining agreements. A VEBA is a special, tax-deductible trust that can be used to provide certain benefits, such as medical reimbursement, to participants and their beneficiaries. The settlement agreements provide that upon Dana's emergence from bankruptcy, the company will contribute, in aggregate, approximately US$700 million in cash (less certain benefit payments made prior to the effective date of the company's plan of reorganization) and approximately US$80 million in common stock of reorganized Dana to the VEBAs in exchange for the termination of Dana's obligation to provide non-pension retiree welfare benefits for USW- and UAW-represented retirees and long- term disability benefits to USW- and UAW-represented employees. The company will continue to provide benefits for these retirees and employees under its existing plans until emergence. Dana currently has an aggregate of approximately US$1.1 billion in unfunded non- pension benefit and long-term disability obligations under its U.S. post-retirement health care plans for USW- and UAW-represented retirees and employees. Dana estimates that the modifications to the USW and UAW collective bargaining agreements and other provisions of the union settlement agreements will collectively result in annual savings of more than US$100 million. Agreement for Issuance of New Equity Under terms of the investment agreement, Centerbridge will purchase up to US$500 million of convertible preferred stock of the reorganized Dana and facilitate an additional investment of up to US$250 million in convertible preferred stock. The conversion price will be based on trading prices of common stock of the reorganized Dana during a short period after emergence. Using preliminary forecasts and a preliminary valuation as an estimate of future market trading prices for the reorganized Dana's common stock, the company estimates that the US$500 million of convertible preferred shares would represent less than 25% of the fully diluted common stock of the reorganized Dana on an as- converted basis. Proceeds from the investment will be deployed in part to fund the VEBA trusts that will be established under the settlement agreements with the USW and UAW. The closing of the Centerbridge investment will be subject to Dana's filing of a plan of reorganization and a disclosure statement by September 3, 2007, as well as other customary conditions, but will not be subject to further due diligence. Dana will be able to terminate its arrangements with Centerbridge to accept an alternative transaction or plan under certain circumstances, with the reasonable consent of the USW and UAW. Initiatives "Last November, to address the harsh reality that Dana had generated more than US$2 billion in losses over the past five years, we announced a series of interdependent restructuring initiatives," Mr. Burns added. "These initiatives, affecting all of the company's constituencies - our customers, suppliers, both union and non-union employees and retirees - were designed to result in an aggregate pre-tax annual income improvement of US$405 million to US$540 million." The Dana initiatives call for savings in five interrelated areas: 1. Achieving substantial price recovery from customers; 2. Optimizing Dana's U.S. manufacturing footprint, including the moving of certain operations to lower-cost sites; 3. Reducing labor costs by creating a more industry- competitive cost structure; 4. Eliminating retiree health and welfare costs; and 5. Reducing administrative costs. "Without the settlements with the USW and UAW, essential savings in other areas could be jeopardized," Mr. Burns said. "With these settlements, we will be solidly within the range of savings we need to move forward with our plan of reorganization and emerge as a competitive, sustainable business." About Centerbridge Capital Partners L.P. Centerbridge is a US$3.2 billion multi-strategy private investment firm. The firm is dedicated to partnering with world- class management teams in a range of industry verticals. Centerbridge's investment style provides the flexibility to employ various strategies to help companies achieve their operating and financial objectives. The limited partners of Centerbridge include many of the world's most prominent financial institutions, university endowments, pension funds, and charitable trusts. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC Bulletin Board: DCNAQ) designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. DANA CORP: Mauritius Unit Closes 4% Capital Buy of Dongfeng Dana ---------------------------------------------------------------- Dana Corporation's wholly owned subsidiary, Dana Mauritius Limited, closed the purchase of 4% of the registered capital of Dongfeng Dana Axle Co, Ltd. from Dongfeng Motor Co, Ltd. and certain of its affiliates under the amended sale and purchase agreement among the parties that have been reported previously. Dana Mauritius paid about US$5 million for this equity interest. Under the amended sale and purchase agreement, Dana Mauritius has agreed, subject to certain conditions, to purchase an additional 46% equity interest in Dongfeng Dana Axle Co, Ltd. within the next three years for about US$55 million. Dongfeng Dana is a Chinese commercial vehicle axle manufacturer formerly known as Dongfeng Axle Co, Ltd. About Dana Corp Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC Bulletin Board: DCNAQ) designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. DIGITAL CREATION: Members to Hold General Meeting on Aug. 10 ------------------------------------------------------------ Digital Creation Company Limited will hold the final general meeting for its members on Aug. 10, 2007, at 3:00 p.m. The members will receive at the meeting a report about the company's wind-up proceedings and property disposal at the meeting. The company's liquidators are: Hau Wun Fai Li Siu Fung Unit 1302, 13th Floor Tower 1, Admiralty Centre 18 Harcourt Road, Admiralty Hong Kong EUROPEAN TRANSPORT: Creditors to Meet on July 30 ------------------------------------------------ The creditors of European Transport System Limited will meet on July 30, 2007, at 4:00 p.m., for the purpose provided for in Sections 241, 242, 243, 244 and 251 of the Companies Ordinance. The meeting will be held in John Lees & Associates Limited 1904, Hong Kong Club Building at 3A Chater Road in Central Hong Kong. FIBAN LIMITED: Receiving Proofs of Debt Until August 6 ------------------------------------------------------ The sole member of Fiban Limited passed a resolution to liquidate the company's business on June 22, 2007. Creditors who can file their proofs of debt by August 6, 2007, will be included from sharing in the company's dividend distribution. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower, The Landmark 15 Queen's Road, Central Hong Kong GOLDEN NET: Members to Hold Final Meeting on Aug. 8 --------------------------------------------------- Golden Net Limited will hold the final meeting for its members on August 8, 2007, at 11:00 a.m., on Unit 1-3, 5th Floor of Far East Consortium Building at 121 Des Voeux Road in Central, Hong Kong. The members will receive at the meeting a report about the company's wind-up proceedings and property disposal. LIANG HUAT: Liquidator Quits Post --------------------------------- John Robert Lees of John Lees & Associates Limited ceased to act as liquidator of Liang Huat (Hong Kong) Limited on June 25, 2007. The former Liquidator can be reached at: John Robert Lees John Lees & Associates Limited 1904, Hong Kong Club Building 3A Chater Road, Central Hong Kong NEO-CHINA: Deutsche Bank, BOC to Handle Dollar Bond Issue --------------------------------------------------------- Deutsche Bank and BOC International are handling Neo-China Group (Holdings) Ltd's maiden debt issue, which will be accompanied by 5-year warrants with a 15% to 20% premium guidance for the strike price, Reuters reports. According to the news agency, Neo-China will sell 7-year dollar bonds at a yield of around 9.5%. The issue size for the transaction has yet to be decided. Neo China Group (Holdings) Limited (Neo China) is a Chinese property developer engaged in residential and mixed-use developments. It has 11 major projects under development in 8 cities in China and a land bank of over 9.8 million sqm (in saleable area), including around 6.9 million sqm under title. It also has two primary land development projects in Tianjin and Chengdu with a total area of 8.4 million sqm. On July 6, 2007, Moody's Investors Service assigned a (P) B1 corporate family rating to Neo China Group (Holdings) Ltd. At the same time, Moody's has assigned a (P) B1 foreign currency senior unsecured rating to Neo China's proposed 7 years bond issue. The outlook for both ratings is stable. PACIFIC RIM: Creditors' Meeting Set for July 27 ----------------------------------------------- The creditors of Pacific Rim Asia Limited will have their final meeting on July 27, 2007, at 11:00 a.m., for the purpose provided for in Sections 241, 242, 243, 244 and 251 of the Companies Ordinance. The meeting will be held on Room 503, 5th Floor of Hart Avenue Plaza, on 5-9 Hart Avenue, Tsimshatsui in Kowloon, Hong Kong. PEPSON INVESTMENT: Members to Receive Wind-Up Report on Aug. 8 -------------------------------------------------------------- A final meeting will be held for the members of Pepson Investment Limited on August 8, 2007, at 10:30 a.m., on Unit 1- 3, 5th Floor of Far East Consortium Building at 121 Des Voeux Road in Central, Hong Kong Wong Sun Keung, the company's liquidator, will give at the meeting, a report about the company's wind-up proceedings and property disposal. TRELOCK HONG KONG: Members to Hold Final Meeting on Aug. 10 ----------------------------------------------------------- The final meeting for the members of Trelock Hong Kong Limited will be held on Aug. 10, 2007, at 10:00 a.m., on Room 509 of Bank of America Tower at 12 Harcourt Road in Central, Hong Kong. The members will receive at the meeting a report about the company's wind-up proceedings and property disposal. WIDE STRONG: Members' Final Meeting Set for August 8 ---------------------------------------------------- The members of Wide Strong Limited will have their final meeting on August 8, 2007, at 10:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held on Unit 1-3, 5th Floor of Far East Consortium Building at 121 Des Voeux Road in Central, Hong Kong. ========= I N D I A ========= AES CORP: Says Commission Improperly Gets Proof for Zoning Law -------------------------------------------------------------- The AES Corporation told the Daily Record that the Maryland Critical Area Commission, which oversees local regulations for protecting coastlines, improperly gathered evidence when it approved the zoning law in June 2007. The Daily Record relates that AES filed a complaint in Anne Arundel County Circuit Court last week, saying that the commission illegally ratified a Baltimore County law barring a proposed liquefied natural gas terminal at Sparrows Point. AES had planned to build the project. AES claimed that the commission didn't give correct consideration to several details about the project's environmental impact, the report says. AES has asked the court to order the commission to reconsider its decision. According to the Daily Record, counties can make rules for development around the coast. The laws need the commission's authorization. The Daily Record notes that the newly approved law adds liquefied natural gas terminals to a list of banned projects within 1,000 feet of the Chesapeake Bay. The law has been supported by a federal judge after a challenge by AES and is being appealed further. A change in the commission's position on the law could affect the county's ability to implement it. AES has asked for a judgment that the commission's approval of the law was "arbitrary, capricious, unreasonable, not supported by substantial evidence and an abuse of discretion," the Daily Record relates. The company also has asked the court to declare that the commission's decision breached due process, as the "commission accepted evidence from Baltimore County before it voted but after the record in the case was closed." The Daily Record reports that AES claimed that the "commission ignored a potential conflict of interest" when it failed to disallow its Baltimore County representative, who had testified in favor of the law, from voting on the regulation. Sparrows Point Project Director Kent Morton said in a statement that the planned project would improve the environment around the area. According to him, the project would be in a previously developed area, and planners have encouraged development in coastal areas to be concentrated in those locations. He said, "As an 'intensely developed area' it is an excellent candidate site for sensitive growth via re-development with a clean industry such as we have planned." Before the law was approved by the commission, a panel considering the change urged members to deny the county's request to add liquefied natural gas facilities to its critical area protection plan, which then prompted Baltimore County officials to ask that the commission temporarily postpone its review of the change, the Daily Record states. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has operations in India. In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. BANK OF BARODA: Shareholders Approve 30% Final Dividend ------------------------------------------------------- Bank of Baroda's shareholders have unanimously passed a resolution for the bank's declaration of a final dividend of 30% on the paid-up equity capital of the bank (i.e. at INR3 per equity share of INR10 each fully paid up) in addition to the interim dividend of 30% already paid by the bank on March 30, 2007. As previously reported by the Troubled Company Reporter - Asia Pacific, the bank, for the year ended March 31, 2007, reported a net profit of INR10.26 billion on revenues of INR103.86 billion. The shareholders also approved a resolution adopting the: -- audited balance sheet of the bank as at March 31, 2007; -- audited profit and loss account for the year ended March 31, 2007; -- the report of the board of directors on the working and activities of the bank for the period covered by the accounts and auditors report on the financial statements. Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * As reported by the Troubled Company Reporter - Asia Pacific on July 11, 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due in 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: USD250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. The agency also affirmed the bank's Individual Rating of 'C/D'. The outlook on all ratings is stable. BHARTI AIRTEL: Ranked 3rd by BusinessWeek for Best Returns ---------------------------------------------------------- Bharti Airtel, India's leading telecom service provider, has been ranked 3rd globally for best returns to the shareholders by the BusinessWeek Magazine in 'The Infotech 100' list. The BusinessWeek IT 100 list is an annual ranking of best performing technology companies across the globe. The companies featured in the BusinessWeek IT 100 ranking were selected from 28000 listed companies worldwide. Bharti Airtel is the only Indian company to be featured among the top ten companies worldwide that have offered the best returns. Other companies featured in the 'Best returns' list include Apple at 7th and Amazon at 8th position. Manoj Kohli, President & CEO, Bharti Airtel Limited said, "It's a proud moment for all of us at Bharti to be featured among the best companies in the world. This recognition is a testimony to the shareholders' value created by the company. It also reinforces our relentless pursuit to create a world-class organisation by providing the best in class products and services. This has been made possible by the committed efforts of the entire team at Bharti Airtel." With an overall ranking of 14, Bharti Airtel is also the only Indian company to be featured in the overall top 20 companies list ahead of Accenture (16) Nokia (17), Google (19) and Cisco (20). About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS), and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long-distance services) and Corporates. Through Enterprise Services-Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services- Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Services put the company's long-term local and foreign issuer credit ratings on BB+ on Sept. 21, 2005. As of May 16, 2007, the company still carries the rating. BRITISH AIRWAY: Panmure Gordon Puts Hold Rating on Firm's Shares ---------------------------------------------------------------- Panmure Gordon & Co. analysts have upgraded their rating on British Airways Plc's shares to "buy" from "hold," Newratings.com reports. According to Newratings.com, the target price for British Airways' shares was set at 540 pounds. The analysts said in a research note that British Airways' share price dropped by 25% since February 2007. The analysts told Newratings.com that the recent "Open Skies agreement" between the European Union and the US is unlikely to have a "significant adverse impact on British Airways." The fuel prices have increased in the recent past. The revenue environment, especially in the economy cabin, has become more challenging, Newratings.com states, citing Panmure Gordon. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, Moody's Investors Service's confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% CANARA BANK: Considering Slashing Interest Rates on Deposits ------------------------------------------------------------ Canara Bank is examining lowering its deposit rates, press reports say, citng Canara CMD MBN Rao. Mr. Rao reportedly sees a 50 basis points reduction in deposit rates up to one-year and corporate rates lowering substantially. According to Moneycontrol.com, Mr. Rao expects interest rates to be stable-to-soft in the near-term. Mr. Rao didn't specify when Canara will make a decision on the rates but told Moneycontrol that the bank's Asset-Liability Management Committee will meet "sometime during the course of the week" to take a look at its deposit rates. The bank will also look at the lending rates once the liability rates stabilize, Mr. Rao added. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com -- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. EMCO LTD: Schedules Annual General Meeting on August 18 ------------------------------------------------------- Emco Ltd will hold its 42nd annual general meeting on Aug. 18, 2007, according to a regulatory filing lodged with the Bombay Stock Exchange. In that regard, the company's Register of Members & Share Transfer Books will remain closed from Aug. 10, 2007, to Aug. 18, 2007. The company also plans to pay dividends. As previously reported in the Troubled Company Reporter - Asia Pacific, the company posted a net profit of INR405.97 million on income totaling INR6.56 billion for the year ended March 31, 2007. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters; automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions; and high-end metering solutions like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters conforming to international specifications. As of May 23, 2007, Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating. The rating agency downgraded the rating from A to BB on April 1, 2004, citing the high level of debtors and increased collection period, which resulted in cash flow problems and delays in payment of interest on negotiable certificate of deposits, and increase in overall gearing of the company. PRIDE INT'L: Inks US$612 Mil. Purchase Pact with Samsung Heavy -------------------------------------------------------------- Pride International Inc. entered into an agreement pursuant to which Samsung Heavy Industries Co, Ltd. agreed to construct for Pride an advanced-capability drillship for ultra-deepwater drilling use. The agreement provides that, following shipyard construction, commissioning and associated testing, the rig is to be delivered to Pride on or before June 30, 2010. The agreement provides for an aggregate purchase price of US$612 million, subject to adjustment for delayed delivery, payable in installments during the construction process. In connection with the construction contract, Pride entered into a license agreement with Transocean Offshore Deepwater Drilling Inc. with respect to certain patents related to the drillship's dual-activity capabilities. Under the license agreement, Pride will pay Transocean a fee of US$10 million for the initial drillship and an additional US$15 million for any additional drilling units that use the patented technology, plus 5% of the revenue earned by the drillship and any additional units, reduced by a US$5 million credit per unit for any of the additional units, in jurisdictions where the license is applicable. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, including India, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214land rigs. * * * As of July 10, 2007, the company carries Moody's Ba1 long-term corporate family rating and probability of default rating. Moody's also rates the company's senior unsecured debt at Ba2. The outlook is stable. Standard & Poor's rates the company's long-term foreign and local issuer credits at BB. The outlook is stable. Fitch rates the company's long-term issuer default rating and senior unsecured debt at BB. The outlook is stable. PRIDE INT'L: Increases Salaries & Bonuses of Executive Officers --------------------------------------------------------------- Pride International Inc. increased the base salaries and 2007 target bonus percentages under its annual incentive compensation plan for certain of its executive officers. The base salaries and target bonus percentages as of July 1, 2007, for Pride's named executive officers who are currently executive officers of the company are: Name Salary Target Bonus ---- ------ ------------ Louis A. Raspino $900,000 90% Rodney W. Eads $535,000 75% Brian C. Voegele $405,000 60% W. Gregory Looser $382,000 55% Lonnie D. Bane $335,000 55% Under Pride's annual incentive compensation plan for 2007, bonuses for executive officers will be paid based on the achievement of metrics established by Pride's compensation committee. The metrics under the plan for 2007 consist of earnings per share (30%), operating and general and administrative expense control (15%), operating efficiency (10%), working capital (10%), safety performance on a company- wide basis (10%) and personal performance goals (25%). The maximum bonus equals two times the target bonus. Pride International Inc. provides onshore and offshore contract drilling and related services in more than 25 countries including India. * * * As of July 10, 2007, the company carries Moody's Ba1 long-term corporate family rating and probability of default rating. Moody's also rates the company's senior unsecured debt at Ba2. The outlook is stable. Standard & Poor's rates the company's long-term foreign and local issuer credits at BB. The outlook is stable. Fitch rates the company's long-term issuer default rating and senior unsecured debt at BB. The outlook is stable. TATA STEEL: S&P Cuts Corporate Credit Rating From 'BBB' to 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on India's Tata Steel Ltd. to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). At the same time, the ratings on Tata Steel's senior unsecured bank loans of US$750 million and US$500 million have been lowered to 'BB' from 'BBB.' The rating downgrade reflects the impact of the leveraged acquisition financing on the risk profile of the consolidated entity. "The rating on Tata Steel reflects the consolidated credit profile of the company and its subsidiaries, including Corus," said Standard & Poor's credit analyst Anshukant Taneja. Tata Steel intends to fund its US$12.9 billion acquisition of Corus primarily through debt, which is legally structured as non- recourse to the parent company. Notwithstanding this arrangement, Standard & Poor's considers that the size and strategic significance of Corus and its prominence in the future plans of Tata Steel create substantial economic incentive for Tata Steel to support Corus. The US$3.2 billion of equity investment proposed to be made by Tata Steel, including the infusion from its parent company Tata Sons Ltd., supports this view and emphasizes the need to look at both companies as a single economic entity. The 'BB' rating on Tata Steel primarily reflects its significantly weakened financial profile, as a result of the substantial debt included in the proposed financing structure for the acquisition of Corus. "In addition, the rating remains constrained by the weak business profile of Corus, which is characterized by lack of integration or upstream linkages and relatively high cost of operations in the United Kingdom, resulting in lower-than- average operating profitability," Mr. Taneja noted. The rating on Tata Steel is supported by the enhanced scale of the combined entity in the rapidly consolidating steel industry, the broader market coverage and client base, and the higher contribution of value-added products in the business portfolio of the combined entity. "The positive outlook reflects the likelihood of a one-notch upgrade in the rating on Tata Steel to 'BB+' upon its issuance of the proposed hybrid securities (US$2.56 billion) and new equity (US$545 million), accompanied by a reduction in total debt by this amount, all other elements of the transaction remaining intact," said Mr. Taneja. The outlook also factors in the infusion of US$1.9 billion from Tata Sons in the near term. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. TATA STEEL: S&P Gives 'B' Short-Term Debt Rating to U.K. Unit ------------------------------------------------------------- Standard & Poor's Ratings Services, on July 10, 2007, assigned its 'BB-' long-term and 'B' short-term corporate credit ratings to U.K.-based steel producer Tata Steel U.K. Ltd. (TSUK), the new intermediate parent holding company of U.K.-based steel manufacturer Corus Group PLC and wholly owned subsidiary of Tata Steel Ltd. (BB/Positive/--), India's second-largest integrated steel producer. The outlook is positive. Standard & Poor's also assigned its 'BB' senior secured debt rating and a recovery rating of '2' to the GBP3.67 billion senior secured debt issued by TSUK and subsidiaries, indicating our expectation of substantial (70%-90%) recovery in the event of a payment default. The issue rating is one notch above the corporate credit rating. At the same time, the long-term corporate credit rating on Corus Group was lowered to 'BB-' from 'BB' and removed from CreditWatch with developing implications. The outlook is stable. The short-term corporate credit rating on Corus Group was affirmed at 'B' and removed from CreditWatch with positive implications. Both ratings were initially placed on CreditWatch on Oct. 18, 2006. The lowering of the long-term rating reflects Corus Group's much higher leverage following the completion of its takeover by Tata Steel. The senior unsecured debt ratings on Corus Group's EUR800 million 7.5% bonds due 2011 and Corus Finance PLC's GBP200 million 6.75% guaranteed bonds due 2008 have been lowered to 'B+' from 'BB-' and removed from CreditWatch with developing implications. The one-notch downgrade maintains the existing one-notch differential with the corporate credit rating, reflecting structural subordination. "The positive outlook on TSUK reflects the likelihood of a one- notch upgrade should Tata Steel complete its planned longer term financing including proposed hybrid securities and new equity," said Standard & Poor's credit analyst Alex Herbert. This would signal stronger evidence of Tata Steel's ability to provide financial support to TSUK in a potential distress situation. Separately, we expect TSUK to continue to benefit from favorable steel prices and to improve its business profile. "We do not, however, expect material enhancements to its operations, despite new ownership by Tata Steel, which will limit further upside potential," Mr. Herbert added. "In addition, much higher leverage will act as a constraining factor in coming years." A ratio of FFO to adjusted debt of 20%-25% over the cycle is in line with the rating. Downside risk could develop if the steel market should markedly weaken. The stable outlook on Corus Group reflects our expectation that the outstanding bonds will be repaid from drawings under TSUK's new senior secured bank facilities, which is likely in the coming months. We then expect to withdraw all ratings on Corus Group. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. TATA STEEL: To Hold Members' Annual General Meeting on July 18 -------------------------------------------------------------- The 100th annual general meeting of the members of Tata Steel Ltd will be held on July 18, 2007, according to a filing with the Bombay Stock Exchange. Tata Steel has recently signed a Memorandum of Cooperation with Vietnam Steel Corporation, Vietnam's largest steel company. The MoC. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. ================= I N D O N E S I A ================= ANEKA TAMBANG: Seeks Partner for Alumna Smelter Plan in Bintan -------------------------------------------------------------- PT Aneka Tambang Tbk plans to seek a new partner to build an alumina smelter on the Bintan island in Riau Island, Antara News reports. According to the report, Antam Director Syahriri Ika said that the company did not accept the offer of China's Xinfa Alumina to build the US$250-million project. However, Mr. Syahrir did not rule out other Chinese investors as a replacement, the report points out. The report adds that the smelter is scheduled to be operational in 2010, with an annual capacity of 400,000 tons of alumina. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned mining company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. Moody's Investors Service gave Aneka Tambang a local currency B1 corporate family rating, and a B2 foreign currency bond rating. AVNET INC: Unit Signs Distribution Agreement With Diodes Inc. ------------------------------------------------------------- Avnet, Inc.'s unit SILICA signed a distribution agreement with Diodes Incorporated, a leading manufacturer and supplier of high-quality application specific standard products within the broad discrete and analog semiconductor markets. SILICA is a highly specialized semiconductor distributor with 36 branch offices throughout Europe providing customers with a broad portfolio of semiconductor products along with in-depth technical and logistic support as well as other value-added services. With local teams of application engineers and technology specialists, SILICA is dedicated to supporting its OEM customers technically and to providing the design-in expertise needed for customers to compete successfully. As a division of Avnet Electronics Marketing in Europe, Silica is supported by Avnet Logistics for warehousing, programming and other value-added services. "We are very excited to add SILICA to our European distribution network," commented Mark A. King, Senior Vice President, Sales & Marketing of Diodes Incorporated. "Their specialized focus on semiconductor products and extensive local presence in Europe will improve our ability to service our customer's logistic requirements, enhance our competitiveness and strengthen our brand recognition." "Since entering the European market in 2001, we have consistently grown our sales and expanded our market share, successfully building our European customer base in the automotive, communications and industrial end-markets," said Dr. Keh-Shew Lu, President & Chief Executive Officer of Diodes, Inc. "Diodes' innovative products have been well received and we believe that Europe will make an important contribution to Diodes' long term profitable growth." "SILICA is very pleased to be associated with Diodes, Inc., a company that enjoys an excellent reputation for innovation and quality, and has consistently focused on and introduced leading edge innovative products. Their core strengths, combined with our existing extensive regional distribution network, provide a strong foundation to meet the needs of existing customers, and to win new business," said Miguel Fernandez, President of Silica. About Silica Silica is a specialized distributor offering a comprehensive range of semiconductor products and serving all European countries. Silica is a division of Phoenix-based Avnet, Inc., one of the largest distributors of electronic components, computer products and technology services and solutions with more than 250 locations serving 70 countries worldwide. Avnet brings a breadth and depth of capabilities, such as maximizing inventory efficiency, managing logistics, assembling products and providing engineering design assistance for its 100,000 customers, accelerating their growth through cost-effective, value-added services and solutions. For the fiscal year ended July 1, 2006, Avnet generated revenue of US$14.25 billion. For more information, visit http://www.avnet.com. About Diodes Incorporated Diodes Incorporated an S&P SmallCap 600 Index company, is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete and analog semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets. Diodes products include diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, power management devices including DC-DC switching and linear voltage regulators, amplifiers and comparators, and Hall- effect sensors. The Company has its corporate offices in Dallas, Texas, with a sales, marketing, engineering and logistics office in Southern California; design centers in Dallas, San Jose and Taipei; a wafer fabrication facility in Missouri; two manufacturing facilities in Shanghai; a fabless IC plant in Hsinchu Science Park, Taiwan; engineering, sales, warehouse and logistics offices in Taipei and Hong Kong, and sales and support offices throughout the world. With its recent asset acquisition of APD Semiconductor, a privately held U.S.- based fabless semiconductor company, Diodes acquired proprietary SBR(R) technology. Diodes, Inc.'s product focus is on high- growth end-user equipment markets such as TV/Satellite set-top boxes, portable DVD players, datacom devices, ADSL modems, power supplies, medical devices, wireless notebooks, flat panel displays, digital cameras, mobile handsets, DC to DC conversion, Wireless 802.11 LAN access points, brushless DC motor fans, and automotive applications. For further information, including SEC filings, visit the Company's website at http://www.diodes.com. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT) -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden. * * * The Troubled Company Reporter on March 6, 2007, reported that 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. BANK NEGARA: Books IDR8.7 Trillion in New Loans for 1st Half ------------------------------------------------------------ PT Bank Negara Indonesia (Persero) Tbk has met its first- semester lending target by booking IDR8.7 trillion in new loans by the end of the January-June period, which is 58% of its full- year target, The Jakarta Post reports. The report relates that Sigit Pramono, president director of BNI, said that IDR5.3 trillion of the loans was disbursed to the corporate sector and the remaining IDR3.4 trillion to non- corporate sectors. As of the end of June 2007, Bank Negara's outstanding loans for small enterprises rose up 12.5% to IDR15.48 trillion from the IDR13.75 trillion at the end of December last year, the report notes. The Post says that Bank Negara managed to drive down its non- performing loan rate to 9.5% as of March, from 15.9 % in the same period of 2006. 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, 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 April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. BANK NEGARA: To Advertise Planned Secondary Public Offering ----------------------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk will bring road shows to a number of countries next week to drum up investor interest in its planned secondary public offering with president director Sigit Pramono leading the Singapore team, The Jakarta Post reports. According to the report, the overseas road shows will last until July 26, taking major financial centers, including Singapore, Hong Kong, London, Edinburgh, Frankfurt, San Francisco, New York and Boston. A presentation for domestic investors will be on July 17. Bank Negara will sell 1.99 billion new shares, which is 15% of its total stock at the moment through a rights issue, with each share being priced at IDR2,025. Analysts predicted that the proceeds could reach IDR10 trillion, the report relates. The Post says that the government, as the majority shareholder, would exercise its first option to buy 1.97 billion of the new rights shares, and would then sell them on to the public in the expectation of a better price. The second offering was for strengthening bank capitalization as to prepare for the introduction of Basel II next year, and to expand its infrastructure. It was also due to the low rating of the bank's public ownership making it prone to speculative trading, which had the potential to result in significant volatility in its share price, the report points out. With Bank Negara's corporate action involving a rights issue and a shareholder action by the government in selling 15% of the bank's shares, BNI will be happy with the fresh capital coming in. The government will also benefit as it will be able to sell its shares on to the public at a higher price, the report explained. 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, 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 April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. FOSTER WHEELER: To Join NASDAQ-100 Index Starting July 12, 2007 --------------------------------------------------------------- Foster Wheeler, Ltd. will become a component of the NASDAQ-100 Index(r), the NASDAQ-100 Equal Weighted Index, and the NASDAQ- 100 Ex Technology Index prior to market open on July 12, 2007. Foster Wheeler, Ltd. will replace Biomet, Inc. With a market capitalization of approximately US$8.3 billion, Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The NASDAQ-100 Index, launched in January 1985, is one of the most widely followed benchmarks in the world. NASDAQ is the largest U.S. equities exchange. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks as well as a leading liquidity pool for trading NYSE-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom/. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services raised its ratings on Foster Wheeler Ltd., including its corporate credit rating to 'BB' from 'B+'. The Clinton, New Jersey-headquartered engineering and construction company had total reported debt of approximately US$203 million at Dec. 29, 2006. The outlook is stable. Asbestos Management Program The company recorded a net gain from its asbestos management program in 2006 of US$100.1 million, reflecting a US$115.6 million gain from four insurance settlements and the successful appeal of a court decision in the company's pending asbestos- related insurance coverage litigation, and a US$15.5 million charge in the fourth quarter of 2006 resulting from the company's year-end update of its 15-year estimate of its asbestos liabilities and related assets. LIPPO BANK: S&P Assigns 'B+' Long-Term Credit Ratings ----------------------------------------------------- Standard & Poor's Ratings Services assigned 'B+' long-term and 'B' short-term counterparty credit ratings to Indonesia-based PT Lippo Bank Tbk. The outlook is stable. Standard & Poor's also assigned its 'D' bank fundamental strength rating to the bank. At the same time, Standard & Poor's assigned its 'B-' issue rating to Lippo Bank's US$200 million subordinated notes due in 2016. The differential between the 'B+' counterparty credit rating on Lippo Bank and the 'B-' rating on its subordinated notes reflects the subordinated feature of the notes. The counterparty credit ratings on Lippo Bank take into account its improving market position in the domestic market, healthy profits, and the focused business strategy of the new management team put in place by Khazanah Nasional Bhd., its 87% owner and the Malaysian government's investment holding company. Although the bank's asset quality is improving, it remains weak and below the industry average. "Lippo Bank has a high of level of repossessed assets, which resulted in overall low loan provisioning coverage and vulnerability to market conditions," said Standard & Poor's credit analyst Ivy Tan. "Substantial ownership by Khazanah improves the bank's flexibility of raising more capital, when needed." A BFSR of 'D' indicates that Lippo Bank, in the absence of extraordinary assistance or interference from its corporate group, regulator or government, is vulnerable to a greater degree than higher-rated financial institutions to adverse circumstances in its operating environment. The stable outlook on the ratings for Lippo Bank reflects our expectations that the bank will maintain its current financial profile and further consolidate its market position in the Indonesian banking industry. A significant improvement in its financial profile, coupled with improved risk management practices, could be positive on the ratings. Conversely, a significant deterioration in its profitability, capitalization or asset quality will put downward pressure on the ratings. About Bank Lippo Headquartered in Jakarta, Indonesia, PT Lippo Bank Tbk -- http://www.lippobank.co.id/-- offers two product segments: Consumer Products, comprised of personal accounts, debit cards, distribution cards, VIP banking, credit cards, loans, bancassurance, payment services, loyalty programs and safe deposit boxes, and Corporate Products, consisting of LippoKredit, LippoTrade, LippoGiro, LippoDeposit, e-LippoLink and MFTS. The bank is supported by 134 branch offices, 21 sub branch offices, 238 cash offices and four-payment service offices nationwide. PARKER DRILLING: Appoints David Mannon as Company President ----------------------------------------------------------- Parker Drilling Company appointed David C. Mannon as its president and chief operating officer. Mr. Mannon joined Parker Drilling in 2004 as senior vice president and chief operating officer. He succeeds Robert L. Parker Jr., who resumes his role as chairman and chief executive officer. Mr. Mannon will continue to report to Parker. "Our organization welcomes the strategic and operational expertise that David brings to this important role," said Parker. "He has been instrumental in creating a strategic plan which is a major contributor toward the impressive growth of our company, and has been the driving force behind our advances in operational efficiency and fleet technology. We look forward to his continued contributions toward the advancement of Parker Drilling as one of the industry's leading drilling services providers." Mr. Mannon has 27 years experience in the drilling industry, holding positions of increasing responsibility. He began his career with SEDCO-FOREX, formerly SEDCO, in 1980 as a drilling engineer and joined Triton Engineering Services Company, a subsidiary of Noble Drilling, in 1988, where he held a number of managerial positions culminating with his appointment as president and chief executive officer in 2003. Mannon earned a Bachelor of Science degree in civil engineering from Southern Methodist University and a master of business administration from the University of Houston. Parker Drilling is a Houston-based global energy company specializing in offshore drilling and workover services in the Gulf of Mexico and international land and offshore markets. Parker also owns Quail Tools, a provider of premium industry rental tools. Parker Drilling employs approximately 3,000 people worldwide and has 46 marketed rigs. About Parker Drilling Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. The Troubled Company Reporter - Asia Pacific reported on July 4, 2007, that Standard & Poor's Ratings Services assigned its 'B-' rating to contract drilling and rental tool provider Parker Drilling Co.'s proposed US$115 million convertible senior notes due 2012. At the same time, S&P affirmed the 'B' corporate credit rating on Parker and the 'B-' rating on its US$150 million senior floating rate notes due 2010 and US$225 million senior notes due 2013. The outlook is positive. On Oct. 12, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Parker Drilling Company, as well as it B2 rating on the company's 9.625% Senior Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured Guaranteed Floating Rate Global Notes Due 2010. Moody's assigned those debentures an LGD4 rating suggesting note holders will experience a 55% loss in the event of default. PERTAMINA: Develops Sudanese Oil Block With China National ---------------------------------------------------------- PT Pertamina (Persero) will develop a Sudanese offshore oil block with China National Petroleum Corp, as a result of its strategic partnership with Sudan, World Tribune reports. World Tribune, citing Newsline, relates that the contract, which included exploration and development, was signed on June 28 in Khartoum, Middle East. The exploration phase would last six years, with a 20-year concession for future oil production for China National, the report says, citing China Petroleum Daily. The report relates that the contract was disclosed amid an international effort to block foreign companies from developing Sudan's oil sector. Western governments have asserted that Sudan was using oil revenues to finance the war in Darfour. About PT Pertamina PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports. In 2003, PT Pertamina finance director Alfred Rohimone disclosed that the Company's financial condition was in critical condition because its expenses had surpassed its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on the international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. ========= J A P A N ========= ALL NIPPON: New Boeing 787 Will Augment Revenue to About JPY6BB --------------------------------------------------------------- All Nippon Airways Co., Limited, said that its order of 50 plane units of the new Boeing Co. 787 will increase revenue by about JPY6 billion and cut costs by JPY4.6 billion, reports Chris Cooper of Bloomberg News. According to the report, ANA predicts that profit will rise to a record this fiscal year, aided by the use of new aircraft and the sale of 13 hotels. The Tokyo-based airlines also predicts net income to rise 96% to JPY64 billion for the current fiscal year, from JPY33 billion in 2006, Mr. Cooper relates. Mr. Cooper, citing the Nikkei Business Daily, says that the introduction of the new aircraft would improve earnings by about JPY10 billion a year. As part of its plans to replace aging aircraft with new ones, including the 787, ANA intends to retire three Boeing 747-400 planes. The 787s has carbon fiber composites features that reduce weight and improve fuel efficiency, Mr. Cooper notes. About All Nippon Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The Troubled Company Reporter-Asia Pacific reported on April 20, 2007, that Moody's Investors Service placed the Ba1 senior unsecured debt ratings of All Nippon Airways Co., Ltd. under review for possible upgrade. The rating action reflects ANA's high and stable profitability despite the ongoing price hikes of aircraft fuel, as well as Moody's view that the company's financial flexibility is likely to be further improved by its recently announced asset disposition related to its hotel business. RESONA HOLDINGS: To Sell Shares to Nippon Life and T&D Holdings --------------------------------------------------------------- Resona Holdings Inc. may sell preferred shares to Nippon Life Insurance Co. and T&D Holdings Inc. insurance group for several billions of yen, in which the money of the sale will be used by the bank to repay taxpayer's money to the government, reports Reuters. In a report by The Asahi Shimbun, sources revealed that Nippon Life was considering investing tens of billion of yen in Resona through the purchase of a big portion of the JPY300-billion worth of preferred shares Resona plans to issue by the end of the year. Resona, for its part, has been looking at business tie-ups that involve capital alliances to hasten its repayment of more than JPY2.3 trillion in public funds, Reuters relates. A June 19, 2007 report by the Troubled Company Reporter-Asia Pacific stated that Resona and Dai-ichi Mutual Life Insurance Co. were close to striking a deal on capital and operational tie-ups. According to the TCR-AP, the deal is for Resona to issue about JPY100 billion worth of preferred shares to Dai-Ichi and hopefully be able to reach an agreement by the end of this month. About Resona Holdings Resona Holdings, Inc., based in Osaka, Japan, -- http://www.resona-gr.co.jp/-- is a holding company. Through its subsidiaries and associated companies, the Company is engaged in general banking, trust operation, credit card and financial services. The Company is comprised of 15 domestic subsidiaries and 21 overseas subsidiaries, as well as two associated companies. It has operations in Japan, the United Kingdom, Indonesia, Thailand and the Cayman Islands. On December 13, 2005, Troubled Company Reporter-Asia Pacific reported that Rating and Investment Information, Inc gave a BBB issuer rating to Resona Holdings reflecting the group's overall creditworthiness and the financial structure of the holding company. ========= K O R E A ========= CORECROSS INC: CNH Wood Systems Acquires 10.38% Stake ----------------------------------------------------- CoreCross, Inc., disclosed that CNH Wood Systems Ltd. has acquired 1,424,000 shares of the company, Reuters Key Developments reports. According to the report, CNH's acquisition represented a 10.38% stake in CoreCross. About CoreCross Inc. Headquarters in Seoul, CoreCross, Inc., formerly Makus Inc. -- http://english.makus.co.kr/-- is engaged in the semiconductor, mobile communication and Internet industries. The company has three main divisions: Application-specific integrated circuit/system-on-chip (ASIC/SoC) business division, which provides ASIC-related products and services used in wired/wireless communications, multimedia, precision apparatus and medical instrument fields; Digital media division, which provides digital multimedia broadcasting products such as conditional access systems (CASs), gap fillers and cable cards, and Device division, which produces field-programmable gate array (FPGA) chips, complex programmable logic devices (CPLDs) and hard disk drives (HDD). Korea Investors Service gave the company's bonds with warrants issue a B- rating on July 31, 2006. CURON INC: Acquires Patent on July 9 ------------------------------------ Curon Inc. has acquired a patent on July 9, 2007, for method of moving picture experts group (MPEG)-7 meta data hiding and detection to retrieve multimedia for multimedia indexing retrieval system, Reuters Key Developments reports. About Curon Inc. Seoul-based Curon Inc. -- http://www.curon.co.kr-- is engaged in the provision of diaphragms, vaporizers and Video On Demand servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs, TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a B- rating with a stable outlook on February 22, 2007. KOREA DEVELOPMENT: Gov't Transfers Investment-Banking Business -------------------------------------------------------------- Korea Development Bank's investment-banking business maybe transferred by the South Korean Government to the bank's affiliate, Daewoo Securities, by the end of 2008, the Wall Street Journal reports. According to the report, a lot of industry experts have suggested the transfer of KDB's track record. KDB is set to first transfer to Daewoo Securities its corporate-bond underwriting, merger-and-acquisition advisory, private-equity fund businesses and international network. KDB will maintain its nonperforming-loan underwriting and corporate-restructuring advisory services, plus its role as a policy bank, WSJ notes. The changes at KDB are part of the Government's move to reorganize the functions of state-run policy banks in a way that reduces competition with commercial banks and financial institutions, but still maintains their role as executors of government policy, the report adds. About Korea Development Korea Development Bank -- http://www.kdb.co.kr/-- is South Korea's long-term funds provider to major industrial projects. The company is wholly owned by the Korean Government. KDB also offers short and long-term loans, investments, guarantees and trusts to international finance. Its major funding sources are Industrial Finance Bonds, client deposits, special-purpose funds and foreign-currency funds. The Troubled Company Reporter - Asia Pacific listed Korea Development Bank's bond with a 8.450% coupon and December 15, 2026 maturity date in its July 10, 2007 report as a distressed bond. Moody's Investors Service gave KDB a 'D-' Bank Financial Strength Rating effective January 24, 2006. =============== M A L A Y S I A =============== FCW HOLDINGS: Extends Completion of Sale and Purchase Agreement --------------------------------------------------------------- FCW Holdings Bhd's wholly owned subsidiaries, Federal Telecommunications Sdn Bhd and FCW Industries Sdn Bhd, along with other parties involved in separate sale and purchase agreements among them, have agreed to extend the deadline for the fulfillment of the conditions of the contracts to October 11, 2007. The two agreements are: a. Sale and Purchase Agreement dated January 12, 2007, between Federal Telecommunications and Goh Ban Huat Berhad for the proposed acquisition by FT from GBH of all the pieces of freehold land held under Geran Mukim 1452 Lot 4722 and Geran Mukim 335 Lot 32661, both in the Mukim of Batu, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan together with 9 independent blocks of warehouses erected thereon bearing postal address Lot 32661, in Jalan Segambut, 51200 Kuala Lumpur, for a total cash consideration of MYR55 million; and b. Sale and Purchase Agreement dated January 12, 2007, between FCW Industries Sdn Bhd and GBH Clay Pipes Sdn Bhd, a wholly owned subsidiary of GBH, for the proposed acquisition by FCWI from GCP of the piece of freehold land held under Geran Mukim 6242 Lot 54833, Mukim of Batu, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan together with a single storey office with 4 adjoining single-storey factories erected thereon bearing postal address 368, Jalan Segambut, 51200 Kuala Lumpur for a total cash consideration of MYR31 million. According to the company's disclosure with the bourse, the date for complying with the conditions set under these two agreements had been moved. Headquartered in Selangor Darul Ehsan, Malaysia, FCW Holdings Berhad is principally involved in investment holding, providing management services and trading of telecommunications equipment. Its other activities include renting of communication access, selling and hiring of telecommunications equipment and electronic goods, providing paging services and turnkey contracting. On May 5, 2006, the Troubled Company Reporter - Asia Pacific reported that FCW Holdings was classified under Bursa Malaysia Securities Berhad's Practice Note 17 category since the company's shareholders' equity has fallen well below the minimum requirement of 25%. As an affected listed issuer, the company was required to submit a plan to regularize its financial condition. The Troubled Company Reporter - Asia Pacific on June 20, 2007, reported that FCW Holdings Bhd obtained the Securities Commission's approval to implement various proposals under its restructuring plan. MOL.COM BERHAD: Securities Commission OKs Kenanga's Appointment --------------------------------------------------------------- Mol.Com Bhd disclosed with the Bursa Malaysia Securities Bhd that it has obtained the approval from the Securities Commission to appoint Kenanga Investment Bank Bhd as an independent adviser with regards to a take over offer presented to the company. On June 25, 2007, the Troubled Company Reporter - Asia Pacific reported that Mol.Com Bhd received from AmInvestment Bank Bhd, in behalf of the "Offeror", a takeover offer for the remaining 25.94% that it does not already owned in the company. The "Offerors" are: -- Tan Sri Dato' Seri Vincent Tan Chee Yioun -- Berjaya VTCY Sdn Bhd -- Ganda Kuat Sdn Bhd and -- Pantai Cemerlang Sdn Bhd According to the TCR-AP, the remaining 58,561,083 ordinary shares of MYR1.00 each, which are not held directly or indirectly by the Offeror and the parties deemed acting in concert with them, will be bought for a cash consideration of MYR0.20 per share. About the Company Based in Malaysia, Mol.Com Bhd provides electrical engineering services, and is engaged in contracting and trading of electrical machinery and apparatus. Other activities include operation and maintenance of web portals, registration and marketing of internet domain names, provision of web and information technology solutions, advertising, promotional activities and investment holding. Operations are carried out in Malaysia, British Virgin Islands and Singapore. Mol.Com is an Affected Listed Issuer pursuant to the Amended Practice Note 17/2005 of the Listing Requirements of Bursa Malaysia and is therefore required to implement a regularization plan to the Securities Commission. Going Concern Doubt After auditing the company's annual financial report ended June 30, 2006, the auditors expressed doubt on the ability of the Group and of the Company to continue as a going concern in view current liabilities exceeding current assets by MYR6.3 million. The ability of the Group and of the Company to continue as a going concern is dependent upon the successful outcome of the proposed disposal of a property and the Group's plan to regularize its financial condition, continuing financial support from a significant shareholder and financial institutions as well as achieving successful future operations. ==================== N E W Z E A L A N D ==================== BRIDGECORP: Receivers Slash 13 Workers, Including 2 Senior Execs ---------------------------------------------------------------- The receivers of Bridgecorp have cut 13 jobs from the company, including that of Managing Director Rod Petricevic and Finance Director Rob Roest. Bridgecorp has been placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. In that regard, John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. The receivers made the decision after reviewing staffing levels at the company. According to Mr. McCloy, although the two senior executives no longer had permanent roles with Bridgecorp, both remained in touch with the receivers. "Although Rod and Rob have left the company they continue to be available to assist us when required," he said. Based in New Zealand, Bridgecorp Ltd is a property development and finance company. The receivers have set up a Web site -- http://www.pwc.com/nz/Bridgecorp-- to provide information for investors on frequently asked questions. LUVIT FOODS: Commences Liquidation Proceedings ---------------------------------------------- Luvit Foods International Ltd. went into liquidation on June 11, 2007, and Michael Peter Stiassny was appointed as liquidator. The Liquidator can be reached at: Michael Peter Stiassny Ferrier Hodgson & Co Level 16, Tower Centre 45 Queen Street PO Box 982, Auckland New Zealand Telephone:(09) 307 7865 Facsimile:(09) 377 7794 MRS WASH: Requires Creditors to File Claims by Aug. 31 ------------------------------------------------------ The creditors of Mrs Wash Laundromat Ltd. are required to file their proofs of debt by August 31, 2007, to be included in the company's dividend distribution. The company started to liquidate its business on May 31, 2007. The company's liquidator is: Vivian Fatupaito PricewaterhouseCoopers Level 8, PricewaterhouseCoopers Tower 188 Quay Street Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 PC RECYCLING: Names Fisk and Sanson as Liquidators -------------------------------------------------- John Howard Ross Fisk and Craig Alexander Sanson were appointed as liquidators of PC Recycling Channel Limited on June 11, 2007. Creditors are required to file their proofs of debt by Aug. 10, 2007, to be included in the company's dividend distribution. The company's liquidator is: John Howard Ross Fisk Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington New Zealand Telephone:(04) 462 7489 Facsimile:(04) 462 7492 PCR CONTRACTING: Enters Wind-Up Proceedings ------------------------------------------- On June 11, 2007, PCR Contracting Ltd commenced liquidation proceedings. John Howard Ross Fisk and Craig Alexander Sanson, the appointed liquidators, fixed August 10, 2007, as the last day for creditors to file their claims. The Liquidators can be reached at: John Howard Ross Fisk Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington New Zealand Telephone:(04) 462 7489 Facsimile:(04) 462 7492 PCRC PROPERTY: Taps Fisk and Sanson as Liquidators -------------------------------------------------- John Howard Ross Fisk and Craig Alexander Sanson were appointed as liquidators of PCRC Property Group 2 Limited on June 11, 2007. Creditors who cannot file their claims by Aug. 10, 2007, will be excluded from sharing in the company's dividend distribution. The Liquidators can be reached at: John Howard Ross Fisk Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington New Zealand Telephone:(04) 462 7489 Facsimile:(04) 462 7492 PREPFESSIONALS MARINE: Names Fatupaito and Agnew as Liquidators ---------------------------------------------------------- Prepfessionals Marine Limited entered liquidation proceedings on May 31, 2007. Vivian Judith Fatupaito and Richard Dale Agnew were appointed as liquidators. The Liquidators can be reached at: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers, Level 8 PricewaterhouseCoopers Tower 188 Quay Street, Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 TILES ON THE MOVE: Names Fatupaito and Agnew as Liquidators ----------------------------------------------------------- On June 7, 2007, Vivian Judith Fatupaito and Richard Dale Agnew were appointed as liquidators of Tiles on the Move Ltd. The Liquidators fixed Sept. 7, 2007, as the last day for creditors to file their proofs of debt. The Liquidators can be reached at: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level 8, PricewaterhouseCoopers Tower 188 Quay Street Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 TRU FREIGHT: Court to Hear Wind-Up Petition on July 12 ------------------------------------------------------ The High Court of Auckland will hear a petition to wind up the operations of Tru Freight Ltd. today, July 12, 2007. The petition was filed by BP Oil New Zealand Limited on March 20, 2007. BP Oil's solicitor is: Dianne S. Lester c/o Credit Consultants Debt Services NZ Limited Level 3, 3-9 Church Street PO Box 213, Wellington New Zealand Telephone:(04) 470 5972 VENDOR TRADING: Fixes August 10 as Last Day to File Claims ---------------------------------------------------------- The creditors of Vendor Trading Ltd. are required to file their proofs of debt by August 10, 2007, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 11, 2007. The company's liquidators are: John Howard Ross Fisk Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington New Zealand Telephone:(04) 462 7489 Facsimile:(04) 462 7492 ZAFFRE HOLDINGS: Creditors' Proofs of Debt Due on Sept. 7 --------------------------------------------------------- Zaffre Holdings Limited is receiving proofs of debt from its creditors until Sept. 7, 2007. The company went into liquidation on June 7, 2007. The company's liquidators are: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level 8, PricewaterhouseCoopers Tower 188 Quay Street Auckland New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 ===================== P H I L I P P I N E S ===================== AFP-RSBS: Ombudsman OKs Graft Charges v. Former Executives ---------------------------------------------------------- Ombudsman Merceditas Gutierrez has approved the filing of graft charges against retired officers Brigadier General Jose Ramiscal and Col. Oscar Martinez for violation of the Anti-Graft and Corrupt Practices Act, an ABS-CBN News report says. Both are former officers of the defunct Armed Forces of the Philippines-Retirement and Separation Benefits, with Gen. Ramiscal as president and Col. Martinez as vice-president. The charges stem from PHP86.08-million interest-free advances which the AFP-RSBS extended to Bay Resources Development Corp. from March 23, 1994, until December 13, 1998, allegedly without the approval of its Board of Trustees. BRADCO was a joint venture between the AFP-RSBS and the DM Wenceslao and Associated Inc., aimed to acquire and development a part of the Manila-Cavite Coastal Road and Reclamation Project. Ombudsman Gutierrez said that the AFP-RSBS was allowed to release at most only PHP8 million as additional equity, since BRADCO had an authorized capital of PHP16 million. The trustees still have to approve the advances even if they can be considered additional investments, she added. About AFP-RSBS The Armed Forces of the Philippines-Retirement and Separation Benefits System was created by Presidential Decree 361 as amended to serve as a self-sustaining fund system from which the pension, separation, and other benefits of the soldiers maybe taken. The Troubled Company Reporter - Asia Pacific reported on Oct. 9, 2006, that military officials revealed the closure of the Armed Forces of the Philippines Retirement and Separation Benefits System after an investigation found that some of its officials have mismanaged the multibillion-peso fund. According to the report, billions of pesos, which had been misspent on low-return real estate projects and loans over several years, have caused the retirement system's collapse. BANCO DE ORO-EPCI: Annual Stockholders' Meeting Set for July 27 --------------------------------------------------------------- Banco de Oro-EPCI Inc. will hold its annual meeting of stockholders on July 27 at 2:00 pm, at the Rizal Ballroom "C", Makati City, Shangri-La, in Ayala Avenue corner Makati Avenue, Makati City. Among other things, the meeting will consider these agenda: * Election of directors * Approval of the amendments of the first and seventh articles of the bank's articles of incorporation * Approval of the amendments of the bank's by-laws * Appointment of External Auditor Only stockholders of record as of June 15 are entitled to vote at the meeting. Banco de Oro-EPCI is the result of a merger between Banko de Oro Universal Bank and Equitable PCI, with BDO as the surviving entity. * * * The Troubled Company Reporter ' Asia Pacific reported on November 9, 2006 that Fitch Ratings affirmed the ratings of Banco De Oro Universal Bank, as follows: * Individual 'C/D', and * Support '3' * * * On June 1, 2007, Moody's Investors Service said it had withdrawn its ratings for Equitable PCI Bank (EPCI) following its merger with Banco de Oro Universal Bank (BDO). In a statement, Moody's said the merged entity, Banco de Oro- EPCI, will assume BDO's "Ba2" rating both for its senior unsecured debt and subordinated debt, with a stable outlook. Moody's withdrew its ratings for Equitable PCI following the merger. * * * The Troubled Company Reporter - Asia Pacific reported on June 11, 2007 that Standard & Poor's Ratings Services withdrew its 'BB-' counterparty credit ratings on Equitable PCI Bank Inc., as its merger with Banco De Oro Universal Bank became effective on May 31. S&P retained its 'BB-' counterparty credit rating and the issue ratings on both Equitable and Banco de Oro's rated debts. Equitable's rated debts will be transferred to the Banco de Oro-EPCI. MANILA ELECTRIC: Energy Commission OKs Time-of-Use Rating Scheme ---------------------------------------------------------------- The Energy Regulatory Commission has approved Manila Electric Co.'s application to start charging its customers using the time-of-use scheme, ERC chairman Rodolfo Albano Jr. told the Philippine Star. The TOU scheme is a mechanism that charges different costs for different time periods during the day, and different seasons of the year, the report exlpains. It usually consists of two periods: the peak and offpeak times. Peak periods are the times where people most use electricity, and power generation charges are substantially higher. Peak and offpeak periods also vary during weekdays and weekends, and during the wet and dry seasons. The Star notes that peak hours normally run from 10 a.m. until 4 p.m., and from 6 p.m. until 9 p.m. Off-peak hours, on the other hand, start at 10 p.m. and ends at 7 a.m.. Under the new scheme, MERALCO's customers can now manage their electricity use to minimize charges, the article relates. According to the article, the MERALCO's application, which was submitted in April, provides for the voluntary implementation of the scheme in two phases: Phase I and Phase II. Phase I covers industrial and non-industrial customers with a monthly average peak demand of at least 750 kilowatts for the preceding 1 year, as well as residential customers with a yearly average consumption of at least 2000 kilowatt hours in the immediate year preceding their application for TOU rates. Phase II covers residential customers with a yearly average consumption of 1000 kilowatt hours. The article also reports that, under MERALCO's application, the power firm will charge PHP6.48 per kilowatt hour on peak hours from Monday until Sunday from January to June, and PHP6.1 per kilowatt hour for the July-December period. Off-peak hours will charge PHP3.09 per kilowatt hour, the report adds. The implementation will require the company to acquire and install new electricity meters that have time stamping capability, which would cost PHP8,200 each including cost for programming, MERALCO told the Philippine Star. About Manila Electric Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in Metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. * * * A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the company posted a 79.7% decrease in its 2005 net losses to PHP411 million from PHP2.03 billion in 2004, due to provisions for probable losses while awaiting a Supreme Court final decision on a pending unbundling rate case, and the adoption of new accounting standards. In a TCR-AP report on April 24, 2006, it was noted that Manila Electric cannot seek a loan to expand its facilities unless it repays outstanding short-term debts amounting to around PHP4.7 billion. NAT'L POWER: Energy Regulator Acquits PSALM; Turns on NAPOCOR ------------------------------------------------------------- The Energy Regulatory Commission has absolved the Power Sector Assets and Liabilities Management Corp. from anti-competitive behavior and market power abuse charges, the Manila Standard reports. The ERC's investigating unit had found no evidence to incriminate PSALM on the charges, the article relates. The charges had stemmed from a complaint by the Philippine Electronic Market Corp. on an increase in the load weighted average price in August 2006 and on the bidding behavior of PSALM's trading team. However, the investigation found out that NAPOCOR President Cyril del Callar had contacted PSALM, which traded on behalf of NAPOCOR, and urged it to sign an agreement on the revenue requirement for each of its trading team. Mr. del Callar also instructed the groups to bid prices based on the Commission's approved time of use rates. The ERC is now calling on NAPOCOR to explain its involvement in the case, chairman Rodolfo Albano Jr. told the press. About NAPOCOR Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the company has begun selling off its generation assets to help pay for its estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. * * * National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16-million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of improved fuel mix and better fuel prices. * * * The Troubled Company Reporter - Asia Pacific reported that on November 2, 2006, Moody's Investors Service changed the outlook to stable from negative for the B1 senior unsecured debt rating of National Power Corporation, which is guaranteed by the Republic of Philippines. This rating action follows Moody's decision to change the outlook of Philippines' B1 long-term foreign currency government rating to stable from negative. The TCR-AP reported that on October 25, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to the proposed US$500 million unsecured notes to be issued by Philippines' National Power Corp. (Napocor; foreign currency BB-/Stable/--, local currency BB+/Stable/--). The Republic of Philippines (foreign currency BB-/Stable/B; local currency BB+/Stable/B) will unconditionally and irrevocably guarantee the notes. Napocor will use the proceeds for capital expenditure. The TCR-AP reported that on October 25, 2006, Fitch Ratings assigned a rating of 'BB' to the US$500 million fixed-rate notes issued by National Power Corporation in the Philippines. * Gov't Earns PHP17.1 Billion From Sale of 20% PNOC-EDC Stake ------------------------------------------------------------- The Philippine Government earned a net of PHP17.1 billion from selling 20% out of its 60% stake in the Philippine National Oil Co.-Energy Development Corp. on Tuesday, the BusinessWorld reports. The shares were sold at a price of PHP5.70 per share. The amount does not include underwriting commissions and other expenses incurred during the transaction, the company said in a disclosure with the Philippine Stock Exchange. According to BusinessWorld, the figure exceed the estimated PHP13 billion expected to be raised through the sale, which was also completed ahead of the July 13 completion date imposed by officials. Three buyers had also expressed interest following the completion of the international roadshow aimed to recruit investors for 20% of the company's stock, officials say. The government will use the proceeds to catch up with its budget deficit caused by low revenues from the Bureau of Customs and Bureau of Internal Revenue, as it hopes to meet its target deficit through asset sales. The government also plans to sell the remaining holdings in PNOC-EDC later this year. Some officials reportedly oppose the sale of the remaining 40% of the government's shares, the article reports. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency sovereign credit ratings on the Philippines, with a stable outlook. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. * Coalition Blames ADB's Energy Programs for Huge Gov't Debts ------------------------------------------------------------- The Freedom from Debt Coalition is blaming the Asian Development Bank's power restructuring program in the Philippines as the root cause of the huge debts by the national government and by the state-owned National Power Corp., a Pinoypress.net article reports. The Coalition also blamed the higher power rates, unreliable power supply and the poor's difficulty in accessing such services to the program, which is being implemented through the Electric Power Industry Reform Act. It also threw criticisms at the process of the energy review, which it said took place in a time period that is too short for the reviewers to come up with an informed comment on the draft strategy. FDC President Ana Maria R. Nemenzo raised issues on the binding power of the strategy, since it does not have to be approved by a board. "Will the 1995 energy policy be maintained? What rule will govern other energy issues outside the strategy?" she asked. The strategy is expected to address energy security, global warming/climate change, sector policy reform and governance, and energy efficiency. The NGO Forum on the ADB, of which Ms. Nemenzo is a convener, is also raising issues on the strategy's not being subjected to the Accountability Mechanism because of its nature as a strategy rather than a policy. The ADB will hold its sub-regional consultation among stakeholders in Southeast Asia and the Pacific on Friday, its fourth and last review of the draft energy strategy before it is to be approved in September this year. The consultation will be held its headquarters in Ortigas. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency sovereign credit ratings on the Philippines, with a stable outlook. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= 333 SUPERMARKET: Pays First & Final Dividend -------------------------------------------- 333 Supermarket Pte Ltd, which is in voluntary liquidation, paid the first dividend to its preferential creditors on July 23, 2007. The company paid 3.5836% to all admitted claims. The company's liquidator is: Dr. Ho Ngiap Kum 18 Jalan Masjid #02-08 Singapore 418944 AAR CORP: Posts US$17.7-Mil. Net Income in 4th Qtr. Ended May 31 ---------------------------------------------------------------- AAR Corp reported record quarterly net sales of US$305.7 million and record quarterly income from continuing operations of US$17.7 million, or US$0.42 per diluted share, for the fourth quarter of fiscal 2007. Sales grew 22% year-over-year, and income from continuing operations increased 33% compared to last year. For the company's fiscal year 2007, net sales were a record US$1,061.2 million, and income from continuing operations was a record US$59.4 million, or US$1.42 per diluted share. Sales increased 20% versus the prior year, and income from continuing operations grew 66%. The record sales and earnings performance was fueled by the alignment of the company's products and services to high-growth markets, effective merchandising and solid execution. The company achieved double-digit sales growth in all four segments for the quarter and the year. Value-added supply chain solutions, aftermarket replacement parts, airframe maintenance, landing gear services, specialized mobility products and aircraft sales were the main growth areas for the year. "I am very proud of the exceptional results our team produced in fiscal 2007," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "We expanded our business in all four segments, achieved record sales and earnings, and made significant investments to position the Company for growth, including the completion of two acquisitions." Highlights for each segment Aviation Supply Chain -- Sales grew 14% to US$146.6 million for the quarter and 18% to US$543.7 million for the year versus the same periods a year ago. The growth in this segment is primarily attributable to a full year of activity for two major supply chain programs, the introduction of new programs and increased demand in the parts arbitrage business. Maintenance, Repair and Overhaul -- Sales increased 13% to US$65.2 million for the quarter and 16% to US$211.5 million for the year compared to the same periods last year as the Company benefited from growth in its commercial and regional aircraft maintenance and landing gear businesses. AAR acquired the assets of Reebaire Aircraft Inc. in January 2007, doubling its regional aircraft MRO capacity. Structures and Systems -- Sales grew 34% to US$80.2 million for the quarter and 15% to US$264.1 million for the year versus the same periods a year ago. The Company continued to experience higher demand for specialized mobility products. AAR acquired Brown International in April 2007, adding higher- value systems integration capability. The composite structures business was also a significant contributor for the segment. Aircraft Sales and Leasing -- Operating income, which includes earnings from aircraft joint ventures, increased US$1.8 million or 144% for the quarter and US$8.6 million or 319% for the year on a year- over-year basis. As of May 31, 2007, the total number of aircraft held in joint ventures was twelve, and the number of aircraft in the Company's wholly-owned portfolio was nine. Sales to both major customer groups, commercial and defense, increased substantially during the year. Commercial sales grew 22% for the fourth quarter and 23% for the year. Defense sales grew 24% for the quarter and 14% for the year. As a percentage of sales, selling, general and administrative costs were 9.4% for the quarter and 9.9% for the year. The operating profit margin was 9.2% in the fourth quarter and 9.0% for the year, up from 8.4% and 7.4%, respectively, in the same periods last year. "We made meaningful progress on our margin goals for the year, and we continue to track toward a 10% operating margin for fiscal 2008 and a 12.5% operating margin within the next three year planning cycle," Storch continued. "As we enter our new year, we are focused on increasing our presence in Asia and Europe, growing our business in regional and defense markets and improving our margins through increased engineering content and operational efficiencies." As of May 31, 2007, the company's balance sheet showed current assets of US$645.72 million and current liabilities of US$182.26 million, excluding debt accounts. The company also recorded total assets of US$1.1 billion, total recourse debt of US$284.23 million, total non-recourse debt of US$43.63 million and stockholder's equity of US$494.24 million. Significant Events in Fiscal 2007 Commercial Aviation Market * Selected by Southwest Airlines to provide heavy maintenance and winglet installations for its fleet of Boeing 737 aircraft. * Awarded an end-to-end supply chain management program by Chautauqua Airlines. * Selected by Northwest Airlines to perform heavy maintenance and interior modifications on select Boeing 757 aircraft. * Acquired Reebaire Aircraft Inc. in January to increase AAR's presence, capacity and capabilities in the regional market. Defense Services Market * Received a US$68 million order for new pallets from the U.S. Air Force and subsequent order for US$28M in pallet repairs. * Selected by Armor Holdings to provide logistics support services for the repair of Family of Medium Tactical Vehicles (FMTV) trucks. * Acquired Brown International in April, which allows AAR to provide a wider range of shelter products and services to defense customers and establishes an important presence in Huntsville, Alabama. Other * Announced moves to strengthen senior leadership team - Timothy J. Romenesko promoted to President and Chief Operating Officer; Richard J. Poulton appointed Vice President, Chief Financial Officer and Treasurer; Peter K. Chapman named Vice President and Chief Commercial Officer. * Commenced manufacturing of cargo systems and select mobility products in a new 200,000 square foot facility in North Carolina. * For the third consecutive year, 100% of AAR's eligible aviation maintenance technicians (AMTs) received FAA Diamond Awards for meeting or exceeding FAA training requirements, earning AAR special recognition from the FAA. About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. * * * As reported in the Troubled Company Reporter - Asia Pacific on Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR Corp.'s corporate credit rating from 'BB-' to 'BB'. The outlook is stable. The TCR-AP also reported on Dec. 5, 2006, that Moody's upgraded AAR's corporate family rating and senior notes to Ba3 from B1, in response to improving financial performance resulting from the strong commercial and defense aviation supply and repair environment. The ratings outlook is stable. INNOVATIVE STRUCTURAL: Court to Hear Wind-Up Petition on July 20 ---------------------------------------------------------------- The High Court of Singapore will hear a petition to wind up the operations of Innovative Structural Systems Pte Ltd on July 20, 2007, at 10:00 a.m. Technocrete Pte Ltd filed the petition on June 25, 2007. Technocrete's solicitor is: Messrs. Asialegal LLC 20 Cecil Street #18-01, Equity Plaza Singapore 049705 MARK-ASIA: Enters Wind-Up Proceedings ------------------------------------- On June 29, 2007, the High Court of Singapore entered an order to wind up the operations of Mark-Asia (Inc) Trading Pte Ltd. The wind-up petition was filed by Jel Corporation (Far East) Pte Ltd. The company's liquidator is: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118 PETROLEO BRASILEIRO: Resumes Oil Production in P-50 Platform ------------------------------------------------------------ Brazilian state-owned oil firm Petroleo Brasileiro SA said in a statement that it has resumed oil production in the P-50 platform after a fire broke out in the unit on July 4. Petroleo Brasileiro told Business News Americas that P-50 is producing about 160,000 barrels per day, the same level before the fire. The unit's installed capacity is 180,000 barrels per day. Petroleo Brasileiro said it has cleaned the transformers room. It has also made a complete checkup of other systems in P-50, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Workers Want Unit to Extend Union Benefits --------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA's unionized workers are asking transportation unit Transpetro to extend union benefits to its unionized workers, Business News Americas reports. The oil workers' federation FUP head Jose Maria Rangel told BNamericas, "Last week we sent a document to Transpetro asking for the same benefits that were granted to Petrobras' [Petroleo Brasileiro] workers." According to BNamericas, FUP represents employees at Petroleo Brasileiro and Transpetro. Mr. Rangel commented to BNamericas, "We had to do it [ask for Transpetro benefits] because Transpetro is a separate company from Petrobras, with separate salaries and promotion policies." Petroleo Brasileiro said labor deals for the federal oil firm would be offered to employees at its units, BNamericas states, citing Mr. Rangel. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. SEA CONTAINERS: Gives Update on FSD Warning from U.K. Regulator --------------------------------------------------------------- In a regulatory filing with the Securities and Exchange Commission, Sea Containers Ltd. discloses that on June 15, 2007 the Determinations Panel of the United Kingdom government Pensions Regulator determined to issue financial support directions to SCL in respect of SCL's 1983 and 1990 Pension Schemes. "Our anti-avoidance powers are significant and, as we have always stressed, we will use them proportionately and where reasonable. In this case, we concluded that the issue of a Financial Support Direction was appropriate and justified," Pension Regulator Chief Executive Tony Hobman said in a press release. As previously disclosed, the Pensions Regulator issued notices to SCL on October 19, 2006, warning that it is considering exercising its powers to issue FSDs to the company under relevant UK pensions legislation, in respect of the Sea Containers 1983 Pension Scheme and the Sea Containers 1990 Pension Scheme. These are multi-employer defined benefit pension plans of Sea Containers Services Ltd., a UK subsidiary of the company. The company responded briefly to the original warning notices, submitting that it would not be reasonable to issue FSDs, and actively engaged with the Pensions Regulator to persuade it of this. However, the Pensions Regulator reissued the warning notice on April 26, 2007. A response was submitted that it would not be reasonable under the circumstances for the Pensions Regulator to issue FSDs. SCL President and Chief Executive Officer Robert MacKenzie relates that the FSDs will be issued on July 13, 2007 unless the Company appeals the determinations, which it is currently considering. The FSDs will require the company to put in place financial arrangements whereby it is liable for the part of the pension scheme deficit which relates to Sea Containers Services Limited. In the case of the 1983 Scheme, as of June 8, 2006, the estimate claim was GBP73,600,000 or approximately USD146,900,000. In the case of the 1990 Scheme, as of March 31, 2006, the estimated claim was GBP17,600,000 or approximately USD35,100,000. Any financial arrangements put in place will need the approval of the U.S. Bankruptcy Court. The arrangements will not give the Schemes a priority claim at the level of the company but will in fact be claims ranked pari passu with other unsecured creditors of the Company. The Determination Notices, dated June 15, 2007, for the Schemes and the Reasons of the Determinations Panel of the Pensions Regulator in relation to the Notices, dated June 25, 2007, may be found on the Pensions Regulator's Web site at http://www.thepensionregulator.gov.uk/ SCL stated in a press statement that it has always been its expectation that any restructuring plan of reorganization proposed under the Chapter 11 bankruptcy protection process would be subject to the Pensions Regulator's Clearance procedure, but the Company is nevertheless disappointed in the outcome of the hearing. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers Ltd. disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court extended the Debtors' exclusive period to file a Plan of Reorganization to Sept. 28, 2007. (Sea Containers Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =============== T H A I L A N D =============== TMB BANK: Predicts 40% Decline in Loan Portfolio for 2007 --------------------------------------------------------- TMB Bank PCL's loan portfolio may experience a decline of 40% for 2007 because of loan write-offs and distressed assets sales, the Bangkok Post reports, citing TMB Chief Executive Officer and President Subhak Siwaraksa. The bank's outstanding loans fell over 10% during the first six months of 2007, Mr. Subhak told the Bangkok Post. The TMB executive then cited loan repayments by corporate customers and small business, and bad debt write-offs, as major factors in the decline. According to the article, TMB had THB448 billion in outstanding loans as of May 31, 2007. The bank had started the year with a figure 12.45% bigger than the May record. As of March this year, the bank reported non-performing loans of THB30.88 billion, comprising 6.08% of the bank's total loans. The bank currently has a capital adequacy level of 10% of risk assets, the article relates. Mr. Subhak said that the level was enough to carry the bank through until the end of 2007. The bank continues to maintain for this year a new-loan target of THB16 billion for corporate loans, THB10 billion for small and medium-sized businesses, and THB7 billion-THB8 billion for retails, he added. Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd -- http://www.tmbbank.com/-- is a commercial bank that renders financial services to all groups of customers. TMB Bank had total assets of about THB717 billion as at December 31, 2005. Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating; 'B' Short-Term Foreign Currency Rating; 'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual Rating; and Support rating of 3. On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign currency hybrid Tier 1 rating to B from B+ and revised the Outlook on TMB's Long-term foreign currency Issuer Default rating to Stable from Positive. On May 4, 2007, Moody's retained TMB's bank financial strength rating at D-. Standard & Poor's Ratings Services gave TMB Bank's US$200- million hybrid Tier 1 securities a 'BB' rating. TONGKAH HARBOUR: Faces THB52.8MM Fine for Illegal Gold Shipment ---------------------------------------------------------------- The Department of Primary Industry and Mines may impose a THB52.8-million fine against Tongkah Harbour PCL for allegedly exporting gold without the necessary papers, the Bangkok Post reports. THL has not yet submitted an explanation to the Department, the Bangkok Post relates, citing THL Director-General Anusorn Nuangpolmark. The company had reported through a disclosure with the Stock Exchange of Thailand that its subsidiary, Tungkum Ltd., had intentionally exported in September 2006 105.5153 kilograms of gold bullion to Hong Kong without requesting for a transportation permit. The DPIM deemed this to be a violation of Section 103 of the Minerals Act. The company also said that during a meeting held on July 10 to discuss the matter, TKL's representatives refused to sign any documents admitting to the charges levied against THL. They instead insisted that DPIM representatives had inspected the shipment. THL submitted a letter explaining the situation to the deputy industry minister Piyabut Cholvijarn. The company also said that it will later lodge an appeal with the Industry Minister himself. Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited -- http://www.tongkahharbour.co-- is primarily engaged in mining operations. The company is engaged in offshore tin mining, gold exploration and mining, igneous rock quarrying, as well as property development and management. Going Concern Doubt The Troubled Company Reporter - Asia Pacific reported that after auditing the company's financial report for the third quarter and nine-month periods ended Sept. 30, 2006, Kesree Narongdej of A.M.T. & Associates Ltd expressed doubt on Tongkah's continued operations as a going concern. According to the auditor, the company and its subsidiaries have experienced the continuous operating losses, and its consolidated financial statements for nine-month period ended September 30, 2006, showed operating losses of THB44.78 million and a working capital deficit of THB173.74 million. These may have significant effect on the liquidity status and the going concern position of the company. TONGKAH HARBOUR: SET Lifts Suspension on Trading of Stocks ---------------------------------------------------------- The Stock Exchange of Thailand has lifted its SP -- suspension -- sign on the trading for Tongkah Harbour PCL's stocks after the company submitted its amended financial statements for the year ended December 31, 2006, and the quarter ended March 31, 2007. The Troubled Company Reporter-Asia Pacific had reported on June 27 that the SET had required the company to amend its financial statements for the two periods to reflect these changes: * recording of a THB4.1 million profit sharing agreement with the Industry Ministry's Department of Primary Industries and Mines as expense for the year 2006; * disclosure of THB11.6 million in pre-payment fees as subsequent events in the 2006 annual report; and * consideration of the relation of the THB5-million legal fees to the borrowing cost. The company submitted the required statements yesterday. Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited -- http://www.tongkahharbour.co-- is primarily engaged in mining operations. The company is engaged in offshore tin mining, gold exploration and mining, igneous rock quarrying, as well as property development and management. Going Concern Doubt The Troubled Company Reporter'Asia Pacific reported that after auditing the company's financial report for the third quarter and nine-month periods ended Sept. 30, 2006, Kesree Narongdej of A.M.T. & Associates Ltd expressed doubt on Tongkah's continued operations as a going concern. According to the auditor, the company and its subsidiaries have experienced the continuous operating losses, and its consolidated financial statements for nine-month period ended September 30, 2006, showed operating losses of THB44.78 million and a working capital deficit of THB173.74 million. These may have significant effect on the liquidity status and the going concern position of the company. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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