/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070727.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 Friday, July 27, 2007, Vol. 10, No. 147 Headlines A U S T R A L I A ADVANCED MARKETING: Files Revised Reclamation Claims Report EMBEL PTY: Liquidator to Give Wind-Up Report on August 3 FUTURIS CORP: Wozniczka Denies Unit Elders is in Crisis JOHE ENTERPRISES: Sets Meeting for August 3 JONROSE TRANSPORT: Members and Creditors to Meet on August 3 KELDON HOLDINGS: Members Opt to Shut Down Firm MCLAREN INVESTMENTS: Placed Under Members' Voluntary Liquidation NORDX/CDT AUSTRALIA: Members to Hold Final Meeting on August 10 STOCKFORD GROUP: To Declare Fourth Dividend on Sept. 4 SYMBION HEALTH: Primary Health Care Buys 50 Million Shares T F DANAHER: Members Decide to Voluntarily Liquidate Business TIFFANY FABRICS: Undergoes Liquidation Proceedings WALT DISNEY: Declares First and Final Dividend C H I N A & H O N G K O N G BOSSEN INTERNATIONAL: Sets Final Meeting for August 24 CHINA STEP: Members and Creditors to Meet on August 23 CROWN HOLDINGS: June 30 Balance Sheet Upside-down by US$388 Mln CROWN HOLDINGS: Fitch Affirms Issuer Default Rating at B+ FIAT SPA: Earns EUR1 Billion for First Half Ended June 30, 2007 FIAT SPA: Appoints New Members to Board of Directors INTERMOST CORP: Unit Collects Receivables of CNY48 Million XINING SPECIAL: Issues CNY350 Million of One-Year Debt * Moody's Upgrades Hong Kong's Ratings * Moody's Upgrades China's Ratings * S&P Affirms Rating on People's Republic of China I N D I A AES CORP: Finalizes Joint Dev't. & Equipment Pact with Altair GENERAL MOTORS: Deal Hits Snag as Firms Shelve US$3.1B Debt Sale GENERAL MOTORS: Seeks Concessions as Labor Talks With UAW Start HAYES LEMMERZ: Names Fred Bentley as Chief Operating Officer STATE BANK OF INDIA: Board to Meet Tomorrow for 1st Qtr. Results TATA MOTORS: To Start Russian Joint Venture With Iveco TATA MOTORS: Shortlisted in Bid for Jaguar and Land Rover * Fitch Sees Indian Two-Wheeler Finance Environment Weakening * Fitch: Personal Loans Pools Show Increased Delinquencies * India's 2007 Auto ABS Performance Stable, Fitch Says * Fitch Says Commercial Vehicle ABS Performance Improved I N D O N E S I A ALCATEL-LUCENT: Receives Certificate From Quality Management BANK DANAMON: Posts IDR1.02-Tril. Net Profit for 1st Half 2007 FREEPORT-MCMORAN: 2007 2nd Quarter Profit Triples to US$1.1 Bil. MEDCO ENERGI: Discovers Potential Oil Reserves in Libya PANIN BANK: 2007 First-Half Net Profit Up 60% to IDR464 Billion PERUSAHAAN LISTRIK: To Post IDR3.8-Trillion Net Profit in 2007 J A P A N ALL NIPPON: Expands Code-Share Agreement with Singapore Airlines BOSTON SCIENTIFIC: Moody's Cuts Sr. Unsecured Debt Rating to Ba2 BOSTON SCIENTIFIC: To Explore Sale of Fluid Management Business BOSTON SCIENTIFIC: 2007 Second Quarter Sales Lowers by US$39 Mln ELAN CORP: Seeks Re-Examination of Negative Opinion on TYSABRI FORD MOTOR: Seeks Concessions as Labor Talks With UAW Start MITSUKOSHI LTD: Denies Reports of Share Sale to Rival Isetan PAYLESS SHOESOURCE: Moody's Cuts Corporate Family Rating to B1 SNOW BRAND: Moody's Lifts Long-Term Debt Rating to Baa3 from Ba2 K O R E A ILSUNG CONSTRUCTION: Signs Services Contract with Jeong Mu KENERTEC CO: Sings MOA for Terminal Warehouses Construction SHINWHA INTERTEK: Converts First Convertible Bonds to Shares M A L A Y S I A ASIAN PAC: Enters MR23-Mil. Share Sale Pact With Safe Valley N E W Z E A L A N D NUPLEX INDUSTRIES: To Rollover Capital Notes TRUSTPOWER LTD: First Quarter Net Profit Up 22% to NZ$32 Million WINDFLOW TECHNOLOGY: To Hold Shareholders Meeting on Oct. 24 P H I L I P P I N E S BANCO DE ORO: FPHC Executes US$100-Million Promissory Note MAYNILAD WATER: DMCI Seeks Maynilad's Early Exit from Rehab SAN MIGUEL: Must Decide on Power Asset to Invest In, PSALM Says SECURITY BANK: Plans To Expand Operations in Mindanao Area * Continued Use of Coco Methyl Ester Could Result in Power Hike * Government Remains Confident of Keeping PHP63BB Deficit Target S I N G A P O R E ISP SERVICES: Declares First and Final Dividend LEAR CORP: Terminated Agreement Cues S&P to Lift Rating to B+ STATS CHIPPAC: Second Qtr. Profit Decreases by US$10.6 Million STATS CHIPPAC: Enters Definitive Agreement with LSI Corp. T H A I L A N D DAIMLERCHRYSLER: Chrysler Aims to Cut Costs as Labor Talks Begin THAI PROPERTY: Spends THB137.9 Mil. for Costs & Working Capital THAI WAH: Vipa Chimchan & Chaiwat Phengpinit Resign as Directors TOTAL ACCESS: Awaits Proposals for Possible Thai Mobile Alliance TRUE CORP: Resumes Trading After Capital Increase Procedures * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Files Revised Reclamation Claims Report ----------------------------------------------------------- Advanced Marketing Services, Inc., and its debtor-affiliates delivered to the U.S. Bankruptcy Court for the District of Delaware a revised reclamation claims report on July 6, 2007 to reflect adjustments in the methodology used to determine the date of receipt of goods. The Reclamation Reports, including the initial report filed in April 2007, contain two broad categories of claims -- claims under Section 503(b)(9) and reclamation claims. With respect to Section 503(b)(9) claims, the Debtors determined the value and amount of goods received during the 20-day period before the Petition Date. With respect to reclamation claims, the Debtors determined the value and amount of goods received during the period from 21 to 45 days prepetition. To calculate the amounts set forth in the Initial Report, the Debtors reviewed the purchase order freight terms for goods received at their various distribution centers from November 14, 2006, through February 8, 2007. If the purchase order freight terms suggested that possession or title to the goods passed to the Debtors as of the date of the bill of lading for the goods, the Debtors used the bill of lading date -- instead of the actual date of receipt at the distribution centers -- to determine whether the goods were received by or sold to the Debtors during the 45-day reclamation period. After filing the Initial Report, the Debtors consulted with the Official Committee of Unsecured Creditors and determined to make the adjustments. The Revised Report reflects the Debtors' use of the date of actual receipt of both domestic and international goods at their distribution centers to calculate the amount and value of goods received during the reclamation period. Goods sold by the Debtors prior to the receipt of a Reclamation Claim, but subsequently returned by a customer prior to the receipt of the Claim, were excluded from the calculations set forth in the Revised Report. The Debtors also looked to the calendar day immediately prior to the receipt date of a Reclamation Claim to determine whether or not goods were in their possession. The Debtors believe using this date avoids confusion regarding shipments they made on the actual dates the Reclamation Claims were received. A full-text copy of the Revised Reclamation Report is available at no charge at http://ResearchArchives.com/t/s?21bb The Debtors ask the Court to allow the Reclamation Claims in amounts set forth in the Revised Report as administrative expense claims, subject to reduction for goods returned to the reclaiming creditor. The Debtors propose to pay the Reclamation Claims in accordance with, and pursuant to the terms of, a confirmed plan of reorganization or liquidation in their cases. Any reclamation claimant disputing the amount set forth in the Revised Report must file and serve an objection to the Debtors' request by Aug. 6, 2007. The Debtors believe that the proposed treatment of Reclamation Claims is fair and reasonable, and will likely avoid the costs and risks attendant with litigation. The Committee supports the Debtors' request. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a plan expires on Aug. 10, 2007. (Advanced Marketing Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). EMBEL PTY: Liquidator to Give Wind-Up Report on August 3 -------------------------------------------------------- Embel Pty Ltd will hold a meeting for its members on August 3, 2007, at 11:45 a.m. G. S. Andrews, 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: G. S. Andrews c/o G. S. Andrews & Assoc. 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Embel Pty Embel Pty Ltd, which is also trading as G E S Trading, is a distributor of home furnishings. The company is located in Victoria, Australia. FUTURIS CORP: Wozniczka Denies Unit Elders is in Crisis ------------------------------------------------------- Futuris Corporation managing director denies that the company's main division, Elders Australia Ltd., is in a crisis after two executives resigned from post, Cathy Bolt of The Age, reports. According to the report, the general manager of client services -- Paul Barber -- quit, effective immediately in support for Elders managing director Greg Hunt, who was removed from his post last week. Elders general manager for strategy and development John McKillop also resigned shortly before Mr. Hunt's departure, to reportedly take up a job in Sydney. Ms. Bolt reports that despite rumors that Mr. McKillop has had a tense relationship with Futuris managing director, Les Wozniczka, it is believed that Mr. McKillop's resignation may have been influenced by increasing frustration about confusion between Elders' internal expansion plans and those being pursued by Mr. Wozniczka. Mr. Wozniczka, admitting that there had been friction between Futuris and some Elders management, said that the upheaval was not a crisis and that "if the competition wants to think Elders is somehow going to be hampered by one or two internal issues, that's probably a nice thing for them to think because nothing could be further from the truth." Mr. Wozniczka added that the Mr. Hunt's departure reflected a need for a change at the 400-branch Elders network. About Futuris Corp. Adelaide, Australia-based Futuris Corporation Limited -- http://www.futuris.com.au/default.asp-- is engaged in the provision of farm services to the rural sector; financial services to rural and regional customers, and management of investor-funded hardwood plantations and manufacture of sawn timber products. The company also operates businesses in automotive componentry supply, and property ownership and development. Its segments comprise Rural services, which includes the provision of agricultural products and services through a common distribution channel; Forestry, which includes the Company's interests in forestry plantations and processing; Automotive Components, which is engaged in manufacturing and sales of automotive components, of which the key components are seating, heating ventilating and air-conditioning systems; Property, which includes the sale and development of land, and commercial developments and holding an equity interest in a listed property trust, and Investment and Other, which includes investment activities. The Troubled Company Reporter-Asia Pacific's distressed bonds column on July 24, 2007 showed that company's bonds, which has a coupon of 7.000% and a maturity date of December 31, 2007, is trading at 2.54%. JOHE ENTERPRISES: Sets Meeting for August 3 ------------------------------------------- Johe Enterprises Pty Ltd will hold a meeting for its members and creditors on August 3, 2007, at 12:00 noon. The members and creditors will receive, at the meeting, a report about the company's wind-up proceedings and property disposal. The company's liquidator is: G. S. Andrews c/o G. S. Andrews & Assoc. 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Johe Enterprises Johe Enterprises Pty Ltd, which is also trading as Arbeena Court Receptions, provides amusement and recreation services. The company is located in Victoria, Australia. JONROSE TRANSPORT: Members and Creditors to Meet on August 3 ------------------------------------------------------------ The members and creditors of Jonrose Transport Pty Ltd will meet on August 3, 2007, at 11:30 a.m. to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: G. S. Andrews c/o G. S. Andrews & Assoc. 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Jonrose Transport Jonrose Transport Pty Ltd, which is also trading as Jonrose Courier, is involved in the business of local trucking with storage. The company is located in Victoria, Australia. KELDON HOLDINGS: Members Opt to Shut Down Firm ---------------------------------------------- On June 29, 2007, the members of Keldon Holdings Pty Ltd had a meeting and decided to shut down the company's business. Leigh Dudman was appointed as liquidator. The Liquidator can be reached at: Leigh Dudman B. K. Taylor & Co. 8th Floor, 608 St Kilda Road Melbourne, Victoria 3004 Australia About Keldon Holdings Keldon Holdings Pty Ltd is involved with the business of trusts, except educational, religious, and charitable. The company is located in New South Wales, Australia. MCLAREN INVESTMENTS: Placed Under Members' Voluntary Liquidation ---------------------------------------------------------------- The members of Mclaren Investments Pty Ltd met on June 29, 2007, and agreed to voluntarily liquidate the company's business. Samuel Richwol was appointed as liquidator. The Liquidator can be reached at: Samuel Richwol c/o O'Keeffe Walton Richwol 431 Burke Road, Glen Iris 3146 Australia Telephone:(03) 9822 9823 About Mclaren Investments Mclaren Investments Pty Ltd is involved with hardware business. The company is located in Victoria, Australia. NORDX/CDT AUSTRALIA: Members to Hold Final Meeting on August 10 --------------------------------------------------------------- The members of Nordx/Cdt Australia Pty Ltd will hold a final meeting on August 10, 2007, at 11:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Sule Arnautovic c/o Jenkins Peake Chartered Accountants PO Box 1570, Geelong 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 About Nordx/Cdt Australia Nordx/Cdt Australia Pty Ltd Limited is a distributor of electronic components. The company is located in New South Wales, Australia. STOCKFORD GROUP: To Declare Fourth Dividend on Sept. 4 ------------------------------------------------------ Stockford Group will declare the fourth dividend on Sept. 4, 2007. Creditors are required to file their claims by July 31, 2007, to be included in the company's dividend distribution. The company's deed administrator is: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia SYMBION HEALTH: Primary Health Care Buys 50 Million Shares ---------------------------------------------------------- Primary Health Care Ltd. has bought a 9.7% stake in bid target Symbion Health Limited amid talks that it may try to spoil a rival takeover deal, reports Michael Smith and Ben Wilson of Reuters. Mr. Smith and Mr. Wilson, citing a document from the Australian Stock Exchange, write that Primary bought a total of 50 million shares last week. On February 15, 2007, the Troubled Company Reporter-Asia Pacific reported that Symbion rejected Primary's AU$2.3-billion offer, saying it was unfair and unreasonable. According to Mr. Smith and Mr. Wilson, Primary later sold a 6.7% stake it built in Symbion. Mr. Smith and Mr. Wilson tried to reach Primary Managing Director Ed Bateman to ask for comment regarding local reports that he is buying more stock in Symbion, but to no avail. About Symbion Health Melbourne-based Symbion Health Limited -- http://www.symbionhealth.com/-- formerly Mayne Group Limited, provides health products and services. The principal activities of Symbion Health, during the fiscal year ended June 30, 2006, consisted of diagnostic and wellness products and services through its Pathology, Imaging, Medical Centers, Pharmacy Services and Consumer divisions. Symbion Pathology owns and operates private pathology practices, providing pathology services to healthcare professionals and their patients. Symbion Medical Centers provides local communities with healthcare and family medicine. Symbion Imaging provides imaging services to patients on the eastern seaboard of Australia. Symbion Pharmacy Services supplies a line of pharmaceuticals and associated products to pharmacies. Symbion Consumer manufactures and markets nutraceuticals (vitamins and mineral supplements). On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). T F DANAHER: Members Decide to Voluntarily Liquidate Business ------------------------------------------------------------- During a general meeting held on June 29, 2007, the members of T F Danaher Proprietary Limited decided to voluntarily liquidate the company's business. Simon A. Wallace-Smith and Timothy B. Norman were appointed as liquidators. The Liquidators can be reached at: Simon A. Wallace-Smith Timothy B. Norman c/o Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About T F Danaher T F Danaher Proprietary Limited in the business of beef cattle, except feedlots. The company is located in Victoria, Australia. TIFFANY FABRICS: Undergoes Liquidation Proceedings -------------------------------------------------- During a general meeting held on June 29, 2007, the members of Tiffany Fabrics Pty Ltd agreed to voluntarily liquidate the company's business and appointed Samuel Richwol as liquidator. The Liquidator can be reached at: Samuel Richwol c/o O'Keeffe Walton Richwol 431 Burke Road Glen Iris 3146 Australia Telephone:(03) 9822 9823 About Tiffany Fabrics Tiffany Fabrics Pty Ltd is a distributor of piece goods and notions. The company is located in Victoria, Australia. WALT DISNEY: Declares First and Final Dividend ---------------------------------------------- Walt Disney Animation Australia Pty Ltd, which is in liquidation, declared the first and final dividend on July 16, 2007. Creditors who were not able to file their claims before July 13, 2007, were excluded from sharing in the company's dividend distribution. The company's liquidator is: Rod Slattery c/o PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Walt Disney Walt Disney Animation Australia Pty Limited is a theatrical producer, except for motion picture, and provides theatrical services. The company is located in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ BOSSEN INTERNATIONAL: Sets Final Meeting for August 24 ------------------------------------------------------ A final meeting will be held for the members of Bossen International Limited on August 24, 2007, at 4:00 p.m., on Room 1402B, 14th Floor of Block B, Sea View Estate at No. 2-8 Watson Road in North Point, Hong Kong. The members will receive, at the meeting, a report about the company's wind-up proceedings and property disposal. CHINA STEP: Members and Creditors to Meet on August 23 ------------------------------------------------------ The members and creditors of China Step Holdings Limited will meet on August 23, 2007, at 9:30 a.m. and 10:00 a.m., respectively, to hear the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held on Unit D, 12th Floor of Seabright Plaza at 9-23 Shell Street in North Point, Hong Kong. CROWN HOLDINGS: June 30 Balance Sheet Upside-down by US$388 Mln --------------------------------------------------------------- Crown Holdings Inc.'s consolidated balance sheet at June 30, 2007, showed US$6.79 billion in total assets and US$7.18 billion in total liabilities, resulting in a US$388 million total shareholders' deficit. The company reported net income of US$88 million for the second quarter ended June 30, 2007, compared with net income of US$50 million for the same period ended June 30, 2006. Net sales in the second quarter rose to US$1.99 billion, up 11.7% over the US$1.78 million in the second quarter of 2006. The increase was primarily the result of higher sales unit volumes across most product lines and geographies, the pass- through of higher raw material costs and favorable foreign currency translation. Approximately 71% of sales were generated outside the U.S. in both the second quarter of 2007 and 2006. Second quarter gross profit grew 15.5% to US$283 million over the US$245 million in the 2006 second quarter. As a percentage of net sales, gross profit expanded to 14.2% in the second quarter from 13.8% in the second quarter last year. Stronger sales unit volumes, increased operating efficiencies and productivity gains drove the improvements. Selling and administrative expense in the second quarter was US$93 million compared to US$74 million in last year's second quarter. The increase is attributable to a higher accrual for incentive compensation costs, foreign currency translation and general inflationary increases. Segment income (a non-GAAP measure defined by the company as gross profit less selling and administrative expense) grew to US$190 million in the second quarter, up 11.1% over the US$171 million in the 2006 second quarter. Segment income as a percentage of net sales was 9.5% in the second quarter compared to 9.6% in the second quarter last year. Commenting on the results, John W. Conway, chairman and chief executive officer, stated, "The company continued to build momentum in the second quarter through a combination of positive factors. In our Americas Beverage business, volumes and margins are returning to their 2005 levels due to sales unit recovery in North America, strong Latin American results and an increase in specialty cans in our overall sales mix. Equally important, margin recovery in our European Beverage business is on plan. At the same time, our North America Food business continues to improve. The company remains on plan to generate strong free cash flow in 2007, which will be available to pay down debt and repurchase shares. Looking ahead, our new beverage can plant in Cambodia will begin operating in the third quarter. This will further expand and diversify our world class manufacturing portfolio with entry into another fast growing emerging market." Interest expense in the second quarter was US$77 million compared to US$70 million in the second quarter of 2006. The increase reflects the impact of higher average short-term borrowing rates and foreign currency translation. Net income from continuing operations in the second quarter was US$88 million, compared to US$74 million in the second quarter of 2006. Included within net income from continuing operations, the company recorded a net gain of US$4 million reflecting a net gain of US$8 million related to gain on sale of assets offset by a net loss of US$4 million related to restructuring actions. In last year's second quarter, the company reported a net gain of US$2 million related to financial foreign exchange gains offset by restructuring charges. At June 30, 2007, the company's consolidated balance sheet showed US$6.79 billion in total assets and US$7.18 billion in total liabilities, resulting in a US$388 million total shareholders' deficit. About Crown Holdings Philadelphia, Pa.-based Crown Holdings Inc. (NYSE: CCK) -- http://www.crowncork.com/-- through its affiliated companies, supplies packaging products to consumer marketing companies around the world. In Latin America, the Company has operations in Mexico, and in South and Central America. The Company also maintains operations in Europe, particularly in the United Kingdom and France. In the Asia-Pacific region, the Company has an office in Singapore and China. * * * Standard & Poor's Ratings Services affirmed its 'BB-' rating and its '2' recovery rating on Crown Holdings Inc.'s existing US$1.5 billion credit facilities including its US$200 million add-on senior secured term loan B due 2012. CROWN HOLDINGS: Fitch Affirms Issuer Default Rating at B+ --------------------------------------------------------- Fitch Ratings has affirmed the ratings for Crown Holdings, Inc., and its subsidiaries Crown Cork & Seal Company, Inc., Crown Americas, LLC, and Crown European Holdings, SA as: Crown: -- Issuer Default Rating 'B+'. Crown Cork: -- IDR 'B+'; -- Senior unsecured notes 'B/Recovery Rating (RR) of RR5'. Crown Americas: -- IDR 'B+'; -- Senior secured dollar term facility 'BB+/RR1'; -- Senior secured dollar revolving facility 'BB+/RR1'; -- Senior unsecured notes 'B+/RR4'; Crown European: -- IDR 'B+'; -- Senior secured euro term facility 'BB+/RR1'; -- Senior secured euro revolving facility 'BB+/RR1'; -- Senior secured euro 1st priority notes 'BB+/RR1'; Approximately US$3.5 billion of debt is covered by the ratings. The Rating Outlook is Stable. The ratings reflect Crown's leading market share across its product categories, balanced revenue mix, geographic diversification, good liquidity, modest near-term debt maturities, volume growth in emerging markets, and focus on debt reduction. Rating concerns include high leverage, escalating raw materials and energy costs, intense competition in mature markets, increasing cash deployment towards shareholders, and to a lesser extent, asbestos liability. The Stable Outlook reflects the relatively steady demand in Crown's key end-markets, consistent operating performance and solid cash generation. The company's internationally balanced asset portfolio is also a key factor lending stability to the Outlook. Crown has been challenged with substantially higher raw materials costs over the past few years but has successfully passed higher costs to its customer base in most cases. Higher energy costs are an additional pressure on margins. Despite these challenges, Crown has maintained stable profitability over the past several quarters, and has repaid a meaningful portion of debt over the past few years. Free cash generation of US$164 million in 2006 was below Fitch's expectation. Management has indicated that working capital was the primary factor leading to lower than expected free cash flow. In late 2006, Crown added an additional US$200 million of term debt under its existing credit facility, using the proceeds to pay down outstanding revolver balances and improve liquidity. Fitch has updated its recovery analysis to account for the additional secured debt outstanding. Despite the additional debt, the ratings on each debt class within the capital structure remain unchanged. Fitch expects that, in a distressed scenario, all secured claims including the senior secured credit facility (at CA and CEH) and the senior secured first priority notes at CEH would obtain full recovery. However, the two unsecured classes (at CA and CCS) would likely be impaired. Compared to Fitch's previous analysis, the estimated recovery value for holders of the unsecured debt held at CCS would be reduced from the high end to the low end of the 'RR5' recovery band (11% to 30%) due to the additional debt. Fitch views the CCS unsecured class as structurally subordinate to the unsecured class at CA, and therefore rates the CA class one notch higher at 'B+/RR4'. Crown maintains debt reduction as a top financial priority, although the company was a net borrower in 2006. Pension contributions, asbestos payments, and shareholder distributions are competing uses of cash. Shareholder focused actions may be gaining a larger share of excess cash distribution. Crown repurchased US$135 million of stock in 2006 (after just US$38 million in 2005) and has US$227 million remaining under its current repurchase authorization. Crown has indicated that excess cash in 2007 will be directed towards debt reduction and share repurchases in roughly a two-thirds, one-third proportion. The company is targeting free cash flow in the US$330 million to US$370 million range for 2007. After expected cash asbestos payments of about US$25 million, Crown could direct US$200 million or more towards debt reduction. Greater deleveraging could take place in 2008 if cash flows improve as expected. Fitch believes Crown's free cash flow target is achievable and expects operating cash flows to improve over the intermediate term, driven by volume growth, product mix, and lower pension payments. Fitch expects lower capital spending as certain foreign investment projects have been completed. As of March 31, 2007, the company's liquidity was about US$689 million, comprised of US$278 million cash and US$411 million of available revolver. The company has modest debt maturities of US$43 million and US$39 million due in 2007 and 2008. Crown's financial position and debt service obligations offer substantial flexibility for the next several years. Crown divested the last of its plastic packaging assets in 2006 and Fitch does not believe further asset sales will be a source of funds for significant debt reduction as they have been in the past. At fiscal year-end 2006 Crown's credit metrics were relatively stable year over year. As of Dec. 31, 2006, the company had operating EBITDA leverage of 4.4 times (compared to 4.3x in 2005) and EBITDA interest coverage of 2.3x (compared to 2.3x in 2005). It should be noted that Fitch's calculation of these ratios is not equivalent to those allowed for covenant compliance, which incorporate a provision for asbestos payments, among other things. Covenants under the senior secured credit facilities limit debt-to-EBITDA to 4.25x through Sept. 30, 2007 and EBITDA interest coverage to 2.75x through the same date. Requirements by Fiscal Year 2007 will be 4.0x and 2.9x respectively. Asbestos payments and new claims continue to decline steadily. Crown paid US$26 million for asbestos related settlements in 2007 compared to US$29 million in 2005. New claims fell by nearly 50% year over year and the company expects payments of US$25 million in 2007. Looking ahead, key risks and challenges include escalating raw materials and energy costs. Fitch believes Crown may face stronger headwinds from rising raw materials prices, particularly for aluminum in North America, as price ceilings contained in some supplier contracts are removed. These ceilings may have partially shielded the company from the dramatic escalation in aluminum prices in recent quarters. If further cost increases are not completely passed through or if there is a lag in pass through, profitability could be challenged. Crown should continue to see solid volume and revenue growth in certain emerging markets. Productivity and cost reduction initiatives are also beginning to show results so far in 2007. Competition will remain fierce in mature markets and volume losses are always a possibility. However, Crown rebounded strongly from volume losses in early 2006, capturing new volume in higher margin specialty can products. Philadelphia-based Crown Holdings Inc. (NYSE: CCK) -- http://www.crowncork.com/-- through its affiliated companies, supplies packaging products to consumer marketing companies around the world. In Latin America, the Company has operations in Mexico, and in South and Central America. The Company also maintains operations in Europe, particularly in the United Kingdom and France. In the Asia-Pacific region, the Company has an office in Singapore and China. FIAT SPA: Earns EUR1 Billion for First Half Ended June 30, 2007 --------------------------------------------------------------- Fiat S.p.A. posted EUR1 billion in net profit on EUR28.86 billion in net revenues for the first half of 2007, compared with EUR481 million in net profit on EUR26.16 billion in net revenues for the same period in 2006. The company also posted EUR627 million in net profit on EUR15.18 billion in net revenues for the second quarter of 2007, compared with EUR330 million in net profit on EUR13.61 billion in net revenues for the same period in 2006. Net industrial debt decreased from EUR1.8 billion at Dec, 31, 2006, end to EUR900 million at June 30, 2007, mainly reflecting positive net industrial cash flow of approximately EUR1.4 billion net of dividends paid and share buy-back of more than EUR0.5 billion. Outlook The Group's first half results are fully in line with its 2007 targets and provide a solid base to pursue the growth and margin expansion path set out in the 2007-2010 industrial plan. In particular, the Group confirms that it expects to reach the upper end of all the 2007 target ranges announced in November 2006. The Group expects: -- consolidated trading profit of approximately EUR2.7 billion (5% trading margin); -- net income between EUR1.6 and EUR1.8 billion; and -- earnings per share between EUR1.25 and EUR1.40. In addition, strong industrial cash flow generation in the first half of the year enables the Group to move its year-end net industrial debt target to around EUR600 million (excluding the impact of additional share buy-backs). The Group will continue to implement its strategy of targeted alliances, in order to optimize capital commitments and reduce risks. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Asia-Pacific in Australia, China, India, Japan, and Singapore. Its European operations are found in Austria, Belgium, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Lithuania, Netherlands, Poland, Portugal, Romania, Russia and Spain. Its Latin-American operations are found in Brazil and Argentina. * * * As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term Corporate Family Rating of Ba2 and Probability of Default Rating at Ba2 with Outlook Positive. Standard & Poor's give Long-Term Foreign and Local Issuer Credit Ratings of BB+ for Fiat. Its Short-term Foreign and Local Issuer Credit Ratings are at B with Positive Outlook. Dominion Bond Rating Service gives Fiat a Long-term Issuer Rating of BB with Positive Outlook. FIAT SPA: Appoints New Members to Board of Directors ---------------------------------------------------- Fiat S.p.A.'s board of director has accepted the resignation tendered by member Hermann-Josef Lamberti due to his increasing commitments and thanked him on behalf of the entire Fiat Group for his precious cooperation throughout these years. The Board co-opted Rene Carron, Chairman of Credit Agricole, as new board member. Considering the size of the Credit Agricole Group, the Board determined that the relations existing between the French banking group and the Fiat Group are not material and therefore that Mr. Carron meets the requirements for independence. The Board of Directors also appointed Gian Maria Gros-Pietro as component of the Internal Control Committee in replacement of Mr. Lamberti and resolved to split the Nominating and Compensation Committee into two separate committees in order to better conform to corporate governance best practices, as well as the other recommendations set forth on the issue in the Corporate Governance Code. * Internal Control Committee Mario Zibetti Chairman Gian Maria Gros-Pietro Vittorio Mincato * Nominating and Corporate Governance Committee John Elkann Chairman Luca Garavoglia Gian Maria Gros-Pietro * Compensation Committee Roland Berger Chairman Luca Garavoglia Mario Zibetti About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Asia-Pacific in Australia, China, India, Japan, and Singapore. Its European operations are found in Austria, Belgium, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Lithuania, Netherlands, Poland, Portugal, Romania, Russia and Spain. Its Latin-American operations are found in Brazil and Argentina. * * * As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term Corporate Family Rating of Ba2 and Probability of Default Rating at Ba2 with Outlook Positive. Standard & Poor's give Long-Term Foreign and Local Issuer Credit Ratings of BB+ for Fiat. Its Short-term Foreign and Local Issuer Credit Ratings are at B with Positive Outlook. Dominion Bond Rating Service gives Fiat a Long-term Issuer Rating of BB with Positive Outlook. INTERMOST CORP: Unit Collects Receivables of CNY48 Million ---------------------------------------------------------- The Intermost Corporation said that one of its subsidiaries, the InterAnke Securities & Surveillance Technology Co., Ltd., a 51% owned subsidiary of IMOT Information Technology (Shenzhen) Co., has successfully collected its long overdue receivables (some of them over 200 days) of CNY48 million in June. The result came from the great efforts made by the new management team led by the new President & CEO, Rocky Wulianghai and the new Corporate Secretary & CFO, Mr. Thomas Lee. They formed a new management team that included legal, administration, finance, and sales & marketing talents to drive a new business strategy for the company. Of course, this new team still has to deal with unresolved issues as well as the development of new and profitable business. One of the apparent results was the efforts in the collection of the long overdue receivables amounting to CNY48 million in June. The newly engaged lawyers and auditors also gave great support and advice to the new management team and were very conscientious and responsible in their work. Mr. Rocky Wulianghai commented that he feels very comfortable with the new management team's ability and marketing strategy, and believes that the company's business will grow smoothly. About Intermost Corp. Headquartered in Shenzhen, China, Intermost Corporation -- http://www.intermost.com/-- is a service provider of electronic exchange platforms for equity exchanges and financial products in China. It also provides value-added service to overseas financing and listing for medium and small sized companies. The company was established in USA in September 1998. It was quoted on US OTC Bulletin Board (stock symbol: IMOT) in December 1998. As a financial service provider, Intermost Corporation is the first Chinese Internet Company quoted on the US OTC BB. E. Randall Gruber, CPA, PC, expressed substantial doubt about Intermost Corporation's ability to continue as a going concern after it audited the company's financial statements for the fiscal year ended June 30, 2006. The auditing firm pointed to the company's recurring losses and negative cash flows from operations and has accumulated deficit. XINING SPECIAL: Issues CNY350 Million of One-Year Debt ------------------------------------------------------ Xining Special Steel Co Ltd (SHA 600117) said that it has issued CNY350 million of 365-day debt to institutional investors on the interbank bond market, Rusmet.com says. The report notes that, in a statement posted on the official chinabond.com Web site, Xining Special said the yield has been set at 4.35%. * * * Based in Xining, Qinghai Province, Xining Special Steel Co., Ltd. is principally engaged in the smelting and processing of special steel products and offers alloy structural steel, alloy tool steel, carbon structural steel, bearing steel, spring steel, carbon tool steel, stainless steel, high-temperature steel and other steel products. Xinhua Far East China Ratings gave the company a BB issuer credit rating on August 25, 2006. * Moody's Upgrades Hong Kong's Ratings -------------------------------------- Moody's Investors Service has upgraded the foreign- and domestic- currency bond ratings of the Hong Kong government to Aa2 from Aa3 to reflect a strengthening of Hong Kong government finances and its external position. At this level, Moody's ratings of Hong Kong, a Special Administrative Region of China since 1997, stand two notches above those of the Chinese government, which were also upgraded on July 26 to A1. In addition, Hong Kong's foreign currency bank deposit ceiling was upgraded to Aa2 from Aa3. "The Hong Kong government has almost no debt and large and growing fiscal reserves, equivalent to about one quarter of GDP," said Moody's Vice President Steven Hess. "This strong position gives the government considerable financial flexibility and provides a strong buffer against potential shocks emanating from the mainland or elsewhere." Not only is the government's position strong, said Hess, but the SAR as a whole has a large and growing international asset position. Consistently large current account surpluses have enabled Hong Kong corporations, banks, and the government to build up one of the strongest net international investment positions in the world, providing yet another buffer against possible shocks. "The upgrade reflects our belief that, over the past several years, Hong Kong's economic and financial resilience to unforeseen external developments has grown," said Hess. "This resilience means that a rating gap between Hong Kong and China is justified, even though Hong Kong and the mainland have become increasingly integrated." He added that trade and financial flows between the rest of China and Hong Kong mean that there is still an element of China risk in Hong Kong's ratings, but the SAR's ability to deal with this risk has been enhanced over time. * Moody's Upgrades China's Ratings ---------------------------------- Moody's Investors Service upgraded to A1 from A2 the rating for the Chinese government's long-term foreign currency bonds in light of the exceptional strength of China's external payments position, favorable government debt trends, and continued progress in economic reform. The rating agency also assigned an A1 rating to long-term local currency obligations of the government, and China's country ceilings for foreign and local currency bank deposits and foreign and local currency bond ceilings were raised to A1 from A2. The outlook on the ratings and ceilings is stable. These ceilings act as a cap on ratings that can be assigned to domestic or foreign currency obligations of other entities domiciled in the country. "China's very strong external payments position provides insulation from external shocks and allows the authorities time to expand and deepen structural reform" said Moody's Senior Vice President Tom Byrne. "Official foreign exchange reserves continue to grow and now exceed US$1.3 trillion, and external obligations of the government and state-owned banks are a small fraction of that sum." He said the performance of the export sector has been "formidable," despite the appreciation of the renminbi yuan against the dollar, and that WTO accession and foreign investment have improved competitiveness, moving China up the global ranks to the third largest exporter. Byrne said that "we expect that China's external payments position will remain resilient to domestic and external pressures." He explained that the newly assigned rating for local-currency obligations of the government reflects the striking progress made in fiscal performance and the containment of government debt. State revenues have grown rapidly and are likely to reach 20% of GDP in 2007 from less than 10% of GDP a decade earlier. "Budget deficits have been very small, government indebtedness trends favorable, and Chinese government debt ratios have declined in recent years and are below the median of A-rated countries, providing headroom for possible future fiscal contingencies," said Byrne. "Moreover, the share of foreign currency debt in total debt is among the lowest of A-rated countries, which reduces vulnerability of government finances to external shocks." Moody's noted that substantial improvement has been seen in the intrinsic financial strength and supervision of the large state- owned commercial banks. Although non-performing loans and unrecognized impaired assets are still somewhat high, contingent fiscal liabilities embedded in the financial sector are not as high as previously thought. The cost of banking system recapitalization to date is largely offset by the value of MOF and government agency holdings of shares of listed state-owned commercial banks. "Continued progress in these areas will reduce financial-sector contingent liabilities," said Byrne. "The fact that the state- owned banks have a net foreign asset position ultimately reduces vulnerability of the government's fiscal position to external shocks that could be channeled through the banking sector." Moody's said that while rapid growth has not produced balance- of-payments or fiscal imbalances, and inflation is moderate, management of domestic liquidity, in large part fueled by balance-of-payments inflows, presents challenges not only for domestic monetary policy but also for exchange rate policy. "Still, financial or economic turbulence would not likely damage the government's creditworthiness," said Byrne. "Future upward movement to China's ratings will depend on the sustainability of macroeconomic stability, which would need to be supported by continued improvement in governance and in institutional strengthening." He said China's ability to carry on a successful opening of its economy to foreign participation and to maintain access to foreign markets will also influence the future ratings trajectory. He noted that while trade friction with the U.S. and the E.U. have increased and that verbal skirmishes are increasing, especially with the U.S., mutual national interests will likely forestall the creation of a serious rift. "Nevertheless, the possibility of heightened trade frictions poses some risk to the sustainability of China's exceptional economic growth performance," said Byrne. "And China's ratings will continue to remain sensitive to the state of cross-strait relations with Taiwan, the stability of which would be necessary to forestall geopolitical tensions from undermining the country's credit fundamentals." * S&P Affirms Rating on People's Republic of China -------------------------------------------------- Standard & Poor's Ratings Services today affirmed its 'A' long- term and 'A-1' short-term sovereign credit ratings on the People's Republic of China. The outlook was revised to positive from stable. At the same time, Standard & Poor's affirmed its 'A' long-term and 'A-1' short-term credit ratings on the Export-Import Bank of China. The outlook on the credit ratings on China EXIM was similarly revised to positive, in line with the sovereign ratings outlook revision. "China's reforms in the areas of bankruptcy, property, and labor laws in 2007 have motivated our revision of the ratings outlook to positive," said Standard & Poor's credit analyst Kim Eng Tan of the Sovereign Ratings group. "These reforms should underpin a high single-digit trend rate of growth in China and at the same time improve the productivity of investment, thereby reducing the risks of unduly large fluctuations in growth. In addition, although protectionist sentiment is rising among the Congressional leaders of China's largest trading partner, the U.S., we do not expect any enacted measures to materially disrupt trade volumes between the two nations." The ratings on China are supported by the sovereign's strong external asset position, exceptional economic growth potential, and the government's continuing improvement of its financial position. While the financial health of a number of China's large banks needs further improvement, we expect sustained efforts at financial reforms to reduce the associated risks markedly in the coming years. The key weakness in China's credit profile remains the inability of policy makers to rely predominantly on bottom-up market- oriented instruments for macroeconomic management. Instead, policy makers have preferred to manage the economy using top- down administrative measures. "The ratings on China could rise if its leadership embraces market-based policies more readily, or if the government strengthened public finances further," Mr. Tan concluded. ========= I N D I A ========= AES CORP: Finalizes Joint Dev't. & Equipment Pact with Altair ------------------------------------------------------------- The AES Corporation has finalized a joint development and equipment purchase agreement related to Altairnano's battery technology and energy storage products with Altair Nanotechnologies Inc. Earlier this year, AES completed a US$3-million strategic investment in Altairnano. Under the terms of the deal, Altairnano and AES will jointly develop a suite of energy storage solutions specifically for AES. These energy storage products are expected to deliver in excess of one megawatt of power and 500-kilowatt hours of energy. Altairnano is working with AES to apply these products and systems at strategic points within the electrical grid to more efficiently deal with congestion, peak energy consumption, and real-time fluctuations in electricity demand. The quick response time, extended life, and power profile of the Altairnano batteries and energy storage products are well suited to improving performance in these areas with lower environmental impact than traditional generation solutions. Delivery to AES of the prototype Altairnano energy storage products is scheduled for the end of the year. "This agreement demonstrates the unique product performance of Altairnano's technology to improve the operation of the electrical grid, one of the most critical infrastructures in the world," said Altairnano President and Chief Executive Officer Alan J. Gotcher, PhD. "We are very proud to work with the AES Corporation in these market applications and we look forward to jointly creating solutions for their businesses around the globe." About Altair Nanotechnologies Altairnano -- http://www.altairnano.com/-- is an innovator and supplier of advanced novel, ceramic nanomaterials. A seasoned management team complements Altairnano's leading edge scientists, with substantial experience in commercializing innovative, disruptive technologies. The company has developed nanomaterials for the alternative energy, life sciences and performance materials markets based on its proprietary manufacturing process. This process also provides the foundation for its innovative AHP pigment process. Altairnano is a manufacturer of advanced battery pack systems which are used in stationary power applications and electric and hybrid- electric vehicles. About AES AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES Corp.'s Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * 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. GENERAL MOTORS: Deal Hits Snag as Firms Shelve US$3.1B Debt Sale ---------------------------------------------------------------- General Motors Corp.'s plan to sell Allison Transmission is facing a major hurdle after Wall Street firms postponed a sale of US$3.1 billion in loans that would pay for the leveraged buyout of the unit by private-equity firms, the Wall Street Journal relates. The TCR-Europe reported on July 2, 2007, that GM had reached a definitive agreement to sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for about US$5.6 billion. The deal is being financed by US$3.5 billion in corporate loans and US$1.1 billion in junk bonds. Allison is expected to have debt that represents about seven times its annual cash flow, according to Standard & Poor's Leveraged Commentary & Data, WSJ notes. Underwriters that include Citigroup, Lehman Brothers and Merrill Lynch were planning to sell, or syndicate, US$3.1 billion of the loans to investors, the report says. The firms will now try to distribute the loan among a small group of banks, WSJ quotes a person familiar with the matter as saying. Investors have been avoiding sales of junk bonds and similarly rated corporate loans for several weeks. Debt investors have become more cautious after seeing the losses that have struck bonds backed by risky subprime mortgage debt, WSJ states. The snag reflects difficult conditions in the market for risky corporate loans and bonds and raises questions about the prospects of other buyout-related debt financings that need to be completed this summer, Serena Ng and Gina Chon of WSJ observe. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries, including Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. GENERAL MOTORS: Seeks Concessions as Labor Talks With UAW Start --------------------------------------------------------------- General Motors Corp. and Ford Motor Company officially opened contract negotiations with the United Auto Workers on Monday, seeking to win concessions that would reduce labor costs as they grapple with rising health care expenses and stiff competition, particularly from Japanese carmakers, Reuters reports. DaimlerChrysler AG unit Chrysler Group started labor talks with the UAW on Friday. The TCR-Europe reported on June 14, 2007, that the car companies are trying to deal with health care costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits. The difference is made even more significant by higher pensions and retiree health care costs. Many analysts expect the UAW to consider establishing a union- aligned trust fund for retiree health care, if it can reach an agreement with the automakers on how fully to fund it. GM and Ford hourly labor costs -- US$73.26 and US$70.51, respectively -- are about US$30 an hour higher than those paid by Japanese competitors operating U.S. plants, Reuters states, referring to data compiled by the automakers. The UAW's current four-year contract with the "Big Three" automakers expires September 14, 2007, Reuters relates. UAW President Ron Gettelfinger said a strike was still possible if the parties could not reach an agreement. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries, including Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. HAYES LEMMERZ: Names Fred Bentley as Chief Operating Officer ------------------------------------------------------------ Hayes Lemmerz International Inc. has appointed Fred Bentley to the new position of Chief Operating Officer of Hayes Lemmerz and President of the company's Global Wheel Group. In assuming the new Chief Operating Officer position, Mr. Bentley will be responsible for all of the company's manufacturing and business unit operations. Mr. Bentley will continue to report to Curtis J. Clawson, President, Chief Executive Officer and Chairman of the Board. Mr. Bentley joined the company in 2001 and most recently served as Chief Operating Officer and President of the company's Global Wheel Group. Prior to that, he was President of the Company's International Wheel Group and also President of its Commercial Highway and Aftermarket Group. Mr. Bentley has led strategic expansions in Brazil, Thailand, India, Turkey, Mexico and the Czech Republic, where the Company has realized significant growth. He has successfully undertaken various restructuring activities to move the wheel business from regional segments to the creation of a global group. As a result, annual sales in the international wheel business have increased from US$822 million in fiscal 2003 to US$1.3 billion in fiscal 2006 and annual global wheel sales have significantly increased over the past two years. Immediately prior to joining Hayes Lemmerz, Mr. Bentley served as Managing Director for Honeywell's Holts European and South Africa automotive aftermarket operations. He has also held leadership positions of increasing responsibility with AlliedSignal and Frito-Lay. Mr. Bentley earned his Bachelor of Science degree in Industrial Engineering from the University of Cincinnati, in Ohio. He holds a MBA from the University of Phoenix, has completed the Advanced Management program at Harvard University and is a Six Sigma Black Belt. In conjunction with Mr. Bentley's appointment, Hayes Lemmerz announced that it has simplified the management reporting structure of its operating businesses. As part of this move, Daniel M. Sandberg, President of the company's Automotive Components Group will now report to Mr. Bentley. Mr. Sandberg, who is also Vice President, Global Materials and Logistics, will continue to report to Mr. Clawson in this role. "With the recent completion of our balance sheet restructuring and divestiture of our suspension and MGG businesses, it was appropriate to rethink how the Company operates," said Mr. Clawson. "The moves announced today are designed to facilitate the Company's growth plans over the next several years. Fred's understanding of Hayes Lemmerz' core wheel business, strategic growth plans and the challenges faced by today's suppliers, will strengthen Hayes Lemmerz as we continue to grow our world presence. The resulting management structure will be streamlined, flexible and efficient." Mr. Clawson added, "We don't foresee any significant changes in the structure of the Automotive Components Group, as a result of this change." "I am enthusiastic about this opportunity," Mr. Bentley said. "This move makes strategic sense for our business, which we have substantially restructured over the past two years. This new organizational structure will enable us to better integrate the talented resources that we have in both our wheel and non-wheel businesses, and take both businesses to the next level." Headquartered in Northville, Michigan, Hayes Lemmerz International Inc. (Nasdaq: HAYZ) -- http://www.hayes- lemmerz.com/ -- global supplier of automotive and commercial highway wheels, brakes and powertrain components. The company has 30 facilities and approximately 8,500 employees worldwide. The company has operations in India, Brazil and Germany, among others. * * * As reported in the Troubled Company Reporter on May 4, 2007, Moody's Investors Service raised to B3 from Caa1 the corporate family and probability of default ratings of HLI Operating Company, Inc., a wholly owned subsidiary of Hayes Lemmerz International, and changed the rating outlook to stable from negative. STATE BANK OF INDIA: Board to Meet Tomorrow for 1st Qtr. Results ---------------------------------------------------------------- The State Bank of India's board of directors will hold a meeting tomorrow, July 28, 2007, to take on record the unaudited working results of the bank for the first quarter ended June 30, 2007, the bank informed the Bombay Stock Exchange in a regulatory filing. According to a separate BSE filing, the bank has schedules the general meeting of its shareholders on Sept. 4, 2007. During the meeting, the shareholders will transact these business: 1. To elect two directors to the centre board of the bank under the provisions of Section 19 (c) of the State Bank of India Act, 19555. 2. The first vacancy of shareholder director arises since the term of Shareholder Director Ajay G. Piramal expires on Aug. 3, 2007. The second vacancy has arisen on account of resignation of M. S. Swaminathan on April 11, 2007. Further, M. S. Swaminathan was elected in place of Director I. G. Patel, from Sept. 15, 2005, to Aug. 31, 2007. The terms of the two directors elected against the above vacancies will be for a period of three years from Sept. 5, 2007, to Sept. 4, 2010. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed US$225 million Hybrid Tier I perpetual notes under its US$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime Financial Strength Rating in June 2006. TATA MOTORS: To Start Russian Joint Venture With Iveco ------------------------------------------------------ Tata Motors Limited is working on a joint venture with Iveco S.p.A. to put up a manufacturing base for commercial vehicles in Russia, Ajoy K. Das of India's Daily News & Analysis reports. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 23, 2007, Tata Motors and Iveco signed a Memorandum of Understanding to analyze the feasibility of cooperation, across markets, in the area of commercial vehicles. The MoU encompassed a number of potential developments in engineering, manufacturing, sourcing and distribution of products, aggregates and components. Shortly after signing the MoU signature, Iveco and Tata Motors set up a joint steering committee to determine the feasibility of cooperation. Currently, DNA relates, the two companies have separate commercial bases in the form of distribution arrangements in Russia. Although the tie-up is yet to be worked on, the Russian venture is expected to be a 50:50 partnership between Tata Motors and Iveco, the news agency said citing unnamed officials of Tata Motors. A "definitive agreement" between the two companies will precede before work on the venture gets underway, DNA's sources said. According to DNA, Tata Motors and Iveco have the entire range of light, medium and heavy commercial vehicles, as also Daewoo branded commercial vehicles in their portfolio. Tentative plans, however, reveals that medium and heavy commercial vehicles will be the focus for the Russian base, at least initially, DNA adds. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA MOTORS: Shortlisted in Bid for Jaguar and Land Rover --------------------------------------------------------- Tata Motors Ltd has made it to the list of selected bidders for final consideration in the race for Ford Motor Co.'s Jaguar and Land Rover, reports say. The Economic Times, citing unnamed auto industry sources, says that the shortlisted bidders have started the process of appointing advisors and are likely to meet Ford officials and the management of Jaguar and Land Rover over the next one week. IBN Live believes Tata Motors is facing fierce competition from United States firms. American private equity firm, TPG Capital is eyeing the car brands and is in fact a strong contender for the bid, IBN states. Aside from TPG and Tata Motors, The Financial Times says bidders also include Ripplewood Holdings, One Equity Partners, Cerberus Capital Management, and India's Mahindra & Mahindra. Ford is expected to ask for binding offers by September, and aims to complete the sale by the end of the year. Merrill Lynch analysts have evaluated Jaguar and Land Rover at around US$1.5 billion but consultants are now estimating it to cost between US$2 billion to US$3 billion, ET relates. The deal, however, is still far from being clinched, the news agency adds, citing sources close to the development as saying. Ford told the Indian ET that a sale would seek to ensure that Jaguar/Land Rover has the ownership and technology and investment structure it needs to allow it to reach its full potential. Ford Chief Executive Alan Mulally told the Financial Times that the carmaker was open to different options including retaining a minority stake in both operations, adding that he prefers sell the two brands jointly as they were so highly integrated. Ford on Thursday released second quarter results, showing a turn around with a profit of US$750 million compared to a loss of US$317 million in the same period last year. After posting seven quarters of consecutive losses, Ford finally swung to a profit in the second quarter, albeit aided by a slew of cost cuts, rather than roaring new sales," Evelyn M. Rusli of Forbes.com notes. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. * Fitch Sees Indian Two-Wheeler Finance Environment Weakening ------------------------------------------------------------- Fitch Ratings says the business environment surrounding retail two-wheeler financing in India has weakened and is currently reflected in the increasing delinquency across rated pools. The 180+days past due reached as high as 6% of original principal outstanding in some of the pools, compared to a maximum of 3.6% in 2006. "Intense competition in the segment and rural expansion has led to looser criteria for advancing loans. This has resulted in deterioration in the credit quality of the portfolios," noted Peeyush Pallav, Associate Director at Fitch Ratings India. "The two-wheeler finance transactions have performed in a satisfactory manner with regard to senior rated pass-through certificates, owing to cherry-picking of portfolios, sound transaction structures, and adequate credit enhancements." Fitch has rated six pools originated by Centurion Bank. The 180+ dpd delinquencies for these six deals have ranged from 0.1% to 1.24% of POS. The collection performance of all the Centurion deals is stable. On average, the cumulative collection efficiency has been around 96% for all transactions. Cumulative prepayments have been in the range of 4.5% to 9%. Fitch has also rated seven transactions for TVS Finance and Services Ltd. The deals have shown weaker performance. For all seven transactions, 180+ dpd delinquencies range from 2% to 6% as a percentage of original POS. CCE for some of the transactions has shown weak performance at 85%, compared with a CCE of around 90% for others. Monthly prepayments are in the range of 8.5% to 12.5%. The ongoing transaction performance analysis forms an integral part of the ratings process. Clear and timely reporting is essential for assessing current performance and for forming an accurate credit view. Hence, for active monitoring, Fitch has developed a surveillance process, where the impact of key performance indicators such as delinquencies, prepayment rates, collection efficiency, interest rate movements, and credit enhancement utilisation are examined. The agency ultimately assesses the impact of such indicators on the timely repayment of interest and principal for the pass-through certificates on an ongoing basis, to ensure that the level of protection available to pass-through certificates investors is commensurate with the rating level assigned to the notes. The agency has formulated an Indian ABS 180+ delinquency index for various asset classes with loans which are 180+ days in arrears. The index is based on the weighted-average delinquency rates. The report, "Two Wheeler ABS Performance", is available on public Web sites, http://www.fitchindia.comand http://www.fitchratings.com * Fitch: Personal Loans Pools Show Increased Delinquencies ---------------------------------------------------------- Fitch Ratings says personal loan pools in India have shown a higher delinquency compared to other asset categories. The underlying pools of personal loans have shown weak performance, with about 5.5% of the original pool being over 90+days past due delinquent. "Personal loans are unsecured lending; borrowers don't usually specify the purpose for taking these loans. These are typically unproductive usage loans and usually do not generate an income stream," says Peeyush Pallav, Associate Director at Fitch Ratings India. Fitch monitors closely the key performance parameters for two personal loans-backed transactions originated by ICICI Bank. They include the 90+dpd and 180+dpd prepayments, collection efficiency and charge-offs. These transactions have performed satisfactorily on account of their structures (e.g. chargeoff at 120+dpd to minimise the cost of carry on account of defaulted assets), and adequately sized credit enhancements. However, the underlying pool of personal loans has shown weak performance, with about 5.5% of the original pool being over 90+dpd delinquent. The 180+dpd portion of the pool comprises about 4.2% of the original principal outstanding. The ongoing transaction performance analysis forms an integral part of the ratings process. Clear and timely reporting is essential for assessing current performance and for forming an accurate credit view. Hence, for active monitoring, Fitch has developed a surveillance process, where the impact of key performance indicators such as delinquencies, prepayment rates, collection efficiency, interest rate movements, and credit enhancement utilisation are examined. The agency ultimately assesses the impact of such indicators on the timely repayment of interest and principal for the pass-through certificates on an ongoing basis, to ensure that the level of protection available to PTC investors is commensurate with the rating level assigned to the notes. The agency has formulated an Indian ABS 180+ delinquency index for various asset classes with loans, which are 180+ days in arrears. The index is based on the weighted-average delinquency rates. The report "Personal Loans ABS Performance" is available on public websites, http://www.fitchindia.comand http://www.fitchratings.com * India's 2007 Auto ABS Performance Stable, Fitch Says ------------------------------------------------------ Fitch Ratings, on July 26, says Indian ABS transactions continue to perform well in 2007, particularly in auto loans where delinquencies have been low. The delinquencies in auto ABS pools are in the range of 0.4% to 0.5% of original principal outstanding. The pools have demonstrated high collection efficiencies, with a cumulative collection efficiency of about 99%. "The short tenure of auto loan transactions, the strong performance and innovative structural features, which cater to various investor requirements, have helped generate significant demand for auto ABS," says Peeyush Pallav, Associate Director at Fitch Ratings India. Fitch has rated two transactions originated by ICICI Bank. The 180+ days past due delinquencies for these two transactions have ranged from 0.4% to 0.5% of POS. The collection performance for both transactions is stable. On average, the cumulative collection efficiency has been around 99% for all transactions. Cumulative prepayments are in the range of 12% to 19%. The agency has also rated one transaction for HDFC Bank. It has shown equally strong performance. In the transaction, the 180+dpd delinquencies have also ranged from 0.3% to 0.4% as a percentage of POS. The cumulative collection efficiency for the transaction is in the range of 99% to 100%. Cumulative prepayments are in line with industry standards and are in the range of 14%. The ongoing transaction performance analysis forms an integral part of the ratings process. Clear and timely reporting is essential for assessing current performance and for forming an accurate credit view. Hence, for active monitoring, Fitch has developed a surveillance process, where the impact of key performance indicators such as delinquencies, prepayment rates, collection efficiency, interest rate movements, and credit enhancement utilisation are examined. The agency ultimately assesses the impact of such indicators on the timely repayment of interest and principal for the pass-through certificates on an ongoing basis, to ensure that the level of protection available to PTC investors is commensurate with the rating level assigned to the notes. The agency has formulated an Indian ABS 180+ delinquency index for various asset classes with loans, which are 180+ days in arrears. The index is based on the weighted-average delinquency rates. The report "Auto ABS Performance" is available on public websites, http://www.fitchindia.comand http://www.fitchratings.com * Fitch Says Commercial Vehicle ABS Performance Improved --------------------------------------------------------- Fitch Ratings says the business environment surrounding retail commercial vehicle financing in India has improved this year as oil prices eased while the freight index rose, reversing the downtrend in 2005-2006. This has improved the underlying economics for transport operators, which has resulted in lower delinquencies. "Unlike the retail car loan market, which is considered low- risk, the commercial transport asset segment is considered to be higher-risk, due to the type of the end-use for which the asset is applied and the non-salaried nature of borrowers," says Peeyush Pallav, Associate Director at Fitch Ratings India. Fitch has rated five commercial vehicle pools securitised by CFIL. The 180+ days past due delinquencies for these five deals were below 1.5% of original principal outstanding, lower than the 1.7% observed in March 2006. On average, the cumulative collections efficiency has been around 98% for all deals. Cumulative prepayments are in the range of 8% to 12%. Fitch has rated one construction equipment transaction for SREI Infrastructure Finance Ltd. The deal has shown stable performance. As per the data reported, there are no 180+ dpd delinquencies The ongoing transaction performance analysis forms an integral part of the ratings process. Clear and timely reporting is essential for assessing current performance and the forming of an accurate credit view. Hence, for active monitoring, Fitch has developed a surveillance process, where the impact of key performance indicators such as delinquencies, prepayment rates, collection efficiency, interest rate movements, and credit enhancement utilisation are examined. The agency ultimately assesses the impact of such indicators on the timely repayment of interest and principal for the pass-through certificates on an ongoing basis, to ensure that the level of protection available to PTC investors is commensurate with the rating level assigned to the notes. The agency has formulated an Indian ABS 180+ delinquency index for various asset classes with loans, which are 180+ days in arrears. The index is based on the weighted-average delinquency rates. The report "Commercial Vehicle ABS Performance" is available on public websites, http://www.fitchindia.comand http://www.fitchratings.com ================= I N D O N E S I A ================= ALCATEL-LUCENT: Receives Certificate From Quality Management ------------------------------------------------------------ Alcatel-Lucent's W-CDMA portfolio has received the TL 9000 Certification from the Quality Management Institute, an accredited QuEST Forum TL 9000 registrar. TL 9000 standards establish a common set of quality management requirements and measurements for telecommunications hardware, software and services. This TL 9000 certification -- achieved just months after the completion of the Alcatel-Lucent merger and its acquisition of Nortel's W-CDMA assets -- highlights the speed and success of the integration of three distinct portfolios into one of the industry's most comprehensive and high-quality W-CDMA product lines. The certification also provides validation that the integration of processes, systems and practices will help ensure that the portfolio offers best-in-class reliability and quality. "This certification represents a tremendous achievement for Alcatel-Lucent's wireless business," said Alain Biston, president of Alcatel-Lucent's W-CDMA activities. "It is no small feat to bring together three different portfolios and organizations, with locations around the world, in such a short time-frame. The fact that we were able to successfully complete this rigorous certification program so quickly is a testament to our unwavering commitment to delivering quality for our customers." TL 9000 certification covers a wide array of business functions, including end-to-end sales, marketing, business development, product management, program management, design, technology introduction, quality and post-sales support activities. Products covered under Alcatel-Lucent's W-CDMA TL 9000 certification included radio access base transceiver stations, radio network controllers and network management system offerings. The audit also included business practices at Alcatel-Lucent facilities around the world that support the W- CDMA portfolio. Through the TL 9000 certification process, Alcatel-Lucent was able to confirm that quality system and operations designed to ensure the reliability of the W-CDMA portfolio were maintained and in some cases strengthened during the integration process. The TL 9000 standards build on International Standards Organization's 9001 standards, incorporating additional requirements and defining a set of quality measurements for field-deployed products. The TL 9000 standard was developed by the QuEST Forum, an industry group made up of telecommunications companies including service providers, infrastructure vendors, second- and third-party suppliers and liaison bodies. The certification process helps ensure that communications networks provide a high-quality experience for end-users. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BANK DANAMON: Posts IDR1.02-Tril. Net Profit for 1st Half 2007 -------------------------------------------------------------- PT Bank Danamon Indonesia Tbk's first-semester consolidated net profit is up 83% to IDR1.020 trillion, compared with the figure recorded for the same period in 2006, The Jakarta Post reports. The Post says that the rise in net profit is due to the 20% year-on-year rise in lending. According to the report, the bank's lending is IDR46.394 trillion in the first semester, caused by loans disbursed to micro, small and medium-sized enterprises. The increase in net profit was also supported by a rise in net interest income, which rose by 29% from IDR2.618 trillion in the first semester in 2006 to IDR3.381 trillion this year, the report says. The Post notes that the bank's operating income in the first semester also increased 35% to IDR4.423 trillion from IDR3.269 trillion last year. The bank's earnings per share also increased from IDR113.64 in the first half of 2006 to IDR204.87 in the current period. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on May 8, 2007, that Moody's Investors Service published the rating results for Indonesia's PT Bank Danamon Indonesia Tbk as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. The specific ratings changes are as follows: * BFSR is changed to D with a positive outlook from D- -- This action also concludes a review for possible upgrade on the BFSR initiated on July 4, 2006 * Foreign Currency Deposit Ratings are unchanged at B2/Not Prime * Foreign Currency Debt Rating for subordinated obligations is unchanged at Ba3. -- Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings affirmed all the ratings of Bank Danamon: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA-(idn)' (AA minus(idn)) * Individual 'C/D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. FREEPORT-MCMORAN: 2007 2nd Quarter Profit Triples to US$1.1 Bil. ---------------------------------------------------------------- Freeport McMoRan Copper & Gold Inc.'s 2007 second-quarter profit tripled due to the increase in metal prices and the acquisition of Phelps Dodge, Reuters reports. According to Reuters, the company's net earnings rose to US$1.1 billion from the US$367 million net earnings recorded in the corresponding quarter in 2006. Freeport's revenue quadrupled to US$5.81 billion from US$1.42 billion, which figure includes earnings and production from Phelps Dodge. Phelps Dodge was acquired by Freeport in March, the report recounts. Reuters relates that the company earned US$2.70 per share, excluding the charges to extinguish debt, and the 5 cents per share gains from sale of marketable equity securities. The second-quarter results also included charges of 18 cents per share for noncash mark-to-market accounting adjustments on Phelps Dodge's copper price protection programs, the report says. Steve James of Reuters relates that the company, which has a vast gold mine in Indonesia, disclosed a consolidated sale from its mine totaling to 1 billion pounds of copper, 913,000 ounces of gold and 15 million pounds of molybdenum in the second quarter. Freeport expects third-quarter sales of 900 million pounds of copper, 125,000 ounces of gold and 16 million pounds of molybdenum. Full-year 2007 consolidated sales are estimated at about 3.9 billion pounds of copper, 2.1 million ounces of gold and 68 million pounds of molybdenum, the report adds. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. * * * As reported in the Troubled Company Reporter- Asia Pacific reported on Jul 16, 2007, that Fitch Ratings upgrades these ratings of Freeport-McMoRan Copper & Gold Inc. FCX -- US$1 billion Secured Bank Revolver to 'BB+' from 'BB'; -- 6.875% secured notes due 2014 to 'BB+' from 'BB'; -- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-'; -- 7% convertible notes due 2011 to 'BB' from 'BB-'. In addition, Fitch affirms these ratings on FCX: -- Issuer Default Rating at 'BB'; -- US$500 million PT Freeport Indonesia/FCX Secured Bank Revolver at 'BBB-'; -- Convertible Preferred Stock at 'B+'. Fitch also assigns a rating of 'BB+' to FCX's new US$2.45 billion five-year term loan A. Proceeds of the loan were used to repay the US$2.45 billion remaining under the term loan due March 2014. The term loan amortizes at 10% per annum with the remainder due at maturity. The Rating Outlook remains Positive. On March 29, 2007, Moody's Investors Service upgraded Freeport- McMoRan Copper & Gold Inc.'s or Freeport's corporate family rating to Ba2 from Ba3. As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services assigned its 'B' preferred stock rating to the proposed US$2.5 billion US6.75% mandatory convertible preferred stock offering of Freeport-McMoRan Copper & Gold Inc. MEDCO ENERGI: Discovers Potential Oil Reserves in Libya ------------------------------------------------------- PT Medco Energi Internasional Tbk discovered a potential reserve in Libya -- the oil reserve in the Area-47 Block in Ghadamesh -- Antara News reports. The report relates that Medco Director Rashid I Mangunkusuomo said that they expect the block to produce 50,000 barrels of crude oil a day when it comes on stream in 2009. Mr. Mangunkusuomo explained that the discovery is very significant to the company since the reserve production is almost the same as Medco's 54,000-barrels daily output in Indonesia, the report relates. The report adds that Medco, investing around US$50 million for explorations excluding the price for the acquisition stake, has a 50% spilt in the project with Canada's Vernex Energy Inc as the operator holding the remaining 50 per cent. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). PANIN BANK: 2007 First-Half Net Profit Up 60% to IDR464 Billion --------------------------------------------------------------- PT Bank Pan Indonesia Tbk's 2007 first-half net profit increased 60% to IDR464 billion due to a sharp growth in net interest, Antara News reports. According to the report, the net interest income rose up 62% to IDR1.19 trillion, while the bank's non-interest income was IDR392 billion. Roosniati Salihin, Bank Panin Vice President, said that the bank is set to increase the portion of its fee-based income to 35% of its total income since, currently, interest income dominates the bank income by 75%, with fee based income making up only 25 per cent, the report says. Antara adds that Bank Panin's assets increased to IDR44.59 trillion as of June 2007 from IDR33.45 trillion as of June 2006, while its loan to deposit ratio rose to 93.12% from 73.24%. About Panin Bank Headquartered in Jakarta, Indonesia, PT Bank Pan Indonesia Tbk's -- http://www.panin.co.id-- products and services include individual, which comprises saving products, consumer credit products, electronic products and service products corporate, and corporate, which consist of saving products, financial service products, loan credit, export and import products, electronic products and service products. The bank has investment in several public listed companies, including PT Clipan Finance Indonesia Tbk, PT Asuransi Multi Artha Guna Tbk and PT Panin Sekuritas Tbk. * * * A Troubled Company Reporter-Asia Pacific report on Feb 6, 2007, said that Moody's Investors Service revised the outlook from positive to stable of the long-term deposit rating of PT Bank Pan Indonesia Tbk, but maintained the stable outlook of its short-term deposit rating and the positive outlook of its bank financial strength: -- foreign currency long-term/short-term deposit of B2/Not Prime; and -- bank financial strength of D-. PERUSAHAAN LISTRIK: To Post IDR3.8-Trillion Net Profit in 2007 -------------------------------------------------------------- PT Perusahaan Listrik Negara is expected to post a net profit of IDR3.8 trillion this year due to lower production costs, The Jakarta Post reports. The report relates that Alhilal Hamdi, PLN chief commissioner, said that the anticipated profit return is caused by the firm's expectation to cut the cost of its fuel by IDR9 trillion to IDR42 trillion this year from last year's IDR51 trillion. Perusahaan has already partly switched from oil to coal since it is much cheaper, causing this year's coal purchases to increase to IDR8 trillion compared to last year's IDR6.4 trillion. Currently, 24% of PLN's total power plants are fired by oil- based fuels, the report says. The Post points out that Mr. Hamdi said that based on the company's official forecasts, the firm might book revenues of IDR8.7 trillion this year, the first time to book a profit in eighth years. The government will pay PLN a subvention of IDR33 trillion so as to allow it to cap the price of electricity for sale to households, which is IDR7.8 trillion more than the IDR25.8 trillion subvention the government paid the company in 2005, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service assigned a B1 senior unsecured rating to PT Perusahaan Listrik Negara's proposed U.S. dollar bond issuance. At the same time, Moody's has affirmed PLN's B1 corporate family rating and A1.id national scale rating. The outlook for all the ratings is positive, which is in line with the sovereign's positive outlook. Standard & Poor's Ratings Services also assigned its 'BB-' foreign currency rating and 'BB' local currency rating to PLN. The outlook on the ratings is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed U.S. ollar enior unsecured notes issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= ALL NIPPON: Expands Code-Share Agreement with Singapore Airlines ---------------------------------------------------------------- All Nippon Airways Co., Limited, and Singapore Airlines have filed for permission to increase their present code-sharing relationship to cover destinations in Asia, North America and Japan beyond the hub airports of Singapore Changi Airport and Tokyo Narita Airport, from September 1 this year. Five destinations in Japan, from the southernmost island of Okinawa to Sapporo in the north, as well as Chicago and Washington DC in the United States will be added to Singapore Airlines' network. Four cities in India, in addition to Jakarta and Johannesburg will be added to the ANA network. The two Star Alliance members began code-sharing on flights between Japan and Singapore in August 2004, at present covering 36 weekly flights operated by Singapore Airlines and 7 weekly flights operated by ANA. The expanded agreement will further enhance customer convenience, allowing them to fly to an increased number of destinations using just one flight code for their entire journey -- either NH for ANA flights, or SQ for Singapore Airlines flights. "We are delighted to work ever closer with our Star Alliance partner, the world renowned Singapore Airlines, to bring more choice to our customers," said ANA President & CEO, Mineo Yamamoto. "The timing of the expanded agreement is particularly fitting for ANA as it coincides with the start of our own flight to Mumbai, and allows us to simultaneously offer flights to multiple cities in the fast expanding Indian market." "The expansion of the codeshare agreement demonstrates the long- standing partnership between Singapore Airlines and ANA, our Star Alliance partner," said Mr Chew Choon Seng, Singapore Airlines' Chief Executive Officer. "We are confident that with our combined network, customers of both Singapore Airlines and ANA will enjoy the benefits of greater convenience and a wider range of travel options." A copy of the routes covered by the expanded relationship can be viewed for free at http://ResearchArchives.com/t/s?2045 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 June 28, 2007, that Standard & Poor's Ratings Services raised to 'BB+' from 'BB' its long-term corporate credit and senior unsecured debt ratings on All Nippon Airways Co. Ltd. due to the company generating more stable profits backed by its operational competitiveness, and the faster-than-expected improvement in its financial profile. The outlook on the long-term corporate credit rating is stable. BOSTON SCIENTIFIC: Moody's Cuts Sr. Unsecured Debt Rating to Ba2 ---------------------------------------------------------------- Moody's Investors Service downgraded the credit ratings of Boston Scientific Corporation. The company's senior unsecured debt rating was downgraded to Ba2 from Baa3 and its short term debt rating was downgraded to Not Prime from Prime-3. At the same time, Moody's assigned a Ba1 Corporate Family Rating to the company. The rating outlook is negative. This concludes Moody's rating review that was initiated on May 9, 2007. This rating action primarily reflects these concerns: (1) second quarter results continue to show lower than expected cash flows; (2) the lack of definitive action related to material asset sales, which could provide financial flexibility; (3) the potential for regulatory and litigation matters to further impinge on liquidity; and (4) the potential for covenant violations under its bank agreement over the next twelve months. "Boston Scientific's cash flows no longer comfortably support its high debt levels, resulting in a downgrade to below investment grade," Diana Lee, a Senior Credit Officer at Moody's said. "Persistent weakness in the DES market and inability to gain consistent traction in ICD sales contribute to Moody's concerns regarding the company's cash flows," said Lee. The negative outlook reflects concerns that uncertain sales recovery in key product lines and heightened competition in 2008 could contribute to even lower operating cash flows. The negative outlook also considers the possibility that Boston Scientific may face greater liquidity challenges as upcoming cash payments (including litigation, bank amortization and milestone payments) may occur at the same time that the company faces potential covenant violations. The US senior unsecured notes held at Boston Scientific Corporation are structurally subordinated to the (unrated) non- US bank debt held at its foreign subsidiary. Before this rating action, Moody's did not heavily weigh the issue of structural subordination in its rating of Boston Scientific's US senior notes; however, the effects of structural subordination are now reflected in the company's ratings because of the application of Moody's LGD Rating Methodology. Using our LGD analysis, the senior unsecured notes are now notched below the Ba1 CFR. Ratings assigned: * Boston Scientific Corporation: -- Ba1 Corporate Family Rating -- Ba1 PDR -- SGL-3 Speculative Grade Liquidity Rating Ratings downgraded: Boston Scientific Corporation: -- Sr. Unsecured Notes to Ba2, LGD5, 75% from Baa3 -- Senior Shelf to (P)Ba2 from (P) Baa3 -- Subordinated Shelf to (P)Ba2 from (P)Ba1 Short-term rating to Not-Prime from Prime-3 (This rating will be withdrawn subsequent to the downgrade.) Rating confirmed: Boston Scientific Corporation: -- Preferred Stock Shelf at (P)Ba2 Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional and cardiac rhythm management devices. The company has offices in Argentina, France, Germany, and Japan, among others. BOSTON SCIENTIFIC: To Explore Sale of Fluid Management Business --------------------------------------------------------------- Boston Scientific Corporation has intended to explore the sale of its fluid management business as part of the company's ongoing review of its portfolio of assets. The Boston Scientific fluid management business, formerly North American Medical Instruments Corp., produces a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures. A sale would be expected to include the business as well as the Company's facilities in Glens Falls, New York and Tullamore, Ireland. "As we have previously announced, we are conducting a comprehensive review of our non-strategic assets in an effort to focus resources on our core businesses and improve our financial strength," said Paul LaViolette, Chief Operating Officer of Boston Scientific. "One result of this review has been the initiation of a process to explore the sale of our fluid management business. This is a very strong business with market leadership, and we believe it has tremendous potential with the focused attention and resources of external ownership. We are in the early stages of discussions with several potential acquirers, and we expect the process to take a number of months." Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. Moody's Investors Service downgraded the credit ratings of Boston Scientific Corporation. The company's senior unsecured debt rating was downgraded to Ba2 from Baa3 and its short term debt rating was downgraded to Not Prime from Prime-3. BOSTON SCIENTIFIC: 2007 Second Quarter Sales Lowers by US$39 Mln ---------------------------------------------------------------- Boston Scientific Corporation reported that net sales for the second quarter of 2007 decreased US$39 million to US$2.1 billion, as compared to net sales for the second quarter of 2006. Net income for the second quarter of 2007 was US$115 million, on 1.5 billion weighted average shares outstanding. GAAP results for the second quarter of 2007 included net special charges of US$9 million, which consisted primarily of charges attributable to investment portfolio activity, integration of the Guidant acquisition and discrete tax items. Net loss for the second quarter of 2006 was US$4.2 billion. Results for the second quarter of 2006 included net special charges of US$4.541 billion. The second quarter 2007 operating results include the Company's Cardiac Rhythm Management and Cardiac Surgery businesses, which were acquired as part of Guidant on April 21, 2006. Worldwide sales of the Company's CRM group for the second quarter of 2007 were US$524 million, which included US$377 million of implantable cardioverter defibrillator sales, as compared to CRM sales of US$539 million for the first quarter of 2007, which included US$398 million of ICD sales. U.S. CRM sales for the second quarter of 2007 were US$332 million, which included US$253 million of ICD sales, as compared to U.S. CRM sales of US$349 million for the first quarter of 2007, which included US$273 million of ICD sales. International CRM sales for the second quarter of 2007 were US$192 million, which included US$124 million of ICD sales, as compared to International CRM sales of US$190 million for the first quarter of 2007, which included US$125 million of ICD sales. At June 30, 2007, the company's balance sheet showed US$31.3 billion in total assets, US$15.5 billion in total liabilities, resulting in US$15.8 billion in total stockholders' equity. "We made progress in a number of key areas during the quarter," said Jim Tobin, president and chief executive officer of Boston Scientific. "Most important, we made progress on quality throughout the organization, including the resolution of the CRM warning letter. Both the DES and CRM markets showed signs of stabilizing, but neither has returned to the level we believe they eventually will. We launched TAXUS Express2 in Japan, and we are off to a strong start in that market with impressive sales. Our Endosurgery group posted another solid quarter, with double-digit growth in all three of its businesses. Overall, we continue to move in the right direction." Guidance for Third Quarter 2007 The company estimates net sales for the third quarter of 2007 of between US$2 billion and US$2.1 billion. The company estimates EPS on a GAAP basis of between US$0.03 and US$0.08 per share. In the past, the reconciliation between GAAP and adjusted EPS has excluded net special charges, amortization and stock compensation expense. Beginning in the third quarter, the company will exclude only acquisition-related charges and amortization expense. Using this definition, the company estimates adjusted EPS to range between US$0.12 and US$0.17 per share for the third quarter. Using this definition, adjusted EPS for the second quarter would have been US$0.16 per share. About Boston Scientific Based in Natick, Massachusetts, Boston Scientific Corporation, (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices, specializing in a broad range of interventional and cardiac rhythm management devices. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. Moody's Investors Service downgraded the credit ratings of Boston Scientific Corporation. The company's senior unsecured debt rating was downgraded to Ba2 from Baa3 and its short term debt rating was downgraded to Not Prime from Prime-3. ELAN CORP: Seeks Re-Examination of Negative Opinion on TYSABRI -------------------------------------------------------------- Elan Corporation plc and Biogen Idec have been informed by the European Medicines Agency that the Committee for Medicinal Products for Human Use has adopted a negative opinion on the marketing application for the use of natalizumab in patients with Crohn's disease. In accordance with European regulations, Elan and Biogen Idec plan to apply for a re-examination of the negative opinion through the appeal procedure. A decision on the appeal is expected by the first quarter of 2008. "Without natalizumab, European patients with severely active disease who failed other therapies and who are suffering from continuous symptoms may be offered surgery, with its potential complications, intravenous nutritional therapies or clinical trials with unproven experimental agents, depending upon on the patients' condition," Professor Jean-Frederick Colombel, University of Lille, said. "There is a need for new therapies for this very difficult disease." An application for approval of TYSABRI(R) (natalizumab) for treatment of moderate to severe Crohn's disease was filed in the US on Dec. 15, 2006. The FDA is holding an advisory committee to discuss the application on July 31, 2007. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. The company has locations in Bermuda and Japan. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors, Moody's Investors Service the rating agency confirmed its B3 Corporate Family Rating for Elan Corporation plc and assigned a B2 probability-of-default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Elan Finance plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$150M Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% US$850M 7.75% Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$465M 8.875% Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% As reported in the TCR-Europe on Nov. 13, 2006, Standard & Poor's Ratings Services assigned its 'B' rating to Elan Finance plc's proposed offering of US$500 million senior unsecured notes due 2013, to be issued in a combination of fixed and floating- rate notes. Outstanding ratings on Elan (including the 'B' corporate credit rating) and its related entities were affirmed. S&P said the ratings outlook is stable. FORD MOTOR: Seeks Concessions as Labor Talks With UAW Start ----------------------------------------------------------- General Motors Corp. and Ford Motor Company officially opened contract negotiations with the United Auto Workers on Monday, seeking to win concessions that would reduce labor costs as they grapple with rising health care expenses and stiff competition, particularly from Japanese carmakers, Reuters reports. DaimlerChrysler AG unit Chrysler Group started labor talks with the UAW on Friday. The TCR-Europe reported on June 14, 2007, that the car companies are trying to deal with health care costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits. The difference is made even more significant by higher pensions and retiree health care costs. Many analysts expect the UAW to consider establishing a union- aligned trust fund for retiree health care, if it can reach an agreement with the automakers on how fully to fund it. GM and Ford hourly labor costs -- US$73.26 and US$70.51, respectively -- are about US$30 an hour higher than those paid by Japanese competitors operating U.S. plants, Reuters states, referring to data compiled by the automakers. The UAW's current four-year contract with the "Big Three" automakers expires September 14, 2007, Reuters relates. UAW President Ron Gettelfinger said a strike was still possible if the parties could not reach an agreement. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. Ford has operations in Japan. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. MITSUKOSHI LTD: Denies Reports of Share Sale to Rival Isetan ------------------------------------------------------------ Mitsukoshi Ltd. denies reports that said it is planning to sell JPY80 billion worth of shares to rival Isetan Co. and other buyers, Stuart Biggs writes for Bloomberg News. According to the report, Mitsukoshi said in a statement to the Tokyo Stock Exchange on July 26, 2007, that the reports are based on "speculation and is not factual." However, Mitsukoshi said it may ask Isetan and the Mitsui group of companies to buy the shares with the proceeds to fund store renovations, writes Mr. Biggs, citing the Yomiuri newspaper. In a separate report by Mr. Biggs and Maki Shiraki of Bloomberg News, shares of Mitsukoshi rose the most in 16 months on July 25, 2007, to JPY587 or 7.5%, due to the merger reports with Isetan. However, as of July 26, 2007. 10:02 a.m., shares of Mitsukoshi fell to JPY1 at JPY586 on the Tokyo Stock Exchange. The Troubled Company Reporter-Asia Pacific reported on July 26, 2007, that both Mitsukoshi and Isetan said that no decision has been made yet on the merger. About Mitsukoshi Ltd. Mitsukoshi Ltd. was established through the merger of Mitsukoshi Ltd, Nagoya Mitsukoshi, Chiba Mitsukoshi, Kagoshima Mitsukoshi, and Fukuoka Mitsukoshi. The company operates department stores throughout Japan, selling clothing, food, household goods, cosmetics, and general merchandise. * * * Mitsukoshi Ltd. carries Standard & Poor's BB- Long-Term Foreign and Local Issuer Credit Ratings. Mikuni Credit Ratings gave the company a 'B' rating on its mortgage debt, and a 'B' rating on its senior debt. PAYLESS SHOESOURCE: Moody's Cuts Corporate Family Rating to B1 -------------------------------------------------------------- Moody's Investors downgraded the ratings of Payless ShoeSource, Inc., (corporate family rating to B1) and assigned a B1 to Collective Brands Finance, Inc.'s proposed US$750 million senior secured term loan B. The ratings outlook is stable. The downgrade reflects the substantial amount of debt (US$750 million) incurred to finance the acquisition of Stride Rite, which results in a deterioration of credit metrics. The downgrade also reflects the aggressive financing of the purchase price consisting of 80% debt. This rating action concludes the review for possible downgrade initiated on May 24, 2007. These ratings are downgraded: Payless Shoesource, Inc.: -- Corporate family rating to B1 from Ba3; -- Probability of default rating to B1 from Ba3; -- US$200 million 8.25% senior subordinated notes to B3(LGD6,94%) from B1(LGD4,64%). The following rating is assigned: Collective Brands Finance, Inc.: -- US$750 million senior secured term loan B at B1(LGD3,42%). The ratings are contingent upon the review of final documentation. On May 22, 2007 Payless announced the signing of a definitive agreement to acquire The Stride Rite Corporation for nearly US$800 million plus the assumption of Stride Rite's existing debt. The all cash offer of US$20.50 per share represents a 32% premium over Stride Rite's average stock price. Concurrent with the closing of the transaction, Payless intends to rename the company Collective Brands, Inc., and, as a holding company, will operate three standalone business units; Payless, Stride Rite, and Collective Licensing. The borrower under the US$750 million senior secured term loan will be an intermediary holding company; Collective Brands Finance, Inc. The B1 corporate family rating and stable outlook reflect the impact of the Stride Rite acquisition on Payless's capital structure and the additional stress it places on the company's management team. The Stride Rite acquisition makes strategic sense for Payless; it broadens the company's portfolio of brands, widens its price points, strengthens it market share in the children's footwear category, and provides the company with a wholesale presence. However, the acquisition significantly increases Payless's debt levels (from US$200 million to US$950 million) resulting in a deterioration in credit metrics. Moody's expects that Debt/EBITDA will likely not fall below 5.0 times for the next twelve months. The rating category also incorporates the size of the Stride Rite acquisition and the lack of experience of the Payless management team in integrating large acquisitions. In addition, the corporate family rating reflects the company's pragmatic financial policies as xemplified by the heavy debt component to finance the Stride Rite acquisition and the company's good liquidity provided by reasonable free cash flow generation and the proposed US$350 million asset based revolving credit facility (unrated) which will be put in place upon closing of the acquisition. The rating also considers the company's numerous strengths, notably its national footprint, credible market position, solid portfolio of brand names, and recent improvement in profitability to the same level as its peer group. However, the positive impact of these strengths on the rating category is constrained by the high business risk associated with the retail footwear segment, which includes a heavy fashion component, intense competition, and high execution risk. The ratings for the senior secured term loan B and the senior subordinated notes reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B1, and a loss given default of LGD 3 for the senior secured term loan B and LGD 6 for the subordinated notes. The rating on the term loan is at the same level as the corporate family rating as a result of it size and scale in the capital structure, its lack of full collateral coverage (which Moody's estimates to be nearly 37% deficient) as well as its seniority over the company's US$200 million senior subordinated notes. The US$750 million term loan has a first lien on all non-current assets and stock with a second lien behind the asset based revolving credit facility on accounts receivable and inventory. The senior subordinated note rating of B3, two notches below the corporate family rating, reflect its junior position in the capital structure as well as its relatively small size and scale when compared to the senior secured credit facilities (US$350 million ABL and US$750 million term loan B). Headquartered in Topeka, Kansas, Payless ShoeSource Inc. (NYSE:PSS) -- http://www.payless.com/-- is a family footwear specialty retailer with 4,605 retail stores, as of fiscal yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not open for operations. The Company's Payless ShoeSource retail stores in the United States, Canada, the Caribbean, Central America, South America and Japan sold 182 million pairs of footwear, in fiscal 2005. The Company operates its business in two segments -- Payless Domestic and Payless International. The Payless Domestic segment includes retail operations in the United States, Guam and Saipan. The Payless International segment includes retail operations in Canada; Puerto Rico; the United States Virgin Islands; Japan; the South American Region, which includes Ecuador, and the Central American Region, which includes Costa Rica, Guatemala, El Salvador, the Dominican Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago. SNOW BRAND: Moody's Lifts Long-Term Debt Rating to Baa3 from Ba2 ---------------------------------------------------------------- Moody's Investors Service has upgraded Snow Brand Milk Products Co., Ltd.'s long-term debt rating to Baa3 from Ba2. The rating outlook is stable. The ratings no longer incorporate subordination of the senior unsecured bonds to the company's secured bank debt. The rating action reflects Moody's view that the company's more stable operating base, cash flow, and capital structure, in addition to strengthening financial flexibility, have boosted its debt-servicing capabilities for the medium term. This action concludes the review initiated on May 16, 2007. Snow Brand improved profitability in the last 4 fiscal years until March 2007. Prospects for revenue and cash flow have become more stable, underpinned by management's cost-cutting policy, ability to pass on cost fluctuations through its products and its strong operating base. This outcome has been achieved despite deep changes in the global food market and steep rises in the cost of materials. Snow Brand has also reduced its interest-bearing debt and improved its capital structure. In the current fiscal year, it will complete a buy back of 80% of its Class C Preferred Stock and raise funds through a public equity offering. Furthermore, it is promoting sales of cheese and strengthening productivity in Hokkaido, including investments in its new Nakashibetsu cheese factory. These activities will temporarily raise debt, but Moody's considers the investment as a positive rating factor because it will help strengthen competitiveness and cash generation. In Moody's opinion, the company's debt level will be reduced over the medium term. In addition, Snow Brand's raw milk throughput capacity for the manufacture of cheese will grow to approximately 270,000 tons in FY2008, and it will continue to command the highest level of productivity in the Japanese market. Although domestic cheese consumption is increasing, other dairy companies aim to capture market share. Moody's will therefore monitor how the company maintains its strong position as well as improves profitability and cash flow through investments in production. Furthermore, the rating had factored in the subordination of senior debt towards collateralized bank loans. However, the ratings no longer incorporate subordination of the senior unsecured bonds to the company's secured bank debt. This is because the portion of collateralized loans in total debts has declined and, in Moody's opinion, it is highly likely to continue so. Snow Brand Milk Products Co., Ltd. Headquartered in Tokyo, is a leading dairy company in Japan. About Snow Brand Headquartered in Sapporo, Hokkaido, Snow Brand Milk Products Co., Ltd. -- http://www.snowbrand.co.jp/-- is principally engaged in the food industry. The company has three business segments. The Food Products segment is engaged in the production and sale of dairy and processed food products. The feedstuffs and Seeds segment is involved in the manufacture and sale of feedstuffs and crop seeds. The others segment is engaged in the provision of delivery services, the manufacture and sale of manufacturing materials, as well as the operation of restaurants and sales stores. ========= K O R E A ========= ILSUNG CONSTRUCTION: Signs Services Contract with Jeong Mu ---------------------------------------------------------- Ilsung Construction Co., Ltd., has signed a contract with Jeong Mu Industry Co., Ltd., to provide construction services, Reuters Key Developments reports. According to the report, the contract is worth KRW18,450,000,000. About Ilsung Construction Seoul, Korea-based Ilsung Construction Co., Ltd. -- http://www.ilsungconst.co.kr/-- specializes in the provision of construction and engineering services. The Company has five major divisions: Construction division, which constructs buildings, high-speed railways and condominiums; Engineering Works division, which builds highways, subways, tunnels, bridges and housing developments; Social Overhead Capital (SOC) division, which collects toll fees to recoup its investment in the construction of tunnels, environment and energy plants; Housing division, which constructs apartment, mansions and villas, and Gardening division, which constructs golf clubs, parks and landscape architecture. Korea Ratings gave the company's commercial papers a B+ rating on January 31, 2007. KENERTEC CO: Sings MOA for Terminal Warehouses Construction ----------------------------------------------------------- Kenertec Co., Ltd., signed a memorandum of agreement on July 25, 2007, with Posco Engineering & Construction, The Provincial Government Of Kalimantan Timur, PT Kereta Api, and PT Nuansa Cipta Coal Investment, for the construction of terminal warehouses and railway line for coal conveyance, Reuters Key Developments reports. On June 28, the report recalls, Kenertec, Posco Engineering & Construction and PT, Nuansa Cipta Coal Investment signed a Memorandum of Understanding on the strategic alliance. About Kenertec Co. Headquartered in Gyeongsangbuk Province, Korea, Kenertec Co., Ltd. -- http://www.kenertec.co.kr/-- is provides industrial burners and energy-related equipment. The company operates two main divisions: Furnace division, which provides regenerative combustion systems, including regenerative combustion industrial furnace burners, regenerative combustion radiant tube burners, regenerative combustion raddle burners, radiant combustion devices, direct heat-treatment burners, flat flame burners, turndish-heating burners, high-spray burners, low-nitrogen-oxide radiant tube burners, oxygen burners, flare stack burners and rotary kiln burners, and Energy division, which provides cogeneration systems, community energy systems and energy diagnosis equipment. Korea Ratings gave the company's convertible bond a BB rating on Jan. 30, 2007. SHINWHA INTERTEK: Converts First Convertible Bonds to Shares ------------------------------------------------------------ Shinwha Intertek Corporation's first convertible bonds have been converted to 35,925 shares, Reuters Key Developments reports. According to the report, the conversion price of the bond is KRW4,250 per share. This brings the total outstanding shares of the Company to 13,178,464, the report notes. Reuters points out that the confirmed listing date was July 26, 2007. About Shinwha Intertek Hwasung Kyonggi, South Korea-based Shinwha Intertek Corporation -- http://www.shinwha.com/main01_E.html-- is engaged in the manufacture and sale of adhesive tapes for the electronic, electronic equipment, architecture and other industry fields. Korea Ratings gave the company's convertible bonds a BB rating on Oct. 24, 2006. The company's commercial papers also carry Korea Rating's B rating effective Feb. 2, 2007. =============== M A L A Y S I A =============== ASIAN PAC: Enters MR23-Mil. Share Sale Pact With Safe Valley ------------------------------------------------------------ Asian Pac Holdings Berhad entered into a share sale agreement with Safe Valley Sdn Bhd to acquire the latter's entire issued and paid-up capital and freehold land for MYR22.8 million cash, The Edge reports. According to the report, MYR1,901,394 will be spent on the acquisition of the 100% equity interest in Safe Valley while another MYR20,915,334 is the cash consideration for the acquisition of four freehold land parcels with a combined area of 35,281 square metres in Setapak. Asian Pac will use internally-generated funds and/or bank borrowings, the company reportedly informed Bursa Malaysia in a regulatory filing. According to the company, the land will be used for property development. Currently, however, details of the development have yet to be finalized since it still needs regulatory approvals. About Asian Pac Kuala Lumpur-based Asian Pac Holdings Berhad -- http://www.asianpac.com.my/-- is principally engaged in investment holding, property development and investment. The Company operates in three segments: investment holding, which includes holding of quoted and unquoted shares for capital investment purposes; property investment and development, which includes investment in land and the development of residential and commercial properties, and trading of building materials. Asian Pac Holdings Berhad's projects are mainly located within Klang Valley in areas, such as Kepong and Desa Parkcity, and Kota Kinabalu, Sabah. The company's long-term debt carries Rating Agency Malaysia's BB3 rating. BB Ratings means inadequate safety for timely payment of interest and principal, and future cannot be considered as well assured. ==================== N E W Z E A L A N D ==================== NUPLEX INDUSTRIES: To Rollover Capital Notes -------------------------------------------- Nuplex Industries Limited discloses with the New Zealand Stock Exchange the rollover of its capital notes. Nuplex Industries will send, on Aug. 6, 2007, to the holders of its capital notes (NPX010) an election notice outlining the new terms of the notes that will apply from Sept. 17, 2007. The new terms of the notes are: * New Election Date: Sept. 15 2012 * New Interest Rate: 9.3% per annum * The Capital Notes will be known as 2012 Capital Notes. Interest dates, however, will not change. According to the company, the Election Notice enables noteholders to make an election to: -- retain all or some of their capital notes on the new terms; -- convert all or some of their capital notes into fully paid Nuplex shares (subject to Nuplex having the right to redeem or purchase those capital notes); -- sell all or some of their capital notes to other noteholders pursuant to a resale facility to be established; -- purchase further capital notes from other noteholders pursuant to a resale facility. The key dates for the election process are: * Aug. 1, 2007: Election Record Date. Noteholders on the register on this date will be sent an Election Notice. * Aug. 6, 2007: Election Notices to be issued. * Aug. 29, 2007: Election Notices must be returned to Computershare. * Sept. 3, 2007: Noteholders who elect to convert will be advised if Nuplex elects to exercise its option to redeem or purchase those notes. * Sept. 17 2007: Election Date. To facilitate the implementation of the process, a trading halt will be placed on Nuplex capital notes starting today, July 27, 2007, to Sept. 17, 2007. About Nuplex Industries Nuplex Industries Limited -- http://www.nuplex.co.nz/-- was founded in 1956 and is incorporated in New Zealand. The company is listed on both the New Zealand (NZX) and Australian (ASX) Stock Exchange. Nuplex produces and supplies technical materials used as inputs to a broad range of manufacturing processes. It also provides specialist building products. Nuplex has operations in Australasia, Asia, Europe, and The Americas, and reports in four business segments. According to Reuters, Nuplex is New Zealand and Australia's largest maker and distributor of resins and polymers for the paint, paper, and textile industries. It also bought a coating resins business in Holland. * * * The Troubled Company Reporter - Asia Pacific reported on its June 12, 2007 Distressed Bonds Column that Nuplex Industries Ltd.'s bond with a 9.300% coupon and which matures on Sept. 15, 2007, as trading at 8.75%. TRUSTPOWER LTD: First Quarter Net Profit Up 22% to NZ$32 Million ---------------------------------------------------------------- TrustPower Ltd's unaudited after tax surplus for the three months to June 30, 2007, was NZ$32.0 million, compared with NZ$26.2 million for the same period last year. The company pointed it out that the result for the period includes a reduction in tax expense of NZ$7.4 million attributable to a reduction to deferred tax liability arising from the change in the corporate tax rate from 33 per cent to 30 per cent effective from April 1, 2008. The company believes the adjustment to tax expense should be considered as one-off in nature. Earnings before Interest, Tax, Depreciation, Amortization, and adjustments for financial instruments were NZ$51.3 million versus NZ$53.4 million for the prior period, a decrease of 4.0 per cent. The reporting of the first quarter's results to June 30, 2007, represents the company's first reporting period in its transition to New Zealand equivalents to International Financial Reporting Standards. As part of this process, TrustPower is required to restate its opening balance sheet as at April 1, 2006, and provide comparative balances calculated under NZIFRS. As part of the transition to NZIFRS, the company has reviewed the lives of its generation assets. It has determined that the economic lives of a number of the company's civil structures should be extended. As a result, depreciation charges on these assets will be lower than in prior years. More financial detail in relation to the NZIFRS transition is provided in TrustPower's quarterly financial report which has been released to the New Zealand Stock Exchange. The first quarter trading environment was characterized by weak hydro inflows but also lower than average electricity spot prices. This was in contrast to the favorable trading conditions experienced by the company during the first quarter of the previous year when there were very good hydro inflows as well as above average wholesale spot prices for a prolonged period. TrustPower's own generation assets produced 483 GWh for the quarter versus 520 GWh in the prior period (a decrease of 7.0 per cent). While wind production was higher than the first quarter of the previous year, hydro generation was well down on long term average. TrustPower's hydro generation storage catchments have improved significantly during July which together with purchase contracts the company has in place, leaves it well positioned to meet customer demand over the remainder of the winter. Customer numbers have remained steady at around 219,000. Total electricity sold to customers in the quarter totaled 1,147 GWh compared with 1,196 GWh sold in the prior period. The company says its balance sheet remains strong. The ratio of debt to debt plus equity was 31.5 per cent as at June 30, 2007 up slightly from 30 per cent at the same time the previous year. The 93 MW expansion of the Tararua Wind Farm is close to commissioning with all turbines now operational. Final project cost is expected to be around NZ$174 million (including capitalised interest) which is well under budget. Construction on the 5 MW Waipori hydro enhancement has ceased over winter but remains on schedule for completion in December 2007. Provisional resource consent has been received for the 72 MW Wairau hydro generation scheme, in Marlborough. However, a further process is required to determine the specific conditions of the consent which are expected to be advised by the end of 2007. Once conditions have been finalized, subject to appeal, the company will be in a better position to assess project economics and the next steps to be taken in the development process. A resource consent hearing for up to 46 MW of hydro generation at Arnold, on the West Coast, has been delayed a couple of months and is scheduled to commence in November 2007. The resource consent hearing for the 200 MW Lake Mahinerangi wind project was completed in May and a decision is expected to be received shortly. Civil construction on the 88 MW Snowtown wind project in South Australia is progressing well and the project remains on schedule for commissioning by November 2008. The New Zealand Government has indicated that its National Energy Strategy will be released in around two to three months time and that the introduction of an emissions trading scheme is likely to feature. The Australian Government has recently reported that it plans to announce a long-term emissions reduction goal in 2008 after further analysis is completed. It has also announced the likely introduction of an emissions trading scheme based on a "cap and trade" model beginning 2011. At this stage, it appears that both the New Zealand and Australian Governments are heading towards pricing carbon into their respective economies which should be positive for the development of renewable generation, TrustPower says. However, until legislation is enacted, there will remain a high degree of market uncertainty with respect to generation investment. The result for the first quarter to June 30, 2007, was satisfactory given the lower than average level of hydro generation produced and lower spot electricity prices. While at this early stage of the financial year it is not possible to predict year end results, the directors are confident that the business fundamentals are sound, which augurs well for a satisfactory annual result. About TrustPower TrustPower Limited -- http://www.trustpower.co-- owns and operates 34 power stations and produces electricity exclusively from renewable sources. The company's power stations produce enough electricity for 260,000 Kiwi households. With assets of close to NZ$1.4 Billion, TrustPower is majority New Zealand owned and is listed on the New Zealand stock exchange. TrustPower's head office is in Tauranga, with regional offices in Auckland, Wellington, and Christchurch. * * * TrustPower Limited -- http://www.trustpower.co-- owns and operates 34 power stations and produces electricity exclusively from renewable sources. The company's power stations produce enough electricity for 260,000 Kiwi households. With assets of close to NZ$1.4 Billion, TrustPower is majority New Zealand owned and is listed on the New Zealand stock exchange. TrustPower's head office is in Tauranga, with regional offices in Auckland, Wellington, and Christchurch. * * * The Troubled Company Reporter - Asia Pacific, on July 24, 2007, listed TrustPower Ltd.'s bonds as distressed. The bonds have these coupon and maturity dates: Coupon Maturity Price ------ -------- ----- 8.300% 09/15/07 9.60 8.300% 12/15/08 9.05 8.500% 09/15/12 9.00 8.500% 03/15/14 8.80 WINDFLOW TECHNOLOGY: To Hold Shareholders Meeting on Oct. 24 ------------------------------------------------------------ Windflow Technology Ltd intends to hold its 2007 annual meeting of shareholders at 7:00 p.m., on Oct. 24, 2007, at Mancan House, Corner Cambridge Terrace & Manchester Street, in Christchurch. In that regard, the company discloses that the period for director nominations is now open. Any nominations should be forwarded to Windflow Technology Ltd, c/o HFK Limited, Unit 4/567 Wairakei Road, PO Box 5071, Christchurch, attention Michael Keyse. The closing date for receipt of nominations is 5:00 p.m., Sept. 21, 2007. Christchurch, New Zealand-based Windflow Technology Limited -- http://www.windflow.co.nz/-- is engaged in wind power development. As of June 30, 2006, the company held a 20% shareholding in Windpower Otago Limited. The principal activity of Windpower Otago Limited is the development of wind farms. During the fiscal year ended June 30, 2006 (fiscal 2006), Windflow Technology Limited, held a 42.99% shareholding in NZ Windfarms Limited. The principal activity of NZ Windfarms Limited is the development of wind farms. Its other subsidiaries and associates include Pacific Windfarms Limited, Wind Blades Limited and Windpower Maungatua Limited. The group incurred net deficits of NZ$2,215,478 and NZ$2,027,330 for the years ended June 30, 2006, and 2005, respectively (parent: NZ$2,081,278 and NZ$1,772,690, respectively.) ===================== P H I L I P P I N E S ===================== BANCO DE ORO: FPHC Executes US$100-Million Promissory Note ---------------------------------------------------------- The First Philippine Holdings Corp. executed a promissory note for US$100 million with Banco De Oro-EPCI Inc. as part of its effort to raise funds for acquisition of holdings in Manila Electric Co. According to a disclosure, FPHC is raising up to US$350 million for the MERALCO transaction. Banco de Oro-Equitable PCI Inc. is the result of a merger between Banco de Oro Universal Bank and Equitable PCI, with BDO as the surviving entity. * * * On June 1, 2007, Moody's Investors Service said it had withdrawn its ratings for Equitable PCI Bank following its merger with Banco de Oro Universal Bank. 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. * * * 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. MAYNILAD WATER: DMCI Seeks Maynilad's Early Exit from Rehab ----------------------------------------------------------- DMCI Holdings Inc. is seeking to have Maynilad Water Services Inc. exit financial rehabilitation this year instead of 2013 in order to access funds for its working capital requirements, DMCI Vice-President Herbert Consunji told the Philippine Star. DMCI is also infusing an additional US$20 million into its Metro Manila west zone concessionaire for the improvement of its water and waste services within the zone, in addition to its earlier US$60-million infusion in Maynilad, the article relates. According to the article, Ashmore Fund will put in US$20 million in fresh capital, and Singaporean firm Noonday Asset Management Group is expected to dish out US$14 million to acquire a 7.2% stake in Maynilad. With this, DMCI's stake will be reduced by 0.8 percentage points to 41.2%, while its partner, Metro Pacific Investment Corp., will hold a reduced stake of 31%. The Star recounts that the DMCI-MPIC consortium acquired the government's 84% holdings in Maynilad last year for US$503.9 million. The report notes that Mr. Consunji also said the consortium seeks to lower its non-revenue water performance to 55% for 2007. Maynilad Water -- http://www.mayniladwater.com.ph/-- was incorporated on January 22, 1997 as a joint venture between the Parent Company and Suez-Lyonnaise Des Eaux, now known as Suez Environnement, primarily to bid for the operation of the privatized system of waterworks and sewerage services of the Metropolitan Waterworks and Sewerage System for Metropolitan Manila. According to a report by the TCR-AP on November 19, 2003, the company filed for corporate rehabilitation with the Quezon City Regional Trial Court, saying it could not pay its debts following an international arbitration panel's decision regarding the early termination of Maynilad's water concession agreement with Metropolitan Waterworks & Sewerage System. On August 6, 2004, the Rehabilitation Court directed Maynilad Water to submit a revised rehabilitation plan based on a full draw of a US$120-million performance bond within a non- extendable 30-day period or until September 6, 2004. On September 9, 2004, Maynilad Water, its shareholders, MWSS, and the Department of Finance set out their intents in a Memorandum of Understanding relating to the restructuring of: -- the financial obligation of Maynilad Water with various banks; and -- the unpaid Concession Fees of Maynilad Water under the Concession Agreement. Debt Capital and Restructuring Agreement On April 29, 2005, Maynilad Water, its shareholders, bank creditors, and MWSS executed a debt capital and restructuring agreement to set out the terms and conditions of their understanding and to govern their respective rights and obligations in connection with the restructuring of the debt and capital of Maynilad Water. The DCRA provides, among others, the capital restructuring and restructuring of debt and concession fees of Maynilad Water, and will take effect upon the satisfaction of precedent conditions set forth in the DCRA, including Court approval. The Rehabilitation Court approved the DCRA on June 1, 2005, and the DCRA was effected on July 20, 2005. SAN MIGUEL: Must Decide on Power Asset to Invest In, PSALM Says --------------------------------------------------------------- San Miguel Corp. must decide whether it will invest in the generation assets or transmission assets of National Power Corp. since owning both assets violates the cross-ownership rule of the Electric Power Industry Reform Act of 2001, the Philippine Star reports, citing Power Sector Assets and Liabilities Corp. SMC President Ramon Ang had earlier confirmed the company's plan to bid for the 600-megawatt Masinloc and Calaca coal-fired power plants. Mr. Ang also said SMC is interested to bid for the National Transmission Corp.'s 25-year concession contract for the operation of the country's power transmission bid. "If they win a genco, they will have to divest their genco holding if they want to continue participation in TransCo or vice versa," the PSALM official stressed. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter-Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. The company's ratings have been placed on S&P's CreditWatch with a Negative outlook on May 17, 2007. SECURITY BANK: Plans To Expand Operations in Mindanao Area ---------------------------------------------------------- Security Bank Corp. is planning to expand its operations in key cities in Mindanao, including Davao, General Santos, Cagayan de Oro and Zamboanga, the Philippine Daily Inquirer reports, citing the bank's vice president for consumer lending, Ralp Cadiz. According to the report, the bank saw bright opportunities in the area for consumer lending, housing and automotive loans. Mr. Cadiz told the Inquirer that a large part of the PHP72-billion earning in auto loans nationwide comes from the Mindanao region, and pointed to the growing overseas Filipino worker population for contributing to the auto loan market. Makati City-based Security Bank Corporation -- http://www.securitybank.com.ph/-- offers a wide variety of financial products and services. The bank's services include peso, dollar and third currency deposits, domestic and international fund transfers, deposit pick-up and payroll services, and ancillary services. Security Bank also provides working capital financing, term arrangements and loan syndication services. Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign Currency Issuer Default Rating, a 'BB' Long-Term Local Currency Issuer Default Rating, a 'D' Individual Rating and a '4' Support Rating. * Continued Use of Coco Methyl Ester Could Result in Power Hike --------------------------------------------------------------- Sources within the power industry have indicated a possible rise in power rates in the next few months due to continued use of the 1% coco methyl ester blend in power generation, the Philippine Star reports. According to the Star, the sources said that industrial end- users of diesel oil, including power plants, noted an almost PHP1 per liter increase in diesel prices because of the CME blend. The power producers will have no choice but to pass these on to consumers through the generation rate adjustment mechanism in the bills, they said. Power producers are also having trouble blending CME with diesel, the sources added. Since its rollout last April, the CME blend, which is mandated under the Biofuels Act, has caused major problems in both power and transport sectors, the report says. According to the article, power plant owners have complained that the technology needed for efficient blending of CME and diesel would be expensive, and said that "these costs will have to be passed on to the consumers." * * * 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. * Government Remains Confident of Keeping PHP63BB Deficit Target --------------------------------------------------------------- The Philippine Government remains confident in meeting its PHP63-billion budget deficit target for 2007 despite predictions by Fitch Ratings that it will double to PHP125 billion, the Philippine Star reports. Fitch had earlier said that the Philippine Government has little chances of meeting its target because of disappointing results in its first half performance as the Government incurred a PHP41-billion deficit in the January to June period due to weak collections by the Bureau of Internal Revenue and the Bureau of Customs. The Government will continue to intensify revenue raising efforts in the second half, the report notes, citing a government official. The Government will also seek to cover any shortfall in tax collections from possible asset sales during the second semester. Furthermore, the Government expects to raise PHP100 billion from sales of assets in PNOC Energy Development Corp., Manila Electric Co. and San Miguel Corp. * * * 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 ================= ISP SERVICES: Declares First and Final Dividend ----------------------------------------------- ISP Services Pte Ltd, which is in liquidation, declared the first and final dividend on July 24, 2007. The company paid 18.038% to all received claims. The company's liquidator is: Tam Chee Chong 6 Shenton Way, #32-00 DBS Building Tower Two Singapore 068809 LEAR CORP: Terminated Agreement Cues S&P to Lift Rating to B+ ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Lear Corp. to 'B+' from 'B' and removed the ratings from CreditWatch with positive implications where they were placed on July 17, 2007. The upgrade follows the termination of the agreement to purchase Lear by Carl Icahn-controlled American Real Estate Partners, L.P., which would have added US$1.5 billion of debt to Lear's balance sheet. The outlook is negative. The upgrade reflects S&P's 2view that absent the increase in Lear's leverage, the company's credit profile will remain consistent with the 'B+' rating. S&P do not expect any near- term shifts in the company's business or financial strategies now that Lear will remain independent. Although S&P do not expect a second attempt to acquire Lear, S&P note that AREP currently owns or controls about 20% of Lear, and Carl Icahn's ability to purchase the remainder without triggering the change of control language in most of the rated public debt remains in effect. The Southfield, Michigan-based auto supplier had total debt of about US$3.5 billion at March 31, 2007, including the present value of operating leases and underfunded employee benefit liabilities. STATS CHIPPAC: Second Qtr. Profit Decreases by US$10.6 Million -------------------------------------------------------------- STATS ChipPAC Ltd. posted a lower net profit of US$7.4 million in the second quarter ended July 1, 2007, compared with the US$18 million net profit booked in the same quarter of 2006. Revenue for the second quarter of 2007 decreased 11.5% to US$370.2 million, from the US$418.1 million in the second quarter of 2006. This represents a sequential decline of 5.2% compared to the first quarter of 2007. Tham Kah Locke, acting Chief Financial Officer of STATS ChipPAC said, "We continue to focus our capital spending on strategic customer programs and to emphasize the generation of cash flow from our operations. In the second quarter of 2007, we spent approximately US$55.4 million in capital expenditures, which was 15.0% of revenue compared to 26.9% of revenue in the second quarter of 2006. Gross margin in this quarter was 18.1% compared to 19.9% in prior quarter. The margin declined due to lower revenue." Outlook Tan Lay Koon, commented, "For the third quarter, we expect revenue to be approximately in the range of US$389.0 million to US$408.0 million or in the range of 5% to 10% higher than the second quarter of 2007, with US GAAP net income in the range of US$18.0 million to US$24.0 million, which represents US GAAP net income per diluted ADS of US$0.08 to US$0.11, including the impact of approximately US$0.01 per diluted ADS for the expensing of share-based compensation." As of July 1, 2007, the company's balance sheet showed US$600 million of total current assets and US$371.85 million of total current liabilities. Moreover, the company's balance sheet reflects US$2.46 billion of total assets and US$1.15 billion of total liabilities resulting in a shareholders' equity of US$1.3 billion. About STATS ChipPAC STATS ChipPAC Ltd is a back-end semiconductor assembly and test company. It provides full-turnkey solutions to semiconductor businesses, including foundries, integrated device manufacturers and fabless companies in the U.S., Europe and Asia. It ranked fourth in the global outsourcing semiconductor assembly and test industry as of end-2006. In fiscal year 2006, packaging revenue accounted for 74% of sales, and test and other revenues the balance. The communications segment accounted for 57% of sales. The company's offices outside the United States are located in Singapore, South Korea, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. As reported by the Troubled Company Reporter - Asia Pacific on June 19, 2007, Moody's Investors Service upgraded STATS ChipPAC's corporate family rating and foreign currency debt ratings to Ba1 from Ba2. This concludes the review for possible upgrade which began on March 1, 2007. The outlook for all the ratings is stable. STATS CHIPPAC: Enters Definitive Agreement with LSI Corp. --------------------------------------------------------- STATS ChipPAC Ltd. has entered into a definitive agreement with LSI Corporation on July 27, 2007. Under the terms of the agreement, STATS ChipPAC will acquire LSI's assembly and test operation in Pathumthani, Thailand for an aggregate purchase price of approximately US$100 million. LSI's assembly and test operation in Thailand consists of a facility with approximately 440,000 square feet of floor space, manufacturing equipment and certain other assets. STATS ChipPAC will offer employment contracts to LSI employees in the Thailand facility. LSI will further enter into a long-term supply agreement with STATS ChipPAC for their assembly and test services needs. "The acquisition of LSI's Thailand facility and its world class workforce secures long term business commitment from LSI to STATS ChipPAC and reinforces our position in the data storage and communications market. It also adds scale and improves the economies of scale of our leadframe business. Over the years, we have built a strong relationship with LSI and we are pleased to expand the level of services and support we can offer them," said Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC. "LSI's strategic agreement with STATS ChipPAC provides a tremendous amount of value to both companies. It reinforces our transition to a fabless manufacturing business model and allows us to focus our resources on designing and marketing semiconductor solutions. It also provides us with assured capacity and access to the same high quality assembly and test services that LSI requires going forward," said Andy Micallef, Executive Vice President of Operations, LSI. The transaction is expected to close within 90 days, subject to the satisfaction of customary closing conditions and regulatory approvals. =============== T H A I L A N D =============== DAIMLERCHRYSLER: Chrysler Aims to Cut Costs as Labor Talks Begin ---------------------------------------------------------------- Chrysler Group and the United Auto Workers union have officially begun contract negotiations through which the DaimlerChrysler AG unit is hoping to get new concessions on pay and conditions to narrow the efficiency gap with Japanese carmakers, the BBC reports. "It's been four years since our last round of negotiations with the UAW, and since then, a lot has changed for our industry, and for Chrysler," Chrysler Group President and CEO Tom LaSorda said in a statement. "Today, the domestic auto industry faces unprecedented challenges, and we can no longer afford to conduct 'business as usual.' Our circumstances demand that we re-think our approach to our business and achieve true change." The union and Chrysler have already been in negotiations over retiree health care costs, initially aimed at giving the automaker a cost-saving deal similar to the ones granted to Ford and GM because of their own deteriorating finances, Reuters relates. Chrysler's hourly labor costs are an industry-leading US$75.86, higher than GM at US$73.26 or Ford at US$70.51, according to data compiled by the automaker. Chrysler also pays its 26,000 UAW-represented workers over US$30 per hour more than Japan's own Big Three -- Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. -- pay their American workers, Reuters reveals. The difference is made even more significant by higher pensions and retiree health care costs. These issues are expected to be at the center of negotiations meant to cement a new contract that shall replace the current four-year deal expiring at midnight on September 14, 2007, Reuters states. Many analysts expect the UAW to consider establishing a union-aligned trust fund for retiree health care, if it can reach an agreement with the automakers on how fully to fund it. "Finding answers to close the competitive gaps are crucial to the U.S. auto industry," Cerberus Chairman John Snow told reporters last week. "If it's going to survive and prosper, we need to close the gap. That's for sure." About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. THAI PROPERTY: Spends THB137.9 Mil. for Costs & Working Capital --------------------------------------------------------------- Thai Property PCL spent THB137.88 million to pay for loans and interest expenses, as well as construction costs and working capital. According to a disclosure with the Stock Exchange of Thailand, the company specifically spent THB124.56 million for loans and interest expenses, and THB13.32 million for construction costs and working capital. The amount represents the amount raised from the two offers of new ordinary shares to existing shareholders during April 17 until April 20, and during May 21 until May 25, as part of the company's capital raising procedures. Thai Property Public Company Limited was formerly known as Rattana Real Estate Public Company Limited. The company develops real estate for sale and rental including residential, commercial, and office buildings. Going Concern Doubt After reviewing the company's financial statements for the first quarter of 2007, Narong Puntawong at Ernst & Young Office Ltd. raised doubt on the company's ability to continue as a going concern. Mr. Narong pointed out the uncertainty in the ability of the company's new investor, Great China Millennium (Thailand) Co. Ltd., to repay to the Company the overdue remuneration of THB291 million under the reciprocal agreement. Mr. Narong also drew attention to the new investor's late progress with construction, which may affect the real estate development project for sales of the Company. THAI WAH: Vipa Chimchan & Chaiwat Phengpinit Resign as Directors ---------------------------------------------------------------- Vipa Chimchan and Chaiwat Phengpinit have both resigned as directors and members of the audit committee of Thai Wah PCL, a disclosure with the Stock Exchange of Thailand says. The company received their resignation letters on July 19. Thai Wah Public Company Ltd's principal activity is the manufacturing and marketing of various food products using mung beans. Products includes mung bean vermicelli, bean sheet (Shanghai noodle) and salim starch. Brands and trademarks of the group include Double Dragon, Phoenix, Double Kilin and Double Eagle brands for vermicelli; Double Dragon brand for salim starch and bean sheet; and New Grade brand for tapioca starch, tapioca pearls and rice flours. It operates a factory in Thailand located in Banglane District, Nakorn Pathom Province. Thai Wah is currently implementing a Reorganization Plan, whose amendments were approved by the Central Bankruptcy Court in November 2005. TOTAL ACCESS: Awaits Proposals for Possible Thai Mobile Alliance ---------------------------------------------------------------- Total Access Communications Co. Ltd. (DTAC) is open to a partnership with state-owned cellular operator Thai Mobile for providing third-generation mobile services pending a viable business venture, DTAC Chief Executive Officer Sigve Brekke told the Bangkok Post. According to the report, Mr. Brekke said the company is awaiting proposals from TOT PLC, which owns 58% of Thai Mobile, for possible ventures. Thai Mobile is a joint venture between TOT and CAT Telecom, which owns the remaining 42% of the venture, Bangkok Post explains. It is the only operator in Thailand using the 1900 Megahertz spectrum, the global frequency for 3G technology. DTAC created its own alternative low-risk, high-return approach for investing in the 3G business, Mr. Brekke said, because the National Telecommunications Commission's 3G licensing framework failed to offer clear specifications, especially about licensing and universal service obligation fees as well as the number of cell sites allowed. However, the best investment would depend on the NTC's licensing framework and specifications, Mr. Brekke added. As an alternative, Mr. Brekke told the Bangkok Post of DTAC's offer to let Thai Mobile customers use its roaming network in exchange for 4 million to 5 million new numbers, for which it will pay THB2 each for every month. The decision came after the NTC's complex procedures for allocating new numbers came out. TOT, however, would still need permission from the NTC for the number allocation to be approved. Total Access Communications, DTAC -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. * * * The Troubled Company Reporter-Asia Pacific reported on Apr. 3, 2006, that Moody's Investors Service has upgraded its corporate family and senior unsecured rating for Total Access Communications Public Co Ltd to Ba1 from Ba2 with a positive outlook. This concluded the review for possible upgrade commenced on October 21, 2005. Standard and Poor's gave the company a BB+ Long-term local and foreign issuer credit ratings. Fitch Ratings on July 18, 2006, has affirmed DTAC's Long-term foreign currency Issuer Default Rating at BB+ and National Long- term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. TRUE CORP: Resumes Trading After Capital Increase Procedures ------------------------------------------------------------ True Corp. PCL's securities resumed trading on July 25 after the Stock Exchange of Thailand granted it permission to trade following completion of capital increase procedures. Following the exercise of 693,075 ESOP warrants to the corresponding number of common shares on July 12, the company now has THB45.024 billion issued and paid-up capital comprising of 3,803,095,997 common shares and 699,363,846 preferred shares. True Corporation Public Company Ltd's -- http://www.truecorp.co.th/-- principal activities are the provision of telecommunication services and various value-added- services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. The company carries Standard & Poor's Ratings Services B+ corporate credit rating. The outlook is negative. The Troubled Company Reporter-Asia Pacific reported on Nov. 27, 2006, that Moody's Investors Service affirmed True Corporation Public Company Ltd's Ba3 corporate family rating and at the same time changed the rating outlook to negative from stable. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------- ------ ------ ------------ AUSTRALIA Austar United Communications Limited AUN 411.16 -43.72 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1637.04 -1443.69 Intellect Holdings Limited IHG 15.01 -0.83 KH Foods Ltd KHF 62.30 -1.71 Lafayette Mining Limited LAF 78.17 -127.82 Life Therapeutics Limited LFE 59.00 -0.38 Orbital Corp. Ltd. OEC 14.01 -4.86 RMG Ltd. RMG 22.33 -2.16 Tooth & Co. Ltd. TTH 99.25 -74.39 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 16.97 -7.53 Beiya Industrial (Group) Co., Ltd 600705 462.13 -20.57 Chang Ling Group 561 85.06 -80.88 Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07 Chia Tai Enterprises International Ltd. 0121 316.12 -8.92 China Kejian Co. Ltd. 35 54.71 -179.23 China Liaoning International Cooperation (Group) Ltd 638 20.12 -42.96 Chongqing Int'l Enterprise Investment Co 000736 16.97 -84.36 Datasys Technology Holdings Ltd 8057 14.10 -2.07 Dynamic Global Holdings Ltd. 231 39.43 -2.21 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Fujian Sannong Group Co. Ltd 732 44.23 -92.62 Guangdong Hualong Groups Co., Ltd 600242 15.23 -46.94 Guangxia (Yinchuan) Industry Co. Ltd. 557 48.71 -59.63 Hainan Dadonghai Tourism Centre Co., Ltd 613 19.74 -5.81 Hainan Overseas Chinese Investment Co., Ltd 600759 28.97 -9.90 Hans Energy Company Limited 554 85.00 -0.49 Heilongjiang Black Dragon Co., Ltd 600187 113.45 -74.67 Heilongjiang SunField Science & Tech Co 000620 29.96 -49.18 Hisense Kelon Electrical Hldngs. Co., Ltd 921 596.71 -94.69 Hualing Holdings Limited 382 262.90 -32.17 Huda Technology & Education Development Co. Ltd. 600892 17.12 -0.39 Hunan Hengyang 600762 61.08 -43.98 Innovo Leisure Recreation Holdings Ltd. 703 13.37 -3.89 Junefield Department Store Group Limited 758 16.80 -6.34 Loulan Holdings Limited 8039 13.01 -1.04 New World Mobile Holdings Ltd 862 295.66 -12.53 New City China 456 242.25 -21.46 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd. 1013 18.52 -3.34 Qinghai Xiancheng Industry Stock Co.,Ltd 600381 55.85 -55.04 Regal Real Estate Investment Trust 1881 945.38 -234.38 Shanghai Worldbest Pharmaceutical Co.Ltd 600656 66.75 -13.42 Shenyang Hejin Holding Company Ltd. 633 103.86 -3.16 Shenzhen China Bicycle Co., Hlds. Ltd. 17 39.13 -224.64 Shenzhen Dawncom Business Tech. and Service Co., Ltd. 863 79.84 -37.30 Shenzhen Kondarl (Group) Co., Ltd. 000048 112.05 -15.98 Shenzhen Shenxin Taifeng Group Co., Ltd. 34 69.92 -44.65 Shijiazhuang Refining-Chemical Co., Ltd 783 357.75 -84.57 Sichuan Langsha Holding Ltd. 600137 13.82 -62.11 Songliao Automobile Co. Ltd. 600715 46.99 -19.19 Stellar Megaunion Corporation 000892 54.33 -152.43 Success Information Industry Group Co. 517 99.92 -14.29 Suntek Technology Co., Ltd 600728 48.81 -16.09 Suntime International Economic Trading 600084 359.49 -47.93 Taiyuan Tianlong Group Co. Ltd 600234 19.47 -89.51 The First Investment & Merchant Co,, Ltd 600515 90.66 5.98 Tianjin Marine Shipping Co. Ltd 600751 111.03 -3.59 Tianyi Science & Technology Co., Ltd 600703 45.82 -41.20 Tibet Summit Industry Co., Ltd 600338 90.92 -4.05 Winowner Group Co. Ltd. 600681 23.34 -72.39 Xiamen Eagle Group Co., Ltd 600711 18.82 -2.74 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 Zhejiang Haina Science & Tech Co., Ltd. 925 28.53 -36.27 INDIA Andhra Cement Ltd. ANDC 58.94 -13.48 Andrew Yule & Co. Ltd ANY 86.39 -12.47 Ashima Ltd. NASHM 101.78 -35.04 ATV Projects India Ltd. ATV 68.25 -30.17 Bagalkot Udyog Ltd. BUL 20.55 -0.63 Baroda Rayon Corp. Ltd. BR 41.16 -26.62 CFL Capital Financial Services Ltd CEATF 25.42 -47.32 Core Healthcare Ltd. CPAR 214.36 -199.02 Deccan Aviation Pte. Ltd. DECA 86.94 -2.83 Fairfield Atlas Ltd. ATG 23.38 -1.76 GKW Ltd. GKW 35.75 -13.52 Global Broadcast News Ltd GBN 18.13 -1.27 Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01 Himachal Futuris HMFC 574.62 -38.68 HMT Limited HMT 238.05 -288.85 Hindustan Organic Chemicals Limited HOC 109.22 -15.18 IFCI Limited IFCI 2566.01 -727.71 JCT Electronics Ltd. JCTE 118.28 -165.74 JK Synthetics Ltd JKS 24.04 -1.42 Kothari Sugars and Chemicals Ltd. NKTSG 43.24 -29.24 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 95.67 -85.81 Malanpur Steel Ltd. HDC 82.08 -52.01 Modern Threads MRT 78.18 -20.71 Mysore Kirloskar Ltd. MK 23.71 -3.04 Panchmahal Steel Ltd. PMS 51.02 -0.33 Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38 Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90 Shyam Telecom NSHY 147.34 -22.80 SIV Ind. Ltd. NSIV 101.16 -66.27 SpiceJet Ltd. SJET 121.34 -2.75 Shyam Telecom Limited SHY 147.34 -22.80 Tata Teleservices (Maharashtra) Limited NTTLS 653.56 -9.99 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Dharmala Intiland Tbk DILD 197.91 -6.62 Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57 Mulialand Tbk MLND 141.33 -45.99 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Wicaksana Overseas International Tbk WICO 43.09 -46.36 JAPAN Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Orient Corporation 8585 37956.19 -1109.02 Sumiya Co., Ltd. 9939 89.32 -11.57 Tasco System Co., Ltd 2709 48.45 -14.07 KOREA BHK Inc 3990 24.36 -17.38 C&C Enterprise Co. Ltd. 38420 28.05 -14.50 DaeyuVesper Co. Ltd. 41140 19.06 -1.60 DongYang GangChul Co., Ltd. 001780 108.79 -9.80 EG Semicon Co. Ltd. 38720 166.70 -12.34 Everex Inc 47600 23.15 -5.10 Seji Co., Ltd 53330 37.25 -0.31 SY I&C Co., Ltd 53470 19.89 -5.49 MALAYSIA Ark Resources Bhd ARK 25.91 -28.35 Boustead Heavy Industries Corp. Bhd BHIC 62.80 -116.18 Gefung Holdings Bhd GFHB 21.68 -1.74 Lityan Holdings Berhad LIT 22.22 -19.11 Mentiga Corporation Berhad MENT 22.13 -18.25 Mycom Bhd MYC 222.58 -136.17 Olympia Industries Bhd OLYM 272.49 -281.44 Pan Malay Industries PMRI 199.08 -6.30 PanGlobal Berhad PGL 189.92 -50.36 Sateras Resources Bhd. SRM/4278 44.73 -38.82 Setegap Berhad STG 19.92 -26.88 Sino Hua-An International Bhd HUAAN 184.60 -98.30 Sycal Ventures Berhad SYC 58.47 -69.79 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Filsyn Corporation FYN 19.20 -8.83 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 Universal Rightfield Property UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE Compact Metal Industries Ltd. CMI 47.42 -36.47 Falmac Limited FAL 10.51 -2.30 Gul Technologies GUL 155.76 -15.21 HLG Enterprise HLGE 116.77 -8.71 Informatics Holdings Ltd INFO 22.30 -9.14 L & M Group Investments Ltd LNM 56.91 -10.59 Lindeteves-Jacoberg Limited LJ 185.49 -46.43 Pacific Century Regional PAC 1569.35 -88.20 Semitech Electronics Ltd. SEMI 11.01 -0.23 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Daidomon Group PLC DAIDO 12.92 -8.51 Datamat Public Co., Ltd DTM 17.55 -1.72 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* 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. 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