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 Wednesday, August 8, 2007, Vol. 10, No. 155 Headlines A U S T R A L I A ARTMILL DISTRIBUTORS: Members Pass Resolution to Close Business ASOMA AUSTRALIA: Undergoes Liquidation After Special Resolution BRENTLY ENGINEERING: Placed Under Voluntary Liquidation FEDERATED STEVEDORES: Members Opt for Voluntary Wind-Up MAINEX PTY: Appoints Richard Herbert Judson as Liquidator MOVINGHOME.COM.AU: Members Decide to Shut Down Business POSITIVE IT: Members Resolve to Close Business TOLL (FGCT): Members Decide to Voluntarily Wind Up Operations TOLL PROJECTS: Commences Liquidation Proceedings W. & M. MEAT: Members Agree to Liquidate Business WESTPOINT GROUP: Investors May Recover AU$40 Million C H I N A & H O N G K O N G AGRICULTURAL BANK: To Clamp Down Loan Approvals to Polluters AGRICULTURAL BANK: Bad Loans Drop by CNY8.4 Bil. in First Half ASIA TELEMEDIA: Court to Hear Goodpine Wind-Up Motion on Sept. 5 BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit BALLY TOTAL: Gets Interim OK to Hire Latham & Watkins as Counsel BENQ CORP: Plans Counterclaims Against German Unit and Prager CHINA PROFIT: Proofs of Debt Due on August 17 FIAT SPA: Taps China's Chery Auto as Engine Supplier FRIGAID HK: Wind-Up Petition Hearing Set for Sept. 12 GO-LINK: Subject to BII Finance's Wind-Up Petition HONG KONG BDSTAR: Sets Members' Final Meeting for Sept. 5 IANCASTLE LIMITED: Placed Under Voluntary Liquidation KWAN TAT: Contributories and Creditors to Meet on August 28 PIONEER LINK: Members to Receive Wind-Up Report on Sept. 4 SUPER (EXPRESS): Court to Hear Wind-Up Petition on Aug. 29 WELLFINE (HK): To Pay Dividend to Creditors on Aug. 23 I N D I A DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA IFCI LTD: Board OKs Inviting EOIs; Accept Bids Starting Aug. 13 ITI LIMITED: Incurs INR1.3 Bil. Net Loss in Qtr. Ended June 30 JCT ELECTRONICS: Net Loss Narrows to INR108 Mil. in 1st Quarter TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer I N D O N E S I A FOSTER WHEELER: Two Units Win Saudi Aramco's Services Contract GOODYEAR TIRE: Closes Engineered Products Sale for US$1.475 Bil. HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares INDOSAT: Plans IDR1-Tril. Bond Issue for Capital Expenditure KRONOS WORLDWIDE: Parent Posts Second Quarter 2007 Results MITEL NETWORKS: US$723MM Merger Gets Inter-Tel Shareholders' OK MOBILE-8 TELECOM: May Postpone US$150 Million Bond Issue NORTEL NETWORKS: Posts US$37MM Net Loss in Qtr. Ended June 30 J A P A N JAPAN AIRLINES: Net Loss Down to JPY4.2 Billion in First Quarter TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend K O R E A DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group KRISPY KREME: S&P Puts B- Corporate Credit Rating MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30 QUANTUM CORP: Posts US$22.6MM Net Loss in Qtr. Ended June 30 M A L A Y S I A MANGIUM INDUSTRIES: Unit Faces Wind-Up Petition by SC Bank MEGAN MEDIA: Head Sells 2.96 Mil. Shares Ahead of Fraud Probe SETEGAP BHD: Bursa Slaps Public Reprimand on Delayed Filing SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27 N E W Z E A L A N D A&R WHITCOULLS: Rod Walker Replaces Tom Sturgess as Chairman AIR NEW ZEALAND: Reports Strong Market Conditions in June AIR NEW ZEALAND: To Add 3 Boeing 777-300ER to Long-Range Fleet AIR NEW ZEALAND: Wins NZ$45-Mil. Hawaiian Airlines Contract AUCKLAND EUROPEAN: Names Buchanan and Macdonald as Liquidators DHARMA LTD: Fixes August 13 as Last Day of Claims Filing HABITAT LTD: Proofs of Debt Due on August 17 HARBOUR MASTER: Taps Lawrence and McCullagh as Liquidator KAMICARZI AUTOMOTIVE: Creditors' Proofs of Debt Due on August 10 MORCLARKE DEVELOPMENTS: Proofs of Debt Due on August 16 OLYMPIC SLABBING: Fixes August 17 as Last Day to File Claims OODIAN ON QUEEN: Winds Up Business; Claims Bar Date is Aug. 10 PROLINE BOATS: Wind-Up Petition Hearing Slated for August 19 SABA YACHTS: Shareholders Resolve to Close Business P H I L I P P I N E S IPVG CORP: Raises PHP352 Million Via Private Share Placement PHIL. AIRLINES: Wants Gov't Subsidies to Flag Carriers Abolished PHIL. LONG DISTANCE: Core Net Profit Up 13% to PHP17.2 Billion S I N G A P O R E ADVANCED MICRO: Moody's Lowers US$390-Million Notes Rating to B2 BBR GEOTECHNIC: Accepting Proofs of Debt Until August 17 FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site WELLMIX ORGANICS: Court Enters Wind-Up Order T H A I L A N D BLOCKBUSTER INC: Weak Qtr Results Cue Moody's to Lower Ratings DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus DAIMLERCHRYSLER: Chrysler's July Sales Outside N. America Up 24% * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= ARTMILL DISTRIBUTORS: Members Pass Resolution to Close Business --------------------------------------------------------------- On June 29, 2007, the members of Artmill Distributors Pty Ltd passed a special resolution to close the company's business. David Clement Pratt and Stephen Graham Longley were appointed as liquidators. The Liquidators can be reached at: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia About Artmill Distributors Artmill Distributors Pty Ltd is a distributor of nondurable goods. The company is located in Newcastle, New South Wales, Australia. ASOMA AUSTRALIA: Undergoes Liquidation After Special Resolution --------------------------------------------------------------- Mainex Pty Ltd went into liquidation on June 29, 2007, through a special resolution passed on that day. Richard Herbert Judson was named as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819, Moorabbin Victoria 3189 Australia About Asoma Australia Asoma Australia Pty Ltd is a distributor of chemicals and allied products. The company is located in North Sydney, New South Wales, Australia. BRENTLY ENGINEERING: Placed Under Voluntary Liquidation ------------------------------------------------------- On June 29, 2007, the members of Brently Engineering Pty Ltd had a meeting and resolved to voluntarily liquidate the company's business. The company's liquidator is: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819, Moorabbin Victoria 3189 Australia About Brently Engineering Brently Engineering Pty Ltd is a distributor of industrial machineries and equipments. The company is located in Lane Cove West, New South Wales, Australia. FEDERATED STEVEDORES: Members Opt for Voluntary Wind-Up ------------------------------------------------------- At an extraordinary general meeting held on June 30, 2007, the members of Federated Stevedores Darwin Pty Limited decided to voluntarily liquidate the company's business. David Clement Pratt and Stephen Graham Longley were appointed as liquidators. The Liquidators can be reached at: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia MAINEX PTY: Appoints Richard Herbert Judson as Liquidator --------------------------------------------------------- On June 29, 2007, the members of Mainex Pty Ltd had a meeting and agreed to wind up the company's operations. Richard Herbert Judson was then appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819, Moorabbin Victoria 3189 Australia About Mainex Pty Mainex Pty Ltd operates metals service centers and offices. The company is located in North Sydney, New South Wales, Australia. MOVINGHOME.COM.AU: Members Decide to Shut Down Business ------------------------------------------------------- Movinghome.Com.Au Pty Ltd went into liquidation on June 29, 2007, through a special resolution passed by its members on that day. David Clement Pratt and Stephen Graham Longley were named as liquidators. The Liquidators can be reached at: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia About Movinghome.Com.Au Movinghome Com Au Pty Ltd is in the business of local trucking without storage. The company is located in Melbourne, Victoria, Australia. POSITIVE IT: Members Resolve to Close Business ---------------------------------------------- During a general meeting held on June 29, 2007, the members of Positive It Holdings Pty Limited resolved to close the company's business and appointed Richard Herbert Judson as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819, Moorabbin Victoria 3189 Australia About Positive It Positive It Holdings Pty Limited operates offices of holding companies. The company is located in North Parramatta, New South Wales, Australia. TOLL (FGCT): Members Decide to Voluntarily Wind Up Operations ------------------------------------------------------------- At an extraordinary general meeting held on June 29, 2007, the members of Toll (FGCT) Pty Limited agreed to voluntarily wind up the company's operations. David Clement Pratt and Stephen Graham Longley were appointed as liquidators. The Liquidators can be reached at: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia About Toll (FGCT) Toll (FGCT) Pty Limited is in the business of trucking, except local. The company is located in Rowville, Victoria, Australia. TOLL PROJECTS: Commences Liquidation Proceedings ------------------------------------------------ Toll Projects Pty Ltd went into liquidation on June 29, 2007, through a special resolution passed on that day. The company's liquidators are: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia About Toll Projects Toll Projects Pty Ltd -- http://www.toll.com.au-- is in the business of arrangement of transportation for freight and cargo. The company is located in Melbourne, Victoria, Australia. W. & M. MEAT: Members Agree to Liquidate Business ------------------------------------------------- During a meeting held on June 29, 2007, the members of W. & M. Meat Transport Pty Ltd agreed to liquidate the company's business. The company's liquidators are: David Clement Pratt Stephen Graham Longley Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia About W & M Meat W & M Meat Transport Pty Ltd is in the business of trucking, except local. The company is located in Tingalpa, Queensland, Australia. WESTPOINT GROUP: Investors May Recover AU$40 Million ---------------------------------------------------- Finchley Central Funds Management, an investment group closely associated with Westpoint, has reassured Westpoint investors that they will be repaid AU$40 million for property projects in Perth, Sydney and Melbourne, Neale Prior of The Age reports, citing the West Australian. The report notes that according to Simon Bell, a former Westpoint executive who now heads Finchley Central, developers were in the final stages of arranging financing for their projects and investors were likely to be paid in four to six weeks. Finchley raised more than AU$45 million for investors across Australia to bankroll the Riverside Pier hotel development in Perth, as well as retirement villages in the Melbourne suburb of Heidelberg and the Sydney fringe suburb of Gilead, The Age points out. However, all the projects have been caught by long delays in obtaining bank finance, raising concerns among investors about the safety of their second mortgage loans that helped bankroll the property purchases and early design and site works. The report explains that Finchley got involved in the Westpoint collapse because it had a key role as a fund raiser for the group's failed mezzanine finance schemes and the central role of property finance mastermind Richard Beck in both groups. Mr. Beck has since distanced himself from Finchley, leaving Mr. Bell with the job of managing the company's affairs and dealing with investors who have their money locked in the stalled property projects, The Age relates. The retirement village projects are controlled by NSW-based development group Viceroy, while the Riverside Pier project is controlled by a company that is listed with the Australian Securities and Investments Commission as being a joint venture between Finchley and Perth developer PH3. The development companies have no connection to Westpoint, the report clarifies. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: To Clamp Down Loan Approvals to Polluters ------------------------------------------------------------ Agricultural Bank of China is clamping down loans to polluting industries following a recent directive from the government to cut down on loan approvals to polluting firms, Reuters reports, citing a source from the bank. According to the news agency's source, the bank already made CNY252.9 billion (US$33 billion) in new loans in the first six months of 2007, more than 80% of its full-year target of CNY300 billion. Around 12.5% of those loans went to firms categorized as energy- intensive or polluting, taking AgBank's total exposure to that sector to CNY342.6 billion at the end of June, the source told Reuters. However, according to the source, Agricultural Bank's vice president, Han Zhongqi, warned at an internal meeting last week that Beijing's increasingly tough line towards companies that guzzle energy and spew out pollution was raising risks for the lender. "Some of these borrowers have already brought tangible losses to our bank," the bank official cited Mr. Han as saying at the meeting. To contain the risk, the bank decided to centralize the approval process for loans to industries under close government scrutiny such as copper smelting, electrolytic aluminium, iron alloy and calcium carbide, the source said. The measure, the source said, was made after a strong demand of loans were reported at local level, prompting Han to warn that headquarters -- which is sticking to its CNY300 billion full- year target for new loans -- would come down hard on branches that defied orders to slow lending. In addition, AgBank would even call in some loans to dirty industries, the source told Reuters. Mr. Han also warned of the need to curb lending to some universities and expressway projects, two sectors that bankers say pose increasingly large risks for Chinese lenders. The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities in the bank involving CNY51.6 billion -- CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. The bank carries Fitch Ratings' Individual strength rating of 'E'. On May 4, 2007, Moody's Rating Agency implemented its new BFSR methodologies and affirmed Agricultural Bank of China's Bank Financial Strength Rating at E. AGRICULTURAL BANK: Bad Loans Drop by CNY8.4 Bil. in First Half -------------------------------------------------------------- Agricultural Bank of China reported a drop in its non-performing loan ratio after its fell 2.09 percentage points from the 23.43% reported at the end of last year to 21.34%. According to a Reuters report, AgBank's non-performing loans at the end of June 2007 fell CNY8.4 billion in the first half from the end-2006 level of CNY736 billion. Outstanding loans at the end of June came to CNY3.376 trillion, an increase of CNY252.9 billion from the beginning of 2007. Outstanding deposits rose CNY154.8 billion to CNY2.93 trillion. The bank also reported a 64.55% year-on-year jump to CNY42.34 billion on its first-half operating profit. The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities in the bank involving CNY51.6 billion -- CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. The bank carries Fitch Ratings' Individual strength rating of 'E'. On May 4, 2007, Moody's Rating Agency implemented its new BFSR methodologies and affirmed Agricultural Bank of China's Bank Financial Strength Rating at E. ASIA TELEMEDIA: Court to Hear Goodpine Wind-Up Motion on Sept. 5 ---------------------------------------------------------------- The High Court of Hong Kong will hear a petition to wind up the operations of Asia Telemedia Limited on Sept. 5, 2007, at 9:30 a.m. The petition was filed by Goodpine Limited on June 5, 2007. Goodpine's solicitor is: Woo, Kwan, Lee & Lo Sun Hung Kai Centre, Room 2801 30 Harbour Road, Wanchai Hong Kong Telephone: 2586 9898 BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing ---------------------------------------------------------------- Moody's Investors Service withdrew all the credit ratings of Bally Total Fitness Holding Corporation after the announcement that Bally commenced voluntary reorganization proceedings under chapter 11 of the U.S. Bankruptcy Code. The proceedings seek to confirm a "prepackaged" plan of reorganization the company's bondholders have voted to support. Moody's withdrew these ratings: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, Ca (LGD 4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, C (LGD 5, 88%) -- Corporate family rating, Ca -- Probability of default rating, D Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit ------------------------------------------------------------ The First Circuit Court ruled in favor of Bally Total Fitness Holding Corp. in a suit claiming its health-club contracts violate Massachusetts consumer protection laws, CourtHouse News Service reports. The suit was filed by Gisselle Ruiz, who said the club refused to refund the balance of her membership fee when she canceled a 36-month contract with Holiday Universal, a subsidiary of Bally Total. She claimed the terms of the contract, including a built-in financing plan, violated the Massachusetts Health Club Services Contracts Act, which prohibits the required financing of a health-club contract for more than one month beyond the contract's expiration. The court ruled Bally's health-club contracts do not violate Massachusetts consumer protection law because it never forced customers to sign up for the financing it offered. Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. BALLY TOTAL: Gets Interim OK to Hire Latham & Watkins as Counsel ---------------------------------------------------------------- Bally Total Fitness Holding Corporation and its debtor- affiliates obtained from the U.S. Bankruptcy Court for the Southern District of New York in Manhattan authority, on an interim basis, to employ Latham & Watkins LLP as their attorneys, effective as of July 31, 2007. Marc D. Bassewitz, senior vice president, secretary and general counsel of Bally Total Fitness Holding Corporation, relates that Latham & Watkins has been counsel to the Debtors on a number of matters for more than 10 years, including the preparation of the Chapter 11 filings, and, therefore, will be able to quickly respond to any and all issues that may arise during the Chapter 11 Cases. The firm is intimately familiar with the Debtors' businesses and affairs and many of the potential legal issues that may arise in the context of the Chapter 11 Cases, Mr. Bassewitz says. As counsel for the Debtors, Latham & Watkins will render legal services relating to the day-to-day administration of the Chapter 11 cases and the several issues that may arise, including: -- advising the Debtors with respect to their powers and duties in the continued management and operation of their business and properties; -- attending meetings and negotiating with representatives of creditors; -- taking all necessary action to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf; -- preparing all motions, applications, answers, orders, reports, and papers necessary to the administration of the Debtors' estates; -- taking necessary action on behalf of the Debtors to obtain approval of their Disclosure Statement and confirmation of their Plan of Reorganization; -- advising the Debtors in connection with any potential sale of assets; -- appearing before the Bankruptcy Court, appellate courts, and the U.S. Trustee, and protect the interest of the Debtors' estates; -- performing all other necessary legal services in \ connection with the Debtors' Chapter 11 Cases, including analyzing leases and executory contracts and any assumptions; analyzing the validity of liens against the Debtors; and advising on corporate, litigation, environmental, and other legal matters. Latham & Watkins will be paid based on its hourly rates: Partners $595 to $975 Of Counsel $525 to $850 Associates $275 to $645 Paraprofessionals $90 to $320 The firm will also be reimbursed for it's reasonable out-of- pocket expenses. These professionals are presently expected to have primary responsibility for providing services to the Debtors: * David S. Heller, * Richard A. Levy, * Josef S. Athanas, * Keith A. Simon, and * Caroline A. Reckler Mr. Bassewitz notes that on February 20, 2007, the Debtors advanced US$1,250,000 to Latham & Watkins as a retainer. On each of March 23, April 5, May 4, and June 5, the Debtors advanced a further US$250,000 to the firm as a retainer. On July 30, the Debtors advanced an additional US$100,000. Much of the retainer has been applied prior to the Petition Date to prepetition fees and expenses, and as of the Petition Date, the amount of Latham & Watkins' retainer was approximately US$6,200. As of bankruptcy filing, Mr. Bassewitz continues, the Debtors do not owe the firm any amounts for legal services rendered before the Petition Date. During the one year prior to the Petition Date, the firm received a total of $5,755,181 in compensation from the Debtors. Mr. Heller, Esq., a partner at the firm, assures the Court that Latham & Watkins is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). Mr. Heller adds that Latham & Watkins has in the past represented or currently represents certain of the Debtors' creditors, equity security holders, or other parties-in-interest in matters unrelated to the Debtors or the Chapter 11 cases. None of the representations are materially adverse to the interests of the Debtors' estates, he says. Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had $408,546,205 in total assets and $1,825,941,54627 in total liabilities. (Bally Total Fitness Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). BENQ CORP: Plans Counterclaims Against German Unit and Prager ------------------------------------------------------------- BenQ Corp is considering filing counterclaims against its German subsidiary, BenQ Mobile GmbH & Co, and its insolvency administrator Martin Prager, Forbes reports. Mr. Prager, the report recounts, had earlier initiated two lawsuits against BenQ in a court in Munich, demanding two separate payments of EUR14.2 million and EUR68.9 million. The insolvency case filed against the German unit resulted from the Taiwan parent company's decision in September 2006 to cease further investment in mobile handset unit, the report points out. According to BenQ, the lawsuits filed by Mr. Prager had to do with certain accounts payable made by BenQ Mobile to the parent company in 2006, which the unit now demands to be returned. It said, however, that BenQ believes the relevant payments demanded by Mr. Prager had been made as ordinary payments for goods sold, Forbes says, citing BenQ's filing with the Taiwan Stock Exchange. The filing did not elaborate further, the report says. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. CHINA PROFIT: Proofs of Debt Due on August 17 --------------------------------------------- China Profit Development Limited, which is in liquidation, is accepting proofs of debt from its creditors until August 17, 2007. Creditors who cannot file their claims by the due date will be excluded from the company's dividend distribution. The company's liquidators are: Jacky CW Muk Edward S. Middleton Prince's Building, 8th Floor 10 Chater Road, Central Hong Kong FIAT SPA: Taps China's Chery Auto as Engine Supplier ---------------------------------------------------- Italy's Fiat Auto have signed a supply agreement with China's Chery Automobile Co., Ltd., to supply Fiat with 100,000 engines a year after months of negotiation, Xinhuanet News reports. Citing a statement from the Chinese automaker's Web site, the agreement calls for Cherry to supply 1.6 and 1.8-liter engines that will be used in cars manufactured by Fiat in China and abroad. "The agreement means that Fiat, which has been testing Chery's engines during the past year, has recognized the technologies and quality of the engines developed by Chery," said Zhou Biren, Chery's deputy general manager. Yin Tongyao, chairman and general manager of Chery, said, "The cooperation will help improve Chery's competitiveness on the international market. We are glad to cooperate with Fiat and look forward to developing together." Fiat Chief Executive Officer Sergio Marchionne was quoted as saying that the agreement showed confidence by Chery and Fiat in cooperation and paved the way for further cooperation. Mr. Zhou added that both Fiat and Chery were exploring further possibilities on cooperation. About Fiat SpA 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 Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * 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. FRIGAID HK: Wind-Up Petition Hearing Set for Sept. 12 ----------------------------------------------------- On July 9, 2007, Chiang Ping Kai filed a petition to wind up the operations of Frigaid HK & Traders Limited. The petition will be heard before the High Court of Hong Kong on Sept. 12, 2007, at 9:30 a.m. Chiang Ping's solicitor is: Kenneth Sit Euro Trade Centre Room 1203, 12th Floor 13-14 Connaught Road, Central Hong Kong GO-LINK: Subject to BII Finance's Wind-Up Petition -------------------------------------------------- On July 5, 2007, BII Finance Company Limited filed a petition to have the operations of Go-Link Limited wound up. The petition will be heard before the High Court of Hong Kong on Sept. 12, 2007, at 9:30 a.m. BII Finance's solicitor is: To, Lam & Co. Wing On House Units 1503B-1504, 15th Floor 71 Des Voeux Road, Central Hong Kong Go-Link was formerly known as Classics Holdings Limited. HONG KONG BDSTAR: Sets Members' Final Meeting for Sept. 5 --------------------------------------------------------- A final meeting will be held for the members of Hong Kong Bdstar Limited on Sept. 5, 2007, at 10:00 a.m., on the 10th Floor of Building A, Jinyujiahua Dasha, No. 9 at St. 3, Shangdi Information Industrial Base in Haidian District, Beijing 100085, China. At the meeting, Zhou Ruxin, the company's liquidator, will give a report about the company's wind-up proceedings and property disposal. IANCASTLE LIMITED: Placed Under Voluntary Liquidation ----------------------------------------------------- On July 26, 2007, a special resolution was passed to voluntarily liquidate Iancastle Limited. Lam Wing Yi, Jerry, was then appointed as liquidator for the company. The Liquidator can be reached at: Lam Wing Yi, Jerry Island Place Tower, Unit 2605 510 King's Road, North Point Hong Kong KWAN TAT: Contributories and Creditors to Meet on August 28 ----------------------------------------------------------- The contributories and creditors of Kwan Tat Toys Manufactory Limited will meet on August 28, 2007, at 11:00 a.m. and 12:00 noon at the office of Lawrence K.Y. Lo & Co. in Room 2206, 22nd Floor, Hollywood Plaza, 610 Nathan Road, in Mongkok, Kowloon. PIONEER LINK: Members to Receive Wind-Up Report on Sept. 4 ---------------------------------------------------------- The members of Pioneer Link Limited will meet on Sept. 4, 2007, at 3:00 p.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held at Block E, 3rd Floor of Wang Cheong Building, 251 Reclamation Street in Kowloon. Pioneer Link's Liquidator is: Mo Kai Tak Alfred Block E, 3/F Wang Cheong Building 251 Reclamation Street, Kowloon Hong Kong About Pioneer Link Pioneer Link Ltd manufactures clothes and accessories for women, children, and infants. SUPER (EXPRESS): Court to Hear Wind-Up Petition on Aug. 29 ---------------------------------------------------------- A petition to wind up the operations of Super (Express) Warehouse & Transportation Limited will be heard before the High Court of Hong Kong on August 29, 2007, at 9:30 a.m. The petition was filed by Fung Yuen Ting on June 25, 2007. WELLFINE (HK): To Pay Dividend to Creditors on Aug. 23 ------------------------------------------------------ Wellfine (HK) Limited, which is in liquidation, will be paying a dividend to its creditors on August 23, 2007. The company will pay 100% of preferential dividend and 0.993% to the ordinary dividend. The company's liquidator is: Kenny King Ching Tam Nan Fung Tower Room 908, 9th Floor 173 Des Voeux Road, Central Hong Kong ========= I N D I A ========= DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA ------------------------------------------------------------ Dresser-Rand Group Inc. and IUE-CWA Local 313 negotiating teams failed to reach agreement on a new contract, resulting in a strike at the facility. The contract expired Aug. 3, 2007. Elizabeth C. Powers, Vice President and Chief Administrative Officer said, "We are very disappointed in not being able to reach a satisfactory agreement. Ms. Powers said that the company is now in the process of implementing a multi- phase contingency plan that has been designed to allow for uninterrupted service to its clients." The company stated in its second quarter 2007 earnings release of July 31, 2007, that it maintains its commitment to the long term competitiveness of its operations and believes any short term adverse impacts to its business are worth incurring for whatever period necessary to meet its long term objectives. Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * Standard & Poor's Ratings Services raised on Sept. 13, 2006, its corporate credit rating on rotating equipment maker Dresser-Rand Group Inc. to 'BB-' from 'B+' and revised the outlook on the rating to stable from positive. IFCI LTD: Board OKs Inviting EOIs; Accept Bids Starting Aug. 13 --------------------------------------------------------------- IFCI Ltd's board of directors, at its meeting on Aug. 4, 2007, approved the move for the company to invite expressions of interest for a strategic investor, a filing with the Bombay Stock Exchange says. The board approved in principle a proposal for the move early July. As reported by the Troubled Company Reporter-Asia Pacific on July 3, IFCI has tapped Ernst & Young to look for a strategic investor, in whom the company plans to divest a 26% stake. After the induction of the strategic investor, the equity base of IFCI will expand and the shareholding of existing investors will come down. IFCI wants to raise as much as US$250 million by selling up to 26% in fresh equity to the strategic investor. Citigroup and Lehman Brothers are reportedly leading the race to acquire the stake. The process of inviting EOIs will kick off from Aug. 13, India Infoline News Service reports. According to the news agency, the last date for submission of EOIs is Sept. 14, after which IFCI would shortlist the best suitable candidate. Request for proposal will be issued on Oct. 1, and the entire process for the sale of 26% stake would be complete by the end of January, Infoline relates. Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and Barclays are interested in buying the stake, Reuters says citing a business daily. In the same BSE filing, IFCI disclosed the appointments of Vinayak Chatterjee and Dr. Shobhit Mahajan as additional directors. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. ITI LIMITED: Incurs INR1.3 Bil. Net Loss in Qtr. Ended June 30 -------------------------------------------------------------- ITI Limited incurred a net loss of INR1.29 billion in the three months ended June 30, 2007, despite increased revenues. The bottom line, however, is a step up compared to the INR1.39-billion loss booked in the same period in 2006. The company's total income rose 26% from INR1.77 billion in the April-June 2006 quarter to the latest reporting period's INR2.23 billion, which includes net sales of INR2.17 billion. For the April-June 2007 quarter, the company's total expenditures rose by 9% to INR2.84 billion bringing an operating loss of INR603.5 billion. The company booked interest charges of INR588 million, depreciation of INR94.8 million and taxes of INR1.7 million. A copy of the company's financial results for the quarter ended June 30, 2007, is available for free at: http://ResearchArchives.com/t/s?222a ITI Limited -- http://www.itiltd-india.com/default.htm-- is a telecom company, which manufactures a range of telecom equipment, including switching products; transmission systems, such as satellite communication systems, optical line terminating equipments and digital microwave systems; access products, such as fixed wireless local loop systems and digital local loop carriers; terminal equipment, such as telephones, integrated services digital network products and video conferencing systems; microelectronic products and software; information technology products and telecom products for the defense sector, and other products, including solar power systems and bank mechanizing products. It also provides value- added services, such as shared hub very-small aperture terminal (VSAT) services, and public mobile radio trunked services and turnkey solutions. Its customers include The Department of Telecommunications, defense, railways, oil sector and corporates in India, and certain African and South Asian nations. * * * As reported in the Troubled Company Reporter - Asia Pacific on Apr. 23, 2007, that Credit Analysis & Research Ltd. revised the rating assigned to the 'L' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structured Obligation)] from CARE AAA (SO) [Triple A (Structured Obligation))] with Credit Watch. The rating revision took into account the delay in the interest payment of the above said bond issue. TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned final National ratings of 'D(ind)(SO)' to ITI's INR550 million 'J-1' Series long-term bonds. ITI has incurred losses for at least two consecutive years -- INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The company is a sick company as per provisions of India's Sick Industrial Companies Act 1985. JCT ELECTRONICS: Net Loss Narrows to INR108 Mil. in 1st Quarter --------------------------------------------------------------- JCT Electronics Ltd. incurred a net loss of INR108.2 million in the first quarter ended June 30, 2007, an improvement compared with the INR491.5-million loss booked in the corresponding quarter last year. The company's total income improved from INR757.4 million to the current reporting period's INR850.9 million, which includes net sales of INR844.2 million. Expenditures increased 12% to INR891.9 million. The narrowing net loss, however, is mostly brought about by interest charges, which sharply fell to INR41 million from INR344.7 million in the June 2006 quarter. A copy of the company's financial results for the first quarter ended June 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2229 JCT Electronics Ltd. manufactures color picture and black & white tubes for television sets. The company also manufactures cathode ray tubes and gas discharge tubes. JCT Electronics incurred net losses for at least two consecutive years -- INR1.83 billion in FY2005-06 and INR1.73 billion in FY2006-07. The Troubled Company Reporter-Asia Pacific reported on July 20, 2007, that JCT Electronics has a stockholder's equity deficit of INR165.74 million. TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer -------------------------------------------------------------- Tecumseh Products Company has appointed Edwin "Ed" L. Buker as its chief executive officer. Mr. Buker, whose appointment is effective Aug. 13, 2007, joins Tecumseh from Citation Corporation, a supplier of metal components based in Birmingham, Alabama, where he had served as president and chief executive officer since March 2002. Prior to joining Citation, Mr. Buker, 54, served as vice president and general manager of the Chassis Systems Division at Visteon Automotive; as president, Electrical Systems-The Americas, for United Technologies Automotive; and as vice president of new model development for BMW Manufacturing Corporation in Munich, Germany. He also held leadership positions at BMW's Spartanburg, South Carolina, facility and at Honda's East Liberty, Ohio, manufacturing plant. Among other accomplishments, Mr. Buker was co-leader of the design, building and operations management of Honda's East Liberty facility and of BMW's Spartanburg plant. Mr. Buker holds a bachelor's degree in mechanical engineering from Tri-State University in Angola, Indiana, and an MBA from Ohio University in Athens, Ohio. "The appointment of Ed Buker as chief executive officer adds a seasoned, proven, highly successful executive to Tecumseh," David M. Risley, chairman of Tecumseh, said. ''His manufacturing expertise, customer orientation and overall management and strategic acumen make him an ideal choice to lead Tecumseh's continuing efforts to improve its operational and financial performance." Mr. Buker will become a member of Tecumseh's board of directors when he joins the company this month, and will eventually succeed Mr. Risley as chairman. Since January 2007, the company has been functioning under the leadership of interim president and chief operating officer James J. Bonsall, who will provide transition services to Mr. Buker before returning to his ongoing role as a managing director of AlixPartners LLP. "Jim Bonsall provided capable leadership at a challenging time for the company," Mr. Risley said. I want to thank Jim for his outstanding work at Tecumseh in our continuing efforts to place the company on a solid strategic, operational and financial footing. Tecumseh has a long and proud history of serving customers around the world. We look forward to Ed's role as a team builder and team leader as Tecumseh continues to serve its customers and drive for improved performance and market position." About Tecumseh Products Company Headquartered in Tecumseh, Mich., Tecumseh Products Company (Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/-- manufactures hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. The company has offices in Italy, United Kingdom, Brazil, France, and India. At March 31, 2007, the company's balance sheet showed total assets of US$97.3 million, total liabilities of US$101.4 million, resulting to a shareholders' deficit of US$4.1 million. ================= I N D O N E S I A ================= FOSTER WHEELER: Two Units Win Saudi Aramco's Services Contract -------------------------------------------------------------- Foster Wheeler Ltd.'s subsidiaries in its Global Engineering and Construction Group, Foster Wheeler Energy Limited and Foster Wheeler Arabia Limited, have been awarded a front-end engineering design and program management services contract by Saudi Aramco for the Karan onshore gas processing facilities at Khursaniyah, Kingdom of Saudi Arabia. The Foster Wheeler contract value was not disclosed. The award will be included in the company's second-quarter 2007 bookings. The onshore gas processing facilities will process one billion standard cubic feet per day of gas from the Karan offshore gas field, which is being developed on a fast-track basis to come onstream in 2011. The new onshore facilities are expected to deliver sales gas to meet the growing Saudi demand for gas. In addition, a small percentage of the sales gas will be utilized for the plant fuel and 640 tonnes per day of sulfur will be produced. The facilities would comprise gas processing trains, and would include acid gas removal, dehydration, sulfur recovery, substations and all associated utilities and infrastructure. "This award further demonstrates the confidence that Saudi Aramco has in the quality of our technical and project execution expertise," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "We are immensely proud of our long and successful track record of delivering upstream and downstream projects for both Saudi Aramco and its joint venture partners. We are fully committed to meeting these same high standards for technical excellence and service for the Karan gas program." "The Karan project will push economic development and enhance the hydrocarbon resources in the Kingdom by increasing sales gas production capacity in commercial quantities. That gas, estimated at one billion standard cubic feet per day, when linked to the Master Gas System will provide fuel and feedstock to petrochemical industries and will provide jobs for Saudi citizens," commented Ali A. Al-Ajmi, vice president, project management, Saudi Aramco. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services raised its ratings on Foster Wheeler Ltd., including its corporate credit rating to 'BB' from 'B+'. The Clinton, New Jersey-headquartered engineering and construction company had total reported debt of approximately US$203 million at Dec. 29, 2006. The outlook is stable. Asbestos Management Program The company recorded a net gain from its asbestos management program in 2006 of US$100.1 million, reflecting a US$115.6 million gain from four insurance settlements and the successful appeal of a court decision in the company's pending asbestos- related insurance coverage litigation, and a US$15.5 million charge in the fourth quarter of 2006 resulting from the company's year-end update of its 15-year estimate of its asbestos liabilities and related assets. GOODYEAR TIRE: Closes Engineered Products Sale for US$1.475 Bil. ---------------------------------------------------------------- The Goodyear Tire & Rubber Company has completed the previously announced sale of substantially all of its Engineered Products business to EPD, Inc., an entity sponsored by Carlyle Partners IV, L.P., for US$1.475 billion, subject to certain post-closing adjustments. "The completion of the sale of the Engineered Products business is the culmination of the Capital Structure Improvement Plan we began in 2003," said Robert J. Keegan, Goodyear chairman and chief executive officer. "This plan has been critical in creating a more competitive balance sheet that will now enable us to execute against our growth strategy by providing reliable access to capital throughout the economic cycle." Goodyear anticipates net proceeds of approximately US$1.4 billion net of transaction costs, taxes and other agreed-upon payments related to employee buyouts and retirement benefits. It expects to record an after-tax gain on the sale in the third quarter of 2007. The company expects to use the proceeds to reduce debt, address legacy obligations and invest in growing its core consumer and commercial tire businesses. Goodyear's global strategy includes additional investment to increase high value added production capacity by 40 percent over five years and increase low cost capacity by 33 percent in existing plants as part of the strategy to drive low cost capacity to 50 percent of its total. Consistent with these global investment plans, Goodyear has agreed with the United Steelworkers to extend its commitment to invest in high value added capacity in North America beyond the previously announced three-year commitment. The Engineered Products business operates 32 facilities in 12 countries and has approximately 6,300 associates. It manufactures and markets engineered rubber products for industrial, military, consumer and transportation original equipment end-users. About The Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. * * * The Troubled Company Reporter-Asia Pacific reported on June 8, 2007, that Standard & Poor's Ratings Services raised its ratings on the class A-1 and A-2 certificates from the US$46 million Corporate Backed Trust Certificates Goodyear Tire & Rubber Note- Backed Series 2001-34 Trust to 'B' from 'B-' and removed them from CreditWatch, where they were placed with positive implications on May 14, 2007. The rating actions reflect the May 31, 2007, raising of the rating on the underlying securities, the 7% notes due March 15, 2028, issued by Goodyear Tire & Rubber Co., and its removal from CreditWatch positive. On March 15, 2007, that Fitch Ratings affirmed ratings for The Goodyear Tire & Rubber Company and revised the Rating Outlook to Stable from Negative. -- Issuer Default Rating 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; -- Senior unsecured debt 'CCC+/RR6'. Goodyear Dunlop Tires Europe B.V. -- EUR505 million European secured credit facilities 'BB/RR1' Moody's Investors Service affirmed Goodyear Tire & Rubber Company's Corporate Family Rating of B1. Ratings on Goodyear's existing secured and unsecured obligations were also affirmed, as was the company's Speculative Grade Liquidity rating of SGL-2. The outlook has reverted to stable from negative. HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares --------------------------------------------------------------- Huntsman Corporation disclosed that certain existing stockholders affiliated with MatlinPatterson Global Advisers LLC have entered into an underwriting agreement providing for a registered public secondary sale of 56,979,062 shares of Huntsman common stock. This sale is pursuant to the shelf registration statement filed with the Securities and Exchange Commission on July 31, 2007. The sale is expected to close on Aug. 6, 2007, subject to customary closing conditions. Huntsman will not receive any of the proceeds from this offering. Credit Suisse Securities (USA) LLC is the underwriter for the offering. A copy of the prospectus and, when available, a copy of the prospectus supplement may be obtained from: Credit Suisse Prospectus Department One Madison Avenue New York, NY 10010 Tel 1-800-221-1037 About Huntsman Huntsman Corporation -- http://www.huntsman.com/-- is a global manufacturer of differentiated and commodity chemical products. Huntsman's products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining and synthetic fiber industries. The company has operations in Indonesia, Italy and Guatemala. The Troubled Company Reporter - Asia Pacific reported on Apr 02, 2007, Moody's Investors Service upgraded the corporate family rating for Huntsman Corporation and Huntsman International LLC, a subsidiary of Huntsman, to Ba3 from B1, and upgraded other ratings as appropriate. The ratings on recently redeemed debt have been withdrawn. The outlook for Huntsman's ratings was moved to stable from developing. Summary of the ratings activity: Upgrades: * Huntsman Corporation -- Corporate Family Rating, Upgraded to Ba3 from B1 * Huntsman International LLC -- Corporate Family Rating, Upgraded to Ba3 from B1 -- Senior Secured Bank Credit Facility, Upgraded to Ba1 from Ba3, LGD2, 21% -- Senior Subordinated Regular Bond/Debenture, Upgraded to B2 from B3, LGD5, 89% * Huntsman LLC -- Senior Secured Regular Bond/Debenture, Upgraded to Ba1 from Ba3, LGD2, 21% -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 from B2, LGD4, 57% Outlook Actions: * Huntsman Corporation -- Outlook, Changed To Stable From Developing * Huntsman International LLC -- Outlook, Changed To Stable From Developing * Huntsman LLC -- Outlook, Changed To Stable From Developing Withdrawals: * Huntsman International LLC -- Senior Subordinated Regular Bond/Debenture, Withdrawn, previously rated B3 -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated B2 On Jan. 23, 2007 Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating and other ratings on Salt Lake City, Utah-based chemicals producer Huntsman Corp. and its subsidiary Huntsman International LLC. INDOSAT: Plans IDR1-Tril. Bond Issue for Capital Expenditure ------------------------------------------------------------ PT Indosat Tbk plans a IDR1-trillion bond issue this year to finance capital expenditure, Reuters reports. According to the report, Indosat has not yet decided the timing for the bond launch, citing Indosat Finance Director Wong Heang Tuck. Indosat is planning to spend US$1 billion this year to expand its network and infrastructures in a bid to get 5-6 million new users in 2007, the report relates. The report notes that the company has hired PT Andalan Artha Advisindo and PT Danareksa Sekuritas to handle the issue. The two brokerage firms also acted on behalf of the company in a previous bond issue. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's has affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. KRONOS WORLDWIDE: Parent Posts Second Quarter 2007 Results ---------------------------------------------------------- Kronos Worldwide, Inc., the parent company of Kronos International disclosed break even operations for the second quarter of 2007 compared with net income of US$12.8 million, or US$.26 per diluted share, in the second quarter of 2006. For the first six months of 2007, Kronos reported net income of US$12.9 million, or US$.26 per diluted share, compared with net income of US$28.5 million, or US$.58 per diluted share, in the first six months of 2006. The Company's results in the second quarter of 2007 include an US$8.7 million non-cash provision for income taxes, as discussed below. Net sales of US$342.6 million in the second quarter of 2007 were US$2.5 million, or 1%, lower than the second quarter of 2006. Net sales of US$656.6 million for the first six months of 2007 were US$7.2 million, or 1%, higher than the first six months of 2006. Net sales decreased in the second quarter of 2007 primarily due to lower average TiO2 selling prices and sales volumes, partially offset by the favorable effect of fluctuations in foreign currency exchange rates which increased sales by approximately US$15 million. For the year-to-date period, net sales increased due to the favorable effect of fluctuations in foreign currency exchange rates, increasing sales by approximately US$31 million. This increase was partially offset by lower average TiO2 selling prices and sales volumes. The table at the end of this release shows how each of these items impacted the overall increase in sales. The Company's TiO2 segment profit for the second quarter of 2007 was US$25.5 million compared with US$37.3 million in the second quarter of 2006, and was US$56.6 million for the first six months of 2007 compared with US$74.5 million for the first six months of 2006. Segment profit decreased in the second quarter of 2007 compared to the second quarter 2006 due to lower average TiO2 selling prices and sales and production volumes and slightly higher raw material costs, partially offset by the positive effect of fluctuations in foreign currency exchange rates which increased segment profit by approximately US$4 million. Full year segment profit decreased primarily due to lower average TiO2 selling prices and sales volumes and higher raw material and energy costs, partially offset by the positive effect of fluctuations in foreign currency exchange rates which increased segment profit by approximately US$7 million. The Company's second quarter 2007 TiO2 sales volumes decreased 2% from the second quarter of 2006, and volumes were 1% lower in the year-to-date period, as higher sales volumes in Europe and export markets were more than offset by lower volumes in North America. The Company's TiO2 production volumes were 2% lower and 2% higher in the second quarter and first six months of 2007 respectively, as compared to the same periods in 2006, with TiO2 production volumes in the first six months of 2007 being a record for Kronos. The Company's finished goods inventories at June 30, 2007, which represented approximately 2 months of average sales, were lower compared to March 31, 2007. The US$22.3 million loss on prepayment of debt in the second quarter of 2006 relates to Company's May 2006 redemption of its 8.875% Senior Secured Notes, using the proceeds from its April 2006 issuance of 6.5% Senior Secured Notes. Interest expense was lower in the 2007 periods due primarily to such replacement of the 8.875% Notes with the 6.5% Notes. The Company's provision for income taxes in the second quarter of 2007 includes an US$8.7 million non-cash charge related to the adjustment of certain tax attributes of the Company's German subsidiary. The Company's income tax benefit in the first six months of 2006 includes an aggregate tax benefit of US$12.6 million related to the withdrawal of certain income tax assessments previously made by the Belgium and Norwegian tax authorities, the favorable resolution of certain income tax issues related to Belgium and Germany and a the enactment of a reduction in Canadian income tax rates. Substantially all of this aggregate income tax benefit was recognized in the second quarter of 2006. Effective December 31, 2006 the Company adopted a new accounting standard related to planned major maintenance expense. Under the new standard, the Company no longer accrues the cost of planned major maintenance expense in advance but instead recognizes the cost of planned major maintenance when incurred. The new standard was adopted retroactively, and accordingly the Company's net income in the second quarter of 2006 is approximately US$.8 million, or US$.02 per diluted share, lower than previously reported. The effect of adopting the new standard did not have a material impact on the 2006 year-to-date results. The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward- looking statements. While it is not possible to identify all factors, the Company continues to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following: -- Future supply and demand for the Company's products, -- The extent of the dependence of certain of the Company's businesses on certain market sectors, -- The cyclicality of the Company's businesses, -- Customer inventory levels (such as the extent to which the Company's customers may, from time to time, accelerate purchases of TiO2 in advance of anticipated price increases or defer purchases of TiO2 in advance of anticipated price decreases), -- Changes in raw material and other operating costs (such as energy costs), -- The possibility of labor disruptions, -- General global economic and political conditions (such as changes in the level of gross domestic product in various regions of the world and the impact of such changes on demand for TiO2), -- Competitive products and substitute products, -- Customer and competitor strategies, -- Potential consolidation of our competitors -- The impact of pricing and production decisions, -- Competitive technology positions, -- The introduction of trade barriers, -- Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian kroner and the Canadian dollar), -- Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime and transportation interruptions), -- The timing and amounts of insurance recoveries, -- The ability of the Company to renew or refinance credit facilities, -- The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, -- The ultimate ability to utilize income tax attributes or changes in income tax rates related to such attributes, the benefit of which has been recognized under the more- likely-than-not recognition criteria, -- Environmental matters (such as those requiring emission and discharge standards for existing and new facilities), -- Government laws and regulations and possible changes therein, -- The ultimate resolution of pending litigation, and -- Possible future litigation. About Kronos International Kronos International Inc. -- http://www.kronostio2.com/-- is a wholly owned subsidiary of Kronos Worldwide, Inc., headquartered in Dallas, Texas and produces titanium dioxide (TiO2) pigments in Europe. It has sales offices in the Asia Pacific, including: Australia, Indonesia, Japan, Korea and the Philippines. * * * On Nov. 8, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. chemical and allied products sectors, the rating agency confirmed its B1 Corporate Family Rating for Kronos International, Inc. as well as the B2 rating on the Company's EUR400 million Senior Secured Notes due 2013. Moody's also assigned an LGD5 rating to those debentures, suggesting note holders will experience a 75% loss in the event of a default. Standard & Poor's Ratings Services lowered its corporate credit rating on Valhi Inc. and its indirect subsidiary Kronos International Inc. to 'BB-' from 'BB'. At the same time, Standard & Poor's lowered its rating on Kronos' EUR400 million senior secured notes issue due 2013 to 'B' from 'B+'. All ratings remain on CreditWatch with negative implications, where they were placed earlier this year in connection with an adverse verdict in a Rhode Island lead pigment lawsuit. MITEL NETWORKS: US$723MM Merger Gets Inter-Tel Shareholders' OK ---------------------------------------------------------------- Mitel Networks Corp. applauded Inter-Tel (Delaware) Incorporated stockholders for approving the two companies' US$723 million merger. The vote fulfills another condition to the merger which the company believes will create a market leader in the SMB IP communications industry with the scale to strengthen and extend its reach in the enterprise market. "The company is delighted that Inter-Tel shareholders have voted to approve the merger with Mitel," Don Smith, CEO of Mitel, said. "By bringing together the unique strengths of each company, this transaction will accelerate our growth strategy. Together, we believe that Mitel and Inter-Tel will possess the intellectual property, technology depth, breadth of portfolio, managed services, partnerships, and people to be a leader in the rapidly changing IP telephony landscape." Subject to the outcome of the preliminary injunction hearing arising from Inter-Tel's litigation before the Delaware Court of Chancery, Mitel and Inter-Tel expect that the merger will close after the Aug. 8, 2007, hearing. About Mitel Networks Corporation Headquartered in Herndon, Virginia, Mitel Networks Corporation -- http://www.mitel.com/-- delivers the full value of IP Communications through networked business solutions that help customers achieve success through business process integration, enhanced employee productivity, increased customer loyalty and helping to generate new revenue streams. The company has operations in Brazil, the United Kingdom and Indonesia. * * * As reported in the Troubled Company Reporter on June 22, 2007, Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Ottawa-based Mitel Networks Corp. The outlook is stable. MOBILE-8 TELECOM: May Postpone US$150 Million Bond Issue -------------------------------------------------------- PT Mobile-8 Telecom Tbk mulls whether to postpone or proceed with its planned US$150 million bond issue, Reuters reports citing a company statement. According to the report, the company's hesitation is due to the recent market volatility. Global bond markets have been generally weak in recent weeks, as investors have turned more risk averse due to fears of losses in the troubled U.S. subprime mortgage market. Merza Fachys, Mobile-8's corporate affairs director, said that Lehman Brothers is still studying whether we should go ahead or not with the company plan. Mobile-8 hired Lehman Brothers as sole bookrunner for the bond. This week they may come up with a conclusion, the report relates. The company presented its plan to investors last month but has not priced the paper. About Mobile-8 Telecom Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is a part of Bimantara Group. Established in 2002 and commercially launched in 2003 is the fourth largest mobile cellular operator in the country. Its product is Fren, which offers pre-paid and post-paid billing services. The Company's other products and services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068, Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren Mobile Internet. Its subsidiaries, which provide mobile cellular network services, are PT Komunikasi Selular Indonesia, PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As of May 31, 2007, the three subsidiaries have been merged into the Company. * * * The Troubled Company Reporter - Asia Pacific on July 24, 2007, that Moody's Investors Service has assigned a B2 corporate family rating to PT Mobile-8 Telecom Tbk and a B2 rating to the proposed US$150 million senior, unsecured bonds issued by Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8. The outlook on the ratings is stable. This is the first time that Moody's has assigned a rating to the company. Moody's expects to affirm the ratings and remove them from provisional status upon the closing of the proposed bond issue. On July 19, 2007, Standard and Poors assigned its 'B' long-term corporate credit rating to Indonesia's wireless operator PT Mobile-8 Telekom Tbk. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' rating to the proposed US$150 million senior unsecured notes to be issued by Mobile-8 Telecom Finance B.V., a wholly owned subsidiary of Mobile-8. Moody's Investors Service has assigned a B2 corporate family rating to PT Mobile-8 Telecom Tbk and a B2 rating to the proposed US$150 million senior, unsecured bonds issued by Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8. The outlook on the ratings is stable. NORTEL NETWORKS: Posts US$37MM Net Loss in Qtr. Ended June 30 ------------------------------------------------------------- Nortel Networks Corp. results for the second quarter ended June 30, 2007. The company reported a net loss of US$37 million in the second quarter of 2007, compared with net income of US$342 million for the same period last a year ago. The net loss of US$37 million in the quarter ended June 30, 2007, included special charges of US$36 million for restructuring, a US$35 million provision related to ongoing discussions with the SEC, a gain of US$69 million due to favourable effects of changes in foreign exchange rates and a gain of US$10 million on the sale of assets. The net earnings in the second quarter of 2006 of US$342 million included a shareholder litigation recovery of US$510 million reflecting a mark-to-market adjustment of the share portion of the global class action settlement, special charges of US$49 million for restructuring and a loss of US$12 million on the sale of assets. "Good progress is being made in our effort to reshape Nortel to deliver sustained value to shareholders. On balance, the key indicators of our financial health moved in a positive direction in the quarter," said Nortel president and chief executive officer Mike Zafirovski. "Gross margin of 41.1% was the highest in eight quarters and the operating margin expanded significantly on a year-over-year basis for the fourth consecutive quarter. Revenues were down 8% this quarter, principally as a result of the UMTS divestiture and the timing of contract completion. Revenues were up 3% sequentially and we are confident that the traction we are seeing with customers will translate into much higher sequential growth for the remainder of the year." Revenues were US$2.56 billion for the second quarter of 2007 compared to US$2.78 billion for the second quarter of 2006. Deferred revenues decreased sequentially by US$29 million from the first quarter of 2007. Order input for the quarter was US$2.68 billion, down from US$2.81 billion in the second quarter of 2006 (note that second quarter of 2006 UMTS Access orders associated with the assets sold were approximately US$184 million), and up from US$2.59 billion in the first quarter of 2007. Carrier Networks (CN) revenues in the second quarter of 2007 were US$1.06 billion, a decrease of 16% compared with the year- ago quarter and an increase of 5% sequentially. In the second quarter, CN revenues were impacted by the UMTS Access divestiture and decreases in legacy products, partially offset by growth in VoIP and GSM compared with the year-ago quarter. Excluding the impact of the UMTS Access divestiture, CN revenues decreased by 5% in the second quarter of 2007 compared with the year-ago quarter. Enterprise Solutions revenues in the second quarter of 2007 were US$590 million, an increase of 23% compared with the year-ago quarter and a decrease of 1% sequentially. ES recorded the fourth consecutive quarter of year over year growth, driven by strong increases in the voice, data and applications businesses, which was positively impacted by the timing of contract completions. Global Services revenues in the second quarter of 2007 were US$494 million, a decrease of 9% compared with the year-ago quarter, and an increase of 10% sequentially. The year over year decrease was largely due to a decrease in network implementation services primarily due to the UMTS Access divestiture and lower GSM services revenues, partially offset by growth in network management and support services. Excluding the impact of the UMTS Access divestiture, GS revenues decreased by 3% in the second quarter of 2007 compared with the year-ago quarter. Metro Ethernet Networks revenues in the second quarter of 2007 were US$363 million, a decrease of 16% compared with the year- ago quarter and a decrease of 3% sequentially. The year over year decrease in revenues was primarily due to decreases in long-haul optical revenues not repeated in the second quarter of 2007 (due to the completion of large optical contracts in the second quarter of 2006) and in legacy data, partially offset by increases in metro optical and carrier ethernet revenues. Cash balance at the end of the second quarter of 2007 was US$4.47 billion, down slightly from US$4.56 billion at the end of the first quarter of 2007. This decrease was primarily driven by a cash outflow from operations of US$120 million. The cash balance includes net proceeds from the US$1.15 billion convertible notes offering in March 2007. In September 2007, Nortel will redeem, at par, US$1.125 billion principal amount of 4.25% convertible notes plus accrued and unpaid interest. Regulatory Investigations As previously announced, in May 2007 the Ontario Securities Commission approved a Settlement Agreement reached by the Staff of the OSC and Nortel, which settlement fully resolved all issues between Nortel and the OSC. The decision recognized the extensive efforts made by Nortel's senior management and Board of Directors to be forthcoming and transparent in reporting significant accounting and internal control issues, and then solving them. Nortel has been under investigation by the SEC since April 2004 in connection with previous restatements of its financial statements. As a result of discussions with the Enforcement Staff of the SEC for purposes of resolving the investigation, Nortel concluded that a reserve should be provided. Accordingly, an accrual was recorded in the second quarter of 2007 in the amount of US$35 million, which Nortel believes represents its current best estimate for the liability associated with this matter. However, this matter is ongoing and the ultimate outcome is still uncertain. Outlook Commenting on the company's financial expectations, David Drinkwater, interim chief financial officer, Nortel said, "For the full year 2007, we continue to expect revenues to be flat to down slightly compared to 2006, reflecting a decrease in revenues as a result of the UMTS Access disposition (note that 2006 UMTS Access revenues associated with the assets sold were approximately US$660 million). We continue to expect full year 2007 gross margin to be in the low 40's, as a percentage of revenues, and we now expect operating margin to be around 5 percent, of revenues). For the third quarter of 2007, we expect revenues to be down in the mid single digits compared to the year ago quarter (note that third quarter 2006 UMTS Access revenues associated with the assets sold were approximately US$156 million). We expect third quarter 2007 gross margin to be around 40, as a percentage of revenue, and operating expenses (SG&A and R&D) to be down slightly, compared to the year ago quarter." At June 30, 2007, the company's consolidated balance sheet showed US$18.95 billion in total assets, US$15.35 billion in total liabilities, US$788 million in minority interests in subsidiary companies, and US$2.81 billion in total stockholders' equity. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * On March 27, 2007, Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed US$1 billion convertible senior unsecured notes offering. Proceeds of the offering will be used to refinance a portion of the US$1.8 billion in 4.25% convertible notes due in 2008 when they become payable at par. Moody's said the outlook remains stable. On March 26, 2007, Standard & Poor's Ratings Services assigned its 'B-' debt rating to Canada-based Nortel Networks Corp.'s proposed US$1 billion senior unsecured convertible notes, which will consist of two tranches of USUS$500 million, maturing in 2012 and 2014, respectively. Proceeds from the convertible notes will be used to partially refinance NNC's US$1.8 billion senior unsecured convertible notes due Sept. 1, 2008, and therefore the overall debt level is not expected to change. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on 100%-owned Canada-based subsidiary, Nortel Networks Ltd. At the same time, the ratings on the US$200 million notes of NNL and the US$150 million notes of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B- '. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are collectively referred to as Nortel. S&P said the outlook on NNL is stable. Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). DBRS says all trends are stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. ========= J A P A N ========= JAPAN AIRLINES: Net Loss Down to JPY4.2 Billion in First Quarter ---------------------------------------------------------------- The Troubled Company Reporter-Asia Pacific reported on Aug. 7, 2007, that Japan Airlines Corp.'s first-quarter operating loss narrowed to JPY8.5 billion (US$73 million) from the JPY31.9-billion operating loss recorded in the same period a year earlier. In an update, Japan Times notes that Japan Airlines managed to reduce its group quarterly net loss to JPY4.2 billion in the three months ended June 30, 2007. According to the report, the net loss figure is about one-sixth of the JPY26.7-billion net loss JAL reported for the first quarter last year, thanks to improved profitability in domestic and international flight operations. However, JAL is still lagging behind its rival, All Nippon Airways Co., which reported JPY13.2 billion in operating profit in the first quarter, Japan Times says. Sales dropped by 0.3 percent year-on-year to JPY520.6 billion due to the exclusion of part of the sale of trading company JALUX Inc., which was JAL's consolidated subsidiary until the last business year, the report adds. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * The Troubled Company Reporter-Asia Pacific reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long- term corporate credit rating is negative. The TCR-AP reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend -------------------------------------------------------------- The Timken Company's board of directors has declared a quarterly cash dividend of 17 cents per share, an increase of 1 cent per share. The dividend is payable on Sept. 5, 2007, to shareholders of record as of Aug. 17, 2007. It will be the 341st consecutive dividend paid on the common stock of the company. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The Timken Company carries Moody's Ba1 Long-Term Corporate Family, Senior Unsecured Debt and Probability-of-Default Ratings. Moody's said the outlook was stable. ========= K O R E A ========= DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group -------------------------------------------------------------- DURA Automotive Handels und Beteiligungs GmbH, a wholly owned subsidiary of DURA Automotive Systems, Inc., has entered into a joint venture agreement with MINTH Group Limited, to develop, manufacture and sell automotive door frames, body-in-white door modules and door pillar cappings for automakers based in China. The new joint venture company will conduct business under the name DURA MINTH AUTOMOTIVE SYSTEMS Co., Ltd. The transaction is subject to final business license approvals. "Establishing a DURA MINTH joint venture in China allows us to expand our customer support in the Asian market for body and trim components," said Larry Denton, DURA Automotive's chairman and chief executive officer. "Our customers will benefit from the combination of MINTH's strong capabilities in the manufacture of precision door and trim components, coupled with DURA's world-class design and advanced manufacturing technology." The joint venture company will establish its initial manufacturing operations at MINTH's existing facilities in Chongqing, China. "This agreement also provides access to DURA's established OEM relationships, particularly with European automakers manufacturing in China," said Mu Wei Zhong, vice president and executive director of MINTH Group Limited. "We look forward to working closely with our joint venture partner to enhance our growth opportunities." The joint venture will be majority owned and controlled by DURA, and the board of directors will be comprised of DURA and MINTH executives. The parent companies will contribute assets, intellectual property and technical resources. About MINTH Group Limited MINTH Group Limited is a Cayman Island-based investment holding company. Through its subsidiaries, the company is engaged in the manufacturing, processing, development and sale of exterior automobile body parts and molds of passenger cars. It designs, manufactures and sells trim, decorative parts and body structural parts. These products are sold to the auto parts industry in the People's Republic of China. About DURA Automotive Headquartered in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. KRISPY KREME: S&P Puts B- Corporate Credit Rating ------------------------------------------------- Standard & Poor's Ratings Services has assigned its ratings, including its corporate credit rating of 'B-', to Winston Salem, N.C.-based Krispy Kreme Doughnuts Inc. The outlook is negative. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to the US$160 million senior secured credit facility borrowed by Krispy Kreme Doughnut Corp., a subsidiary of Krispy Kreme. The facility is rated 'B', one notch above the corporate credit rating on Krispy Kreme, and assigned a '2' recovery rating, indicating the expectation for substantial (70%-90%) recovery of principal in the event of default. The facility consists of a US$50 million revolving credit facility and a $110 million first-lien term loan, of which US$101 million was outstanding as of April 29, 2007. Krispy Kreme guarantees the debt of its subsidiary. "The negative outlook reflects the company's material weaknesses over reporting controls, which may cause errors or delays in the company's filing of its financial statements," explained Standard & Poor's credit analyst Charles Pinson-Rose. Furthermore, we believe that the company's U.S. operations are vulnerable to competitive inroads. "If the company cannot file its financial statements in a timely fashion," added Mr. Pinson- Rose, "the rating will likely be downgraded." About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. There are currently approximately 323 Krispy Kreme stores and 79 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. The company generates revenues from three distinct sources: company-owned stores, franchise fees and royalties from franchise stores, and a vertically integrated supply chain. MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30 -------------------------------------------------------------- Milacron Inc. posted a net loss for the second-quarter ended June 30 of US$0.1 million on sales of US$197 million. (Per share amounts include accrual for preferred dividends). This compares to a net loss of US$14.3 million on sales of US$211 million in the second quarter of 2006. Results in the second quarter of 2007 included a US$4.9 million tax benefit and US$1.5 million in restructuring costs with no tax benefit, whereas the year-ago quarterly loss included a US$0.9 million provision for income taxes and US$8.8 million in restructuring charges also without tax benefit. "Throughout the world our employees are working hard executing our strategies and we are seeing positive benefits from these efforts," said Ronald D. Brown, chairman, president and chief executive officer. "The previously announced cost-reduction measures are generating the savings we projected. Moreover, we continue to achieve positive results from our key sales growth initiatives: expanding our presence in emerging markets, while focusing more attention on aftermarket services in our traditional markets of North America and Western Europe. Milacron's orders from emerging markets are up 23% over last year and now constitute nearly one-quarter of our total business. And our aftermarket sales have grown another 6% so far this year," he said. Sales and earnings growth in overseas markets continued to offset the ongoing weakness in the automotive and housing sectors of the North American economy. New orders in the quarter were US$202 million, compared to US$200 million in the second quarter last year, with favorable currency translation effects accounting for the increase. The backlog of unfilled orders rose to US$132 million, up from US$127 million at the end of the first quarter and US$107 million a year ago. Manufacturing margins in the second quarter improved to 19.6% from 19.1% in the second quarter 2006, primarily as a result of cost-reduction initiatives. Cash on hand at the end of the quarter was in excess of US$31 million, and the company had more than US$33 million available for borrowing under its asset-based revolving credit facility. Liquidity (cash plus borrowing availability) of US$65 million was down from US$73 million at the beginning of the quarter. The change was primarily the result of a semi-annual interest payment of US$13 million made in May, partially offset by primary working capital reductions during the quarter. Outlook "With our increased backlog, Milacron is poised to show continued quarterly improvement in sales and operating earnings in the second half of the year. Outside of North America, we're enjoying good growth in virtually all our major markets. And in North America we are dealing with the current downturn through cost reductions and other measures, all the while maintaining the resources needed to take advantage of an eventual recovery. At this point we are projecting approximately 3% overall sales growth in 2007, with significantly improved operating profits," Mr. Brown said. Dividends No dividends were declared on Milacron's common stock. The board declared a quarterly dividend of US$10.00 per share on its 4% Series A cumulative preferred stock. The company continues to accrue dividends on its 6% Series B convertible preferred stock. Milacron currently has outstanding: 6,000 shares of 4% cumulative preferred stock, 500,000 shares of 6% Series B convertible preferred stock, and approximately 5.5 million shares of common stock. About Milacron Inc. Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ)