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/raid1/www/Hosts/bankrupt/TCRAP_Public/070813.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, August 13, 2007, Vol. 10, No. 158 Headlines A U S T R A L I A AUSTRAL HOSE: Shareholders to Meet on August 20 BURNETT VALLEY: Members' Final Meeting Slated for August 17 BURNETT VALLEY: Liquidators to Give Wind-Up Report on Aug. 17 COTECH PTY: Sets Final Meeting for August 31 DIXON FIRE: Shareholders to Hold Final Meeting on August 20 FORTESCUE METALS: To Build 250 Homes for Pilbara Workers GALLUS PROPERTY: Members and Creditors to Meet on August 21 GRAIN ACCUMULATORS: Final Meeting Slated for August 17 JAMES LOUGHRAN: Members Opt for Voluntary Liquidation MINING SUPPLIES: Shareholders to Hear Wind-Up Report on Aug. 20 POIX PTY: To Declare Priority Dividend on September 3 C H I N A & H O N G K O N G CHINA EVERBRIGHT: Looks to Tap Foreign Investors After Reform COLIYIELD COMPANY: Annual Meetings Set for August 17 EXTRASURE INSURANCE: Members to Hear Wind-Up Report on Sept. 4 FERENDO LIMITED: To Hold Joint Annual Meetings on August 17 FERRO CORP: Reports US$4.5 Mln Net Income in 2007 Second Quarter FIAT SPA: Repurchases 1.11 Million Ordinary Shares GREENTOWN CHINA: Cuts Equity Stake in Ningbo Chuangfu HEXCEL CORP: Completes US$62.5 Mln Asset Sale to JPS Industries HONTINI (HK): Commences Wind-Up Proceedings PACIFIC OPTICAL: Members Agree on Voluntary Liquidation POLYMER GROUP: Registers Class A Common Stock with U.S. SEC POLYMER GROUP: S&P Retains Negative CreditWatch on B- Rating POPULAR STAR: Members to Hold General Meeting on Sept. 7 PROFESSIONAL MANAGEMENT: Faces Vineberg's Wind-Up Petition THAI ASSET: Accepting Proofs of Debt Until Sept. 3 UNION CHASE: Court to Hear Wind-Up Petition on Sept. 19 WORLD CAPITAL: Court Sets Wind-Up Petition Hearing for Aug. 29 I N D I A ANHDRA CEMENTS: To Consider Increasing Authorized Share Capital ARTSON ENGINEERING: Earns INR11.49 Million in April-June '07 ATV PROJECTS: Incurs INR210-Mil. Loss in 15 Mos. Ended June 30 BAGALKOT UDYOG: Net Loss Widens by 285% to INR14.08 Million TATA POWER: Signs EPC Contract W/ Toshiba for Turbine Generators TATA STEEL: To Buy 35% Stake Riverdale's Mozambique Coal Project I N D O N E S I A ALCATEL-LUCENT: Costa Rican State Firm Levies CRC31.2-Bil. Fine BANK DANAMON: To Act as Payment Bank for Perusahaan Listrik BANK MANDIRI: To Set Aside IDR11 Tril. for Plantation Financing BANK MANDIRI: Lends US$147.79 Million to Union Sampoerna BANK NEGARA: Sees Oversubscription of Secondary Offering BANK NIAGA: Moody's Review B2 Foreign Currency LT Deposit Rating GOODYEAR TIRE: Names Mark Schmitz as Chief Financial Officer MOBILE 8: Sells US$100 Million Dollar-Denominated Bonds PERTAMINA: To Import 10.2MM Barrels of Fuel Products J A P A N ADVANCED MEDICAL: Withdraws Bid to Acquire Bausch & Lomb BOSTON SCIENTIFIC: Inks Merger Change Pact w/ Advanced Bionics DELPHI CORP: Picks Umicore as Best Bidder for Catalyst Business DELPHI CORP: June 30 Balance Sheet Upside-Down by US$13.2 Bil. FORD MOTOR: Sees Better Productivity, Lower Costs in Labor Talks FUJI HEAVY: To Form Capital Ties with Toyota Motor Corp SANYO ELECTRIC: In Talks w/ Sharp & Kyocera on Sale of Unit K O R E A ARROW ELECTRONICS: To Acquire Centia & AKS Group KOREA HINET: Amends Private Placement of Common Stock MIJU MATERIAL: Converts Fourth Bonds With Warrants Into Shares MIJU STEEL: Converts 20th Bonds Into Additional Common Shares M A L A Y S I A PROTON HOLDINGS: Employees Provident Fund Cuts Stake to 13.24% MALAYSIA AIR: Non-Core Business Div. Leads Track to Profits SOLUTIA INC: Judge Beatty Rejects Disclosure Statement SOLUTIA INC: Creditors' Committee Wants Settlements Approved TEXCHEM RESOURCES: 2nd Qtr Profit Up on Gains from Unit Disposal N E W Z E A L A N D AIR NEW ZEALAND: Mess at Heathrow Airport May Affect Revenues ALL STAR: Creditors' Proofs of Debt Due on August 16 DSK LTD: Taps Brown and Neilson as Liquidators HARJIT GILL: Subject to Fresha Valley's Wind-Up Petition KLASSIC KIWI: Proofs of Debt Due on July 17 MCLAUGHLIN PARK: Court to Hear Wind-Up Petition on Sept. 27 MELLENCAMP CARRYWEAR: Shareholders Decide to Liquidate Business TEAMM DECORATORS: Accepting Proofs of Debt Until August 16 TINAKORI LTD: Shareholders Resolve to Shut Down Business WARWICK MEWS: Fixes August 20 as Last Day to File Claims ZINC LTD: Taps Heath and Lamacraft as Liquidators P H I L I P P I N E S FIL-ESTATE CORP: Sets Annual Stockholders' Meeting for Sept. 13 SAN MIGUEL CORP: Posts PHP7.9-Bil. Net Income in 2007 First Half TOWER RECORDS: Judge Shannon Confirms Chap. 11 Liquidation Plan VITARICH CORP: Files First Compliance Report with Court S I N G A P O R E INTEGRATED DEVICE: Proofs of Debt Due on September 10 ROTHSCHILD ASIA: Accepting Proofs of Debt Until Sept. 14 SG INDUSTRIAL: Pays First and Final Dividend UNITY BUILDER: Pays Second and Final Dividend T H A I L A N D BLOCKBUSTER INC: Inks Acquisition Deal with Movielink - - - - - - - - ================= A U S T R A L I A ================= AUSTRAL HOSE: Shareholders to Meet on August 20 ----------------------------------------------- A final meeting will be held for the shareholders of Austral Hose Pty Ltd on August 20, 2007, at 9:00 a.m., at the offices of William Buck at 48 Greenhill Road, Wayville in South Australia 5034, Australia. P. A. Taylor, the company's liquidator, will give at the meeting a report about the company's wind-up proceedings and property disposal. About Austral Hose Austral Hose Pty Ltd is engaged in the business of industrial machineries. The company is located in Broken Hill, New South Wales, Australia. BURNETT VALLEY: Members' Final Meeting Slated for August 17 ----------------------------------------------------------- The members of Burnett Valley Holdings Limited will have their final meeting on August 17, 2007, at 10:00 a.m. At the meeting, the members of the company will receive the liquidators' report about its wind-up proceedings and property disposal. The company's liquidators are: Bradley Hellen Ann Fordyce c/o Pilot Partners Level 5, 175 Eagle Street Brisbane, Queensland 4000 Australia About Burnett Valley Burnett Valley Holdings Limited operates offices of holding companies. The company is located in Murgon, Queensland, Australia. BURNETT VALLEY: Liquidators to Give Wind-Up Report on Aug. 17 ------------------------------------------------------------- A final meeting will be held for the members of Burnett Valley Ltd on August 17, 2007, at 10:00 a.m. At the meeting, the members will receive a report about the company's wind-up proceedings and property disposal. The Liquidators can be reached at: Bradley Hellen Ann Fordyce c/o Pilot Partners Level 5, 175 Eagle Street Brisbane, Queensland 4000 Australia About Burnett Valley Burnett Valley Ltd, which is also trading as Burnett Valley Stockfeeds, is a distributor of prepared feed and feed ingredients for animals. The company is located in Murgon, Queensland, Australia. COTECH PTY: Sets Final Meeting for August 31 -------------------------------------------- A final meeting will be held for the members and creditors of Cotech Pty Ltd on August 31, 2007, at 10:00 a.m., in the offices of B. K. Hamilton & Associates, Level 2/171 at Macquarie Street, Hobart in Tasmania, Australia. At the meeting, the members and creditors will receive a report about the company's wind-up proceedings and property disposal. The company's liquidator is: B. K. Hamilton Level 2, 171 Macquarie Street Hobart, Tasmania 7000 Australia Telephone:(03) 6224 4660 Facsimile:(03) 6224 0545 About Cotech Pty Cotech Pty Ltd is a distributor of metal household furniture. The company is located in Hobart, Tasmania, Australia. DIXON FIRE: Shareholders to Hold Final Meeting on August 20 ----------------------------------------------------------- The shareholders of Dixon Fire Pty Ltd will hold a final meeting on August 20, 2007, at 9:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: P. A. Taylor c/o William Buck 48 Greenhill Road, Wayville South Australia 5034 Australia About Dixon Fire Dixon Fire Pty Ltd is in the business of industrial launderers. The company is located in Silverwater, New South Wales, Australia. FORTESCUE METALS: To Build 250 Homes for Pilbara Workers -------------------------------------------------------- Fortescue Metals Group Limited declared that 250 homes will be built in Port and South Hedland for the staff working in the company's Pilbara operations in north-west Western Australia, ABC News reports. Under the agreement, ABC writes, the houses will be built and leased back to Fortescue to be made available to its port and rail employees. Also, the company will facilitate the sale of the houses to staff in a move to foster a sense of permanency in the community, ABC relates. Initially, 100 units to be built have already been agreed on, however, the remaining 150 is still under negotiation. Construction, conveys ABC, is expected to be completed by this time next year. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006, Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure. GALLUS PROPERTY: Members and Creditors to Meet on August 21 ----------------------------------------------------------- The members and creditors of Gallus Property Group Pty Ltd will meet on August 12, 2007, at 10:00 a.m., to receive the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Geoffrey Mcdonald c/o Hall Chadwick Level 1, 91 Upton Street Bundall, Queensland 4217 Australia About Gallus Property Gallus Property Group Pty Ltd is a distributor of durable goods. The company is located in Gaven, Queensland, Australia. GRAIN ACCUMULATORS: Final Meeting Slated for August 17 ------------------------------------------------------ Grain Accumulators (Australia) Pty Ltd will hold a final meeting for its members and creditors on August 17, 2007, at 10:00 a.m. At the meeting, I. A. Currie, the company's liquidator, will give a report about the company's wind-up proceedings and proerpty disposal. The Liquidator can be reached at: I. A. Currie Currie Biazos Insolvency Accountants Level 5, 99 Creek Street Brisbane, Queensland Australia About Grain Accumulators Grain Accumulators (Australia) Pty Ltd provides business services. The company is located in Brisbane, Queensland, Australia. JAMES LOUGHRAN: Members Opt for Voluntary Liquidation ----------------------------------------------------- During a general meeting held on July 2, 2007, the members of James Loughran & Sons Pty Ltd decided to voluntarily liquidate the company's business and appointed Richard George Shoobridge as liquidator. The Liquidator can be reached at: Richard George Shoobridge c/o Deloitte Touche Tohmatsu ANZ Centre, Level 9 22 Elizabeth Street, Hobart Tasmania 7000 Australia Telephone:(03) 6237 7000 Facsimile:(03) 6237 7001 About James Loughran James Loughran & Sons Pty Ltd operates miscellaneous business credit institutions. The company is located in Burnie, Tasmania, Australia. MINING SUPPLIES: Shareholders to Hear Wind-Up Report on Aug. 20 --------------------------------------------------------------- Mining Supplies Australia Pty Ltd will hold a final meeting for its shareholders on August 20, 2007, at 9:00 a.m., in the offices of William Buck at 48 Greenhill Road, Wayville in South Australia 5034, Australia. P. A. Taylor, the appointed liquidator, will give a report about the company's wind-up proceedings and property disposal. About Mining Supplies Mining Supplies Australia Pty Ltd (Minsup) is involved with equipment rental and leasing. The company is located in Wingfield, South Australia, Australia. POIX PTY: To Declare Priority Dividend on September 3 ----------------------------------------------------- Poix Pty Ltd, which is in liquidation, will declare its first and final dividend on September 3, 2007. Accordingly, company creditors who cannot file their claims by August 8, 2007, will be excluded from sharing in the dividend distribution. The company's liquidator is: Hugh Mcpharlin c/o Edwards Marshall Suite 5, 1st Floor 4-8 Angas Street, Kent Town South Australia 5067 Australia About Poix Pty Poix Pty Ltd, is in the business of computer related services. The company is located in Kent Town, South Australia, Australia. ================================ C H I N A & H O N G K O N G ================================ CHINA EVERBRIGHT: Looks to Tap Foreign Investors After Reform ------------------------------------------------------------- China Everbright Bank will introduce foreign strategic investors, if necessary, when its capital adequacy ratio meets regulatory requirements and when it improves its asset quality, reports say. The lender, according to media reports, will also try to go public and set an end-2008 deadline for the offer. For the meantime, the bank's top priority is to complete the implementation of its financial restructuring. China Everbright Bank had already gained the approval from various regulators o begin the reform. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/-- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China has approved mid-sized lender China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. COLIYIELD COMPANY: Annual Meetings Set for August 17 ---------------------------------------------------- The members and creditors of Coliyield Company Limited will have their annual meetings on August 17, 2007, at 12:00 noon and 12:15 p.m., respectively, to hear the liquidator's report about the company's wind-up proceedings and property disposal. The meeting will be held in 1401, Level 14, Tower 1 of Admiralty Centre at 18 Harcourt Road, Hong Kong. EXTRASURE INSURANCE: Members to Hear Wind-Up Report on Sept. 4 -------------------------------------------------------------- A final meeting will be held for the members of Extrasure Insurance Services (International) Limited on September 4, 2007, at 10:00 a.m., on Level 28 of Three Pacific Place at 1 Queen's Road in East, Hong Kong. The members will receive at the meeting a report about the company's wind-up proceedings and property disposal. FERENDO LIMITED: To Hold Joint Annual Meetings on August 17 ----------------------------------------------------------- Ferendo Limited will hold its annual meetings for its members and creditors on August 17, 2007, at 2:30 p.m. and 2:45 p.m., respectively. The meeting will be held in 1401, Level 14, Tower 1 of Admiralty Centre at 18 Harcourt Road, Hong Kong. FERRO CORP: Reports US$4.5 Mln Net Income in 2007 Second Quarter ---------------------------------------------------------------- Ferro Corporation earned net income of US$4,5 million for the three months ended June 30, 2007, compared to net income of US$10.2 million for the same period in 2006. The company recorded sales of US$554 million for the quarter ended June 30, 2007, up 3 percent from sales of US$538 million in the second quarter of 2006. Income from continuing operations for the 2007 second quarter was US$4.6 million compared with US$10.5 million in the second quarter of 2006. Income from continuing operations declined primarily as a result of previously announced manufacturing rationalization, the costs of a temporary plant shutdown, and higher selling, general and administrative costs due to litigation settlements. These higher costs were partially offset by lower interest expenses. The 2007 second quarter income from continuing operations included net pre-tax expenses of US$10.0 million primarily related to a reserve for litigation settlements and manufacturing rationalization costs. The second quarter 2006 income from continuing operations included net pre- tax expenses of US$3.7 million from expenses primarily related to the write-off of previously unamortized fees and discounts related to the Company's debentures and an accounting investigation and restatement. "We maintained sales in the quarter, as our international business helped compensate for the effects of weak residential construction, appliance and automotive markets in the U.S.," said Chairman, President and Chief Executive Officer James F. Kirsch. "Our segment income was negatively impacted by an interruption of manufacturing of our South Plainfield, New Jersey plant. However, we have improved the profitability in our Organic Specialties Group, through product repositioning and expense control. We continue to execute our restructuring programs to improve the cost structure to support our worldwide brand, technology and applications understanding." Changes in foreign currency exchange rates accounted for the increase in sales compared with the second quarter of 2006. Price increases and volume declines were largely offsetting during the quarter. Volumes were lower overall, driven by weaker market conditions in Electronic Materials, Polymer Additives and Specialty Plastics. Volumes were higher in Performance Coatings compared with the second quarter of 2006. Gross margins were 19.4 percent of sales for the second quarter, compared with 20.6 percent of sales in the second quarter of 2006. The company's 2007 second quarter gross profit was reduced by US$1.9 million in accelerated depreciation costs related to manufacturing rationalization activities. Gross margins were also negatively impacted by an interruption of manufacturing activities at our South Plainfield, New Jersey plant. Operations at the site were resumed after operational and safety issues were addressed, however, the interruption resulted in approximately US$3 million in unrecovered manufacturing costs and other expenses during the quarter. In addition, gross margin as a percent of sales continues to be negatively impacted by rising precious metal costs. Higher precious metal costs are passed through to customers with minimal contribution to margins. Selling, general and administrative (SG&A) expense was US$84.4 million in the second quarter of 2007, or 15.2 percent of sales. Included in SG&A expense are charges totaling US$7.8 million, primarily related to an increased reserve for litigation settlements. SG&A expense in the second quarter of 2006 was US$78.7 million, or 14.6 percent of sales, including charges of US$1.6 million primarily related to the accounting restatement. Interest expense for the 2007 second quarter was US$14.3 million, compared with US$18.1 million in the year-ago period. The 2006 second quarter interest expense included a non-cash US$2.5 million write-off of unamortized fees and discounts associated with the company's debentures. Interest expense also declined from the prior-year period as a result of lower borrowing levels resulting from the elimination of cash deposits on precious metal consignments. The elimination of these deposits also resulted in a decline in interest income during the second quarter compared with the second quarter of 2006. The company's tax rate for the second quarter increased to 37.9 percent from 32.8 percent in the 2006 second quarter. The higher rate was largely the result of the mix of income by country and an increase in the anticipated level of foreign current-year earnings to be repatriated. Total debt on June 30, 2007 was US$559.2 million, a decrease of US$33.2 million from the end of 2006. The company had net proceeds of US$61.3 million from its U.S. accounts receivable securitization program as of June 30, 2007, compared with US$60.6 million at the end of 2006. It had US$39.4 million in net proceeds from similar programs outside the U.S. at the end of the quarter, compared with US$33.7 million at the end of 2006. Segment Results Sales in the Performance Coatings segment increased in both the tile and porcelain enamel product areas compared with the prior- year quarter. Both the Performance Coatings and Color and Glass Performance Materials segments experienced growth in international sales, particularly in Europe. Sales in Polymer Additives also increased compared with the prior year quarter, with increased sales in both North America and internationally, driven by repositioning sales toward a more favorable price and product mix. Sales in Electronic Materials declined in the quarter, primarily driven by weaker dielectric materials demand from supply chain inventory reductions by customers who manufacture capacitors. Sales in Specialty Plastics declined compared with the second quarter of 2006, largely due to weaker demand in the U.S. residential housing, appliance and automotive markets. Total segment income for the second quarter of 2007 was US$40.4 million compared with US$42.7 million in the prior-year period. The decline was driven by reduced segment income in the Electronic Material Systems segment as a result of lower volumes of dielectric materials sold and the impact of the temporary interruption of manufacturing at the South Plainfield site. Segment income also declined modestly in Performance Coatings, driven by lower income in the Company's porcelain enamel business. Segment income increased in Color and Glass Performance Materials as a result of higher sales. Income also was higher in the Polymer Additives and Specialty Plastics segments primarily as a consequence of expense control initiatives taken during late 2006 and early 2007 in response to weak market conditions. Outlook The company expects sales to increase in the third quarter compared with sales of US$501 million in the third quarter of 2006. Consistent with historical seasonality, sales are expected to decline sequentially from the second quarter of 2007. Sales for the third quarter, ending Sept. 30, are expected to be in the range of US$505 million to US$530 million. Sales in Electronic Material Systems are expected to increase sequentially from the second quarter of 2007 and compared with the prior-year quarter, as demand from manufacturers of capacitors recovers. Sales in Performance Coatings, Color and Glass Performance Materials and Polymer Additives are expected to increase compared with the prior-year period. Net income per share in the third quarter is expected to be in the range of 17 to 22 cents per share, including approximately 2 cents per share for charges related to the company's manufacturing rationalization activities. Net income per share in the third quarter of 2006 was 12 cents per share. Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were US$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's US$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. FIAT SPA: Repurchases 1.11 Million Ordinary Shares -------------------------------------------------- Within the frame of the buy back program announced on April 5, 2007, Fiat S.p.A. purchased 1.11 million Fiat ordinary shares at the average price of EUR19.701 including fees on Aug. 7. From the start of the buy back program on April 24, the total number of shares purchased by Fiat amounts to 17.927 million for a total invested amount of EUR377.8 million. Share Repurchase Program On April 5, Fiat stockholders authorized the purchase and disposition of own shares. The program, aimed at servicing stock options plans and at the investment of liquidity, refers to a maximum number of own shares of the three classes of stock which shall not exceed 10% of the capital stock and a maximum aggregate amount of EUR1.4 billion and will be carried out on the regulated market as: -- it will become effective on April 10, 2007, and end on Dec. 31, 2007, or once the maximum amount of EUR1.4 billion or a number of shares equal to 10% of the capital stock is reached; -- the maximum purchase price will not exceed 10% of the reference price reported on the Stock Exchange on the day before the purchase is made; -- the maximum number of shares purchased daily will not exceed 20% of the total daily trading volume for each class of shares. 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. GREENTOWN CHINA: Cuts Equity Stake in Ningbo Chuangfu ----------------------------------------------------- Greentown China Holdings has agreed to transfer 35% and 30% of its equity interest in Ningbo Chuangfu Real Estate Co., Ltd, to Zhejiang Jinchang Real Estate Group Co. Ltd. and Shaoxing Yiquan Real Estate Co. Ltd., in considerations of CNY133 million and CNY114 million, respectively, Infocast News reports. Upon completion of the transfer, Greentown will continue to hold a 35% stake in NC Real Estate, the report adds. In addition, Infocast reveals that Greentown, ZJ Real Estate and SY Real Estate have further agreed to invest CNY373.8 million, CNY373.8 million and CY320.4 million respectively in the project by way of shareholders' loan. Further capital may be required to be contributed in proportion to the parties' respective interest in NC Real Estate, the news agency adds. NC Real Estate's current project involves development of state- owned lands with a total land area of approximately 124,113 square meters located at Keqiao District, Shaoxing County, Zhejiang Province. The project has an estimated total ground floor area of approximately 451,640 square meters, of which approximately 394,160 square meters will be developed as residential real estates and approximately 57,480 square meters will be developed as commercial/office real estates. Greentown China Holdings Ltd is one of the major property developers in China with a primary focus on Hangzhou and hejiang province. It currently has a land bank in seventeen cities in China with an attributable gross floor area of nine million square meters. Greentown was listed on the Hong Kong Stock Exchange in July 2006. Moody's Investors Service on June 25, 2007, placed Greentown China Holdings Ltd's Ba2 corporate family rating and senior unsecured bond rating on review for possible downgrade. "The review is prompted by Greentown's series of land acquisitions recently, which is at a pace beyond our expectation," says Kaven Tsang, Moody's lead analyst for Greentown. In addition, the Standard & Poor's Ratings Services assigned its 'BB' issue rating to a CNY2.31 billion (about US$300 million) zero coupon convertible bond issued by Greentown China Holdings Ltd. (Greentown; BB/Stable/--). The issue is due 2012 and will be settled in U.S. dollars. The bond is callable on or after May 18, 2009, and putable on May 18, 2010. HEXCEL CORP: Completes US$62.5 Mln Asset Sale to JPS Industries --------------------------------------------------------------- Hexcel Corporation has completed the sale of the remaining assets of its U.S. Electronics, Ballistics & General Industrial reinforcement product lines to JPS Industries Inc. Hexcel has received the agreed upon initial cash purchase price of US$62.5 million and it may receive up to US$12.5 million of additional payments dependent upon future sales of the Ballistics product line. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on June 25, 2007, Moody's Investors Service raised Hexcel Corporation's Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility were upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. The ratings outlook is stable. HONTINI (HK): Commences Wind-Up Proceedings ------------------------------------------- At an extraordinary general meeting held on July 30, 2007, the members of Hontini (HK) Limited agreed to voluntarily wind up the company's operations and appointed Heng Poi Cher as liquidator. The Liquidator can be reached at: Heng Poi Cher 4304, China Resources Building, 43rd Floor 26 Harbour Road, Wanchai Hong Kong PACIFIC OPTICAL: Members Agree on Voluntary Liquidation --------------------------------------------- On July 25, 2007, the members of Pacific Optical (H.K.) Company Limited passed a resolution to voluntarily liquidate the company's business. Creditors are required to file their claims by August 22, 2007, to be included in the company's dividend distribution. The company's liquidators are: Ho Hoi Lam Man Fung Ying Gold & Silver Commercial Building, 8th Floor 12-18 Mercer Street, Central Hong Kong POLYMER GROUP: Registers Class A Common Stock with U.S. SEC ----------------------------------------------------------- Polymer Group Inc. has filed a registration statement on Form S- 3 with the U.S. Securities and Exchange Commission. The shelf registration statement covers Class A Common Stock having an aggregate sales amount of up to US$350 million held by MatlinPatterson Global Opportunities Partners L.P. and certain of its affiliates. The shelf registration statement will permit such selling stockholders to sell, from time to time, shares of PGI's Class A Common Stock but they are under no obligation to do so. The selling stockholders will determine the number of shares to be included in any offering and have informed the company that they intend to make sales as early as the third quarter of 2007 based on market conditions. PGI will not receive any proceeds from the sale of such shares. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Polymer Group, Inc., -- http://www.polymergroupinc.com/-- (OTC Bulletin Board: POLGA/POLGB) develops, manufactures and markets engineered materials. The company operates 22 manufacturing facilities in 10 countries throughout the world. The company has manufacturing offices in Argentina, China and France, among others. * * * As reported in the Troubled Company Reporter on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on Polymer Group Inc. to negative from stable. All ratings, including the 'BB-' corporate credit rating, were affirmed. The outlook revision followed several quarters of weaker-than- expected performance and somewhat higher-than-expected debt primarily due to raw material cost escalation and some product mix shifts. Also contributing to the disappointing results were several one-time items such as costs related to technical problems associated with new equipment, an acquisition that was not consummated, the closing of manufacturing capacity, and moving the company's headquarters. POLYMER GROUP: S&P Retains Negative CreditWatch on B- Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said that its 'B-' corporate credit rating and other ratings on Intertape Polymer Group Inc. remain on CreditWatch with negative implications, following the company's recent announcement of a proposed rights issue of up to US$90 million. The ratings were originally placed on CreditWatch in October 2006, after Intertape's announcement of a strategic review process and S&P's concerns regarding weak operating performance and tight liquidity. Littlejohn & Co. LLC's subsequent attempt to acquire the company was unsuccessful, and the related financing transaction was cancelled. S&P are withdrawing its ratings on Tape Borrower Inc. because of the cancellation of the financing transaction related to the proposed acquisition. "We remain concerned about Intertape's liquidity. Of particular concern were the company's comments at the time of the proposed acquisition that if the acquisition was not approved by shareholders, Intertape may have to seek appropriate accommodations from its lenders with respect to financial covenants," said Standard & Poor's credit analyst Paul Kurias. The company's US$75 million revolving credit facility is a key source of liquidity and any constraints in access to the facility will meaningfully weaken liquidity. In the recent past, on occasions when full access to the US$75 million facility would have resulted in a breach of financial covenants, Intertape has had only limited access to the facility. The company also has an unfavorable debt maturity profile with the revolving credit facility scheduled to mature in 2009. In addition, S&P have concerns about the highly leveraged financial profile. Total adjusted debt outstanding as of March 31, 2007, was US$338 million. To date, Intertape Polymer has received commitments from some shareholders totaling slightly more than over US$60 million for the proposed rights offering. If successful, the transaction is likely to partly address our liquidity and leverage concerns. The company plans to use proceeds to pay down debt. Pro forma for the US$90 million transaction and the payment of debt, total adjusted debt to EBITDA at March 31, 2007, would have been about 4.1x, down from the actual level of 5.5x. However, Standard & Poor's notes that the commitments from shareholders are contingent on the company's ability to avoid a default on its existing credit facilities. Therefore, if the rights offering is not consummated or if the company is unable to obtain bank covenant relief, S&P will likely lower the ratings. If the transaction and debt payment occur as planned, S&P will raise the corporate credit rating on Intertape to 'B' from 'B-' to reflect a meaningful decline in leverage, an improvement in liquidity, and its expectation for an improvement in the company's operating performance. The 'B' corporate credit rating will reflect a limited scope of operations in the tapes niche of the North American packaging sector and a small presence in films, low margins with some volatility in earnings, vulnerability to cyclical end markets, and a highly leveraged financial profile. These risks are partly offset by a fair position in the company's market niches, breadth of customer base, and positive growth prospects for industrial tape demand in North America. The outlook will be stable. The need to refinance debt within the next two years and the volatility in earnings, as demonstrated in the second half of 2006 when quarterly earnings declined sharply for reasons including a weaker housing market, which is an ongoing concern, will constrain the ratings. The recent track record of low liquidity, including issues with covenant compliance, also constrains the ratings. S&P expect to resolve the CreditWatch listing when information on the company's capacity to meet its financial covenants, receipt of proceeds from the rights issue, and payment of debt becomes available. Polymer Group, Inc., -- http://www.polymergroupinc.com/-- (OTC Bulletin Board: POLGA/POLGB) develops, manufactures and markets engineered materials. The company operates 22 manufacturing facilities in 10 countries throughout the world. The company has manufacturing offices in Argentina, China and France, among others. POPULAR STAR: Members to Hold General Meeting on Sept. 7 -------------------------------------------------------- A final general meeting will be held for the members of Popular Star Enterprises Limited on Sept. 7, 2007, at 9:00 a.m., at the 15th Floor of Manulife Tower, 169 Electric Road, in North Point, Hong Kong. At the meeting, Chok-man Yik, the company's liquidator, will give a report about the company's wind-up proceedings and property disposal. PROFESSIONAL MANAGEMENT: Faces Vineberg's Wind-Up Petition ---------------------------------------------------------- A petition to wind up the operations of Professional Management Consultancy (Holding) Limited was filed by Vineberg Property Management Limited on June 21, 2007. The Court will hear the petition on August 29, 2007, at 9:30 a.m. Vineberg's solicitor is: Messrs. Huen & Partners West Tower, Shun Tak Centre Units 3307-12, 33rd Floor Sheung Wan, Hong Kong THAI ASSET: Accepting Proofs of Debt Until Sept. 3 -------------------------------------------------- The creditors of The Thai Asset Fund Limited are required to file their proofs of debt by September 3, 2007, before 5:30 p.m., to be included in the company's dividend distribution. The company's liquidators are: Lai Kar Yan (Derek) Darach Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong UNION CHASE: Court to Hear Wind-Up Petition on Sept. 19 ------------------------------------------------------- The High Court of Hong Kong will hear a petition to wind up the operations of Union Chase (HK) Company Limited on September 19, 2007, at 9:30 a.m. The petition was filed by Ma Lai Yue on July 17, 2007. Ma Lai's solicitor is: Sit Fung Kwong & Shom Gloucester Tower, 18th Floor The Landmark 11 Pedder Street, Central Hong Kong WORLD CAPITAL: Court Sets Wind-Up Petition Hearing for Aug. 29 -------------------------------------------------------------- On June 25, 2007, Cowealth Medical Science & Biotechnology filed a petition to wind up the operations of World Capital Pacific Limited. The petition will be heard before the High Court of Hong Kong on August 29, 2007, at 9:30 a.m. Cowealth Medical's solicitor is: Messrs. Liu, Chan and Lam Hutchison House 17th Floor, Rooms 17010-18 10 Harcourt Road, Central Hong Kong ========= I N D I A ========= ANHDRA CEMENTS: To Consider Increasing Authorized Share Capital --------------------------------------------------------------- Andhra Cements Ltd's shareholders will hold an Extraordinary General Meeting on Aug. 21, 2007, to transact these businesses: 1. To increase the company's authorized share capital from INR125,00,00,000 divided into 12,00,00,000 equity shares of INR10 each, and 5,00,000 cumulative redeemable preference shares of INR100 each, to INR140,00,00,000 divided into: -- 13,50,00,000 equity shares of INR10 each; and -- 5,00,000 cumulative redeemable preference shares of INR100 each. 2. To create, issue, offer and allot in one or more tranches, by way of preferential allotment up to 154,10,000 fully paid up equity shares of INR10 each, at a price of INR28.60 per equity share (i.e. at a premium of INR18.60 per share) and the aggregate amount so issued will not exceed INR44.08 crore to Infrastructure Development Finance Company Limited and the Promoters Association Companies, subject to necessary provisions & approvals. 3. To borrow from time to time for the company's business, sums of money, which together with the moneys already borrowed by the company, may exceed the aggregate of the paid up capital and its free reserves that is to say, reserves not set apart for any specific purpose, provided that the total amount so borrowed by the board of directors will not at any time exceed INR1,000 crore. Headquartered in Guntur, India, Andhra Cements Limited, manufactures and distributes cement. Andhra is part of the Kolkata-based Duncan Goenka group. The original promoter of Andhra Cements handed over the reins to Goenka in 1994 when the company was under the Board for Industrial and Financial Reconstruction's purview. Andhra Cements had been operating under the sanctioned rehabilitation scheme of the BIFR dated June 16, 1994. The scheme is presently under revision, the company notes in its financial statements for the quarter ended March 31, 2007. ARTSON ENGINEERING: Earns INR11.49 Million in April-June '07 ------------------------------------------------------------ Artson Engineering Limited's net profit in the quarter ended June 30, 2007, soared to INR11.49 million -- more than two times the INR4.16-million profit booked in the corresponding quarter last year. The huge improvement in the bottom line is brought about by the jump in sales from INR30.45 million in the quarter ended June 30, 2006, to INR92.82 million in the June 2007 quarter. Operating expenditures for the current reporting period totaled INR79.1 million, hence the company earned an operating profit of INR13.72 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?2254 Headquartered in Mumbai, India, Artson Engineering Limited -- http://www.artson.net/-- is a niche engineering company active in specialized area of refineries, ports and airports. The company was referred to the Board for Industrial and Financial Reconstruction as a sick company. Its proposal for restructuring is currently under review, the company noted in its financial results in the quarter ended March 30, 2007. ATV PROJECTS: Incurs INR210-Mil. Loss in 15 Mos. Ended June 30 -------------------------------------------------------------- ATV Projects India Ltd reported a net loss of INR210.84 million in the 15 months ended June 30, 2007. Compared to the same period in FY 2006, the net loss narrowed 30% from INR273.5 million. The company has changed its financial year from April 1, 2006, to June 30, 2007. The reduced net loss could be the result of lesser operating expenses incurred in the current financial year. For the 15 months ended June 30, 2007, the company recorded total income of INR115.08 million a decline from the INR124.73 million in the 15 months ended June 30, 2006. Expenses reduced more from INR165.39 million to INR108.06 million in the latest reporting period, bringing the company an operating profit of INR7.01 million. For the current operating period, the company also booked interest charges of INR189.85 million, depreciation of INR27.98 million and taxes of INR30,000. A copy of ATV Projects' financial results for the 15 months ended June 30, 2007, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?2255 ATV Projects India Ltd undertakes engineering and construction projects, besides manufacturing heavy engineering and industrial equipment. The company's projects include power plants, off- site facilities, oil pipelines and sugar mills. ATV Projects also manufactures thermoplastic elastomer products. The company has private and public sector customers, domestically and abroad. The company is a sick industrial undertaking and has submitted a rehabilitation and revival proposal with the Board for Industrial and Financial Reconstruction. BAGALKOT UDYOG: Net Loss Widens by 285% to INR14.08 Million ----------------------------------------------------------- Bagalkot Udyog Ltd's net loss for the quarter ended June 30, 2007, widened to INR14.08 million from the INR3.66-million loss incurred in the same quarter in 2006. Because the company closed down its cement plant operations in since May 2006, it did not have sales for the first quarter ended June 30, 2007. The company, however, recorded revenue of INR1,000,000 representing "other income" in the April-June 2007 period. In the same quarter in 2006, the company booked income totaling INR34.93 million. For the latest reporting period, the company's expenditures totaled INR9.16 million, hence an operating loss of INR8.17 million. The company also booked interest charges of INR1.62 million, depreciation of INR4.21 million and taxes of INR90,000. A copy of Bagalkot Udyog's financial results for the quarter ended June 30, 2006, is available for free at: http://ResearchArchives.com/t/s?225b Bagalkot Udyog Ltd. manufactures cement, clinker and other by- products. The company incurred heavy losses that led to the erosion of its entire net worth. By order dated June 2, 2000, the Board for Industrial & Financial Reconstruction, New Delhi, had declared the company as a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions), Act 1985. On May 11, 2006, the operations of the company's cement plant at Bagalkot came to a total stop. The company booked net losses of INR59.16 million for the fiscal year ended March 31, 2006, and INR115.88 million in FY 2005. TATA POWER: Signs EPC Contract W/ Toshiba for Turbine Generators ---------------------------------------------------------------- Tata Power Company Ltd signed an EPC contract for supply of five (800 MW Steam Turbine Generators with Toshiba Corporation for the first 4000 MW Ultra Mega Power Project in India to be located at Mundra, Gujarat. Toshiba Corporation's scope of work includes the design, manufacture, test and supply of equipment related to the Steam Turbine Generator packages for the five units of 800 MW each. They will also be associated with supervision of commissioning of the turbines. With the contract, Tata Power believes it has taken another step forward in bringing world class technology to India. Just as Tata Power was the first company to usher in the era of 500 MW units in India, it has also notched another first -- the 800 MW era, the company points out. This move further reinforces Tata Power's commitment to accelerate the pace of the project by not only ordering the equipments quickly but also tying up with world class technology providers like Toshiba and Doosan Heavy Construction Ltd, ahead of schedule. Thereby, increasing the possibility of contributing to the capacity addition within the 11th Five-Year Plan itself. Prasad R Menon, managing director if Tata Power said "This agreement is a significant step towards our drawing on the technical expertise of a strong international player like Toshiba. This partnership will provide an excellent technical solution for Mundra UMPP which is also cost competitive." Tata Power recently announced the signing of a contract for complete Boiler Island scope on EPC basis with Doosan Heavy Industries & Construction Co. Ltd., Korea. The contract for complete Boiler Island includes super critical boilers for the 5 units of 800 MW each, based on super critical technology required for such large sized units. Thus, bringing in the first 800 MW Unit to India, thereby ushering India into the era of 800 MW super-critical technology. The company has also acquired Coastal Gujarat Power Ltd, a Special Purpose Vehicle formed for Mundra UMPP. The signing of the Share Purchase agreement, Escrow agreement, Hypothecation agreement, and Port Service agreements, by PFC, bankers, procurers and Tata Power, now allows the Company to go ahead with the various project development activities. Coastal Gujarat Power Ltd has also signed Power Purchase Agreements with seven procurers (distribution licensees) for the sale of contracted capacity and supply of 4000 MW electricity to these licensees but it delineates responsibility of procurers and Company for the next important milestone. It also nominated Gujarat Distribution Company as the lead procurer on behalf of all procurers." About Tata Power Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. The ratings outlook is negative. On May 9, 2007, Standard & Poor's Ratings Services placed its 'BB+' long-term foreign and local currency corporate credit ratings on Tata Power Co. Ltd. on CreditWatch with negative implications reflecting significantly greater concerns on the company's debt and on its exposure to higher project completion, stabilization, and counterparty risks. TATA STEEL: To Buy 35% Stake Riverdale's Mozambique Coal Project ---------------------------------------------------------------- Tata Steel Ltd and Australia's Riversdale Mining Ltd entered into a Memorandum of Understanding, whereby Tata Steel will become a strategic investor in Riversdale's Mozambique Coal Project by acquiring a 35% stake in it for AU$100 million. The Mozambique Coal Project includes the coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which are fully owned by Riversdale through its subsidiary. The Benga and Tete tenements together cover an area of 24,960 hectares. The Riversdale management expects that the potential mineralisation of the area will be substantially high. The MOU contemplates the relationship between Riversdale and Tata Steel to develop the project. Riversdale is presently conducting a scoping study which is likely to be completed in August 2007. The Definitive Agreements are expected to be finalized and executed by Nov. 30, 2007. The hard coking coal derived from this project will be supplied to the Corus facilities in the UK and Europe and also to the Company's enhanced requirement in India in the future. B. Muthuraman, Tata Power managing director, said, "The Memorandum of Understanding with Riversdale is in the Tata Steel's stated strategy of progressing towards raw material security for its global business. This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations." The completion of the transactions contemplated by the MOU is subject to completion of due diligence, definitive agreements and board approval of both companies and regulatory approvals. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. As previously reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Costa Rican State Firm Levies CRC31.2-Bil. Fine --------------------------------------------------------------- Published reports say that Costa Rican state-owned multi-utility monopoly Instituto Costarricense de Electricidad has demanded a CRC31.2-billion payment from Alcatel-Lucent. According to the reports, Alcatel-Lucent failed to comply with a mobile telephony infrastructure contract with Instituto Costarricense. Business News Americas relates that Instituto Costarricense figured it is due an additional CRC10-billion payment in damages resulting from the scandal that officials were bribed so Alcatel could win the contract for 400,000 GSM lines. Alcatel-Lucent was then called Alcatel when it still had contract with Instituto Costarricense, the press says, citing the state firm's executive president Pedro Pablo Quiros. The contract was granted to Alcatel in 2002 for US$149 million, BNamericas notes. Instituto Costarricense cut off its relations with Alcatel-Lucent in February 2007. Alcatel-Lucent must compensate Instituto Costarricense for service failures and noncompliance of the contract, BNamericas says, citing Mr. Quiros. Instituto Costarricense is also asking the 11 individuals involved in the bribery scandal to pay. Among those charged with bribery are Costa Rica's former president Miguel Angel Rodriguez and former Alcatel workers, BNamericas states. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BANK DANAMON: To Act as Payment Bank for Perusahaan Listrik ----------------------------------------------------------- PT Bank Danamon Indonesia Tbk signed an agreement with PT Perusahaan Listrik Negara (Persero), which appoints Bank Danamon as payment bank for the state power company's corporate business in its West Java and Banten distribution regions. This strategic agreement will also allow select corporate customers of PT PLN access to Bank Danamon's working capital financing. "Our comprehensive line of corporate banking services; from current account, cash management, to trade finance will be of great value-add for PT PLN, as well as its corporate customers. Our extensive distribution network throughout Indonesia, and in particular the West Java and Banten provinces is forms part of our strength and will be of benefit for companies with a wide and varying customer base, such as PLN," stated Ali Yong, Director of Bank Danamon. To support this cooperation, Bank Danamon relies on its integrated information technology to facilitate the electronic information bridging with its customers, PT PLN and other related parties. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on May 8, 2007, that Moody's Investors Service published the rating results for Indonesia's PT Bank Danamon Indonesia Tbk as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. The specific ratings changes are as follows: * BFSR is changed to D with a positive outlook from D- -- This action also concludes a review for possible upgrade on the BFSR initiated on July 4, 2006 * Foreign Currency Deposit Ratings are unchanged at B2/Not Prime * Foreign Currency Debt Rating for subordinated obligations is unchanged at Ba3. -- Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings affirmed all the ratings of Bank Danamon: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA-(idn)' (AA minus(idn)) * Individual 'C/D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. BANK MANDIRI: To Set Aside IDR11 Tril. for Plantation Financing --------------------------------------------------------------- PT Bank Mandiri will set aside up to IDR11 trillion in over four years to finance oil palm and rubber plantations owned by community-based cooperatives, The Jakarta Post reports. The report relates that Rafjon Yahya, bank senior vice president for small business, said that the firm has already approved IDR668 billion plantation-related loans for the first semester this year. According to the report, Mr. Yahya said that the loans will be used to finance the development of 11,962 hectares of oil palm plantations, owned by 8,000 farmers grouped in 17 different cooperatives around the country. The bank has already disbursed IDR58 billion. Bank Senior Vice President for Plantation Corporate Banking, Sunarso, said that the plantation sector was highly promising as it enjoyed big markets both domestically and internationally, the report notes. The report adds that Bank Mandiri extended IDR15.16 trillion in loans to the plantation sector in the first semester of this year. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service revised some ratings of Indonesia's Bank Mandiri as part of the application of the agency's refined joint default analysis and updated bank financial strength rating methodologies. The specific ratings changes are: * BFSR is changed to D- from E+. -- This action also concludes a review for possible upgrade on the BFSR initiated on August 1, 2006. * Foreign Currency Deposit Ratings are unchanged at B2/Not Prime. * Foreign Currency Debt Rating for senior and subordinated obligations is unchanged at Ba3 -- Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. The Outlook for the ratings was revised to Positive from Stable. BANK MANDIRI: Lends US$147.79 Million to Union Sampoerna -------------------------------------------------------- PT Bank Mandiri has signed a deal to provide PT Union Sampoerna Triputra Persada a US$147.79 million loan to fund its takeover of another plantation business, Reuters reports. The report relates that Agus Martowardojo, Mandiri president director, said that the loan is part of the firm's commitment to expand its support to the country's plantation sector, which has a huge potential given rising commodity prices. Bank Mandiri has so far lent a total of IDR15.08 to the plantation sector. Union Sampoerna will use the funds to help finance the US$125- million takeover of Malaysian palm oil firm Kulim (Malaysia) Bhd, the report says. Reuters notes that in June, Kulim (Malaysia) sold its Indonesian plantation business to USTP to focus on more profitable ventures elsewhere. US$71.59 million of the loan would be used to finance the acquisition of the 63,000 hectares plantation, and the rest is for further investments funding, the report adds. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter- Asia Pacific reported on Aug 02, 2007, Moody's Investors Service has placed the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Mandiri on review for possible upgrade. The detailed ratings are: * Ba3/Ba3 foreign currency senior/subordinated debt and B2 foreign currency long-term deposit ratings were placed on review for possible upgrade; and * Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected -- these ratings carry a stable outlook. The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. The Outlook for the ratings was revised to Positive from Stable. BANK NEGARA: Sees Oversubscription of Secondary Offering -------------------------------------------------------- PT Bank Negara Indonesia expects its secondary offering of 3.47 billion shares at IDR2,050 each to be oversubscribed, Thomson Financial reports citing Bank President Sigit Pramono. According to the report, Bank Negara's secondary offering is dated August 7-10, 2007, with listing on the Jakarta and Surabaya stock exchanges on Aug 13. The report notes that the government's holding in the bank will then be reduced to 71.84% of the class-C shares and 1.42% of the class-B shares. The public will hold 26.27% of the class-C shares and 0.47% of the class-B shares. Separately, State Enterprises Minister Sofyan Djalil defended the price of the secondary offering, which some analysts have said is too low, saying that that the offering price is the maximum price they can get, given the recent worldwide weakness in equity markets. The initial offering price was set in a IDR2,050-2,700 per share range, the report relates. The report adds that Mr. Djalil said that the firm expected a IDR8.1-trillion gross proceeds, with the assumption of the underwriter's exercising the greenshoe option. The government, with around IDR4 trillion portion, would use its stake to reduce the sate budget deficit. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter-Asia Pacific on April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. BANK NIAGA: Moody's Review B2 Foreign Currency LT Deposit Rating ---------------------------------------------------------------- Moody's Investors Service has assigned a Aaa.id long-term National Scale Rating to Bank Niaga. The bank also has the following existing global scale ratings assigned by Moody's: -- issuer/foreign currency subordinated debt of Ba3; -- global local currency deposit of Baa3; -- foreign currency long-term/short-term deposit of B2/Not Prime; -- and bank financial strength of D. The Ba3 issuer/foreign currency subordinated debt and B2 foreign currency long-term deposit ratings are on review for possible upgrade. The outlook for all other ratings is stable. The suffix ".id" identifies the rating as country specific, in this case Indonesia. "The B2/Not Prime/D global scale ratings reflect Bank Niaga's global default and loss expectation, while the Aaa.id NSR reflects the standing of the bank's credit quality relative to its domestic peers," says Beatrice Woo, a Moody's VP/Senior Credit Officer. The Aaa.id rating considers the bank's modest -- albeit improving -- financial fundamentals as well as its small but growing 2.6% deposit market share, including a limited franchise of 247 branches as of June 2007. Similar to other banks, Bank Niaga is targeting the consumer area, especially the highly competitive housing loans sector. It has made headway with a 9.8% market share in May 2007 and is the second largest mortgage provider in the country. Housing loans represent 72.13% of its total consumer loans, which in turn make up 23.4% of its total loan portfolio. Major credit risks for the bank, in Moody's opinion, include its lack of scale - given its small size in a system which is consolidating and where competition is rising - and the rapid growth of its loan portfolio in recent years although it is now tapering off. The expansion could raise asset quality concerns. Finally, the rating is underpinned by Moody's expectations that Bank Niaga would benefit from high support from its major shareholder, Bumiputra Commerce-Holdings Berhad Group of Malaysia (64.56% as of June 2007). In addition, Moody's assesses that support by the Indonesian government to the bank in a systemic crisis would be very high. This view is predicated on its position as the seventh largest bank in a concentrated system. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. GOODYEAR TIRE: Names Mark Schmitz as Chief Financial Officer ------------------------------------------------------------ W. Mark Schmitz has been appointed The Goodyear Tire & Rubber Company's executive vice president and chief financial officer, effective immediately. Mr. Schmitz succeeds Richard J. Kramer, who in March was named to the additional post of president of Goodyear's North American Tire business unit. Prior to joining Goodyear, Mr. Schmitz, 56, was most recently vice president and CFO for Tyco International's Fire and Security Segment, where he has been since 2003. Mr. Schmitz, however, spent the majority of his career with General Motors Corp. "As we considered candidates, we sought an experienced CFO who could work with our leadership team to build on our recent successes and drive our business strategy going forward," Robert J. Keegan, Goodyear chairman and chief executive officer, said. "In Mark, we found an individual with a successful track record, who is intimately familiar with the automotive industry and who has considerable international experience." "I'm fortunate to be joining Goodyear at such an exciting time," Mr. Schmitz said. "Following the successful execution of its turnaround strategy, the company is now in a position to pursue growth opportunities. I look forward to working with the leadership team to help the company capitalize on the opportunities that lie ahead." Mr. Schmitz began his career with GM in the late 1970s, where he rose to executive assistant to the president and chief executive officer in Detroit. In 1994, he was assigned to General Motors do Brasil and ultimately was director of finance for Mercosul operations and president of GM do Brasil's finance subsidiary. Finally, from 1999 to 2001, he served as vice president and CFO of GM's DirectTV Latin America. From 2001 to 2003, Schmitz served as vice president and chief financial officer for Plug Power, Inc. At Tyco International, Mr. Schmitz was part of a leadership team brought in to turn around the Fire and Security business unit, a $12 billion business with eight divisions worldwide. During his tenure, the leadership team implemented new business models and financial controls that underpinned the successful turnaround and the establishment of a solid control environment at Tyco's largest business unit. Mr. Schmitz has had corporate assignments in London, Brazil and China, and he speaks fluent Mandarin Chinese and Portuguese. Mr. Schmitz received his bachelor's degree and his MBA from Ohio State University in Columbus, Ohio. Mr. Schmitz and his wife, Nancy, have four daughters. About Goodyear 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. MOBILE 8: Sells US$100 Million Dollar-Denominated Bonds ------------------------------------------------------- PT Mobile-8 Telecom Tbk sold US$100 million in dollar- denominated bonds at a yield of 11.25% with Lehman Brothers as bookrunner for the transaction, Reuters reported on Aug. 9. The Troubled Company Reporter-Asia Pacific reported on Aug. 8, 2007, that Mobile-8 Telecom mulls whether to postpone or proceed with its planned US$150 million bond issue. According to TCR-AP, the company's hesitation was due to 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. We've already closed the deal, Hidajat Tjandradjaja, Mobile-8 president director, was quoted by Reuters as saying. The bonds maturing in 2013 has a rate of 5.5 years, the report noted. The report added that the proceeds from the bonds will be used to pay off debt and to fund capital expenditure next year to expand its business. 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. PERTAMINA: To Import 10.2MM Barrels of Fuel Products ---------------------------------------------------- PT Pertamina will import 10.2 million barrels of fuel products in August and in September, Antara News reports citing Pertamina Deputy Director for Marketing Hanung Budya. The report recounts that in July, Pertamina imported 11.6 million barrels of fuel products. The fuel imports comprise of 3.8 million barrels of gasoline, 5.6 million barrels of diesel fuel and 600,000 barrels of kerosene and 200,000 barrels of other fuel products, the report adds. PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. ========= J A P A N ========= ADVANCED MEDICAL: Withdraws Bid to Acquire Bausch & Lomb -------------------------------------------------------- Advanced Medical Optics withdrew its offer to acquire Bausch & Lomb Incorporated after Bausch & Lomb's Board of Directors declined to grant AMO "adequate time" to provide evidence that AMO stockholder approval on the proposed merger can be secured. AMO said in its letter that "[i]t is clear from the way [Bausch & Lomb] has run the go-shop process and the unrealistic hurdles that have been uniquely imposed on [AMO] that [Bausch & Lomb] does not have any interest in providing its shareholders with the opportunity to receive the US$75 per share offer that [AMO] proposed." AMO argued that Bausch & Lomb remained intent on delivering its business to Warburg Pincus at US$65 per share, a transaction AMO which says is "inferior to AMO's proposal both in terms of value and the ability for the Bausch & Lomb shareholders to participate in the significant synergies that combining AMO and Bausch & Lomb would create." About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. "In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. About Advanced Medical Optics Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures and markets ophthalmic surgical and contact lens care products. The company has operations in Germany, Japan, Ireland, Puerto Rico, and Brazil. * * * As reported in the Troubled Company Reporter on July 9, 2007, Moody's Investors Service maintains Advanced Medical Optics, Inc. ratings on review for possible downgrade following AMO's announcement of its offer for Bausch & Lomb, Inc. for US$75 per common share in a combination of US$45 in cash and US$30 in AMO common stock. These ratings remain on review for possible downgrade: B1 Corporate Family Rating; B1 Probability of Default Rating; Ba1 (LGD2/14%) rating on US$300 million senior secured revolver due 2013; Ba1 (LGD2/14%) rating on US$450 million senior secured term loan B due 2014; B1 (LGD4/50%) rating on US$250 million senior subordinated notes due 2017; and B3 (LGD5/81%) rating on US$251 million convertible senior subordinated notes due 2024. BOSTON SCIENTIFIC: Inks Merger Change Pact w/ Advanced Bionics -------------------------------------------------------------- Boston Scientific Corporation has entered into an agreement to amend its merger agreement with Advanced Bionics, which it acquired in 2004, eliminating shared management provisions and modifying the schedule of earnout payments. The amendment grants Boston Scientific sole management and control of the Pain Management business, including the emerging indications program. The company has also entered into definitive agreements to sell the Auditory business and drug pump development program to principals of Advanced Bionics. The transactions must be approved by former Advanced Bionics shareholders who are entitled to earnout payments under the original merger agreement, and are subject to customary regulatory approvals. The transactions are expected to close in January 2008. Following the closing of the transactions, the parties have agreed to dismiss currently pending litigation between Boston Scientific and former Advanced Bionics shareholders. The Pain Management business Boston Scientific will retain includes spinal cord stimulation technologies, as well as emerging technologies such as the bion(R) microstimulator, that will position the company well in the broader neuromodulation field. Boston Scientific currently has the number two overall market position in pain management. The transaction provides a new schedule of consolidated, fixed earnout payments by Boston Scientific to former Advanced Bionics shareholders, consisting of US$650 million payable upon closing in January 2008 and $500 million payable in March 2009. The Advanced Bionics principals will acquire a controlling interest in the auditory and drug pump businesses for an aggregate payment of $150 million at closing. The company expects to record an estimated after-tax charge, primarily non-cash, of US$360 million related to the transactions. "We are excited about the immediate and long-term growth opportunities presented by neuromodulation as an integral part of the company," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "We hope to replicate the success of the pain management technologies across a wide spectrum of indications, expanding our microelectronic capabilities and strengthening our leadership in neuromodulation and cardiac rhythm management. The sale of the Auditory business and drug pump program is consistent with our previously announced objective of selling assets we do not consider core to our long- term strategy." "We are very pleased that Advanced Bionics will continue serving the needs of the hearing impaired, as an independent company," said Jeff Greiner, currently head of the Neuromodulation Group at Boston Scientific and one of the principals purchasing the Auditory and drug pump businesses. "Advanced Bionics has always been a pioneer in developing innovative cochlear implant technology to treat severely and profoundly deaf children and adults. We look forward to building on our proud record of achievement in hearing health, and to further developing the implantable drug pump technology." Under the terms of the agreements, the Pain Management business and emerging indications program will operate as Boston Scientific Neuromodulation under the leadership of Michael Onuscheck, currently head of the Pain Management business. The business will continue to be headquartered in Valencia, California. The Auditory business and drug pump program will operate as Advanced Bionics under the leadership of Jeff Greiner, and will be headquartered in Valencia, California. About Boston Scientific Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the Troubled Company Reporter on Aug. 7, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on Boston Scientific Corp. to 'BB+' from 'BBB-' and placed the ratings on the company on CreditWatch with negative implications. S&P has withdrawn the commercial paper rating at the company's request. At the same time, Fitch Ratings downgraded the ratings on Boston Scientific Corp. including the company's 'BBB-' Senior Unsecured Notes rating which was lowered to 'BB+'. The Rating Outlook is Negative. DELPHI CORP: Picks Umicore as Best Bidder for Catalyst Business --------------------------------------------------------------- Delphi Corporation and certain of its affiliates selected Umicore as the successful bidder for Delphi's global original equipment and aftermarket catalyst business, Delphi officials disclosed. At an Aug. 8, 2007 auction between Umicore and Catalytic Solutions Inc., two qualified bidders, Umicore's offer of US$75 million (subject to adjustments) was determined to be the highest and best bid. Umicore's offer will be presented to the U.S. Bankruptcy Court for the Southern District of New York for approval on Aug. 16, 2007. The sale to Umicore is expected to close before year-end 2007. At the hearing before the U.S. Bankruptcy Court scheduled for Aug. 16, Delphi will also present the offer submitted at the August 8th auction by CSI to be approved as the "alternate bidder" in the event the transaction between Delphi and Umicore does not close. Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. DELPHI CORP: June 30 Balance Sheet Upside-Down by US$13.2 Bil. -------------------------------------------------------------- Delphi Corp. listed total assets of US$15.5 billion, total liabilities of US$28.5 billion, minority interest of US$209 million, resulting in total stockholders' deficit of US$13.2 billion as of June 30, 2007. Second Quarter 2007 Results The company reported second quarter 2007 financial results with a net loss of US$821 million. Non-GM revenues were US$4.1 billion, representing 59% of global revenues. Net Loss for the second quarter 2006 was US$2.3 billion. Delphi's net loss reflects a charge of US$332 million recorded in the second quarter of 2007 for its current estimate of liability, net of previous accruals, in the Securities and ERISA multi-district litigation pending in the U.S. District Court for the Eastern District of Michigan, arising from Delphi's restatement of its financial statements for the period 1999 to 2004. Delphi noted that this estimate of liability does not consider any insurance proceeds that may be recoverable under Delphi's insurance policies. Under the direction of a special master appointed by the U.S. District Court, Delphi has begun settlement discussions regarding a potential resolution of these matters. Global revenue for the second quarter 2007 was US$7 billion, flat from US7 billion in second quarter 2006. Non-GM revenue for the quarter was US$4.1 billion, up 5% from US$3.9 billion in second quarter 2006. Non-GM business represented 59% of second quarter revenues, compared to year-ago levels of 56%, primarily due to a 6% year-over-year decline in GM revenues. Excluding the favorable impact of foreign currency exchange, non-GM growth for the second quarter was essentially flat. First Half 2007 Results Global revenue was US$13.7 billion for the first half 2007, down from US$14 billion in first half 2006. Non-GM revenue for first half 2007 was US$8 billion, up about 4% from US$7.7 billion in first half 2006. Non-GM business reached 59% of first half 2007 revenues, compared to year-ago levels of 55%. The increase in non-GM revenues was primarily due to the impact of favorable currency exchange rates. Net loss was US$1.4 billion for the first half 2007, compared to first half 2006 net loss of US$2.6 billion. Included in the first half 2007 net loss were charges of US$332 million related to the Securities and ERISA litigation, employee termination benefit and other exit cost charges of US$420 million and long- lived asset impairment charges of US$199 million. Included in the first half 2006 net loss were charges of US$1.9 billion for the U.S. employee special attrition programs. Cash Flow and Liquidity Cash flow used in operating activities was UA$431 million for the first six months of 2007, as compared to US$187 million provided by operating activities in the first six months of 2006. The change in cash flow from operating activities was driven by payments made as part of the U.S. employee special attrition program, net of reimbursements from GM, and a net increase in working capital. Delphi continues to have sufficient liquidity available in the U.S. and globally to finance our global operations. As of June 30, 2007, Delphi had US$1.5 billion of cash and cash equivalents and US$1 billion of debt capacity under the refinanced DIP credit facility. Delphi had about US$2 billion of senior unsecured debt at June 30, 2007. As of June 30, 2007, the company had US$453 million outstanding under its accounts receivable factoring facilities in Europe. As of June 30, 2007, outstanding borrowings under its European accounts receivables securitization program were US$148 million. As of June 30, 2007, the company had US$121 million of other debt, primarily consisting of overseas bank facilities, and US$65 million of other debt classified as liabilities subject to compromise. A full-text copy of the company's first half 2007 report is available for free at http://researcharchives.com/t/s?223f About Delphi Corporation Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. FORD MOTOR: Sees Better Productivity, Lower Costs in Labor Talks ---------------------------------------------------------------- Ford Motor Company needs to see both lower costs and improved labor productivity as it emerges from a crucial round of contract talks with the United Auto Workers union, Kevin Krolicki writes for Reuters, quoting Joseph Hinrichs, Ford's vice president for manufacturing in North America. The TCR-Europe reported on June 14, 2007, that the car companies are trying to deal with health care costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits. The difference is made even more significant by higher pensions and retiree health care costs. Most of that gap for the loss-making Detroit automakers represents "legacy" costs, including the price of providing health care to union-represented retirees, Reuters states. "We've been working really hard on (productivity) and we still have room for improvement. If you look at the domestic, Detroit Three compared to the transplants, there's a gap," Mr. Hinrichs said. "And then there's the cost of that labor which we have to work on and address, which includes the legacy cost," he said, Reuters notes. According to the report, Mr. Hinrichs' comments were in response to prior remarks issued by Canadian Auto Workers President Buzz Hargrove that the labor concessions the Detroit-based automakers are seeking in ongoing labor negotiations with the UAW would not make a meaningful contribution to a turnaround for the struggling industry. "Even if the Big Three get everything they are asking for from the UAW, that would reduce the average production costs of a vehicle they sell in North American by only US$500," Mr. Hargrove said, Reuters notes. Mr. Hinrichs had a different opinion, however, saying that although he would not comment on the US$500-per-vehicle estimate from Mr. Hargrove, that amount was enough to make a difference in a competitive vehicle market, Reuters relates. Prior to the talks, Ford had negotiated separate agreements with the UAW for more flexible work rules at most of its plants and an attrition program that saw 27,000 union-represented workers leave the payroll during the first half. Mr. Hinrichs said that the more flexible work rules included in "competitive operating agreements" negotiated with the union would save Ford US$500 million on an annualized basis once fully implemented, Reuters reports. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * In July 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. FUJI HEAVY: To Form Capital Ties with Toyota Motor Corp ------------------------------------------------------- Fuji Heavy Industries Ltd. and Toyota Motor Corp. are planning to join forces, which will be considered their first domestic alliance, sources close to The Asahi Shimbun revealed. According to the sources, Fuji Heavy and Toyota will be making a low-priced sports car predicted to come out in the market in 2010, which will be a combination of Fuji Heavy's distinctive "flat" engine and bear the Toyota name. Along with the joint sports car, Toyota's minicar subsidiary Daihatsu Motor Co., will supply the Subaru-makers with subcompacts under an original equipment manufacturer arrangement, relates Asahi Shimbun. The article conveys that in the OEM deal, Toyota subsidiary Daihatsu will supply its Coo subcompact, sold as the Toyota bB wagon model, to Fuji Heavy. Fuji Heavy will rebrand the vehicle and begin sales by next summer at the earliest. Annual sales are projected at 6,000 units, Asahi Shimbun recounts. About Fuji Heavy Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp-- is a manufacturing company engaged in the production, sale, repair and leasing of automobile and transportation-related products. Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. SANYO ELECTRIC: In Talks w/ Sharp & Kyocera on Sale of Unit ----------------------------------------------------------- Sanyo Electric Co., Ltd., is separately negotiating with Sharp Corp. and Kyocera Corp. about selling its mobile phone arm -- Telecom Sanyo Co. -- in the hope of concluding a deal by the end of 2007, the Japan Times reports, citing industry sources. According to the report, Sanyo plans to pull out of the cell phone business to focus on core areas such as rechargeable batteries and commercial-use equipment. Telecom Sanyo, Japan Times says, booked an operating loss for the first time in the business year through March 31 due mainly to appraisal losses over inventories. It also recorded a deficit in the April-June period on sales of JPY47.6 billion, down 42% from the year before, due to sluggish domestic sales. The company had to revise downward its global sales target for the business year through next March to 11 million handsets from an initial 12.5 million. The report points out that Sharp and Kyocera are believed to be interested in Sanyo's technology as well as its overseas sales networks. However, Sanyo and the two companies have not finalized agreements due to various conditions, including the price, according to the sources. Sanyo is considering advancing negotiations by putting the sale out to tender, Japan Times cites its sources as saying. The TCR-AP reported on Aug. 3 that Sanyo had explained that Telecom Sanyo is solely a retail operator, and has no relation to its mobile phone manufacturing business, after reports spread that Sanyo is planning to sell its mobile phone handset production business. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. ========= K O R E A ========= ARROW ELECTRONICS: To Acquire Centia & AKS Group ------------------------------------------------ Arrow Electronics Inc. has signed a definitive agreement pursuant to which Arrow will acquire Centia Group Limited and AKS Group Nordic AB (Centia/AKS), Europe's leading specialty distributors of access infrastructure, security and virtualization software solutions. "With the acquisition of Centia/AKS, we continue to execute on our strategic objective to pursue opportunities in fast-growing market segments. This transaction further diversifies our product portfolio in the European region and strengthens our strategic focus on software solutions - which is unique to Arrow and will enable us to continue to outgrow the market," said M. Catherine Morris, president, Arrow Enterprise Computing Solutions. Centia/AKS has over 120 employees throughout Denmark, Finland, France, Germany, Great Britain, the Netherlands, Norway and Sweden. The joint linecard includes leading suppliers such as Citrix, VMware, and RSA. Centia/AKS support value-added resellers in delivering solutions that optimize, accelerate, monitor and secure an end user's IT environment. Total sales for 2007 are expected to exceed US$120 million. "Our reputation for technical excellence has been built up over 25 years. We are excited to become part of a world-class value- added distributor such as Arrow, and gain access to Arrow's significant resources and broad customer base. This partnership will create meaningful opportunities for our organization," said Yuri Pasea, founder and chairman, Centia/AKS. The transaction is subject to customary closing conditions, including obtaining necessary government approvals, and is expected to be completed within the next 60 days. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. On March 29, 2007, Moody's Investors Service affirmed the (P)Ba1, (P)Ba2 and (P)Baa3 Shelf Registration Ratings to Arrow Electronics, Inc.'s subordinated, preferred, and senior unsecured stocks respectively. Moody's also affirmed the Baa3 senior long-term debt rating of Arrow Electronics and revised the outlook to positive from stable. KOREA HINET: Amends Private Placement of Common Stock ----------------------------------------------------- Korea Hinet Co., Ltd. has made some amendments to its private placement of common shares, Reuters reports. According to the report, the company move was initially announced on July 13, 2007. The details of the amendments are: -- issuance of 4,917,723 common shares; and -- listing date of September 18, 2007. Headquartered in Seoul, Korea Hinet Co., Ltd. -- http://www.koreahinet.co.kr/-- is engaged in the provision of information technology (IT) solutions. The company provides four major services: system integration services, including consulting, information strategies and hardware and network integration; software services, which provides enterprise resource planning (ERP) systems such as supply chain management (SCM), management information systems (MIS), e-business solutions and customer relationship management (CRM) tools; distribution services, which provides computer parts, software and network equipment, and e-business, which provides Intranet solutions and Web solutions. Korea Ratings gave the company's KRW4 billion convertible bonds issue a B+ rating with a stable outlook on May 24, 2006. MIJU MATERIAL: Converts Fourth Bonds With Warrants Into Shares -------------------------------------------------------------- Miju Material Co., Ltd.'s KRW156,735,000 worth of fourth bonds with warrants have been converted for 313,470 shares of the company, Reuters reports. According to the report, the bonds have an exercise price of KRW500 per share. The company move brings the total number of the company's outstanding shares to 27,234,700, the report notes. Reuters says that the shares will be listed on August 17, 2007. Headquartered in Kyongsangnam Province, Korea, Miju Material Co., Ltd. -- http://www.tech-one.co.kr/-- specializes in the manufacture of cold-head-quality wire, which is a type of coil used in cold heading or cold forging to make bolts, nuts, rivets and screws. The company develops different wire materials based on the ultimate usage, such as carbon steel for automotive and general purposes, nickel-chrome-molybdenum steel for airplanes, chrome-molybdenum steel for building construction and manganese steel for machinery. On May 8, 2006, Korea Ratings gave the company's US$2,000,000 overseas bond with warrants a 'B' rating with a stable outlook. MIJU STEEL: Converts 20th Bonds Into Additional Common Shares ------------------------------------------------------------- Miju Steel Co., Ltd.'s 20th bonds with warrants have been converted for an additional 2,767,628 common shares of the Company, at an exercise price of KRW 692 per share, Reutes reports. The report notes that this company move brings the total number of the Company's outstanding common shares to 106,024,647. The confirmed listing date of the new shares is August 16, 2007, the report adds. Headquartered in Incheon, South Korea, Miju Steel Co., Ltd. -- http://www.mijusteel.com/-- is engaged in the provision of steel pipes. The company produces three major products: electric resistance welded (ERW) carbon steel pipes which used for water supply facilities, buildings, bridges, bicycles, telegraph poles and hand rails; stainless steel pipes, which used for pharmaceutical, food and semiconductor factories, and spirally-welded steel pipes, which used for foundation of buildings, bridges and harbors. Korea Ratings gave the company's US$4,000,000 overseas bond with warrant a 'B+' rating with a stable outlook on August 9, 2006. =============== M A L A Y S I A =============== PROTON HOLDINGS: Employees Provident Fund Cuts Stake to 13.24% -------------------------------------------------------------- The Employees Provident Fund of Malaysia has reduced its shareholding in Proton Holdings Bhd to 72.72 million shares, after disposing of 3.6 million shares from July 10 to 23, The Edge Daily reports. According to The Edge, a filing with Bursa Malaysia showed EPF dispose one million Proton shares on July 10 and another 1.12 million shares the next day. The other shares were disposed from July 12 to 23. After the disposal of the shares, EPF's stake was reduced to 13.24%. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter-Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. However, the carmaker until now has yet to name a strategic partner. On May 23, 2007, the TCR-AP reported that Proton Holdings may need a government bailout if talks to sell a stake to a foreign investor continue to falter. MALAYSIA AIR: Non-Core Business Div. Leads Track to Profits ----------------------------------------------------------- Malaysian Airline System Bhd is on track to attain sustained profits driven by the potential growth of its cargo, catering and engineering divisions that are relatively independent of its core passenger operations, The Edge Daily reports, citing economic research house Aseambankers Research. Moreover, the national carrier's yield management initiatives have also begun producing results, accompanied by increased sales and higher seat factors as well as profitability of domestic routes that could be enhanced by its Firefly operations, the research house said. "We view its cargo, catering and engineering divisions as distinct profit centres for MAS, with varying growth potentials. Critically, a deeper understanding of these departments throws more light on just how attainable our FY08 and FY09 profit forecasts are," Aseambankers was cited by the paper as saying. According to the research house, the renewed vigor as well as the widely anticipated restructuring at airport concessionaire Malaysia Airports Holdings Bhd should add a lift to the three divisions' growth prospects. Of the three departments, Aseambankers Research said it was most optimistic on the prospects of the dormant engineering unit, especially with the certification for the airframe maintenance of the Airbus A320 likely to be attained by end-FY07, Surin Murugiah of The Edge reports. "Prospects for MAS' engineering division appear very bright, especially with interest already expressed by foreign firms to join venture with MAS to set up maintenance, repair and overhaul operations overseas," Aseambankers said. Although the division is currently dormant, it would eventually accommodate the in- house repairs and maintenance departments, as well as third- party MRO business. "Third-party revenues in FY06 were estimated to have been about MYR218 million. In 1HFY07, this was already more than MYR150 million or over 68% of FY06's full-year contribution," it said. Further, Aseambankers said MASkargo would likely grow despite the current industry downturn, as evident from the Best Global Ground Handler award conferred by Korean Air Cargo to the MAS unit that recognised its quality and efficiency. "Based on its existing freighter fleet which almost doubled its capacity whilst incurring less that 50% increase in operating costs, MASkargo should easily record double-digit net profit growth in the base case scenario which we have imputed in our FY07-FY09 forecasts," it said. On MAS' 30% associate MAS Catering, the research house said the division served 95% of the flights out of Malaysia and that the growing attractiveness of the country as a regional destination hub would provide the impetus for further growth, the newspaper said. Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with airlines partners. The carrier posted a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging whistle-blowing and stop corporate sponsorship. SOLUTIA INC: Judge Beatty Rejects Disclosure Statement ------------------------------------------------------ Tiffany Kary at Bloomberg News reports that the U.S. Bankruptcy Court for the Southern District of New York rejected Solutia Inc. and its debtor-affiliates' Disclosure Statement, ordering the Debtors to resolve the US$20,000,000,000 environmental liabilities inherited from its former parent, Monsanto Company, first. The Honorable Prudence Carter Beatty said that she needed to see the updated Monsanto Settlement that the Debtors reorganization plan depends on. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, informed the Court that the Debtors plan to file the Monsanto Settlement by Aug. 15, 2007. The hearing on the Monsanto and Retiree Settlements is postponed to Oct. 1, 2007. A hearing on the confirmation of the Debtors' Plan will be held after that. Nitro Tort Victims' Supplemental Objection The Nitro, West Virginia Tort Victims relate that the Debtors have consistently represented that the Nitro Tort Victims' clams are "Tort Claims," which will be unaffected by the Debtors' Chapter 11 cases or the Debtors' plan of reorganization. The Debtors and the Nitro Tort Victims are in agreement in concept, yet as of July 31, 2007, the parties still have not been able to agree upon mutually consensual language that clearly expresses these intentions. The Debtors' current definition of "Tort Claims," or now, "Legacy Tort Claims" uses language and concepts rooted in the transactions underlying a distribution agreement. The Distribution Agreement is an extremely complex agreement and is not a plan document, Douglas T. Tabachnik, Esq., at the Law Offices of Douglas T. Tabachnik, in Manalapan, New Jersey, notes. Mr. Tabachnik explains that understanding the Debtors' current definition of "Legacy Tort Claims" requires special knowledge of the relationship and transactions between Solutia Inc., and Monsanto. The language of the Plan and the terms defined in the Plan should be plain and clear so as to be understood by a reasonable person, and not a person intimately familiar with the legal relationships and transactions that have transpired between Solutia and Monsanto. The Debtors' disclosure statement should not be approved because the Debtors' Plan provides for third party releases and injunctions without providing any information in the Disclosure Statement or Plan of the acts to be enjoined or identifying the entittles that would be subject to the injunctions, Mr. Tabachnik maintains. Exclusive Periods Extension Sought In July 2007, the Debtors asked the Court to further extend their exclusive period to file a plan of reorganization until Dec. 31, 2007, and their exclusive period to solicit acceptances of that plan until Feb. 29, 2008. The Debtors' exclusive period to file a plan and solicit acceptances of that plan ended on July 30, 2007, and Sept. 28, 2007, respectively. The Debtors filed their First Amended Plan and related disclosure statement, as it has been or may be amended, on May 16, 2007. The modified Plan enjoys the support of many of Solutia Inc.'s significant stakeholders, including the Official Committee of Unsecured Creditors, Official Committee of Solutia's retirees, Monsanto Company, and the Ad Hoc Committee of Trade Claims Creditors. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, told the Court that the Plan is premised on two settlements -- a settlement between Solutia and Monsanto, and a settlement between Solutia and the Retirees Committee, Monsanto and the Creditors Committee. The Settlements achieve a reallocation of legacy liabilities and are the cornerstones of Solutia's Plan, therefore, they must be approved before or in conjunction with the confirmation of Solutia's Plan. The Settlements will be heard on Sept. 5, 2007. Solutia said it is revising its Disclosure Statement and drafting the necessary additional disclosures to comply with the Court's directions. In addition, Solutia said it is preparing for the Sept. 5, 2007 hearing on the Settlements. Solutia believes that the Settlements readily meet the standards for approval under Bankruptcy Rule 9019. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Creditors' Committee Wants Settlements Approved ------------------------------------------------------------ The Official Committee of Unsecured Creditors in Solutia Inc. and its debtor-affiliates' bankruptcy cases; and Monsanto Company and Pharmacia Corporation ask the U.S. Bankruptcy Court for the Southern District of New York to approve: (i) the settlement among Solutia Inc., Monsanto, Pharmacia Corporation, the Creditors Committe, the Official Committee of Retirees, and the Ad Hoc Trade Committee; and (ii) the settlement among Solutia, Monsanto, the Retirees' Committee, and the Creditors Committee Settlement. The Creditors Committee relates that the Settlements are critical components of the Debtors' Second Amended Joint Plan of Reorganization, pursuant to which the Debtors have settled all pending litigation against Monsanto and Pharmacia, including objections to proofs of claim filed by Monsanto and Pharmacia, by fixing legacy liabilities that Monsanto will assume under the Plan, and obtaining Pharmacia's agreement to waive all of its claims against the Debtors with prejudice. The Debtors also have achieved reductions in future benefit obligations to Solutia's retirees through agreement with the Official Committee of Retirees. The Creditors Committee believes that the Settlements achieve a reallocation of the Debtors' legacy liabilities necessary to pave the way for the Debtors' successful reorganization and that the Settlements are fair and equitable, as required under applicable law. The Creditors Committee reserves the right, and intends, to supplement its joinder with additional arguments in support of the Motion and respond to any objections filed in connection with the Motion. Monsanto and Pharmacia also reserve their rights to reply to any objection filed with respect to the Motion; file papers in support of the relief requested; and participate in any hearing, disposition, discovery or any other matter relating to the Motion. Objections (1) Noteholders Committee The Ad Hoc Committee of Solutia Noteholders asks the Court to deny approval of the Monsanto Settlement, or in the alternative, adjourn the hearing on the Motion. Bennett J. Murphy, Esq., at Hennigan, Bennett & Dorman LLP, in Los Angeles, California, notes that the Debtors have not demonstrated that the Monsanto Settlement is fair and equitable because they have not provided the Court with the rigorous analysis necessary for the Court to compare the likelihood of their success in litigation against Monsanto and Pharmacia with the benefits of the settlement. In fact, it is not apparent that the Debtors have even conducted the analysis that would be required to make the determination, he contends. Mr. Murphy states that to obtain approval of the Monsanto Settlement, the Debtors will have to make at least three crucial showings, with respect to which the Motion is wholly inadequate. These are: -- Debtors must lay out for the Court the results of their investigation of the claims between the Debtors, Monsanto and Pharmacia that they conducted at the outset of their Chapter 11 cases, whatever that investigation might have been; -- Debtors must quantify the liabilities they are to retain under the settlement and compare that to the liabilities that would be put to Monsanto if the Debtors prevailed in their litigation; and -- Debtors must demonstrate why their odds of success in litigation are so low that it is worth their retaining those liabilities and paying US$240,000,000 to Monsanto. The Noteholders Committee has made these points before. Had the Debtors undertakenthe analysis to establish any of the points, they would have most certainly disclosed so in their disclosure statement, Mr. Murphy tells the Court. Instead, the Debtors have persisted in proposing disclosure on the litigation that consists of little more than a self-serving "sales job" designed to support approval of the Monsanto Settlement, he argues. The memorandum of law in support of the Motion is replete with reasons why the Debtors' litigation against Monsanto and Pharmacia would likely fail. Noticeably absent is any discussion of the possibility that the Debtors might succeed, or of the extensive analysis that the Debtors did, or should have done, to reach their conclusions. Mr. Murphy asserts that any settlement is better than an outright loss in litigation. Contrary to the Debtors' approach, the winning -- not the losing -- scenario is the reference point against which a settlement should be judged, he says. Also absent form the Memo is any critical assessment of the scope, magnitude and timing of the legacy liabilities proposed to be assumed by the Debtors and made forever binding upon them following emergence from bankruptcy, Mr. Muphy notes. To determine whether the Monsanto Settlement is of any benefit to the Debtors at all, much less of sufficient benefit to outweigh the Debtors' chances of success in litigation, the Court needs to know whether or not they will be in a position to thrive as a going, and growing, concern, or remain saddled by another company's legacies, he asserts. Moreover, the Debtors have failed to include a current, complete and fully executed settlement agreement. For that reason alone, the Court should deny approval of the Monsanto Settlement, Mr. Murphy maintains. 2) Nitro Tort Victims The Nitro, West Virginia Tort Victims, which include about 2,300 current and former residents from one or more communities surrounding a now defunct chemical plant located near Nitro, West Virginia, ask the Court to deny the Motion to the extent that it seeks approval of the Monsanto Settlement. Certain Nitro Tort Victims filed proofs of claim asserting claims against the Debtors for property damage, personal injuries and medical monitoring arising from the Debtors' ownership and operation of the Nitro Plant. The Nitro Tort Victims contend that their property has been contaminated and their health has been endangered by the release of dioxin contaminants resulting from the Debtors' tortious conduct at the Nitro Plant. In addition, two separate lawsuits are pending in Putnam County Circuit Court, West Virginia, for injuries suffered from the release of dioxin contaminants produced at the Nitro Plant. The lawsuits name Monsanto and Pharmacia, among others, as defendants. The Nitro Tort Victims relate that they have been assured that it is the Debtors' intent to include claims held by the Nitro Tort Victims in the definition of "Tort Claims" so that their claims will not be affected by the Debtors' Chapter 11 cases and will be resolved under applicable state or federal law outside of the proceedings. However, as of July 30, 2007, the Tort Claims definition proposed by the Debtors and appearing in the Plan does not clearly and unequivocably include the claims held by the Nitro Tort Victims, Douglas T. Tabachnik, Esq., at the Law Offices of Douglas T. Tabachnik, in Manalapan, New Jersey, notes. Additionally, the language in the Debtors' Third Amended Disclosure Statement circulated on July 25, 2007, but not filed, regarding the "Monsanto/Pharmacia Injunction" does not clearly and unequivocably allow the Nitro Tort Victims to pursue claims they have or may have against Monsanto and Pharmacia, he says. A certain relationship agreement, or any amendement to it, between the Debtors and Monsanto, which the Debtors state is critical to their Plan and which purports to contain the terms of the Monsanto Settlement, has not been filed, Mr. Tabachnik tells the Court. The Court and the Nitro Tort Victims do not have the necessary factual background to evaluate the Monsanto Settlement to determine if it is fair and equitable. "No one knows what the terms of that settlement are," Mr. Tabachnik argues. Moreover, the only filed version of the Relationship Agreement that was filed on Feb. 16, 2006, is incomplete and was not signed by Monsanto, he points out. The Relationship Agreement refers to 20 separate exhibits, which are not included. It is quite possible and likely that the Relationship Agreement has materially changed since a version of it was filed almost one and a half years ago. "It is not possible to determine if any other of Monsanto's obligations set forth in the only Relationship Agreement filed has subsequently been negotiated away," Mr. Tabachnik says. The Relationship Agreement filed also provided that Monsanto will indemnify Solutia for all "Tort Claims." Because the definition of Tort Claims has been revised to include "Solutia Tort Claims," it appears that Monsanto is now not indemnifying Solutia for all "Tort Claims," but rather for the "Legacy Tort Claims," Mr. Tabachnik contends. The Motion itself does not include all of the information on which it relies, Mr. Tabachnik states. The amount of "consideration provided by Monsanto" is one of the key terms of the compromise and settlement missing, he points out. Also, the injunctive relief Monsanto will receive in the Monsanto Settlement is exceedingly broad. By its terms, the Monsanto injunction enjoins all other tort claims against Monsanto and all claims of any kind against Monsanto's unnamed "Affiliates." Mr. Tabachnik insists that all of these types of tort claims need to be described so that the parties and tort victims can be apprised that their rights are being affected. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TEXCHEM RESOURCES: 2nd Qtr Profit Up on Gains from Unit Disposal ---------------------------------------------------------------- Texchem Resources Bhd's net profit doubled to MYR6.57 million in the second quarter ended June 30, 2007, from MYR3.22 million a year earlier, mainly due to an exceptional gain of MYR6.2 million from the disposal of Texchem Consumers Sdn Bhd, The Edge Daily reports, citing the company's disclosure with the Bursa Malaysia Securities Bhd. Revenue fell to MYR306.08 million from MYR323.03 million mainly due to the disposal of TCSB and lower sales volume achieved by the family care, packaging and industrial divisions, which were mitigated by higher sales from the food division, the newspaper relates. The company declared an interim dividend of 6% less tax. Meanwhile, for the six-month period to June 30, Texchem's net profit fell to MYR5.68 million from MYR7.63 million a year earlier, while revenue fell 2.9% to MYR611.15 million from MYR629.59 million. Earnings per share declined to 4.57 sen from 6.15 sen. "The first six months of this year was quite challenging," said Texchem's president and chief operating officer, Jeffrey Lee. "We appear to be turning the corner in our Myanmar seafood processing operations, having addressed some structural and operational issues, and built stronger disciplines and efficiency. The performance for the food division as a whole is quite encouraging. However the good news from elsewhere is offset by tough business conditions in both the industrial and packaging divisions. Both are experiencing reduced sales volumes. We are looking at scaling back expenses as well as ensuring we maximise returns by improving efficiencies. Quality and efficiency will be the watchwords as some of the challenges are unlikely to abate in the near term," he added. The group's industrial division recorded a lower operating profit compared to last year, a drop of 4.4% to MYR6.5 million from MYR6.8 million. According to the company, the decline in profit was mainly due to the persistent high prices of chemical products and slowing demand caused by the deceleration of manufacturing industry's growth. As such, the division was looking at growing beyond Malaysia in order to sustain the business as well as to improve on the growth potential. The group's packaging division recorded a 56.6% decline in its operating profit to MYR5.3 million from MYR12.2 million recorded in the first half of 2006. Texchem said the group was working on building a new factory that would consolidate all the other manufacturing operations in Thailand in preparation for future expansion plans. The company added that its family care division's operating profit rose 23.9% to MYR5.7 million in the first half of the year from MYR4.6 million a year earlier. Texchem said the food division was beginning to show positive results, and recorded an operating profit of MYR500,00 compared to the previous loss of MYR500,000 in the first half of 2006. About Texchem Resources Headquartered in Penang Malaysia, Texchem Resources Berhad -- http://www.texchemgroup.com/-- is principally engaged in trading in industrial chemicals and other products. Its other activities include manufacturing of family care products and household insecticides and distribution and marketing of a wide range of consumer and family care products; manufacturing and marketing of raw surimi, fishmeal, feedmeal and seafood products; manufacturing and selling of packaging products for the electronics, electrical, semiconductor and disk drive industries and investment holding. The Group's operations are located in Malaysia, Thailand, Singapore, Indonesia, China, Vietnam, Myanmar and Italy. Texchem is currently undergoing a financial rationalization and restructuring program, which involves the disposal of a number of dormant subsidiaries. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Mess at Heathrow Airport May Affect Revenues ------------------------------------------------------------- Air New Zealand's revenues earned in its Europe route may be affected by the mess at the Heathrow Airport. ANZ's services to London Heathrow could come under pressure as passengers avoid the airport, Roeland van den Bergh of The Dominion Post says. Heathrow traffic is down 1.7% at a time when the global aviation market is growing 6.3%, The Dominion Post reports, citing a statement made by the International Air Transport Association. IATA Director-General Giovanni Bisignani told The Post that passengers are avoiding the Heathrow airport with the "embarrassingly low service levels on everything from security wait times to baggage delivery and almost everything in between." Heathrow's taxes are much higher too -- at NZ$146 on a return ticket -- about three times higher than at Frankfurt, or six times more than at Rome. Heathrow is the only European gateway for ANZ, which flies there twice daily via Hong Kong or Los Angeles, the news agency notes. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. The airline has operations in the United Kingdom and the United States. ALL STAR: Creditors' Proofs of Debt Due on August 16 ----------------------------------------------------- All Star Cars (Lincoln Road) Ltd. is accepting proofs of debt from its creditors until August 16, 2007. Failure to file claims by the due date will exclude a creditor from sharing in the company's dividend distribution. The company's liquidators are: Henry David Levin Barry Phillip Levin c/o PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 DSK LTD: Taps Brown and Neilson as Liquidators ---------------------------------------------- Kenneth Peter Brown and Robert James Neilson were appointed as liquidators of DSK Limited on July 19, 2007. The Liquidators can be reached at: Kenneth Peter Brown Robert James Neilson c/o Rodewald Hart Brown Limited 127 Durham Street PO Box 13380, Tauranga New Zealand Telephone:(07) 571 6280 Website: http://www.rhb.co.nz HARJIT GILL: Subject to Fresha Valley's Wind-Up Petition -------------------------------------------------------- A petition to wind up the operations of Harjit Gill Enterprises Ltd. will be heard before the High Court of Auckland on Aug. 16, 2007, at 10:45 a.m. The petition was filed by Fresha Valley Processors (Waipu) Limited on May 18, 2007. Fresha Valley's solicitor is: Stuart Henderson Henderson Reeves Connell Rishworth 96 Bank Street PO Box 11, Whangarei New Zealand KLASSIC KIWI: Proofs of Debt Due on July 17 ------------------------------------------- On July 17, 2007, John Howard Ross Fisk and Richard Dale Agnew were named as liquidators of Klassic Kiwi Tees New Zealand Ltd. Messrs. Fisk and Agnew are accepting proofs of debt from its creditors until July 17, 2007. The Liquidators can be reached at: John Howard Ross Fisk Richard Dale Agnew c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington New Zealand Telephone:(04) 462 7044 Facsimile:(04) 462 7492 MCLAUGHLIN PARK: Court to Hear Wind-Up Petition on Sept. 27 ----------------------------------------------------------- The High Court of Hong Kong will hear a petition to wind up the operations of McLaughlin Park Ltd. on Sept. 27, 2007, at 10:45 a.m. The wind-up petition was filed by Wedding Earthmovers Limited on June 26, 2007. Wedding Earthmovers' solicitor is: R. J. W. Swan McVeagh Fleming HSBC House, Level 14 1 Queen Street, Auckland 1010 New Zealand Telephone:(09) 377 9966 Facsimile:(09) 377 9956 MELLENCAMP CARRYWEAR: Shareholders Decide to Liquidate Business --------------------------------------------------------------- The shareholders of Mellencamp Carrywear Ltd. met on July 16, 2007, and resolved to liquidate the company's business. Creditors who were not able to file their claims by August 6, 2007, will be excluded from sharing in the company's dividend distribution. The company's liquidator is: Damien Grant Waterstone Insolvency, PO Box 352 Auckland New Zealand TEAMM DECORATORS: Accepting Proofs of Debt Until August 16 ---------------------------------------------------------- Teamm Decorators Ltd., which is in liquidation, requires its creditors to file their proofs of debt by August 16, 2007, to be included in the company's dividend distribution. The company's liquidator is: Henry David Levin c/o PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 TINAKORI LTD: Shareholders Resolve to Shut Down Business -------------------------------------------------------- On July 10, 2007, the shareholders of Tinakori Ltd. resolved to liquidate the company's business and appointed David Bernard Robinson as liquidator. Accordingly, the company's creditors are required to file their claims on or before August 17, 2007, to be included from sharing in the dividend distribution. The company's liquidator is: David Bernard Robinson c/o Gibson Sheat Lawyers PO Box 31905, Lower Hutt New Zealand Telephone:(04) 569 4873 Facsimile:(04) 569 1571 WARWICK MEWS: Fixes August 20 as Last Day to File Claims -------------------------------------------------------- Malcolm Grant Hollis and John Howard Ross Fisk were appointed as liquidators of Warwick Mews Developments Ltd. on July 23, 2007. Messrs. Hollis and Fisk are receiving proofs of debt from the company's creditors until August 20, 2007. The Liquidators can be reached at: Malcolm Grant Hollis John Howard Ross Fisk c/o PricewaterhouseCoopers 119 Armagh Street PO Box 13244, Christchurch New Zealand Telephone:(03) 374 3000 Facsimile:(03) 374 3001 ZINC LTD: Taps Heath and Lamacraft as Liquidators ------------------------------------------------- On July 17, 2007, Arron Leslie Heath and Michael Lamacraft were appointed as liquidators of Zinc Ltd. The Liquidators are accepting proofs of debt from its creditors until August 17, 2007. The Liquidators can be reached at: Arron Leslie Heath Michael Lamacraft c/o Meltzer Mason Heath Chartered Accountants PO Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 ===================== P H I L I P P I N E S ===================== FIL-ESTATE CORP: Sets Annual Stockholders' Meeting for Sept. 13 --------------------------------------------------------------- The Annual Stockholders' Meeting of Fil-Estate Corporation will be held on Sept. 13, 2007, at EDSA Shangri-La Plaza Hotel, in Mandaluyong City. Among the agenda for the meeting are the election of new directors and appointment of auditors. Headquartered in Pasig City, Philippines, Fil-Estate Corporation was originally incorporated as San Jose Oil Company, Inc. whose primary purpose was to prospect for and market, oil, natural gas and other minerals and secondarily invest in non-mining corporation or other enterprises. In July 1996, the Board of Directors and the stockholders approved the change in the company's primary purpose from oil exploration to that of a holding company authorized to engage in property and infrastructure development, as well as the increase in authorized capital stock from PHP300 million to PHP2 billion with par value of PHP1.00 per share. On January 22, 1998, the Securities and Exchange Commission approved the change in corporate name to Fil-Estate Corporation, the change in primary purpose from oil exploration to a holding firm, the change in par value from P0.01 to P1.00 per share, and the declassification of the A and B shares. The company shall engage in infrastructure, privatization, leisure and real estate investments through directly managed subsidiaries, associated entities and strategic alliances. On December 31, 2002, the SEC approved the company's increase in authorized capital stake from PHP300 million shares to PHP2 billion shares. The key investment of Fil-Estate Corporation is in the form of equity interest in Metro Rail Transit Holdings, Inc., and Metro Rail Transit Holdings 2. The combined investment in these two holding companies represents approximately 28.5% interest in the MRT phase I train system which runs from North triangle and Taft Avenue. The Troubled Company Reporter - Asia Pacific reported that as of September 30, 2006, Fil-Estate Corporation's balance sheet revealed a stockholders' deficit of PHP310,171,379. SAN MIGUEL CORP: Posts PHP7.9-Bil. Net Income in 2007 First Half ---------------------------------------------------------------- San Miguel Corporation reported a net income of PHP7.88 billion for the first half of 2007, almost double the amount in 2006. Consolidated sales revenue reached PHP112.7 billion, 9% above the same period last year. While beer domestic and food businesses improved operating income by 21% and 10%, respectively, consolidated operating income declined to PHP8.20 billion. This is due to the increased costs of National Foods' operations -- a direct result of the prolonged drought in Australia. Beer international gained in the second quarter but San Miguel's packaging and liquor subsidiaries, although improving, are still behind last year. Consolidated net financing charges fell 44% to PHP2.23 billion, aided by the continuing strength of the peso. Other income, representing gains on the same of Del Monte shares and gains from discontinued operations, pushed consolidated net income to PHP7.88 billion. San Miguel's domestic beer operations recorded 3% higher volumes, courtesy of a robust second quarter delivering for the business, 6% higher revenue at PHP21.2 billion. Operating income grew by 21% to PHP5.7 billion on account of stronger volumes and contained fixed operating expenses. Overseas, San Miguel Brewing Int'l, Ltd., ended the first semester with encouraging results. The second quarter's operating income significantly narrowed he 1st quarter's loss from considerable gains in North China, Australia and Export operations offsetting the lower sales in Indonesia and South China. Ginebra San Miguel, Inc., ended the first half with 6% higher volumes, fueled by domestic liquor sales and exports. Revenue hit PHP6.32 billion -- 3% higher than last year driven by Ginebra San Miguel Bilog's resurgence and GSM Blue's strong performance. Despite an improved sales mix, operating income nevertheless declined to PHP382 million as high input costs and absorption of the 8% excise tax offset gains in volume. The San Miguel Food Group brought in PHP31.7 billion in revenue for the first six months of 2007 -- up 5% year-on-year due to higher volumes across all businesses and improved selling prices, particularly in the second quarter. Operating income rose 10% to PHP1.18 billion as a result of significant cost improvements in dairy, processed meats, and food service operations. Meanwhile, the Packaging Group's revenue fell 9% to PHP9.29 billion. Operating income likewise declined to PHP157 million as over-all demand remained sluggish. Significant sales improvements in the glass, plastics and metal segments nonetheless were recorded in the second quarter, which are expected to be sustained for the rest of the year. National Foods' first semester revenue reached AU$967.6 million, 10% above last year despite the prevailing drought condition across the continent. Higher costs of imported juice concentrates amid tight fruit supply however dragged operating income down to AU$40.8 million. About San Miguel Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter-Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. The company's ratings have been placed on S&P's CreditWatch with a Negative outlook on May 17, 2007. TOWER RECORDS: Judge Shannon Confirms Chap. 11 Liquidation Plan --------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware, on Aug. 6, 2007, entered a formal order confirming MTS Inc., dba Tower Records, and its debtor- affiliates' Joint Chapter 11 Plan of Liquidation. Judge Shannon determined that the plan satisfies the statutory requirements set forth under Section 1129(a) of the Bankruptcy Code. Terms of the Plan Under the Plan, Administrative Claims and Other Priority Claims will be paid in full, in cash, or other treatment as the Debtors and holders agreed on in writing. At the Debtors' option, holders of Priority Tax Claims will be paid, either: a. in cash; or b. in full, in cash, over time in equal cash installment payments on a quarterly basis with interest during a period not to exceed five years after the order of relief. Holders of CIT Claims will receive the treatment as to which the Debtors and the holders have agreed on in the DIP Financing Order and DIP Financing Agreement. Holders of Other Secured and Trade Vendor Claims will received on or a combination of these: a. cash equal to the amount of the claims; b. collateral securing the claims; or c. other treatment which the Debtors and the holders agreed on in writing. Holders of General Unsecured Claims will receive a pro rata share of the available assets. Interest and Securities Subordinated Claims will not receive any distribution under the Plan. About Tower Records MTS Incorporated -- http://www.towerrecords.com/-- owns Tower Records and retails music in the U.S., with nearly 100 company- owned music, book, and video stores. The company and its affiliates filed for chapter 11 protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-10394). The company has stores in the United Kingdom, the Philippines and Colombia. The Debtor and its seven debtor-affiliates filed a second Chapter 11 petition on Aug. 20, 2006 (Bankr. D. N.Y. Case Nos. 06-10886 through 06-10893, Lead Case No. 06-10891). Mark D. Collins, Esq. of Richards Layton & Finger represent the Debtors in their Restructuring efforts. When the Debtors filed for protection from its creditors, it listed estimated assets and debts of more than US$100 million. VITARICH CORP: Files First Compliance Report with Court ------------------------------------------------------- Vitarich Corporation said in a disclosure with the Philippine Stock Exchange that on August 7, 2007, it filed a compliance report with the Regional Trial Court, Branch 7, in Malolos Bulacan with regard to its Petition for Corporation Rehabilitation. The Troubled Company Reporter-Asia Pacific reported on June 14, 2007, that Judge Danilo Manalastas of the RTC Branch 7 approved Vitarich Corp.'s rehabilitation plan on May 31, 2007. The decision requires the company to implement the plan and to submit monthly reports on the execution of the plan to both the Court and the Rehabilitation receiver. According to a TCR-AP report on Feb. 1, 2007, the Court appointed Eduardo T. Rondain as Rehabilitation Receiver for Vitarich Corp. Bulacan, Philippines-based Vitarich Corporation -- http://www.vitarich.com/-- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The company also develops, produces and sells animal health products. The Company reported net losses worth PHP163.79 in 2006, PHP249.3 million in 2005 and PHP291.2 million in 2004 . Vitarich is currently implementing a rehabilitation plan. ================= S I N G A P O R E ================= INTEGRATED DEVICE: Proofs of Debt Due on September 10 ----------------------------------------------------- The creditors of Integrated Device Technology Singapore (1997) Pte Ltd are required to file their proofs o f debt by September 10, 2007. Creditors who cannot file their clams by the due date will be excluded from sharing in the company's dividend distribution. The company's liquidators are: Low Sok Lee Mona Teo Chai Choo c/o Low, Yap & Associates 4 Shenton Way #04-01 SGX Centre 2 Singapore 068807 ROTHSCHILD ASIA: Accepting Proofs of Debt Until Sept. 14 -------------------------------------------------------- Rothschild Asia Pacific Limited, which is voluntary liquidation, is accepting proofs of debt from its creditors until September 14, 2007. Failure to file claims by the due date will exclude a creditor from sharing in the company's dividend distribution. The company's liquidator is: Timothy James Reid 50 Raffles Place #16-06 Singapore Land Tower Singapore 048623 SG INDUSTRIAL: Pays First and Final Dividend -------------------------------------------- SG Industrial Pte Ltd paid the first and final dividend to its creditors on July 30, 2007. The company's creditors receive 10.13% of dividend. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 UNITY BUILDER: Pays Second and Final Dividend --------------------------------------------- Unity Builder Pte Ltd., which is in liquidation, paid the second and final dividend to its creditors on June 29, 2007. The company paid 4.4212% of dividend. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 =============== T H A I L A N D =============== BLOCKBUSTER INC: Inks Acquisition Deal with Movielink ----------------------------------------------------- Blockbuster Inc. has acquired Movielink LLC, one of the nation's leading movie download services, in a move to further provide customers with even more convenient access to home entertainment. The acquisition gives Blockbuster access to one of the largest libraries of downloadable movies and a large array of television content. Terms of the agreement were not disclosed. With thousands of movies and television shows available in its digital library for downloading, Movielink offers customers the ability to legally download entertainment content for rental (VOD) and for purchase (EST). The service was created in 2002 by Movielink, LLC, a joint venture of Metro-Goldwyn-Mayer Studios Inc., Paramount Pictures, Sony Pictures Entertainment, Universal Pictures and Warner Bros. Studios. The acquisition of Movielink, which has VOD and EST license agreements with the five founding studios, as well as more than 30 other studios, television-content distributors, and foreign and independent content providers, enables Blockbuster to offer consumers downloadable entertainment content via their PCs, portable devices, television-connected home networks and approved set-top boxes. "Blockbuster is committed to keeping pace with the changing needs of customers by offering them an expanding array of convenient ways to access entertainment content," said Jim Keyes, Blockbuster Chairman and CEO. "Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster. Now, in addition to the entertainment content we provide through our stores and by mail, we have taken an important step toward being able to make movie downloading conveniently available to computers, portable devices and ultimately to the television at home." "The studios' goal with the Movielink service has always been to make digital entertainment content more conveniently, more widely and more securely available to consumers. This acquisition should further that goal," said Jim Ramo, CEO of Movielink from its inception. "With Blockbuster's ability to leverage its store network, online assets, and marketing expertise, Blockbuster should be able to grow the market for digitally-delivered entertainment content, and we believe that's good news for consumers and content providers alike." Blockbuster plans to continue to operate the Movielink service and to eventually make elements of the service available through blockbuster.com. "Thanks to the vision of the participating studios, Movielink has been at the forefront of the emerging digital media market," said Mr. Keyes. "We are grateful to the studios for entrusting us with their content, and we look forward to continuing to work with them to make even more digital content available to a growing consumer audience." About Movielink LLC Movielink -- http://www.movielink.com/-- is a leading movie download service, offering U.S. customers an extensive selection of new and classic hit movies, foreign films and other hard-to- find content. Movielink draws its content offerings from the vast libraries of Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios, Warner Bros, Walt Disney Pictures, Miramax, Artisan and others on a non-exclusive basis. About Blockbuster Inc. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- provides in-home movie and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2007, Moody's Investors Service downgraded Blockbuster Inc.'s corporate family rating to Caa1, its senior secured credit facilities to B3, and speculative grade liquidity rating to SGL-4. In addition, Moody's affirmed the senior subordinated notes rating at Caa2. Moody's said the rating outlook remains negative. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. 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