/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070926.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 Wednesday, September 26, 2007, Vol. 10, No. 191 Headlines A U S T R A L I A BESTCARE FOODS: Will Declare First Dividend on October 16 C.P. LEASING: Appoints Jamieson Louttit as Liquidator DAVIDSONS ENVIRONMENTAL: Members Resolve to Wind Up Operations EKIDNA ENTERPRISES: Placed Under Voluntary Liquidation EVANS & TATE: To Be Sold As Separate Businesses, Reports Say JUSTIN NEWBERRY: Members' General Meeting Set for October 9 KARESTA PTY: Taps Parker and MacDonnell as Liquidators LIFE THERAPEUTICS: Releases Fin'l Results for FY June 30, 2007 LIFE THERAPEUTICS: Plans Assets Sale and Share Buyback LIFE THERAPEUTICS: Appoints PwC to Valuate of Kedrion Deal MARDOLINE PTY: Members to Receive Wind-Up Report on Sept. 28 MEDICAL IMAGING: Names Jamieson Louttit as Liquidator POSITIVE IT: Court Appoints Palmer as Liquidator SYMBION HEALTH: Primary Wants Update on Healthscope Bid VINCE NOMINEES: Undergoes Voluntary Liquidation C H I N A & H O N G K O N G ALERIS INTERNATIONAL: Will Close Tennessee Plant by November 20 ASAT HOLDINGS: Low Equity Prompts Nasdaq's Delisting Notice ASAT HOLDINGS: Files Appeal on NASDAQ Delisting Decision ASAT HOLDINGS: Unit Gets US$20-Mil. Loan from Chinese Bank ASAT HOLDINGS: Moody's Lifts Ratings to Caa1 on New Loan Grant BIG DRAGON: Court Sets Wind-Up Hearing for Nov. 21 CHINA EASTERN: Cathay Pacific & Air China's Parent Withdraw Bid FERRO CORPORATION: Board Declares Regular Quarterly Dividend FORD MOTOR: Opens Second JV Car Factory in Nanjing GLOBAL ONE: Members to Hold Final General Meeting on October 22 HARBOUR RING: Liquidators Resign from Post HONG KONG MACAU: Toohey and Mitchell Quit as Liquidators HONG LONG: Pulls Back US200MM Bond Issue; Moody's Remove Ratings HOPSON DEV: Project Delays Leads to 48% Cut in 1H Net Profit MUSIC TRADING: Court to Hear Wind-Up Petition on October 3 NOVA CHEMICALS: Moody's Affirms Corporate Family Rating at Ba3 PAZI PRODUCTION: Subject to Bank of China's Wind-Up Petition PHANTAXIA ENTERTAINMENT: Faces Lee Ka Lik's Wind-Up Petition PORTWEALTH PROPERTIES: Liquidators Quit Post SKM FAR: Shareholders Resolve to Liquidate Business SOLUTIA INC: Opens New Manufacturing Plant in Suzhou, China UNITED BISCUITS: Placed Under Voluntary Liquidation I N D I A AES CORP: Niagara Court Acquits Firm of Fraud BAUSCH & LOMB: S&P Holds CreditWatch on BB+ Corp. Credit Rating BHARTI AIRTEL: Bids for Qatar Mobile License DRESSER-RAND GROUP: Earns US$26.2 Million in Qtr. Ended June 30 GENERAL MOTORS: Failed Contract Talks Spurs UAW Work Stoppage TATA POWER: Mundra Project to Get Funding From Various Lenders I N D O N E S I A ALCATEL-LUCENT: To Provide Wireless Network for China Mobile ANEKA TAMBANG: To Lower Nickel Power Cost by 8-10% HANOVER COMPRESSOR: Moody's Withdraws Ratings After UCI Merger GAJAH TUNGGAL: May Sell Right Issue to Reduce Gearing Ratio * S&P Affirms Indonesia's BB-/B Foreign Currency Ratings J A P A N HERBALIFE: Moody's Affirms Bank Loan at Ba1 Following Upsize K O R E A KRISPY KREME: Board Approves Officer Indemnification Agreement MAGNA INTERNATIONAL: Plan of Arrangement Takes Effect TRIGEM COMPUTER: Representative Files 2nd Section 1518(1) Report M A L A Y S I A FOREMOST HOLDINGS: Wants MYR6.5-Million Refund From Ismail GREIF INC: Board Elects David B. Fischer as President & COO KUMPULAN BELTON: Securities Delisted by Bourse on September 25 MALAYSIA AIRLINES: Unit to Start East Malaysia Ops in October PROTON HOLDINGS: Volkswagen's CEO to Meet Malaysia's PM PROTON HOLDINGS: Taps Phranakorn Auto to Sell Cars in Thailand TENCO BERHAD: Completes Restructure; Exits Amended PN17 Category N E W Z E A L A N D CIVIC MANUREWA: Creditors' Proofs of Debt Due on October 5 CONTAINERLINK TRANSPORT: Appoints Levin and Vance as Liquidators DENNING PROPERTIES: Commences Liquidation Proceedings FLOORING CONCEPTS: Accepting Proofs of Debt Until Oct. 4 HIGHGROVE HOMES: Taps Levin and Vance as Liquidators HURUNUI PLASTICS: Fixes October 3 as Last Day to File Claims KEEL INVESTMENTS: Fixes Sept. 28 as Last Day to File Claims MARPLE INVESTMENTS: Court to Hear Wind-Up Petition on Oct. 1 MONARCH INDUSTRIES: Names Crichton and Horne as Liquidators PROPERTYFINANCE GROUP: Stock Exchange Lifts Trading Suspension SILVERN PROPERTIES: Creditors' Proofs of Debt Due on Sept. 28 P H I L I P P I N E S ALLIED BANKING: Foreign Banks Interested to Handle Capital Hike DEVELOPMENT BANK: Plans to Bid for US$865MM MRT Debt Refinancing MIRANT CORP: Texas Court Confirms Mirant Lovett's Amended Plan RIZAL COMMERCIAL: Board Approves Appointment of 3 Directors SAN MIGUEL: Subsidiary Forms Partnership with 2 Foreign Firms * Investments for January-July Period Grows 26% to PHP159 Bil. * Peso May Hit PHP44 Per US$1 Rate in Last Three Months of 2007 S I N G A P O R E ADVANCED MICRO: Introduces World's First Triple-Core Processors AGRI INTERNATIONAL: Moody's Assigns B2 Corporate Family Rating CHINA AVIATION: CAO Spain Undergoes Voluntary Liquidation EXCELLENT HOLDINGS: Creditors' Proofs of Debt Due on October 5 FLEXTRONICS INT'L: Unit Wants to Buy Arima's Notebook Operations SHINE STAR: Court to Hear Wind-Up Petition on October 5 T H A I L A N D BANK OF AYUDHYA: Fitch Assigns Positive Outlook to Nat'l Ratings TOTAL ACCESS: Earns THB1.33-Billion Profit for Second Quarter TRUE CORP: Unit Freezes Investments Pending Info on NTC Policies * Good Fiscal Position Supports Baa1 Bond Ratings, Moodys Says * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= BESTCARE FOODS: Will Declare First Dividend on October 16 --------------------------------------------------------- Bestcare Foods Limited will declare its first dividend on October 16, 2007. Creditors who were not able to file their proofs of debt by the September 25 due date will be excluded from sharing in the company's dividend distribution. The company's deed administrator is: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Bestcare Foods Bestcare Foods Limited is a distributor of prepared feeds. The company is located at North Parramatta, in New South Wales, Australia. C.P. LEASING: Appoints Jamieson Louttit as Liquidator ---------------------------------------------------- During a meeting held on August 22, 2007, the members and creditors of C.P. Leasing Pty Limited appointed Jamieson Louttit as the company's liquidator. The Liquidator can be reached at: Jamieson Louttit Jamieson Louttit & Associates Suite 73, Level 15 88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0505 Facsimile:(02) 9231 0303 About C.P. Leasing C.P. Leasing Pty Limited, which is also trading as Comlease Pty Ltd, is in the business of equipment rental and leasing. The company is located at Milsons Point, in New South Wales, Australia. DAVIDSONS ENVIRONMENTAL: Members Resolve to Wind Up Operations -------------------------------------------------------------- At an extraordinary general meeting held on August 10, 2007, the members of Davidsons Environmental Enterprises Pty Limited agreed to voluntarily wind up the company operations. Ian Davidson was tapped as liquidator. The Liquidator can be reached at: Ian Davidson 1 Sailors Bay Road Willoughby, New South Wales, 2068 Australia About Davidsons Environmental Located at Surfers Paradise, in Queensland, Australia, Davidsons Environmental Enterprises Pty Ltd is an investor relation company. EKIDNA ENTERPRISES: Placed Under Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on August 15, 2007, the members of Ekidna Enterprises Pty Limited resolved to voluntarily liquidate the company's business. Bruce Gleeson was tapped as liquidator. The Liquidator can be reached at: Bruce Gleeson c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02) 9251 5222 About Ekidna Enterprises Ekidna Enterprises Pty Limited is a distributor of durable goods. The company is located at Vaucluse, in New South Wales, Australia. EVANS & TATE: To Be Sold As Separate Businesses, Reports Say ------------------------------------------------------------ Evans & Tate Limited could be sold as three separate businesses, Foodweek Online relates. Just-Drinks.com cites the company as saying that it could be sold off piece by piece after 60 parties expressed interest in its operations. E&T receiver, Peter Anderson of McGrath Nicol, confirmed that several prominent industry players had already taken an interest and that the company's main winery assets would probably sell separately, Just-Drinks says. The company, which recently sealed a distribution deal with McWilliam's Wines, has seen a difficult few months, following the news that ANZ Bank, which was owed around AU$100 million from E&T, advised the group that it was no longer able to continue offering E&T financial support, Foodweek recounts. About Evans & Tate Headquartered in Wembley, Western Australia, Evans & Tate Limited -- http://www.etw.com.au/-- is an Australian wine company listed on the Australian Stock Exchange. The primary businesses of the Evans & Tate Wine Group are the production, marketing and distribution of a number of branded, exclusive labeled and unbranded wines; contract winemaking; wine trading; viticultural services; and wine tourism through its Visitor Centers. The Troubled Company Reporter-Asia Pacific reported on Aug. 27, 2007, that Evans & Tate's board of directors placed it under voluntary administration. On Aug. 21, 2007, Australia and New Zealand Bank, Evans & Tate's largest creditor, appointed Voluntary Administrators (Martin Jones and Bruce Carter of Ferrier Hodgson) and Receivers & Managers (Peter Anderson, Shaun Fraser and Andrew Birch of McGrathNicol) to Evans & Tate Ltd and its subsidiaries. JUSTIN NEWBERRY: Members' General Meeting Set for October 9 ----------------------------------------------------------- The members of Justin Newberry Pty Ltd will have their general meeting on October 9, 2007, at 10:00 a.m., at the offices of NorthCorp Accountants, Chartered Accountants, Suite 1-3 Bourne House, 10-12 Short Street, Port Macquarie, in New South Wales 2444, Australia. At the meeting, P. A. Fahey, Justin Newberry's liquidator, will give a report on the company's wind-up proceedings and property disposal. About Justin Newberry Justin Newberry Pty Ltd, which is also trading as The Athletes Foot, is a land subdivider and developer, except cemeteries. The company is located at Port Macquarie, in New South Wales, Australia. KARESTA PTY: Taps Parker and MacDonnell as Liquidators ------------------------------------------------------ During a general meeting held on August 22, 2007, the members of Karesta Pty Ltd resolved to voluntarily liquidate the company's business. Gregory Jay Parker and Christopher John MacDonnell were appointed as liquidators. The Liquidators can be reached at: Gregory Jay Parker Christopher John MacDonnell Parker Insolvency Level 5, 49 Market Street Sydney, New South Wales 2000 Australia About Karesta Pty Karesta Pty Ltd is a distributor of furniture and fixtures. The company is located at Smithfield, in New South Wales, Australia. LIFE THERAPEUTICS: Releases Fin'l Results for FY June 30, 2007 -------------------------------------------------------------- Life Therapeutics Limited (ASX: LFE) provided details of its financial performance for the year ended June 30, 2007. A summary of the key results for continuing operations are as follows: -- Revenue of US$54.3million, an increase of 42.8% on the previous year; -- Gross profit of US$3.3 million represents an improvement of 306% over the prior year's negative gross profit of US$1.6million; -- Net loss of US$14.8 million, represents an improvement of 48.4% on the loss of US$28.7 million recorded last year; -- EBITDA loss of US$10.7million, down from an EBITDA loss of US$13.4 million; -- Net assets of US$1.9 million as at June 30, 2007, compared with negative equity of US$385,000 as at June 30, 2006; -- Plasma collection increased from 23,600 litres per month in June 2006 to 29,625 litres per month in June 2007; -- Production averaged 29,000 litres per month in the last quarter of FY2007 and as noted by the Company in an earlier announcement this month, this production has continued to increase in the current year and reached 31,200 litres in July 2007. The results incorporate for the first time over a full year the effect of the acquisition of the Pyramid centres completed in September 2005. The result also reflects the transfer of the Life Gels and Bioprocess division to NuSep Limited, effective from November 30, 2006. In line with changes to accounting standards, the Company is reporting under Australian equivalent to International Financial Reporting Standards (AIFRS) guidelines. With the transfer of the Life Gels and Bioprocess businesses to NuSep, the Company's expenses will be primarily denominated and settled in US dollars, thus requiring a change in functional currency. Revenues for continuing operations increased by 42.8% to US$54.3 million. This increase includes plasma sales from the Monroe centre which obtained its FDA license in March 2007. The revenue volume and mix is increasingly in favor of normal source plasma (70% this year versus 53% in the prior year), which has lower gross margins than the hyperimmune products. As total plasma volumes increased in the second half of the financial year, there was a higher contribution to the gross margin as the Company's operating fixed overheads decreased as a percentage of sales. The net loss for the year of US$14.8 million was primarily as a result of this change in product mix and resulting higher volumes. On an EBITDA basis, the loss for the ongoing business of US$10.7 million is attributable to an expansion strategy to enter the Normal Source Plasma market which is currently seeing unprecedented demand. However this has also required an investment in organizational infrastructure and the upgrading of existing donor centers, along with the start up costs of future new centers. Net assets have improved by US$2.3 million (or 575%) as at June 30, 2007, compared with the same time last year. This favorable turnaround in equity is a result of the accounting impact of the embedded derivative valuation. Current Liabilities include non cash liabilities of US$11.4 million for the deferred purchase consideration to be paid in shares for the purchase of the Pyramid centers, and the Cornell Capital loan. Excluding these amounts, the Company has an excess of Current Assets over Current Liabilities of US$9.0 million, as at June 30, 2007. Since the acquisition of Pyramid and the re-positioning of LFE as a major global plasma collection company, a major challenge has been the automation of supply chain systems to enable product to be released from inventories and shipped to customers on a timely basis. The integration of the Pyramid acquisition is now complete, and the supply chain systems are now automated and functioning correctly. Announcing the results, LFE CEO Dr. Hari Nair said, "The increase in plasma volumes during the course of the year is a demonstration of the success of our integration initiatives following the Pyramid acquisition. As a result, we are now fully realising the value of that acquisition and are able to take full advantage of the current buoyant conditions in the market for plasma." "As well as improvements in the plasmas collection operations, our diagnostics business continued to perform well and the indications are that this will continue throughout the current fiscal year," Dr Nair said. Outlook for FY 2008 As previously announced to the market, the Company has a non- binding agreement with Kedrion S.p.A. for the sale of the majority of its collection centres and the Life Sera business to a joint venture company that will be owned 55% by Kedrion and 45% by LFE. That would leave in Life Therapeutics the Diagnostics business and the laboratory. The company believes the guidance provided to the market as of June 25, 2007 is still appropriate based on completion of this transaction. However, once the Kedrion transaction is completed, Life Therapeutics will have to adopt equity accounting to reflect the 45% equity ownership in the joint venture. About Life Therapeutics Headquartered in New South Wales, Australia, Life Therapeutics Limited -- http://www.life-therapeutics.com/-- is engaged in the collection, management and distribution of plasma-based products, and development, manufacture and sale of electrophoresis, hematology and Gradiflow products. It operates in five segments: Life Sera, which collects specialty plasma, including Anti D and Hepatitis B; Life Diagnostics, which develops, manufactures and distributes diagnostic products into the diagnostic marketplace; Life Gels, which develops, manufactures and distributes pre-cast electrophoresis gels into the laboratory market; Life Bioprocess, which markets the Gradiflow technology in both the commercial and research markets, and Life Shared Services, which conducts corporate functions of the organization. At June 30, 2006, the Life Gels and Life Bioprocess division were classed as discontinued operations. In November 2006, the Company completed the spin out of its Australian assets by transferring these assets to a wholly owned subsidiary, NuSep Ltd. The Troubled Company Reporter-Asia Reporter, in its "Large Companies with Insolvent Balance Sheets" Column on Sept. 21, 2007, listed Life Therapeutics Limited as having total assets of US$59 million and total shareholders' equity deficit of US$38,000. The company, in its preliminary annual financial report for the year ended June 30, 2007, reported a consolidated net loss of US$15,733,000, a decrease from the US$31,459,000 net loss in the year ended June 30, 2006. LIFE THERAPEUTICS: Plans Assets Sale and Share Buyback ------------------------------------------------------ Life Therapeutics Limited (ASX: LFE) disclosed that its Board of Directors has resolved to divest the assets of the company not the subject of the proposed transaction with Kedrion S.p.A. The assets concerned and the Company's estimated valuation of those assets are as follows: * Anti-D Red Cell Line US$20 million * Diagnostic Business US$25 million * Two Plasma Collection Centres US$10 million Total Estimated Valuation US$55 million The Diagnostic business generated EBITDA of US$2.7 million on revenue of US$13.1 million in the year ended June 30, 2007. The net sale proceeds will be applied as follows: * An on-market share buyback and share cancellation * The retirement of certain debt * To finance the purchase of extra equity in Kedrion Share buyback and cancellation It is the view of the Directors that the prevailing share price significantly undervalues the company. Accordingly, the Board believes that it is important that funds realized from the sale of assets be returned to shareholders by way of a share buyback. The extent of the buyback will relate to the degree to which the shares are undervalued. The retirement of debt Allowing for transaction expenses and contingencies, it is expected that between US$10-US$20 million of company debt will be retired promptly following the sale of the assets. The balance of company debt will be settled at the time of the Kedrion IPO, subject to shareholder approval of the Kedrion transaction. The purchase of additional equity in Kedrion As announced on July 30, 2007, under the terms of the proposed Kedrion transaction, LFE has the right to purchase up to a 3.5% equity stake in Kedrion at the time of the IPO, in addition to the 11.5% equity stake received in consideration for the sale of 14 plasma collection centres. After payment of initial debt and transaction related expenses, the Directors expect that the remaining proceeds, ranging from US$30 million to US$40 million from the sale will be applied to the share buy back and the purchase of additional equity in Kedrion. The allocation between these alternatives will be determined by the Board upon consideration of the circumstances prevailing at the relevant time. As noted on July 30, 2007, the IPO of shares in Kedrion and public listing is expected to occur in 2008. Based on comparable EBITDA multiples and Kedrion's business plan, it is estimated that at IPO Kedrion will be valued around US$850 million (around AU$1 billion). Other comments LFE Chairman Dr Jim Brown said, "This decision is about returning to shareholders the value which has been built in these assets over a number of years. "The Board believes that these assets will represent greater value for a larger organization with complementary business streams rather than as a stand alone business owned by Life Therapeutics. In this way we make possible a greater return to shareholders than is implicit in the prevailing price of LFE shares. "We have resolved to act now in order to maximise the sale proceeds for our shareholders," Dr Brown said. The Board will appoint advisors to assist with the sale process. This process will continue and is not affected by the proposed Kedrion transaction, which shareholders will be asked to approve at an Extraordinary General Meeting to be held in November this year. About Life Therapeutics Headquartered in New South Wales, Australia, Life Therapeutics Limited -- http://www.life-therapeutics.com/-- is engaged in the collection, management and distribution of plasma-based products, and development, manufacture and sale of electrophoresis, hematology and Gradiflow products. It operates in five segments: Life Sera, which collects specialty plasma, including Anti D and Hepatitis B; Life Diagnostics, which develops, manufactures and distributes diagnostic products into the diagnostic marketplace; Life Gels, which develops, manufactures and distributes pre-cast electrophoresis gels into the laboratory market; Life Bioprocess, which markets the Gradiflow technology in both the commercial and research markets, and Life Shared Services, which conducts corporate functions of the organization. At June 30, 2006, the Life Gels and Life Bioprocess division were classed as discontinued operations. In November 2006, the Company completed the spin out of its Australian assets by transferring these assets to a wholly owned subsidiary, NuSep Ltd. The Troubled Company Reporter-Asia Reporter, in its "Large Companies with Insolvent Balance Sheets" Column on Sept. 21, 2007, listed Life Therapeutics Limited as having total assets of US$59 million and total shareholders' equity deficit of US$38,000. The company, in its preliminary annual financial report for the year ended June 30, 2007, reported a consolidated net loss of US$15,733,000, a decrease from the US$31,459,000 net loss in the year ended June 30, 2006. LIFE THERAPEUTICS: Appoints PwC to Valuate of Kedrion Deal ---------------------------------------------------------- Life Therapeutics Limited (ASX: LFE) entered into a proposed transaction with Kedrion S.p.A. The company, on July 30, 2007, agreed on improved terms for the proposed Kedrion transaction. The terms of the transaction are: * LFE will receive an 11.5% equity stake in Kedrion in consideration for the sale of 14 plasma collection centers; * Kedrion advised that it intends to appoint a global coordinator, with a view to pursuing an IPO and listing of its shares during 2008; * At IPO, LFE will have the right to top up its shareholding in Kedrion to 15% of the equity in Kedrion; * LFE's equity in Kedrion is protected by an anti-dilution agreement; * At the time of the Kedrion IPO, the Board of LFE will consider an in specie distribution of Kedrion shares to LFE shareholders, resulting in LFE shareholders directly owning shares in Kedrion; * To facilitate the trading of Kedrion shares by LFE shareholders, Kedrion has advised that it will consider a secondary listing of Kedrion shares on the ASX; * Based on comparable EBITDA multiples and Kedrion's business plan, it is estimated that at IPO Kedrion will be valued around AU$1 billion. Upon completion of the transaction, a new joint venture company owned by LFE and Kedrion will operate the business of the transferred collection centers. This comprises 12 existing collection centers and two new centers to be opened in Sacramento and Long Beach in California, U.S.A. In addition, LFE will retain ownership of the collection centers at Metarie, Louisiana and San Diego, 6th Avenue in California. Moreover, LFE's equity in Kedrion will be received in two tranches. An initial 6% equity stake in Kedrion in consideration for the sale of a 55% share in the joint venture and a further 5.5% at the IPO of Kedrion. At this time, full ownership of the joint venture assets will transfer to Kedrion. LFE Directors are confident that the company's right to top up its shareholding in Kedrion to a 15% equity stake will be financed by one of several opportunities relating to LFE's business and assets. LFE will receive a further payment of US$3 million (AU$3.4 million) at the time of the transfer of the centers to the joint venture company. LFE's retained business assets LFE will retain and continue to wholly own the profitable Life Diagnostics business. In FY2008 this business is forecast to deliver EBITDA of US$3 million (AU$3.4 million), based on revenue of US$24 million (AU$27.2 million). The operating results reflect the laboratory testing and management contracts with the joint venture company valued at US$9.0 million (AU$10.4 million) for the first year of operation of the agreement. LFE will retain the Anti-D Red Cell Line which it values at US$20 million (AU$22.7 million). LFE's two retained centers are both licensed for the collection of higher margin plasma products. The company values these centers at US$5 million (AU$5.7 million) each. LFE Taps PwC LFE, in a subsequent disclosure, stated that it has appointed PricewaterhouseCoopers Securities Limited to prepare an independent expert's report on the proposed transaction with Kedrion, pursuant to the improved terms. The independent expert's report will be included in the Explanatory Memorandum which will accompany a Notice of Meeting for an Extraordinary General Meeting. At this meeting shareholders will be asked to consider and approve the proposed transaction. In order to provide PricewaterhouseCoopers with sufficient time to conduct its investigations and prepare the report and given the notice period required to be provided to shareholders, the Company currently anticipates that the Extraordinary General Meeting will be held in the first week of November 2007. LFE CEO Dr. Hari Nair said, "The PwC report will be an important component of the information to be considered by shareholders when deciding whether to approve the Kedrion transaction. In the meantime, we continue to work closely with Kedrion to ensure that the transaction can be quickly and seamlessly implemented in the event that shareholder approval is granted at the EGM." About Kedrion Kedrion is a very well regarded and highly profitable European specialty pharmaceutical biotechnology company that has both significant opportunities and appetite for world-wide expansion. The company is engaged in the development, manufacture, production and distribution of protein products, including hyperimmune products, derived from human plasma. Kedrion and LFE have received a EUR12 million grant from the Italian Government for the supply of Hepatitis C plasma and possible use of LFE's patented Gradiflow technology. This represents clear recognition of the collaborative excellence and further potential for an enhanced relationship between these two companies. Over the past 30 years, Kedrion has established itself as the leading plasma fractionator in Italy, which constitutes the company's principal market and accounted for more than 80% of its 2006 revenues. In recent years, Kedrion has begun expanding its geographic reach to new markets and has established itself as a leading player in specialist hyperimmune immunoglobulins. For the year ending December 31, 2006, Kedrion reported EBITDA of EUR40.4 million (AU$63.3 million) on net sales of EUR155 million (AU$243 million). In 2007, the company has a budget EBITDA of EUR44 million (AU$70 million) based on sales revenue of over EUR180 million (AU$282 million). The company employs over 600 people and operates two manufacturing plants in Italy: one in Bologna (Lucca) and one in Sant'Antimo (Naples). The Bologna plant is the only fractionation plant in Italy capable of producing a full range of plasma-derived products, making Kedrion the clear leader in its domestic market. The Sant'Antimo facility focuses on the production of specialist hyperimmune immunoglobulins and virus inactivated plasma. About Life Therapeutics Headquartered in New South Wales, Australia, Life Therapeutics Limited -- http://www.life-therapeutics.com/-- is engaged in the collection, management and distribution of plasma-based products, and development, manufacture and sale of electrophoresis, hematology and Gradiflow products. It operates in five segments: Life Sera, which collects specialty plasma, including Anti D and Hepatitis B; Life Diagnostics, which develops, manufactures and distributes diagnostic products into the diagnostic marketplace; Life Gels, which develops, manufactures and distributes pre-cast electrophoresis gels into the laboratory market; Life Bioprocess, which markets the Gradiflow technology in both the commercial and research markets, and Life Shared Services, which conducts corporate functions of the organization. At June 30, 2006, the Life Gels and Life Bioprocess division were classed as discontinued operations. In November 2006, the Company completed the spin out of its Australian assets by transferring these assets to a wholly owned subsidiary, NuSep Ltd. The Troubled Company Reporter-Asia Reporter, in its "Large Companies with Insolvent Balance Sheets" Column on Sept. 21, 2007, listed Life Therapeutics Limited as having total assets of US$59 million and total shareholders' equity deficit of US$38,000. The company, in its preliminary annual financial report for the year ended June 30, 2007, reported a consolidated net loss of US$15,733,000, a decrease from the US$31,459,000 net loss in the year ended June 30, 2006. MARDOLINE PTY: Members to Receive Wind-Up Report on Sept. 28 ------------------------------------------------------------ A general meeting will be held for the members of Mardoline Pty Limited on September 28, 2007, at 9:00 a.m. At the meeting, John Greer, Mardoline's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John Greer Griffiths, Forrest & Greer Chartered Accountants Level 7, 276 Pitt Street Sydney, New South Wales 2000 Australia About Mardoline Pty Located at Darling Point, in New South Wales, Australia, Mardoline Pty Limited is an investor relation company. MEDICAL IMAGING: Names Jamieson Louttit as Liquidator ----------------------------------------------------- Jamieson Louttit was appointed liquidator of Medical Imaging Technology Services Pty Limited on August 22, 2007. The Liquidator can be reached at: Jamieson Louttit Jamieson Louttit & Associates Suite 73, Level 15 88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0505 Facsimile:(02) 9231 0303 About Medical Imaging Medical Imaging Technology Services Pty Limited operates repair shops and provides related services. The company is located at Seven Hills, in New South Wales, Australia. POSITIVE IT: Court Appoints Palmer as Liquidator ------------------------------------------------ On August 21, 2007, the Supreme Court of New South Wales appointed Christopher J. Palmer as the company's liquidator. The Liquidator can be reached at: Christopher J. Palmer O'Brien Palmer Level 4, 23 Hunter Street Sydney, New South Wales 2000 Australia About Positive It Positive It Pty Limited, which is also trading as Computer Underprice-Liverpool, operates computer software stores. The company is located at Liverpool, in New South Wales, Australia. SYMBION HEALTH: Primary Wants Update on Healthscope Bid ------------------------------------------------------- Primary Health Care Ltd said on Tuesday that it was still considering its options in relation to its 20% stake in rival Symbion Health Ltd, which is in talks with Healthscope Ltd., Reuters reports. According to Reuters, Primary also called on Symbion to clarify exclusivity and break fee arrangements with Healthscope, whose AU$2.9 billion (US$2.5 billion) offer for Symbion failed to reach the required 75% of shareholder votes earlier this month after Primary voted against the deal. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 12, 2007, Symbion disclosed that it had not received adequate votes in favor of its scheme of arrangement with Healthscope. The report explained that despite almost unanimous shareholder support for the scheme from Symbion shareholders, Primary Health voted its shares against the scheme and its 20% shareholding was enough to deprive Symbion shareholders of the benefits of the Healthscope merger. A subsequent TCR-AP reported then stated that Symbion said it extended tie-up talks with Healthscope as they search for alternatives to the failed AU$2.9-billion takeover deal. "Primary is of the view that the Symbion announcement does not address a number of key outstanding questions and issues which are relevant to Symbion shareholders remaining fully informed," Reuters quotes a statement by Primary Health. The Age relates that Primary Health on Monday wrote to Symbion's General Counsel asking for a response to five questions. Primary Health Care asked what the status of the Scheme Implementation deed between Symbion and Healthscope was as well as the status of any lock-up arrangements, The Age says. The Age relates that other questions on the Healthscope-Symbion discussions dealt with: -- the negotiating period between the two parties, -- consideration of alternative proposals by Healthscope, -- the current status of discussions with Healthscope in relation to the alternative proposals, and -- the status of the proposed sale of the Symbion Consumer and Pharmacy business to the Ironbridge and Archer Consortium. Primary, according to The Age, said that it was willing to engage with Symbion with a view to make an attractive offer, but it wanted an immediate response by Symbion to its questions. Primary has previously proposed buying some Symbion assets and said earlier this month it might make a private equity-backed bid for the company, Reuters recounts. Meanwhile, according to the Herald Sun, Symbion and Healthscope remain locked in discussions ahead of the expected new deal. The two companies are believed to be planning to apply for an extension to their exclusive negotiating period. About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). VINCE NOMINEES: Undergoes Voluntary Liquidation ----------------------------------------------- During a general meeting held on August 22, 2007, the members of Vince Nominees Pty Limited resolved to voluntarily liquidate the company's business. S. J. Hundy and E. M. Senatore were appointed as liquidators. The Liquidators can be reached at: S. J. Hundy E. M. Senatore SBR Insolvency & Reconstruction 28 University Avenue, Level 7 Canberra ACT 2601 Australia About Vince Nominees Located at Bruce, in ACT, Australia, Vince Nominees Pty Limited is an investor relation company. ================================ C H I N A & H O N G K O N G ================================ ALERIS INTERNATIONAL: Will Close Tennessee Plant by November 20 --------------------------------------------------------------- Aleris International Inc. will shut down and permanently close its manufacturing facility in Dickson, Tennessee, by Nov. 20, 2007. The Dickson plant was part of Aleris's acquisition of Wabash Alloys LLC. The Dickson plant produces specification aluminum alloys, which are delivered to customers in both ingot and molten form. The plant has approximately 67 employees. Production will be transferred to other Aleris facilities. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures aluminum rolled products and extrusions, aluminum recycling and specification alloy production. The company is also a recycler of zinc and a leading U.S. manufacturer of zinc metal and value- added zinc products that include zinc oxide and zinc dust. The company operates 57 production facilities in North America, Europe, South America and China in Asia, and employs approximately 9,200 employees. * * * Standard & Poor's assigned Aleris International Inc. a B+ senior secured first-lien term loan rating with a '2' recovery rating. ASAT HOLDINGS: Low Equity Prompts Nasdaq's Delisting Notice ----------------------------------------------------------- ASAT Holdings Limited received a Nasdaq Staff Determination letter dated Sept. 17, 2007, indicating that the company's market value of listed securities has been below $35,000,000 as required for continued inclusion by Marketplace Rule 4320(e)(2)(B) and that its American Depositary Shares are, therefore, subject to delisting. The company was also notified by Nasdaq that it does not comply with the minimum stockholders' equity of $2,500,000 or net income from continuing operations of $500,000 in the completed fiscal year or in two of the last three completed fiscal years, which are also requirements for continued listing on The Nasdaq Capital Market. The company will request an appeal hearing before a Nasdaq Listing Qualifications Panel to avoid delisting and expects to have a hearing date scheduled in 30 to 45 days. During the appeal hearing process, the company's ADSs will remain listed and traded on The Nasdaq Capital Market. There can be no assurance that the Panel will grant the company's request for continued listing. If the company's ADSs are delisted from The Nasdaq Capital Market, the company expects that its ADSs will trade on the Over-the-Counter Bulletin Board market. The company has separately received a Nasdaq letter that the company's ADSs did not meet the minimum $1 per ADS requirement for continued inclusion on The Nasdaq Capital Market as set forth in Nasdaq Marketplace Rule 4310(c)(4). This requirement has not been satisfied to date, and in accordance with Marketplace Rule 4310(c)(8)(D), the company has until Jan. 28, 2008, to regain compliance with such rule. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- provides semiconductor package design, assembly and test services. With 18 years of experience, the company offers a definitive selection of semiconductor packages and manufacturing lines. ASAT's package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. The company has operations in the United States, Hong Kong, China and Germany. At April 30, 2007, ASAT Holdings Limited's consolidated balance sheet showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in US$88.3 million total stockholders' deficit. ASAT HOLDINGS: Files Appeal on NASDAQ Delisting Decision -------------------------------------------------------- ASAT Holdings Limited has lodged an appeal against the Nasdaq Listing Qualifications Panel regarding its decision to delist the company from its board, reports say. According to a report from Infocast News, ASAT received a notice that procedures have been commenced to delist ASAT from The Nasdaq Capital Market. ASAT then lodged an appeal to allow it to remain listed on that market. The appeal is expected to be heard within 45 days, and that, even if unsuccessful, ASAT expects trading in its securities to continue on the OTC Bulletin Board market, Infocast adds. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia, Hong Kong and Europe. At April 30, 2007, ASAT Holdings Limited's consolidated balance sheet showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in US$88.3 million total stockholders' deficit. ASAT HOLDINGS: Unit Gets US$20-Mil. Loan from Chinese Bank ---------------------------------------------------------- ASAT Holdings Ltd.'s Chinese subsidiary, ASAT Semiconductor Ltd., has received some US$20 million (CNY150 million) in a new financing commitment from a Chinese bank, various reports say. The funding is in the form of a secured multi-currency revolving credit facility, sources add. "In the last 12 months we have undertaken a complete re- engineering of nearly every aspect of how we do business," ASAT Holdings CFO Kei Hong Chua was quoted by the Electronic News as saying. "As we have previously discussed, the key near-term objective has been to strengthen our financial position. By obtaining the credit facility we have delivered on this important goal and achieved another milestone in the implementation of our financial turnaround plan," Mr. Chua said. "The facility supplements our existing cash flow and provides us with resources to expand our business during a period of positive growth for ASAT and our industry." Last year, the Milpitas, Calif.-based ASAT moved its entire manufacturing, test and assembly operations to China. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia, Hong Kong and Europe. At April 30, 2007, ASAT Holdings Limited's consolidated balance sheet showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in US$88.3 million total stockholders' deficit. ASAT HOLDINGS: Moody's Lifts Ratings to Caa1 on New Loan Grant -------------------------------------------------------------- On September 25, 2007, Moody's Investors Service has upgraded the corporate family rating of ASAT Holdings Ltd to Caa1 from Ca. At the same time, Moody's also upgraded to Caa1 from Ca the senior unsecured rating for New ASAT (Finance) Limited's US$150 million senior notes, maturing in 2011, which are guaranteed by ASAT. The outlook for both ratings remains negative. "The rating action follows ASAT's announcement that its Chinese subsidiary, ASAT Semiconductor (Dongguan) Limited (ASDL), has received a commitment for RMB150 million (approximately US$20 million) of new financing from a Chinese bank in the form of a secured multi-currency revolving credit facility," say Wonnie Chu, Moody's lead analyst for ASAT, adding, "The company also made the interest payment for its senior notes in August within the grace period. This facility, together with the waiver and amendments entered with the lenders of the purchase money loan and senior notes, will alleviate ASAT's near-term liquidity concern," she says. "However, ASAT's near-to-medium term prospects are expected to remain challenging, given that the current tight liquidity which limits growth and operational flexibility. Furthermore, the company's small scale and high customer/segment concentration make it more vulnerable to industry volatility," adds Chu. The negative outlook reflects tight liquidity concerns and execution risk relative to the company's ability to turn around the business over the next 12-18 months, especially given its exposure to the volatile outsourcing semiconductor assembly and test industry. The ratings would undergo a downgrade if the company is unable to meet its debt-servicing obligations. This scenario could in turn be a result of a slower-than-expected ramp-up in sales and a change in product mix, and which negatively affects operating margins, as well as an inability to secure a contingency financing plan. On the other hand, ratings could stabilize if ASAT is able to continue improving its liquidity through raising new capital or by improving its operating margins and cash generation ability. ASAT Holdings Ltd is a relatively small provider of outsourced semiconductor assembly and test services (OSAT) and ranks 9th in the industry globally. To increase cost competitiveness, the company moved its manufacturing operations to Dongguan, China; a move which was completed end-2006. BIG DRAGON: Court Sets Wind-Up Hearing for Nov. 21 -------------------------------------------------- A petition to have the operations of Big Dragon Asia Limited wound up was filed by Wong Hiu Choi on September 11, 2007. The High Court of Hong Kong will hear the petition on Nov. 21, 2007, at 9:30 a.m. Mr. Choi's solicitors are: Messrs. Dominic Y.K. Lai & Co. Solicitors Wing Hang Finance Centre Unit B, 24th Floor No. 60 Gloucester Road Wanchai, Hong Kong CHINA EASTERN: Cathay Pacific & Air China's Parent Withdraw Bid --------------------------------------------------------------- Cathay Pacific Airways, together with China National Aviation Holding Company, has dropped its plan to acquire a stake in China Eastern Airlines, Cathay said in a statement with the Hong Kong Stock Exchange. Asia Pulse recounts that late last week, Cathay disclosed with the Hong Kong bourse that it had wanted to enlist China National, the parent of Air China, to buy a slice of rival China Eastern. However, the deal would no longer go ahead. "The transaction contemplated by that announcement will not now proceed," Cathay Pacific's statement said. Cathay Pacific did not say why it had backed out of the proposed deal, but sources of Asia Pulse believe that the mainland aviation regulator blocked the deal to sidestep a possible confrontation in the domestic market as the aviation sector undergoes consolidation. Reuters' analysts also speculated that Cathay feared competition from Singapore Airlines on its lucrative Chinese network. The Wall Street Journal adds that the bid was apparently aimed at trumping an earlier offer for China Eastern by Singapore Airlines and its parent Temasek Holdings Pte. Ltd. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. FERRO CORPORATION: Board Declares Regular Quarterly Dividend ------------------------------------------------------------ Ferro Corporation's Board of Directors has declared a regular quarterly dividend of 14.5 cents per share of common stock. The dividend is payable on Dec. 10, 2007, to shareholders of record on Nov. 15, 2007. 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. FORD MOTOR: Opens Second JV Car Factory in Nanjing -------------------------------------------------- Ford Motor and Mazda Motor's China venture opened a second plant worth US$510 million in the eastern city of Nanjing to meet rising sales in the world's most populous country, The Standard reports. The new factory will produce small cars under the Ford and Mazda brand and will have an initial production capacity of 160,000 vehicles per year, Ford said. The new plant would increase Ford's annual production capacity in China to 410,000 vehicles, the company added. "This new state-of-the-art facility will significantly increase our capacity in China, and allow us to continue our rapid growth in the market," Ford President and CEO Alan Mulally said in a statement. The unusually flexible new factory can produce eight models on different chassis, China Daily relates. Ford's expansion in China contrasts with the US, where it is shutting plants, The Standard says. Ford plans to shut 16 of 41 North American plants by 2012, shedding more than 40,000 jobs due to lower demand, the report adds. Changan Ford's vehicles sales rose 57% in the first half of the year, double the rate of China's overall auto market, led by demand for Ford Focus compacts. Ford's China vehicle sales rose 29% in the first eight months of 2007 to 114,702. 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. * * * As reported in the Troubled Company Reporter on July 30, 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. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. GLOBAL ONE: Members to Hold Final General Meeting on October 22 --------------------------------------------------------------- The members of Global One Enterprises Limited will hold their final general meeting on October 22, 2007, at 10:00 a.m., at Room 1102, 11th Floor of Henan Building, 23 Jaffe Road, in Wanchai, Hong Kong. At the meeting, Lee Siu Yin, Global One's liquidator, will give a report on the company's wind-up proceedings and property disposal. HARBOUR RING: Liquidators Resign from Post ------------------------------------------ Ying Hing Chiu and Chung Miu Yin, Diana ceased to act as liquidators of Harbour Ring Dharmala (H.K.) Limited on Sept. 17, 2007. The former Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Three Pacific Place, Level 28 1 Queen's Road East Hong Kong HONG KONG MACAU: Toohey and Mitchell Quit as Liquidators -------------------------------------------------------- John James Toohey and Anthony Mitchell resigned as liquidators of Hong Kong Macau International Finance Company Limited on September 11, 2007. The former Liquidators can be reached at: John James Toohey Anthony Mitchell Prince's Building, 22nd Floor Central, Hong Kong HONG LONG: Pulls Back US200MM Bond Issue; Moody's Remove Ratings ---------------------------------------------------------------- Moody's Investor Service on Sept. 24, 2007, withdrew its provisional (P)B2 foreign currency senior unsecured rating to Hong Long Holdings Limited's (Hong Long) proposed US$175-200 million bond issue. The rating withdrawal follows the company's final decision not to proceed with the issuance. At the same time, Moody's has withdrawn the company's associated (P)B2 corporate family rating. Hong Long Holdings Limited (Hong Long) is a Chinese property developer engaged in residential and commercial properties developments in Guangdong Province. It has 8 major projects under development in Shenzhen and the cities of Guangzhou, Huizhou and Meizhou and has a land bank of 996,581 sq m of saleable area. Except for Yifeng in Shenzhen, the rest are residential projects with associated retail space. Yifeng is an office and commercial complex wherein office space accounts for about 80% of the total saleable area. HOPSON DEV: Project Delays Leads to 48% Cut in 1H Net Profit ------------------------------------------------------------ Hopson Development Holdings reported a 48% slump in its first- half period to June 30, 2007, underlying net profit as turnover plummeted, The Standard reports. Turnover for the six months ended June 30 plunged 30% to HK$1.42 billion, due to delays in building completions and alterations to some projects, the company said. Net profit fell to HK$419 million. An interim dividend of HK$9.9 cents was proposed. Underlying earnings, excluding revaluation gains from investment property, deferred tax and recognition of excess interest gains from land acquisitions, fell to HK$168 million from HK$322 million. Contracted sales, or sale and pre-sale contracts, increased 23% to HK$4.74 billion in the first half, of which CNY950 million was contracted sales of Regal Riviera in Guangzhou. Chief financial officer Tam Lai-ling said sales and pre-sales amounted to HK$11.2 billion as of June 30. Of this, at least CNY8.2 billion would be booked in the second half. Hong Kong-based Hopson Development Company Holdings Limited (Hopson) is one of the largest property developers in China. Its principal businesses are residential developments in four major cities: Guangzhou, Beijing, Shanghai and Tianjin. The Troubled Company Reporter - Asia Pacific reported that, on Jan. 19, 2007, Standard & Poor's Ratings Services said that it had placed its BB+ long-term corporate credit rating on Hopson Development Holdings Ltd on CreditWatch with negative implications. The Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service on July 11, 2006, downgraded the corporate family and senior unsecured ratings of Hopson Development Holdings Limited to Ba2 from Ba1. The ratings outlook is stable. This concludes the ratings review initiated on June 13, 2006. MUSIC TRADING: Court to Hear Wind-Up Petition on October 3 ---------------------------------------------------------- A petition to have Music Trading On-Line (HK) Limited's operations wound up was first presented to the High Court of Hong Kong on June 25, 2007, which was subsequently amended on Aug. 7, and re-amended on Sept. 11 by: -- Independiente Limited; -- EMI Records Limited; -- XL Recordings Limited; -- Wildstar Records Limited; -- Mercury Records Limited; and -- Sony Music Entertainment (UK) Limited. The High Court will hear the petition on October 3, 2007, at 9:30 a.m. The Petitioners' solicitor is: Clifford Chance Jardine House, 28th Floor One Connaught Place, Central Hong Kong NOVA CHEMICALS: Moody's Affirms Corporate Family Rating at Ba3 -------------------------------------------------------------- Moody's Investors Service confirmed NOVA Chemicals Corporation's Ba3 corporate family rating and senior unsecured debt ratings following regulatory approval for the expansion of its styrenics joint venture and the belief that low olefin feedstock costs could allow the company to meaningfully reduce debt over the next 12-18 months. Moody's also affirmed the company's SGL-3 rating. Given the uncertainty in the company ability to meaningfully reduce debt, the rating outlook will remain negative until net balance sheet debt declines below $1.5 billion. This concludes the review which began on Feb. 1, 2007. The ratings confirmation reflects the expectation that NOVA will be able to generate over $700 million of EBITDA in 2007 and that Alberta ethane prices will remain low relative to Gulf Coast prices and other crude oil-based feedstocks through 2008, especially during the second and third calendar quarters. This should provide NOVA with the opportunity to de-lever its balance sheet and reduce net debt to roughly $1.5 billion by the end of 2007 and get it well below $1.5 billion in 2008. The expanded styrenics joint venture with INEOS, including the contractual arrangement with Sterling Chemical, will enable NOVA to minimize its exposure to a business that has been a cash drain and a credit negative over much of the past decade. Furthermore, given the likelihood of additional US styrene capacity rationalization (Dow and Chevron Phillips venture), Moody's believes that the INEOS NOVA joint venture may not require additional funding. The combination of these factors should improve NOVA's credit metrics over the cycle and allow the company to maintain its Ba3 corporate family rating. NOVA needs to reduce its balance sheet debt as it has roughly $1.2 billion of debt maturities over the next five years and a large portion of this debt may have to be refinanced during unfavorable conditions in the global olefin/polyolefin markets. The negative outlook reflects the inherent uncertainty surrounding the company's earnings and cash flow, as well as its ability to reduce debt over the next 12-16 months. The company is effectively a single product commodity producer whose financial performance can be greatly impacted by exogenous events. The company's quarterly financial performance over the past two and a half years, arguably the strongest part of the current up-cycle in olefins, has been very volatile due to feedstock prices, uneven market demand and several unplanned production outages. Moody's would likely move the outlook to stable as net debt falls below $1.5 billion and the company continues to benefit from low feedstock prices. Conversely, Moody's could reassess the appropriateness of the Ba3 rating if NOVA is unable to reduce debt as expected over the next year or if the company's trailing four quarter EBITDA falls below $450 million. Nova Chemicals Company, headquartered in Calgary, Alberta, Canada, is a leading producer of ethylene and polyethylene. The company plans to contribute the vast majority of its remaining styrene, polystyrene, and expanded polystyrene assets to expand the INEOS NOVA 50/50 joint venture. Nova will retain its Performance Styrenics business, which has sales of roughly $400 million. NOVA reported revenues of $6.5 billion for the LTM ending June 30, 2007. Based in Moon Township, Pennsylvania, NOVA Chemicals Corporation (NYSE:NCX) (TSX:NCX) -- http://www.novachemicals.com/-- produces ethylene, polyethylene, styrene monomer and styrenic polymers, which are used in a wide range of consumer and industrial goods. NOVA Chemicals manufactures its products at 18 operating facilities located in the United States, Canada, France, the Netherlands and the United Kingdom. The company also has five technology centers that support research and development initiatives. The company's Asian operating center is in China. PAZI PRODUCTION: Subject to Bank of China's Wind-Up Petition ------------------------------------------------------------ On August 20, 2007, Bank of China (Hong Kong) Limited filed a petition to have the operations of Pazi Production Limited wound up. The petition will be heard before the High Court of Hong Kong on October 31, 2007, at 9:30 a.m. Bank of China's solicitors are: Ford, Kwan & Company Chinachem Golden Plaza Suites 1505-1508, 15th Floor No. 77 Mody Road Tsimshatsui East, Kowloon Telephone: 2366 0688 Facsimile: 2722 0736 PHANTAXIA ENTERTAINMENT: Faces Lee Ka Lik's Wind-Up Petition ------------------------------------------------------------ Lee Ka Lik filed, on August 29, 2007, a petition to have the operations of Phantaxia Entertainment Limited wound up. The petition will be heard before the High Court of Hong Kong on November 7, 2007, at 9:30 a.m. PORTWEALTH PROPERTIES: Liquidators Quit Post -------------------------------------------- On September 11, 2007, John James Toohey and Anthony Mitchell quit as liquidators of Portwealth Properties Limited. The former Liquidators can be reached at: John James Toohey Anthony Mitchell Prince's Building, 22nd Floor Central, Hong Kong SKM FAR: Shareholders Resolve to Liquidate Business --------------------------------------------------- At an extraordinary general meeting held on September 13, 2007, the shareholders of SKM Far East Co., Limited resolved to liquidate the company's business. Creditors are required to file their proofs of debt by Oct. 23, 2007, to be included in the company's dividend distribution. The company's liquidators are: Chan Chek Ying Lee Cho Yiu Julia New Henry House, 8th Floor, Suite 1 10 Ice House Street, Central Hong Kong SOLUTIA INC: Opens New Manufacturing Plant in Suzhou, China ----------------------------------------------------------- Solutia Inc. has celebrated the grand opening of its new plant in Suzhou, China. The plant is a manufacturing site for the company's Saflex(r) business. Saflex is the world's leading producer and seller of polyvinyl butyral interlayers. The Suzhou plant site is ideally suited for future expansion of Saflex and for other Solutia businesses. "Solutia is committed to growth in China, and this new plant is a very significant symbol of that commitment," said Jeff Quinn, chairman, president and CEO of Solutia Inc. "While Solutia has made a number of major capital investments in its businesses through the years, this is the first entirely new plant we have built from the ground up. We will continue to devote substantial resources to seizing the growth opportunities in China across each of our businesses." The plant has been developed as a full-scale facility that currently produces Saflex interlayer for the automotive market, with room for future capacity to serve the architectural market as well. The current manufacturing line is designed to produce approximately 10 million square meters of Saflex interlayer per year, with space for further expansion as market growth requires more capacity. "Global demand for Saflex interlayers continues to rise around the world, especially in China," said Dr. Luc De Temmerman, president of Solutia's Saflex business. "This new plant improves our ability to serve the needs of laminators and glass fabricators serving the rapidly growing Chinese automotive industry and the broader Asia-Pacific markets. We look forward to collaborating with these customers, and believe the new Suzhou plant will support significant growth in the laminated glass market." Saflex customers who participated in the opening ceremony included senior representatives from the Fuyao Glass Industries Group and Xinyi Glass Holdings Limited, as well as key representatives from major multinational customers and many Chinese laminators. In addition to the Suzhou plant, Solutia's Saflex presence in the Asia-Pacific region includes a regional customer service center and finishing and distribution center in Singapore, as well as sales offices across the region. This infrastructure continues to provide the high level of logistical support and customer service that customers have come to expect from Saflex. 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. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Disclosure Statement hearing began on July 10, 2007. The Debtors have asked the Court to extend their exclusive plan filing period to Dec. 31, 2007. UNITED BISCUITS: Placed Under Voluntary Liquidation --------------------------------------------------- On September 14, 2007, the sole member of United Biscuits Asia Pacific Limited passed a resolution to voluntarily liquidate the company's business. Yeung Betty Yuen and Chung Miu Yin were appointed as liquidators. The Liquidators can be reached at: Yeung Betty Yuen Chung Miu Yin Diana Three Pacific Place, Level 28 1 Queen's Road East Hong Kong ========= I N D I A ========= AES CORP: Niagara Court Acquits Firm of Fraud --------------------------------------------- Niagara State Supreme Court Justice Richard C. Kloch Sr. has acquitted the AES Corp. of alleged fraud for seeking a payment "in-lieu-of-taxes, or PILOT, arrangement with the Niagara County Industrial Development Agency," The Buffalo News reports. As reported in the Troubled Company Reporter-Latin America on June 18, 2007, the Niagara county, the Town of Somerset and the Barker Central School District filed a lawsuit against AES and the Industrial Development Agency over the "payment-in-lieu-of- taxes deal," which would cost the taxing entities US$43.4 million over 12 years, compared with what they would collect from AES if the firm's Lake Road power plant continued to be taxed at the current rate. Those who are against the deal said that of one assumes a 3% yearly tax raise, the lost revenue tops US$90 million. Internal AES E-mails presented in the State Supreme Court as evidence indicated that top Niagara County politicians were involved in a tax-break deal for the firm long before it became public in September 2006. Judge Kloch dismissed all the lawsuits AES filed against the Town of Somerset "over its assessment on the coalburning Lake Road power plant," The Buffalo News notes. The firm could file an appeal on that decision. AES Somerset unit head Kevin R. Pierce told The Buffalo News that he had no problem with that ruling, though it means AES has no chance of winning tax refunds for previous years. According to him, the PILOT accord called for the firm to abandon the tax suits once the PILOT litigation is settled. "In the unlikely case that [the ruling] is overturned, we would have the right to appeal. I think the judge would be sensitive to stripping away someone's legal rights to appeal," Mr. Pierce commented to The Buffalo News. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. * * * On Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. * * * As reported on Aug. 23, 2007, Fitch Ratings affirmed AES Corporation's Issuer Default Rating at 'B+', and assigned a short-term IDR of 'B'. Fitch also took these rating actions: * AES -- Senior unsecured to 'BB/RR1' from 'BB/RR2' * AES Trust III -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. * AES Trust VII -- Trust preferred securities to 'B+/RR4' from 'B/RR5'. In addition, Fitch affirmed these ratings: * AES -- Senior secured credit facility at 'BB+/RR1'; -- Junior secured notes at 'BB+/RR1'. BAUSCH & LOMB: S&P Holds CreditWatch on BB+ Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has announced that its ratings (BB+ Corporate Credit Rating) on Rochester, New York- based Bausch & Lomb Inc. remain on CreditWatch with negative implications, where they were placed on May 16, 2007, reflecting its intent to merge with Warburg Pincus. They commenced a cash tender offer and consent solicitation for its publicly held debt yesterday, and the company's shareholders voted to approve the merger today. As a result of the anticipated capitalization (Warburg plans to finance the transaction with US$1.9 billion of common equity and US$2.5 billion of debt plus another US$800 million in undrawn credit facilities), S&P's corporate credit rating on the company will be lowered to B+/Stable/-- once the transaction closes. S&P's stable outlook will reflect the challenge of rebuilding its lenscare franchise, and improving operating margins and cash flow. "After the transaction, our rating on Bausch & Lomb Inc. will reflect the strength of the company's product offerings in multiple segments of the vision care industry, recurring sales of several core products, and its geographic and customer diversity," said S&P's credit analyst Cheryl Richer. However, very high debt leverage resulting from the acquisition by Warburg Pincus drives the company's noninvestment grade rating. Business concerns include formidable competitors, and the continuous pressure to innovate. Lens care sales are gradually rebounding in the aftermath of the May 2005 global recall of ReNu with MoistureLoc multipurpose lens care solution. 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). BHARTI AIRTEL: Bids for Qatar Mobile License -------------------------------------------- Bharti Airtel Limited has reportedly joined the contest for Qatar's mobile communication license. According to Raju Shanbhag of TMCnet, Bharti Airtel is the only bidder from India. If Bharti Airtel wins the final bidding, it will compete with incumbent provider Qatar Telecom, TMCnet says, citing a Financial Times report as source. Other bidders for the license include Vodafone, Verizon, AT&T and more regional, lesser-known providers such as Batelco (from Bahrain), Etisalat (from the UAE), Zain (from Kuwait) and Argos Consortium, TMCnet relates. The bidders, TMCnet adds, will be evaluated based on their technical capabilities and their financial bids for the license, which is worth more than US$300 million. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter-Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit both a BB+ rating on Sept. 21, 2005. DRESSER-RAND GROUP: Earns US$26.2 Million in Qtr. Ended June 30 --------------------------------------------------------------- Dresser-Rand Group Inc. reported net income of US$26.2 million for the second quarter ended June 30, 2007. This compares to a net income of US$10.7 million for the second quarter 2006. Second quarter 2007 income included a provision for litigation and related interest of US$2.6 million after-tax and a charge of US$1.5 million after-tax related to a change in an accounting estimate for workers' compensation. Total revenues for the second quarter 2007 of US$441.2 million increased US$17.2 million or 4.0% compared to US$424.0 million for the second quarter 2006. Operating income for the second quarter 2007 was US$50.1 million. This compares to operating income of US$27.2 million for the second quarter 2006 which included US$16.8 million for stock-based compensation expense for exit units. Second quarter 2007 operating income increased from the year ago quarter due to higher pricing and productivity improvements. Vincent R. Volpe, Jr., president and chief executive officer of Dresser-Rand, said, "The improvements in our second quarter 2007 results over last year were somewhat tempered by the litigation provision and a change in accounting estimate. The impact of these two items was approximately US$0.05 per diluted share. Additionally, changes in procurement processes and a delay in the budget appropriations by certain of our national oil company clients resulted in lower than expected aftermarket bookings and revenues for the period." Bookings for the second quarter 2007 were US$659.2 million, which was US$225.1 million or 52.0% higher than the second quarter 2006. The backlog at the end of June 2007 was a record US$1.61 billion or 59.0% higher than the backlog at the end of June 2006 of US$1.01 billion. At June 30, 2007, the company's consolidated balance sheet showed US$1.77 billion in total liabilities, US$1.07 bilion in total liabilities, and US$697.1 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?23a4 Liquidity and Capital Resources As of June 30, 2007, cash and cash equivalents totaled US$160.8 million and borrowing availability under the US$350.0 million revolving credit portion of the company's senior credit facility was US$147.5 million, as US$202.5 million was used for outstanding letters of credit. In first six months of 2007, cash provided by operating activities was US$136.2 million, which compared to US$6.9 million for the corresponding period in 2006. The increase of US$129.3 million in net cash provided by operating activities was principally from changes in working capital. In the first six months of 2007, capital expenditures totaled US$8.6 million and the company prepaid US$110.1 million of its outstanding indebtedness under its senior secured credit facility. As of June 30, 2007, total debt was US$396.9 million and total debt net of cash and cash equivalents was approximately US$236.1 million. Litigation Provision In the second quarter, the company and Maersk Oil UK Limited reached a full and final settlement resulting in an additional total charge of approximately US$4.2 million (US$2.6 million after-tax) for damages, interest and claimant's costs. The company had previously reported that it planned to dispute the amount of costs claimed by Maersk, but on further review of the facts and circumstances, it decided to settle the matter. The litigation with Maersk Oil UK Limited resulted from alleged defects in compressors manufactured at a Dresser-Rand facility that discontinued producing compressors in December 1998. Change in Accounting Estimate The company recorded a pre-tax charge of US$2.3 million (US$1.5 million after-tax) for a change in accounting estimate related to accrued liabilities for workers' compensation. The charge for workers' compensation resulted from payment information recently provided to the company by Ingersoll Rand, its former parent company. Outlook Demand for rotating equipment and aftermarket parts and services continues to be strong but aftermarket bookings and revenues continue to be adversely, but temporarily, impacted by changes in the procurement process approval cycle and a delay in the budget appropriations for certain of the company's national oil company customers. The backlog of orders has continued to increase to record levels. At June 30, 2007, 68.0% of the backlog of US$1.61 billion is scheduled to ship in 2008 and 2009. The company continues to believe that its 2007 operating income will be in the range of US$250.0 to US$270.0 million and its third quarter 2007 operating income will be in the range of 25.0% to 27.0% of the total year. About Dresser-Rand Group Headquartered in Houston, Dresser-Rand Group Inc. (NYSE: DRC) -- http://www.dresser-rand.com/-- is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The company operates manufacturing facilities in the United States, France, Germany, Norway and India, and maintains a network of 26 service and support centers covering more than 140 countries. * * * As reported in the Troubled Company Reporter on Sept. 6, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500.0 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). GENERAL MOTORS: Failed Contract Talks Spurs UAW Work Stoppage ------------------------------------------------------------- More than 73,000 United Auto Workers union members throughout the United States went on strike against General Motors Corp. yesterday after the two failed to agree on a new labor contract. UAW President Ron Gettelfinger said that UAW members rallied over job security, economic issues, benefits for active workers and winning investment in future products. GM disclosed that it is disappointed in the union's decision to call a national strike, insisting that bargaining involves complex, difficult issues that affect the job security of its U.S. work force and the long-term viability of the company. However, GM is fully committed to working with the UAW to develop solutions together to address the competitive challenges facing the company. GM related that it will continue focusing its efforts on reaching an agreement as soon as possible. Pickets will remain outside GM plants until a contract is reached, Mr. Gettelfinger said before heading back to the bargaining table with UAW Vice President Cal Rapson, who directs the union's GM Department, and the national committee. "We stand ready 24 hours a day, seven days a week to go back to the bargaining table," Mr. Gettelfinger, flanked by the UAW GM National Negotiating Committee. Mr. Gettelfinger said it was significant that the union gave GM a nine-day contract extension, the longest in UAW history to avoid a strike, a drastic step no one on the union side wanted. "We were pushed into a strike and that's where we are at," Mr. Gettelfinger added. In recent years, UAW members have done their part by working with the company on issues such as the corporate restructuring, the attrition plan, the Delphi bankruptcy, the 2005 health care agreement and numerous quality, productivity and health and safety issues. Workers gave up a 3% general wage increase in 2006 and cost of living allowances. "We've met and solved all of GM's problems since 2003," Mr. Gettelfinger added. "We've worked with General Motors on every issue that came before them. We've done a lot of things to help that company. There comes a point in time when you have to draw the line in the sand." The UAW leader added that the strike had nothing to do with the much-discussed union-controlled health care trust fund Voluntary Employee Benefit Association (VEBA) for retirees, which is a permissible but not mandatory subject of bargaining. Job security, economics and benefits for active members remain critical issues for UAW members at GM. "It's become apparent to us that as much as workers give, they cannot give enough," Mr. Gettelfinger said. "As much as executives get, they cannot get enough." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. TATA POWER: Mundra Project to Get Funding From Various Lenders -------------------------------------------------------------- Tata Power Company Ltd has tied up with various multilateral lending agencies and financial institutions to partly fund the debt of its Mundra Ultra Mega Power Project, P. Vinod Kumar of The Financial Express reports. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 28, 2006, Tata Power was awarded the contract to build a 4,000-megawatt plant in Mundra, Guijarat. The company quoted a bid of INR2.26 per unit for the project, outbidding Reliance Energy, Larsen & Toubro, Essar Power, Sterlite Industries and Adani Exports. The Mundra Plant is part of the Government of India's plan to set up five 4,000-MW coal-fired power projects to help breach the country's electricity deficit. According to The Financial Express, the host of lending firms will fund the foreign currency part of the US$3.2-billion debt portion of the US$4.25-billion project. The multilateral agencies which had agreed to fund the foreign currency part of the debt are the Asian Development Bank and the International finance Corporation, Washington, while the other external lending agencies of the project are K-Exim/KEIC and JBIC, Mr. Kumar relates. Mr. Kumar says K-Exim/KEIC and JBIC would open a foreign currency denominated credit line of US$1 billion to US$1.5 billion while ADB and IFC would chip in with a total debt of US$0.7 billion. Tata Power is reportedly in talks with various domestic lenders to raise the remaining rupee-denominated loan to the tune of US$1.5 billion to US$2 billion. The company may also raise funds by issuing rupee denominated bonds to fund the project, FE adds. 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. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. The outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. 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. ================= I N D O N E S I A ================= ALCATEL-LUCENT: To Provide Wireless Network for China Mobile ------------------------------------------------------------ Alcatel-Lucent has been selected by China Mobile's three subsidiaries to provide network optimization service for their wireless networks in Shanghai, and Guizhou and Shanxi provinces. Inner Mongolia Unicom, a subsidiary of China Unicom, also selected Alcatel-Lucent to optimize its CDMA network in Inner Mongolian province. The project was secured through Alcatel Shanghai Bell, Alcatel-Lucent's flagship company in China. Alcatel-Lucent will provide tailor-made service solutions to help each of these operators enhance network coverage and performance and improve resource utilization. It will help the three China Mobile subsidiaries plan for network development in order to be able to offer new services and thereby generation new revenue. Alcatel-Lucent also will provide courses to help the operators train their employees to ensure optimal use of the networks' capabilities. These projects are expected to be completed at the end of 2007. Once implemented, these three operators will have the competitive advantage of being able to offer their customers service on upgraded networks that provide maximum coverage, strong signals and minimal dropped call rates. Inner Mongolia Unicom will deploy Alcatel-Lucent's advanced e- Optimization solution in its CDMA network to analyze voice/data service and help Inner Mongolia Unicom formulate new resource distribution strategies. "Our service business is an important, strong business for Alcatel-Lucent, and it is a growing business in China," said Frederic Rose, President of Alcatel-Lucent's activities in the Asia Pacific region. "Leveraging our high-end integration and optimization expertise in global and regional competence centers, Alcatel-Lucent is committed to providing world-class services that help our customers get the full advantage of their networks as they strive to meet the needs of their customers." 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. * * * Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. 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. ANEKA TAMBANG: To Lower Nickel Power Cost by 8-10% -------------------------------------------------- PT Aneka Tambang Tbk has signed a five-year power purchase agreement with PT Tamboli Energy, covering a supply of 15MW peak load capacity of electricity to Antam's Pomalaa ferronickel facilities from Tamboli's 4X5MW hydro power plant. Upon the commencement of the hydropower purchase, Antam is expected to be able to lower its ferronickel power cost by up to 8-10%. The power plant, which will utilize a Run of River power generation technology at the Tamboli river, is located at Kolaka area, around 63 km from Pomalaa. No man-made dam will be constructed for this hydro power generation, which is expected to help preserve the environmental condition of the area. Antam's Development Director, Darma Ambiar said, "The signing of this Hydro Power Purchase Agreement, while covering a relatively small portion of our overall energy needs, is an important step in our efforts to not only decrease our dependence on the more expensive diesel fuel as our main source of energy, but to also lower our carbon footprint. This is also a part of our ongoing efforts to lower our ferronickel production cost by continuing to explore other cheaper alternatives of energy sources." Under this agreement, Tamboli will build and operate the hydro power plant as well as an interconnection facility that will connect the hydro power plant with the electrical system of Antam's ferronickel smelters at Pomalaa. Tamboli's responsibilities will include among other things, the planning, designing, financing, constructing, commissioning, operating and maintaining of the facilities. Tamboli has appointed PT Bukaka Teknik Utama, an experienced developer of hydro power plants, as its EPC contractor. By working together with Tamboli, a domestic company based in the island of Sulawesi, Antam is supporting the development of the businesses and economy in the regional area where it operates. The overall investment cost of constructing the hydro plant and the interconnection facility will be borne fully by Tamboli. The financial closure is expected to materialize within 6 months after the signing of the PPA and to be followed up by the construction of the facility, which is expected to be completed within 18 months. Upon the commercial operation of the facilities, Antam will have the first right -- but not the obligation -- to purchase 75% of the produced electricity capacity by Tamboli at US$0.0565 / KWh for five years. Tamboli will sell the remaining 25% of the produced electricity capacity to PLN, the State Owned Electricity company. After five years, the contract will be reviewed and renegotiated. In 2007, the energy needs of Antam's Pomalaa nickel smelter facilities, which amount to about 88MW, are supplied by 6 X 17 MW and 10 X 5.8MW diesel fired power plants operated by Wartsila of Finland. Currently Antam's electricity cost is up to US$0.125 / KWh which results in cash cost of producing ferronickel at around US$5-5.50/lb. Upon the consummation of the Tamboli PPA, it is expected that Antam could reduce the ferronickel power cost by up to 8-10%, which will result in a reduction of ferronickel cash cost by up to 3 4%. In order to further lower its production cost of ferronickel, Antam is committed to convert the remaining of its power sources to less expensive fuel. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long- term corporate credit rating on Indonesian state-owned mining company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. Moody's Investors Service gave Aneka Tambang a local currency B1 corporate family rating, and a B2 foreign currency bond rating. HANOVER COMPRESSOR: Moody's Withdraws Ratings After UCI Merger -------------------------------------------------------------- Moody's Investors Service withdrew the ratings for Hanover Compressor Company and Universal Compression Inc. following their merger and the substantial completion of their tenders for their existing debt. Hanover is now a subsidiary of Exterran Holdings Inc. and Hanover's 4.75% convertible senior notes due 2008 and 2014 remain outstanding. Moody's has upgraded the ratings of these 4.75% convertible senior notes to B1, LGD 6 (92%) from B3, LGD 5 (89%), as indicated in our July 16, 2007 press release assigning ratings to Exterran. This completes Moody's review of these convertible notes. Hanover's ratings withdrawn: -- Hanover's B1 Corporate Family Rating and Probability of Default Rating; -- Hanover's SGL-3; -- Hanover Equipment Trust 2001A 8.50% partly secured notes due 2008; -- Hanover Equipment Trust 2001B 8.75% partly secured notes due 2014; -- 7.5% Senior Notes due 2013; -- 8.625% Senior Notes due 2010; -- 9% Senior Notes due 2014; and -- 7.25% Convertible Trust Preferred Stock. About Hanover Compressor Company Headquartered in Houston, Texas, Hanover Compressor Company (NYSE:HC) -- http://www.hanover-co.com/-- is in full service natural gas compression and provider of service, fabrication and equipment for oil and natural gas production, processing and transportation applications. Hanover sells and rents this equipment and provides complete operation and maintenance services, including run-time guarantees for both customer-owned equipment and its fleet of rental equipment. Founded in 1990 and a public company since 1997, Hanover's customers include both major and independent oil and gas producers and distributors as well as national oil and gas companies. It has locations in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru, Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the United Kingdom, and Vietnam, among others. GAJAH TUNGGAL: May Sell Right Issue to Reduce Gearing Ratio ----------------------------------------------------------- PT Gajah Tunggal Tbk may sell shares in a rights issue next year to reduce its gearing ratio, Reuters reports, citing director Catharina Widjaja. Ms. Widjaja told the news agency that the company wants to reduce its debt-to-equity ratio to 1.0 from 1.6, although the rights issue would not be large. "For any corporate actions and capital expenditure, we still have the money from our latest bond issue," she adds. The report notes that the company has US$20 million of fixed rate notes maturing in 2007 and a further US$50 million maturing in 2008. Gajah Tunggal could reduce its debt ratio by repaying the notes out of its cashflow, the report says. Last year, the firm's net profit plunged 66% as Indonesia's automotive market was hit by high interest rates and weak consumer spending, Reuters recounts. About Gajah Tunggal Headquartered in Jakarta, Indonesia, PT Gajah Tunggal Tbk -- http://www.gt-tires.com/-- is primarily engaged in the production and marketing of a range of tires and inner tubes for motorcycles, passenger cars, commercial cars, off the road vehicles and industrial and heavy equipment vehicles. Its products are marketed to both domestic and international markets, including Australia, the United States and other countries in Asia and Europe. These products can be purchased in approximately 5,000 retail outlets around the world. The company's subsidiaries, which are engaged in the general trading and financial services, the distribution sector and the chemical industry, include GTT Netherlands B.V., GT 2005 Bonds B.V., PT Prima Sentra Megah and PT Polychem Indonesia Tbk. The company operates a production facility in Tangerang. * * * The Troubled Company Reporter-Asia Pacific reported on June 6, 2007, that Moody's Investors Service assigned a B2 senior unsecured rating for PT Gajah Tunggal Tbk's proposed US$95 million bonds. At the same time, Moody's has affirmed GT's B2 corporate family rating and the B2 senior unsecured rating for existing US$325 million bonds, guaranteed by GT. The outlook for all the ratings is at present negative. On Oct. 6, 2006, Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Gajah Tunggal. The outlook is stable. At the same time, it affirmed the 'B' issue rating on the five- year US$325 million senior unsecured bonds issued by GT2005 Bonds B.V., and irrevocably and unconditionally guaranteed by Gajah Tunggal. * S&P Affirms Indonesia's BB-/B Foreign Currency Ratings -------------------------------------------------------- Standard & Poor's Ratings Services had affirmed its 'BB-/B' foreign currency ratings and its 'BB+/B' local currency ratings on the Republic of Indonesia. The outlook is stable. "The ratings on Indonesia are underpinned by continued improvements in its debt and external liquidity positions," said Standard & Poor's credit analyst Sani Hamid said. Indonesia's general government debt is expected to decline further to 44% of GDP this year, down from 46% in 2006 and over 100% in 2000. This reduction comes on the back of small, but persistent primary surpluses, a falling interest burden, and strong nominal GDP growth. The central government is looking to strike a balance between the need to further reduce its debt burden while allowing it room for additional development spending, especially in infrastructure, to boost growth. "Despite a modest rise in the central government deficit, we expect the government to adhere to fiscal discipline," said Mr. Sani. The country's external liquidity position continues to benefit from current account surpluses, steady FDI inflows, and strong portfolio inflows. International reserves reached a record high of US$51.9 billion in July, versus US$41.1 billion in July 2006, and are sufficient to cover 4.6 months of current account payments. Supporting these positive trends is the government's continued commitment towards wide-ranging reform efforts that form the backbone of the country's economic revival. Despite these improvements, there remain numerous challenges that continue to constrain Indonesia's creditworthiness. Institutional and structural impediments continue to restrict growth from reaching levels that are sufficient to generate jobs at the pace needed to reduce poverty significantly. Overall competitiveness is hampered by infrastructure shortfalls, legal uncertainties, corruption, and labor market rigidities. Furthermore, information gaps remain as to the financial standing of the state-owned enterprises, the consolidated local and regional government budgetary performance and debt burdens, and the financial performance of entities owned by LRGs, all of which hamper the analysis of the public sector. The ratings on Indonesia continue to be weighed on by a high external debt and government debt burden that, while not out of line with its peers, proved unmanageable in the past and contributed to the need for sovereign debt rescheduling in 1999- 2002. "The stable outlook balances our expectation that Indonesia will continue with its reform efforts and that the country's external liquidity will continue to strengthen," said Mr. Sani. "The ratings on Indonesia could be raised if these reform efforts result in a higher sustained growth trajectory and further debt reduction. In addition, improved public sector transparency would favorably influence the rating outlook on Indonesia." Alternatively, the outlook could come under review should there be a greater-than-expected loosening in the present fiscal stance or if reform efforts stall at the legislative and the implementation stages. Deterioration in the global financial and economic environment could also lead to additional challenges for Indonesia. The ratings could therefore come under pressure if institutional weaknesses hinder policy coordination and impede timely responses to any external shocks. ========= J A P A N ========= HERBALIFE: Moody's Affirms Bank Loan at Ba1 Following Upsize ------------------------------------------------------------ Moody's Investors Service rated at Ba1 (LGD 2, 29%) the proposed US$150 million add-on to the secured revolving credit facility of Herbalife International, Inc. Moody's also affirmed the corporate family and existing bank loan ratings at Ba1. Virtually all proceeds from the incremental US$150 million of bank borrowings will be used to fund open-market share repurchases. The rating affirmation reflects that credit metrics remain strong in spite of the additional debt, and Moody's belief that the company will continue to generate substantial free cash flow. The rating outlook is stable. The following rating is assigned: -- US$150 million add-on to the secured revolving credit facility at Ba1 (LGD 2, 29%). The following ratings are affirmed: -- US$100 million (commitment prior to add-on) secured revolving credit facility at Ba1 (LGD 2, 29%); -- US$200 million secured term loan at Ba1 (LGD 2, 29%); -- Corporate Family Rating at Ba1; -- Probability of Default Rating at Ba2. Herbalife's corporate family rating balances certain strong quantitative and qualitative rating drivers against Moody's opinion that many credit attributes for a company without substantial tangible assets are always likely to be stronger than for similarly rated conventional retailers or consumer products issuers. Profitable rapid growth across many geographies and product categories and the company's pattern of repaying debt with a portion of discretionary cash flow benefit the ratings. Important factors holding down the ratings are the company's relatively small size compared to many higher rated companies, the unpredictability of demand for many products in the vitamin, nutritional supplement, and personal care categories, as well as the inherent challenges of managing the high reseller attrition that is a common characteristic of a multi-level marketing business model. Herbalife International, Inc, with corporate headquarters in Los Angeles, California, is a marketer of weight management products, nutritional supplements and personal care items that are sold through a global network of independent distributors in more than 65 countries. Equity of Herbalife, LTD, the company's ultimate parent through a series of intermediate holding companies, is publicly traded. Net revenue for the twelve months ending June 2007 was $2.0 billion. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo. ========= K O R E A ========= KRISPY KREME: Board Approves Officer Indemnification Agreement -------------------------------------------------------------- The board of directors of Krispy Kreme Doughnuts Inc. has approved a form of Officer Indemnification Agreement, pursuant to which the company agrees to provide for: -- the indemnification of and the advancement of expenses to each officer of the company party to the officer indemnification agreement; and -- the continued coverage of such officer under the company's directors' and officers' liability insurance policies. Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. There are currently approximately 323 Krispy Kreme stores and 79 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. The company generates revenues from three distinct sources: company-owned stores, franchise fees and royalties from franchise stores, and a vertically integrated supply chain. The Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Moody's Investors Service lowered Krispy Kreme Doughnut Corporation's Speculative Grade Liquidity rating to SGL-4 from SGL-3, indicating weak liquidity. Concurrently Moody's revised the rating outlook to negative while affirming Krispy Kreme's Caa1 corporate family rating and B3 rating of its US$160 million senior secured credit facilities. On August 8, 2007, that Standard & Poor's Ratings Services has assigned its ratings, including its corporate credit rating of 'B-', to Winston Salem, N.C.-based Krispy Kreme Doughnuts Inc. The outlook is negative. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to the US$160 million senior secured credit facility borrowed by Krispy Kreme Doughnut Corp., a subsidiary of Krispy Kreme. The facility is rated 'B', one notch above the corporate credit rating on Krispy Kreme, and assigned a '2' recovery rating, indicating the expectation for substantial (70%-90%) recovery of principal in the event of default. MAGNA INTERNATIONAL: Plan of Arrangement Takes Effect ----------------------------------------------------- Magna International Inc.'s plan of arrangement and agreements relating to the strategic investment in Magna by Open Joint Stock Company Russian Machines became effective on Sept. 20, 2007. "We are pleased to have completed this very important transaction with Russian Machines," Frank Stronach, Magna's chairman commented. "I believe we are now well positioned to capitalize on the growth opportunities in Russia and other automotive markets, while minimizing the risks of investing in those markets." "Our strategic investment in Magna will allow Magna to build a strong presence in the rapidly expanding Russian automotive market as well as in Eastern Europe and other key markets," Oleg Deripaska, chairman of the supervisory board of basic element and chairman of the board of directors of Russian Machines, said. Under the arrangement, M Unicar Inc., through its indirectly owned subsidiary 2143455 Ontario Inc., a Canadian holding company funded by a subsidiary of Russian Machines, acquired 20 million Magna Class A Subordinate Voting Shares for approximately US$1.54 billion. Newco is owned indirectly by the Stronach Trust, Russian Machines and Donald Walker, Siegfried Wolf, Vincent Galifi, Jeffrey Palmer and Peter Koob, members of Magna's executive management. Newco and its subsidiaries now hold 726,829 Class B Shares, which were previously held by 445327 Ontario Inc., all of the shares of which are directly owned by the Stronach Trust, representing 100% of the outstanding Class B Shares, and 20,605,000 Class A Subordinate Voting Shares, representing approximately 15.9% of the outstanding Class A Subordinate Voting Shares, which collectively represent approximately 68.6% of the total voting power of all the outstanding shares of Magna. The transaction allows Newco and its shareholders to effect a strategic investment in Magna and participate in the future growth and success of Magna on a global basis. Magna also disclosed that, as a result of the arrangement becoming effective, all of the conditions to its offer to purchase for cash up to US$1,536,600,000 in value of its Class A Subordinate Voting Shares, which expired at 5:00 p.m., Toronto time, on Sept. 20, have been satisfied or waived. Magna will issue a statement with respect to the outcome of the bid after it has determined the number of Class A Subordinate Voting Shares which have been validly tendered and the clearing purchase price for such shares under the "modified Dutch auction" procedure applicable to the bid. About Magna International Inc. Headquartered in Ontario, Canada, Magna International Inc. (TSX: MG.A, MG.B; NYSE: MGA) -- http://www.magna.com/-- is a diversified automotive supplier that designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. The company's capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; well as complete vehicle engineering and assembly. The company has approximately 83,000 employees in 229 manufacturing operations and 62 product development and engineering centers in 23 countries including Brazil, China, Czech Republic, France, Germany, Korea, among others. TRIGEM COMPUTER: Representative Files 2nd Section 1518(1) Report ---------------------------------------------------------------- Charles D. Axelrod, Esq., at Stutman Treister & Glatt PC, in Los Angeles, California, on behalf of Il-Hwan Park, the foreign representative for TriGem Computer, Inc., delivered to the U.S. Bankruptcy Court for the Central District of California a status report pursuant to Section 1518(1) of Chapter 15 of the Bankruptcy Code. Mr. Axelrod relates that TriGem executed in July and August 2007 a memorandum of understanding and an investment agreement with Celrun Co. Ltd., with respect to Celrun's acquisition of TriGem's business. TriGem will meet with Celrun and another bidder in October 2007. TriGem may file an amendment to its confirmed reorganization plan, which will require approval of the reorganization court in the Republic of Korea. TriGem's reorganization plan calls for the sale of the company's assets through a merger and acquisition type transaction. Mr. Axelrod relates that the plan, confirmed by the Korean Bankruptcy Court in January 2006, needed to be implemented. Otherwise, Mr. Park as the Foreign Representative must submit a revised plan to creditors for their approval and then to the Korean Bankruptcy Court for confirmation. If the revised plan is not approved nor confirmed, Trigem would automatically be put into a liquidation case. TriGem's first attempt to sell its business in 2006 was unsuccessful. Human & Technology Co., emerged as the sole bidder at that time, but the Suwon District Court, Bankruptcy Division, in South Korea, canceled the whole bidding process after the offer was found to be below market price. Human & Technology initially agreed to acquire TriGem's assets for KRW170,000,000,000 or US$177,000,000. Human & Technology noted that it would bring the price down should it find after due diligence that KRW30,000,000,000 of receivables from TriGem's subsidiaries would be difficult to collect. It also rejected demands to guarantee employment. The Korean Court previously estimated TriGem's value at KRW200,000,000,000 to KRW250,000,000,000 -- US$209,000,000 to US$261,000,000. Human & Technology's reduced final offer for TriGem's assets was not disclosed for confidentiality reasons. TriGem again tested the market in June 2007. The company received four letters of intent to acquire its business and two parties ultimately tendered bids by the deadline. Celrun, which develops and manufactures digitial Internet set-top box solutions, was declared preferred bidder. Celrun offered to buy Trigem for up to KRW120,000,000,000 or US$129,400,000, according to Reuters. Mr. Axelrod also reports that claims aggregating under KRW33,000,000,000 were paid off under the terms of TriGem's confirmed plan. Additional claims will be paid and shares of new equity will be issued if and when approval of the Plan amendment is obtained from two-thirds of all creditors, including three-quarters of creditors, with liens or other encumbrances against TriGem's property, as well as the Korean Bankruptcy Court. Celrun was established in 1999 and is headquartered in Seoul, Korea. It has a market capital of KRW15,700,000,000. Celrun owns 22.3% of the global IP set-top box market, according to information on its Web site. Section 1518(1) provides that, from the time of filing the petition for recognition of a foreign proceeding, the foreign representative will file with the court promptly a notice concerning any substantial change in the status of the foreign proceeding or the status of the foreign representative's appointment. The Section 1518(1) report was filed pursuant to the U.S. Court's directive. Judge Donovan required TriGem's U.S. counsel to either file a status report or stipulate to the closing of the Chapter 15 case. Mr. Axelrod says the report was filed over an abundance of caution since the pending foreign proceeding "has merely progressed rather than having experienced a change in its status." Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer Inc. -- http://www.trigem.com/-- manufactures desktop PCs, notebook PCs, LCD monitors, printers, scanners, other computer peripherals, and PIDs and supplies over four million PCs a year to clients all over the world. Il-Hwan Park, the Foreign Representative, filed a chapter 15 petition on Nov. 3, 2005 (Bankr. C.D. Calif. Case No. 05-50052). Charles D. Axelrod, Esq., at Stutman Treister & Glatt, P.C., represents the Foreign Representative in the United States. TriGem America Corporation, an affiliate of the Debtor, filed for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif. Case No. 05-13972). TriGem Texas, Inc., another affiliate of the Debtor, also filed for chapter 11 protection on June 8, 2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy News, Issue No. 11 Bankruptcy Creditors' Service, Inc., 215/945- 7000). =============== M A L A Y S I A =============== FOREMOST HOLDINGS: Wants MYR6.5-Million Refund From Ismail ---------------------------------------------------------- Foremost Holdings Bhd disclosed with the Bursa Malaysia Securities Bhd that it is seeking a refund of MYR6.5 million as a result of the Rescission of the Sale and Purchase Agreement entered into between Foremost Audio Sdn. Bhd., a wholly-owned subsidiary, and Ismail Bin Yaacob. Foremost Audio has entered into a Proposed Acquisition of 51% equity interest in Mega Accomplishment Sdn. Bhd by Mr. Ismail, the company said. In a statement, Foremost Holdings said: "Based on the Company's internal investigation and confirmation by the authorities, professionals and bank neither Foremost Holdings Berhad nor any of its subsidiaries have received the refund of MYR6.5 million for and on behalf of Foremost Audio Sdn. Bhd." Foremost Holdings will take the appropriate action to recover the said amount, it added. Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing". As an affected issuer, the Company is required to draft a plan to regularize its finances to avoid being delisted from the Official List. GREIF INC: Board Elects David B. Fischer as President & COO ----------------------------------------------------------- The Board of Directors of Greif, Inc., has elected David B. Fischer as the company's president and chief operating officer. Mr. Fischer was senior vice president and divisional president of Industrial Packaging & Services of Greif's North and South America, Asia, Africa and Australia business units. The position of president had been held by Chairman and Chief Executive Officer Michael J. Gasser. Michael C. Patton, senior vice president of Paper, Packaging & Services, will also lead IP&S - North America. He was named divisional president as well. Senior Vice President Ivan Signorelli, at Greif's IP&S - Europe strategic business unit, also adds the title of divisional president. Mr. Signorelli and Mr. Patton will report to Mr. Fischer. The changes are effective Oct. 1. Mr. Gasser said, "David's proven track record in operations, mergers and acquisitions and business integration make him ideally suited for his new position. His leadership and counsel will be a driving force as we continue to execute our aggressive growth strategy. "Mike has been a strong leader in all his roles within Greif. Because of his deep understanding of the Greif Business System and his ability to effect change, he is the right person to take our business in North America to the next level. "With Ivan in Europe, we have a strong operations team in place that will be instrumental in achieving our goals," Mr. Gasser said. Mr. Fischer joined Greif in November 2004 to lead Greif's Industrial Packaging & Services - Americas business. He was later assigned responsibility for the company's IP&S businesses in Asia, Africa and Australia. He came to Greif from The Dow Chemical Company, where he was previously global business vice president of the company's US$1.8 billion polyurethanes business. Mr. Fischer holds a bachelor's degree from Purdue University where he majored in Chemistry. Mr. Patton joined Greif in March 2000 as vice president and general manager, Multiwall Packaging. He was named vice president of Steel, IP&S - North America in 2002, and vice president and general manager for IP&S - North America, Midwest, in 2004. Later that year, he was named senior vice president, Transformation Worldwide and in 2005, was named to head Paper, Packaging & Services. Mr. Patton holds a bachelor's degree in Finance from Seton Hall University. Mr. Signorelli joined Van Leer (acquired by Greif in 2001) in 1992 as the business unit manager of Italy. He was named BU manager of closures business American Flange in 1993 and promoted to strategic business unit manager of Latin America in 1997. Greif's African businesses were added to his responsibilities in 2003. He was promoted to his current position in 2005. Mr. Signorelli holds an undergraduate degree in Business Administration from Inst. Educ. Luzwell and an MBA degree with a major in Marketing from Fundacao Getulio Vargas, both in Brazil. About Greif Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE: GEF, GEF.B) -- http://www.greif.com/-- is a world leader in industrial packaging products and services. The company provides extensive expertise in steel, plastic, fibre, corrugated and multi-wall containers for a wide range of industries. Greif also produces containerboard and manages timber properties in the United States. For fiscal year 2006, the company generated approximately US$2.6 billion in net sales and US$326 million in EBITDA. The company has operations in Australia, Argentina, Brazil, Belgium, China, Malaysia, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 26, 2007, Standard & Poor's Ratings Services assigned its 'BB-' ratings to Greif Inc.'s proposed US$300 million senior unsecured notes due 2017. The proceeds from the notes will be used to retire approximately US$248 million in existing senior subordinated notes due 2012 and for general corporate purposes. The new senior notes issue is contingent upon consummation of the tender offer for the senior subordinated notes. KUMPULAN BELTON: Securities Delisted by Bourse on September 25 -------------------------------------------------------------- The Bursa Malaysia Securities Bhd delisted Kumpulan Belton Bhd's securities from its official list on Sept. 25, 2007, after the company failed to submit its regularization plan to the authorities. Kumpulan Belton was required to submit its plan to the Securities Commission and other relevant authorities on June 5, 2007. The company has earlier appealed the decision of the bourse, but in a statement, Bursa Securities said: "After having considered all the facts and circumstances of the matter, Bursa Securities has resolved that the appeal by the Company be disallowed and decided to delist the Company from the Official List of Bursa Securities." Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton Berhad -- http://www.beltongroup.com-- manufactures and sells automotive suspension parts and components. Other activities include property development and investment, provision of machining and heat treatment services and investment holding. Operations of the Group are carried out in Malaysia and Australia. Kumpulan Belton was classified under the Amended Practice Note No. 17 Criteria on May 5, 2006, as the company's shareholders' equity on a consolidated basis is less than 25% of its issued and paid up capital as at Dec. 31, 2005. Moreover, the auditors have expressed a modified opinion with emphasis on the company's going concern for the financial year ended Dec. 31, 2005. MALAYSIA AIRLINES: Unit to Start East Malaysia Ops in October ------------------------------------------------------------- Malaysian Airline System Bhd's wholly owned subsidiary, MASWings, will commence its operations in East Malaysia effective Oct. 1, 2007, with two inaugural Fokker 50 aircraft flights in Sarawak and Sabah, The Edge Daily reports. The company would initially operate with four 50-seater Fokker 50 and four 19-seater Twin Otter aircraft, to serve a network of 21 destinations in Sarawak and Sabah as well as Labuan, the report adds. Effective Oct. 28, its fleet size will be increased to seven Fokker 50 and five Twin Otter aircraft, and by December, there will be an additional Fokker 50. "MASWings will cater to both the intra and interstate air travel needs of Sarawak and Sabah as well as enhance air connectivity from the rest of the world to the two states," said MASWings managing director Amin Khan. Mr. Amin added that interlining services would be available on participating airlines which allowed customers to check in all the way to their final destinations with just one ticket. Amin said the operational base for MASWings would be in Miri, while its maintenance base would be in Kota Kinabalu. 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. PROTON HOLDINGS: Volkswagen's CEO to Meet Malaysia's PM ------------------------------------------------------- Volkswagen's Chief Executive Martin Winterkorn plans to visit Malaysia in the weeks ahead to discuss striking a deal with state-owned carmaker Proton, a Volkswagen spokesman told Reuters. According to the German firm's spokesman, Mr. Winterkorn will meet Prime Minister Abdullah Ahmad Badawi to discuss the framework for Europe's biggest automaker to take a stake in loss-making Proton. An exact date for the meeting was not yet set, the spokesman added. The Malaysian government has been in talks with Volkswagen, the world's fourth-largest carmaker, over the possible sale of a stake in Proton. A person familiar with the talks told Reuters this month that Volkswagen wants to take a 20% stake in Proton and could increase its share to a majority, Reuters relates. The idea is for the Malaysian government gradually to pull out while taking on any losses during a starting phase, the source said, adding that the Volkswagen stake could be increased to 50 percent within five years. 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. PROTON HOLDINGS: Taps Phranakorn Auto to Sell Cars in Thailand -------------------------------------------------------------- Proton Holdings Bhd appointed Phranakorn Auto Sales Co Ltd as its authorized dealer in the company's planned debut at the Thailand Motor Show, AFP says, citing a report from the Bernama news agency. According to AFP, Proton is pinning its hopes for a turnaround on exports to Asia and Europe, as well as new models to perk up dismal sales in the domestic market. In an interview with Bernama, Phranakorn's managing director Thawatchai Jungsanguanpornsukm said Proton models, including the latest Persona, are expected to be launched at the motor show in early December. Proton has also plans to export vehicles to Singapore, Thailand, Indonesia, Britain and Australia, the news agency relates. 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. TENCO BERHAD: Completes Restructure; Exits Amended PN17 Category ---------------------------------------------------------------- The Bursa Malaysia Securities Berhad said that Tenco Berhad has regularized its financial condition pursuant to Amended PN17. "Following the implementation of the company's restructuring scheme, TENCO has regularized its financial condition and no longer trigger any of the criteria under paragraph 2.0 of Amended PN17," the bourse said. Tenco was classified as a Practice Note 17 company because its current shareholders' equity on a consolidated basis was less than 25% of its issued and paid up capital, and it defaulted on various loan facilities and is unable to provide a solvency declaration. Tenco was required to submit its financial regularization plan to relevant authorities on January 8, 2007. Headquartered in Selangor, Malaysia, Tenco Berhad's -- http://www.tenco.com.my-- principal activities are manufacturing and selling of polymer, chemicals, adhesive, decorative coatings and related products, building materials, equipment and consumer products. Other activities include investment holding and provision of management services. The Group operates in Malaysia, Singapore and Canada. ==================== N E W Z E A L A N D ==================== CIVIC MANUREWA: Creditors' Proofs of Debt Due on October 5 ---------------------------------------------------------- Civic Manurewa Ltd. requires its creditors to file their proofs of debt by October 5, 2007. The company went into liquidation on August 28, 2007. The company's liquidator is: Boris Van Delden c/o McDonald Vague PO Box 6092, Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz CONTAINERLINK TRANSPORT: Appoints Levin and Vance as Liquidators ---------------------------------------------------------------- Henry David Levin and David Stuart Vance were appointed as liquidators of Containerlink Transport Ltd. on September 6, 2007. Messrs. Levin and Vance fix October 4, 2007, as the last day for creditors to file their proofs of deb. The Liquidators can be reached at: Henry David Levin David Stuart Vance PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 DENNING PROPERTIES: Commences Liquidation Proceedings ----------------------------------------------------- Denning Properties Ltd. started wind-up proceedings on August 31, 2007. Creditors are required to file their proofs of debt by Sept. 28, 2007, to be included in the company's dividend distribution. The company's liquidator is: John Gilbert c/o C & C Strategic Limited Ponsonby, Auckland New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 FLOORING CONCEPTS: Accepting Proofs of Debt Until Oct. 4 -------------------------------------------------------- Flooring Concepts Limited requires its creditors to file their proofs of debt by October 4, 2007, to be included in the company's dividend distribution. The company's liquidators are: Henry David Levin David Stuart Vance PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 HIGHGROVE HOMES: Taps Levin and Vance as Liquidators ---------------------------------------------------- On September 6, 2007, Henry David Levin and David Stuart Vance were appointed as liquidators of Highgrove Homes Limited. Messrs. Levin and Vance require the company's creditors to file their proofs of debt by October 4, 2007. The Liquidators can be reached at: Henry David Levin David Stuart Vance PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street, Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 HURUNUI PLASTICS: Fixes October 3 as Last Day to File Claims ------------------------------------------------------------ On September 3, 2007, Malcolm Hollis and John Fisk were appointed as liquidators of Hurunui Plastics Ltd. Messrs. Hollis and Fisk are accepting creditors' proofs of debt until October 3, 2007. The Liquidators can be reached at: Malcolm Hollis John Fisk c/o PricewaterhouseCoopers 119 Armagh Street PO Box 13244, Christchurch New Zealand Telephone:(03) 374 3000 Facsimile:(03) 374 3001 KEEL INVESTMENTS: Fixes Sept. 28 as Last Day to File Claims ----------------------------------------------------------- The creditors of Keel Investments Limited are required to file their proofs of debt by September 28, 2007, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 31, 2007. The company's liquidator is: John Gilbert c/o C & C Strategic Limited Ponsonby, Auckland New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 MARPLE INVESTMENTS: Court to Hear Wind-Up Petition on Oct. 1 ------------------------------------------------------------ The High Court of Wellington will hear on October 1, 2007, at 10:00 a.m., a petition to have the operations of Marple Investments Ltd. wound up. The petition was filed by Nigel Horne on July 20, 2007. Nigel Horne's solicitor is: Malcolm Whitlock c/o Debt Recovery Group NZ Limited Level 5, 5 Short Street Newmarket, Auckland New Zealand MONARCH INDUSTRIES: Names Crichton and Horne as Liquidators ----------------------------------------------------------- David Donald Crichton and Keiran Anne Horne were named as liquidators of Monarch Industries Ltd. on September 3, 2007. Creditors must file their proofs of debt by October 1, 2007, to be included in the company's dividend distribution. The Liquidators can be reached at: David Donald Crichton Keiran Anne Horne Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace PO Box 3978, Christchurch New Zealand Telephone:(03) 379 7929 PROPERTYFINANCE GROUP: Stock Exchange Lifts Trading Suspension -------------------------------------------------------------- The New Zealand Stock Exchange lifted the suspension on PropertyFinance Group Ltd's securities. In that regard, the trading in PFG's shares will resume today, Sept. 26, 2007. PropertyFinance Chairman Barney Sundstrum requested the lifting at the annual shareholders meeting in Christchurch on Tuesday, the New Zealand Press Association reports. As reported by the Troubled Company Reporter-Asia Pacific on Aug. 27, 2007, PropertyFinance Group's board of directors is looking into a number of restructuring opportunities because of concerns on the company's ability to manage its current liquidity position. At the board's request, the trading of the company's share was suspended. On Aug. 30, TCR-AP reported that the board of directors of PropertyFinance Securities Limited, a wholly owned subsidiary of PropertyFinance Group, agreed to ask the trustee for the debenture holders to appoint a receiver. Despite the merits of a restructure plan proposed by the subsidiary to the trustee, the trustee believes the appointment of a receiver is in the best interests of the debenture holders. Headquartered in Christchurch, New Zealand, PropertyFinance Group Ltd, formerly Avon Investments Limited, through its subsidiaries, is engaged in lending on first mortgage and is also involved in property-related financial services. The company believes its problem with liquidity arose from a timing mismatch between its assets and liabilities. The Group owns a number of subsidiary companies, the principal subsidiary of which is Propertyfinance Securities Limited. PFSL was placed in receivership by Covenant Trustee Company Limited at the request of PFSL's directors on Aug. 29, 2007. Messrs. Grant Graham and Brendon Gibson of Ferrier Hodgson were appointed as receivers. At the time of the receivership PFSL had total assets of NZ$92 million (un-audited) and liabilities of some NZ$82 million (un-audited). SILVERN PROPERTIES: Creditors' Proofs of Debt Due on Sept. 28 ------------------------------------------------------------- Silvern Properties Limited requires its creditors to file their proofs of debt by September 28, 2007. The company commenced wind-up proceedings on August 31, 2007. The company's liquidator is: John Gilbert c/o C & C Strategic Limited Ponsonby, Auckland New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 ===================== P H I L I P P I N E S ===================== ALLIED BANKING: Foreign Banks Interested to Handle Capital Hike --------------------------------------------------------------- International banks are interested in handling Allied Banking Corp.'s planned capital increase procedures next year, Allied Bank President Reynaldo Maclang told BusinessWorld Online on Sunday. These international banks include ING Groep NV and Swiss bank UBS, the report said. The capital increase may be done either through Tier 1 or straight infusion, or the Tier 2 scheme involving the issuance of quasi-equity debt instruments that will not dilute shareholders' stakes, Mr. Maclang said. The bank's president also said that they are pushing through with the capital increase despite the plan to merge with the Philippine National Bank. Under the newly implemented Basel 2 standard, banks are required to beef up capital for stricter capital rules that emphasize risk-based supervision. Allied Banking Corporation -- http://www.alliedbank.com.ph/-- is a universal bank incorporated in the Philippines on April 4, 1977. The company and its subsidiaries/affiliates are engaged in all aspects of banking, financing and leasing to personal, commercial, corporate and institution clients. Allied Bank offers a full range of domestic and international banking products and services including deposit taking, lending and related services, domestic and foreign fund transfer, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into regular financial derivatives as a means of reducing and managing the bank's and its customers' foreign exchange exposure. Allied Bank has international offices in Australia, China, Guam, Hong Kong, Singapore, the Middle East, United Kingdom, Germany, Italy, Spain, and the United States. * * * The Troubled Company Reporter-Asia Pacific reported that on November 2, 2006, Moody's Investors Service revised the outlook of Allied Banking Corp.'s foreign currency long-term deposit rating of B1 to stable from negative. DEVELOPMENT BANK: Plans to Bid for US$865MM MRT Debt Refinancing ---------------------------------------------------------------- The Development Bank of the Philippines intends to bid for the US$865-million refinancing package for the Metro Rail Transit-3, the Manila Standard reports. DBP President and Chief Executive Officer Reynaldo David said that DBP wants to be a financial adviser to the refinancing because of the government's need to raise US$865 million under the deal signed by the end of August to buy out the MRT-3's US$865-million debt. According to the article, the government intends to save about US$380 million in interest costs for MRT's debt, which is at 12.5% to 15% annually. The buyout will trim the government's financing cost on the MRT project by at least 400 basis points, the article relates. * * * Development Bank of the Philippines -- http://www.devbankphil.com.ph/-- prides itself for being "the Philippines's most progressive development banking institution," providing for the medium and long-term financing needs of enterprises, with emphasis on small and medium-scale industries, particularly in the countryside. DBP carries Fitch Ratings' 'BB' Long-Term foreign currency issuer default rating, and 'BB+' long-term local currency issuer default rating, which were issued to it on December 22, 2006, and affirmed on September 3, 2007. Standard & Poor's Ratings Services also assigned on December 5, 2006, its 'BB-' rating to DBP's PHP2.35 billion existing lower Tier II subordinated notes, which are due in 2016. The bank also carries S&P's BB+ local currency and BB- foreign currency issuer ratings with Stable outlooks. The bank carries Moody's Investor Services' B1 foreign currency and Ba2 local currency long-term deposit ratings with a Negative outlook. MIRANT CORP: Texas Court Confirms Mirant Lovett's Amended Plan -------------------------------------------------------------- The United States Bankruptcy Court for the Northern District of Texas - Fort Worth Division confirmed Mirant Lovett LLC's Amended Chapter 11 Plan of Reorganization on September 19, 2007, after finding that the Plan satisfies the 13 statutory requirements under Section 1129(a) of the Bankruptcy Code. On Mirant Lovett's behalf, Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth, Texas, stepped Judge Lynn through the Section 1129(a) requirements necessary to confirm the proposed Plan: 1. The Mirant Lovett Plan complies with the applicable provisions of the Bankruptcy Code thereby satisfying Section 1129(a)(1). Under the Lovett Plan, each class of Claims and Equity Interests contains only Claims or Equity Interests that are substantially similar to the other Claims or Equity Interests within the class. Valid business, legal, and factual reasons exist for the separate classification of each of the Classes of Claims and Equity Interests created under the Supplemental Plan, and the Classes do not unfairly discriminate between or among holders of Claims and Equity Interests. 2. Mirant Lovett has complied with all previous orders of the Court regarding solicitation of the Lovett Plan. Mirant Lovett has also complied with the Bankruptcy Code, the Bankruptcy Rules and other applicable law with respect to solicitation. Accordingly, the Mirant Lovett have complied with Section 1129(a)(2). 3. Mirant Lovett has proposed the Lovett Plan in good faith. As the Lovett Plan is the result of extensive, arm's- length and good faith negotiations, it provides fundamental fairness to all creditors and equity interest holders. The Lovett Plan also provides Mirant Lovett's creditors and equity interest holders with the best possible recovery under the circumstances. Accordingly, the Lovett Plan satisfies the requirements of Section 1129(a)(3). 4. Pursuant to the Lovett Plan, each Professional Person who holds or asserts a Fee Claim is required to file with the Bankruptcy Court, and serve on all parties required to receive notice, a Fee Application within 45 days after the effective date of the Lovett Plan. This provision is sufficient to comply with Section 1129(a)(4). 5. The Lovett Plan satisfies the requirements of Section 1129(a)(5), because it sets forth the identities of Mirant Lovett's directors as of the Lovett Plan Effective Date. The directors of Mirant Lovett are highly qualified and their appointment is clearly consistent with the interests of Mirant Lovett and with public policy. 6. The Lovett Plan does not provide for the change of any rate that is within the jurisdiction of any governmental regulatory commission after the occurrence of the Lovett Plan Effective Date. Therefore, the provisions of Section 1129(a)(6) are inapplicable. 7. The Plan satisfies Section 1129(a)(7) because the "best interests" test is satisfied with respect to all impaired classes of Claims and Equity Interests. Recoveries to impaired classes under the Lovett Plan greatly exceed the amounts the parties would receive in a liquidation. 8. Class 1 Taxing Jurisdiction Settlement Claims, Class 3 Equity Interests, and the Class 5 Priority Claims are not impaired under the Lovett Plan, and, therefore, are deemed to have accepted the Lovett Plan. Mirant Lovett submits that all impaired Unsecured Classes and Convenience Classes votes received have accepted the Lovett Plan. Therefore, the Lovett Plan complies with Section 1129(a)(8). 9. Under the Plan, the treatment of Allowed Administrative Claims, New York DIP Claims, Priority Claims, and Tax Claims satisfies the requirements of Section 1129(a)(9). 10. The Lovett Plan satisfies Section 1129(a)(10) because among other things, Class 2 Unsecured Claims Against Mirant Lovett, and Class 4 Convenience Claims are impaired and voted to accept the Lovett Plan, without including any acceptance of the Lovett Plan by insiders on account of Intercompany Claims or otherwise. 11. For purposes of determining whether the Lovett Plan satisfies the feasibility standard, Mirant Lovett has analyzed its ability to fulfill its obligations under the Lovett Plan. Mirant Lovett asserts that based on projections and evidence provided to the Court, the Lovett Plan is feasible; they will have sufficient cash flow to meet their obligations under the Lovett Plan. Thus, Section 1129(a)(11) is satisfied. 12. The Lovett Plan incorporates by reference provisions of the confirmed Joint Chapter 11 Plan of Reorganization filed by the New Mirant Entities, which provides for the payment of all statutory fees by Mirant Lovett on or before the Lovett Plan Effective Date, thereby satisfying Section 1129(a)(12). 13. Mirant Lovett is not obligated to provide retiree benefits and, thus, Section 1129(a)(13) is inapplicable. Judge Lynn also found that the Plan complies with Section 1123(a) on the basis that: -- it designates classes of claims as required by Section 1123(a)(1); -- it specifies which classes of Claims and Equity Interests are not impaired and sets forth the treatment for the classes as required by Sections 1123(a)(2) and (3); -- it provides for the same treatment for each Claim or interest within a particular class as required by Section 1123(a)(4); -- it provides for adequate means of implementation as required by Section 1123(a)(5); and -- it contains only provisions that are consistent with the interests of creditors and equity securities holders as required by Section 1123(a)(7). In addition, the Lovett Plan provides for (i) the rejection, assumption and assumption and assignment of executory contracts, and (ii) an "intercompany settlement," which resolves intercompany claims pursuant to a settlement and compromise. Mr. Prostok stated that the Intercompany Settlement does not affect the status of Mirant lovett as separate legal entities; change the organizational structure of Mirant Lovett; constitute a change of control of Mirant Lovett for any purpose; and cause a merger or consolidation of any legal entities, nor cause the transfer of any assets. Under its Plan, Mirant Lovett continue to exist as separate legal entities. Moreover, Judge Lynn authorized Mirant Lovett to take all limited liability company actions necessary or appropriate to implement and consummate all the provisions of the Lovett Plan. Judge Lynn ruled that the stay contemplated by Rule 3020(e) of the Federal Rules of Bankruptcy Procedure will terminate on September 28, 2007, at 4:00 p.m. (prevailing Central time). On the Plan effective date, Mirant Lovett may operate its business and use, acquire and dispose of its assets free of any restrictions of the Bankruptcy Code. Mirant Corporation, as the Court-approved Disbursing Agent, will have all the powers, rights, duties and protections afforded the Disbursing Agent under the Lovett Plan, and is authorized by the Court to make the required Lovett Plan distributions specified under the Lovett Plan on the relevant distriution date. Settlements Each of the New York Settlement, the 2007 Tax Agreement and the 2007 Amended Consent Decree is incorporated in the Confirmation Order, and will be fully enforceable against Mirant Lovett. Mirant Lovett will provide for the payment, by no later than the Lovett Plan Effective Date, of any tax amount, accrued interest or change that may be due and owing the Tax Jurisdictions as of September 19. Special Provisions On Governmental Entities Notwithstanding any provision to the contrary in the Lovett Plan or the Confirmation Order, any liability of any entity or individual relating to any pending violation of, or relating to, the State Pollutant Discharge Elimination System water permit program, solid and hazardous waste program, and air program for the Lovett facility generating station, will not be subject to discharge under the Lovett Plan or Confirmation Order, to the extent the liability is asserted by the State of New York, its subdivisions, or the United States. Nothing in the Lovett Plan or Confirmation Order will adversely affect the rights and remedies of the State of New York under environmental laws with respect to Mirant Lovett, including State of New York v. Mirant New York, Inc. and Mirant Lovett, LLC No. 03 CV 4326 -- the New York Actions. Upon the Effective date, the New York Actions will survive the bankruptcy case and may be adjudicated and enforced in the tribunals in New York with jurisdiction over the New York Actions. Judge Lynn ordered, however, that nothing will allow the state of New York to pursue prepetition monetary claims, and Court approval must first be obtained for any allowance of an administrative expense. Objections to the Lovett Plan not otherwise withdrawn, resolved or otherwise disposed of, are overruled and denied in their entirety. About Mirant Corp. Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant's investments in the Caribbean include three integrated utilities and assets in Jamaica, Grand Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed $20,574,000,000 in assets and $11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. On March 7, 2007, the Court entered a final decree closing 46 Mirant cases. Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant New York Inc., and Hudson Valley Gas Corporation, were not included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11 Plan of Reorganization and on Feb. 22 filed a Disclosure Statement explaining that Plan. The Court approved the adequacy of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen emerged from chapter 11 on May 7, 2007. On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of Reorganization. (Mirant Bankruptcy News, Issue No. 128; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * The ratings of Mirant Corp. (Issuer Default Rating of 'B+') and its subsidiaries remain on Fitch's Rating Watch Negative following the company's plans to pursue alternative strategic options including a possible purchase of Mirant by a third party. RIZAL COMMERCIAL: Board Approves Appointment of 3 Directors ----------------------------------------------------------- Rizal Commercial Banking Corp.'s Board of Directors has approved the appointments of one independent director and two directors during a meeting held on Monday. These individuals were appointed: * Antonio L. Alindongan Jr. as independent director and member of the excutive committee * Rizalino S. Navarro as member of audit committee and risk management committee chairman * Atty. Ma. Celia H. Fernandez-Estavillo as member of personnel evaluation and review committee All three appointments were effective immediately. Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the bank's foreign exchange exposure. * * * On November 2, 2006, the Troubled Company Reporter-Asia Pacific reported that Fitch Ratings assigned a final rating of 'B-' to Rizal Commercial Banking Corporation's hybrid issue of up to US$100 million. The rating action follows the receipt of final documents conforming to information previously received. On November 6, 2006, the TCR-AP also reported that Moody's Investors Service revised the outlook for RCBC's foreign currency senior debt rating of Ba3, foreign currency Hybrid Tier 1 of B3, and foreign currency long-term deposit rating of B1 to stable from negative. The outlook for RCBC's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E+ remains stable, the TCR-AP said. The TCR-AP reported on October 24, 2006, that Standard & Poor's Ratings Services assigned its 'CCC' rating to Philippines' Rizal Commercial Banking Corp's (RCBC; B/Stable/B) US$100 million non- cumulative step-up callable perpetual capital securities. SAN MIGUEL: Subsidiary Forms Partnership with 2 Foreign Firms ------------------------------------------------------------- San Miguel Corp.'s subsidiary, San Miguel Energy Corp., has partnered with an American company and a Malaysian firm in preparation for the bidding of the 25-year concession for the operation of the country's local power grid, the Philippine Daily Inquirer reports. According to the article, San Miguel Energy has teamed up with TPG Aurora BV and TBN Pari Sdn Bhd. The venture into the energy sector is part of SMC's plan to diversify into new businesses including power generation, mining and property. 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. On August 22, 2007, Moody's Investor Service downgraded its local currency corporate family rating for San Miguel Corporation to Ba2 from Ba1. The rating outlook is stable. Standard & Poor's Ratings Services affirmed on August 22, 2007, its 'BB' long-term foreign currency corporate credit rating on San Miguel Corp. and removed it from CreditWatch, where it was placed with negative implications on May 15, 2007. The outlook is negative. * Investments for January-July Period Grows 26% to PHP159 Bil. -------------------------------------------------------------- The Board of Investments and the Philippine Economic Zone Authority recorded a 26% increase year-on-year in investment commitments from January to August, with BoI data showing PHP159 billion, BusinessWorld reports. According to the article, PEZA and BoI had approved about 500 projects that created 93,164 new jobs. Trade Secretary Peter B. Favila attributed the increase to strong investor confidence, the report says. BOI recorded investments reaching PHP69 billion, while PEZA investment commitments total PHP89 billion for the eight-month period. 51% are Foreign investments totaling PHP80.7 billion, PHP28.2 billion of which is pledged by American businessmen and PHP27 billion coming from the Japanese. Local investors made up the remaining PHP77.4 billion. For August alone, the agencies approved 56 projects, with BoI generating PHP1.7 billion and PHP7.9 billion coming from PEZA. These projects are expected to generate 8,701 new jobs, BusinessWorld reports. * * * On September 14, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency issuer credit ratings on the Philippines. The outlook is stable. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. * Peso May Hit PHP44 Per US$1 Rate in Last Three Months of 2007 --------------------------------------------------------------- The Philippine peso is expected to appreciate to PHP42 per US$1 in the last three months of 2007 and will depreciate again to PHP44 per US$1 next year, the American Express Bank told the Manila Standard. "Lower risk aversion should bring a stronger peso," AMEX said in a currencies report for September and October. The improved fiscal performance and strong economic growth has brought about the strengthening of the current, AMEX added. "The wider differential between US and local interest rates will attract more investors and strengthen the peso," Security Bank Corp.'s treasurer Rafael Algarra told the Standard. As the currency closed yesterday at PHP45.155 per US$1 dollar as compared to Friday's PHP45.310 per uS$1, Mr. Algarra predicted a PHP44 per US$1 rate in two to three weeks in light of rising overseas Filipino remittances. * * * On September 14, 2007, Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency issuer credit ratings on the Philippines. The outlook is stable. Also in May 2007, S&P assigned its 'BB+' senior unsecured rating to the Philippines' new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5.5% and 5.75%, respectively. The exchange offers yielded approximately Philippine peso 55 billion and PHP58 billion for the three- and five-year bonds, respectively, from the exchange of eligible issues. Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Nov. 3, 2006, the TCR-AP reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign- currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= ADVANCED MICRO: Introduces World's First Triple-Core Processors --------------------------------------------------------------- Delivering a multi-core triple threat, AMD has revealed the addition of AMD Phenom triple-core processors to its desktop roadmap. AMD Phenom triple-core processors, expected to be the world's first PC processors to integrate three computational cores on a single die of silicon, can help deliver the visual experience, performance and multitasking capabilities of true multi-core technology to a broader audience. The industry's only x-86 triple-core desktop processor offers state-of-the-art platforms and a next-generation architecture with expected availability in the first quarter of 2008. AMD Phenom quad-core processors remain on schedule to ship in 2007. "With our advanced multi-core architecture, AMD is in a unique position to enable a wider range of premium desktop solutions, providing a smarter choice for customers and end users," said Greg White, vice president and general manager for AMD's Desktop Division. "This innovation is a direct result of our development of the industry's first true, native quad-core design, coupled with AMD's manufacturing flexibility, to create multi-core processors in two, three, and four computational core configurations on a single die of silicon. As a customer-centric company, AMD is committed to working with our OEMs to deliver compelling value propositions across their multi-core product families with capabilities that address their requirements and aspirations," Mr. White added. AMD Phenom processors with three cores are a response to demand for increased performance delivered by multi-core processors when running state-of-the-art applications. According to Mercury Research, quad-core processors represented less than two percent of desktop shipments in the second quarter of 2007. AMD believes this suggests a need for a wider selection of multi- core solutions. Triple-core AMD processors may stimulate broader multi-core adoption with a product family that scales to more points-of-entry for the customer. "Microsoft is excited to see AMD creating new technologies like the AMD Phenom triple-core processors," said Bill Mitchell, corporate vice president of the Windows Hardware Ecosystem at Microsoft Corp. "We see potential for power and performance improvements through triple-core processing in the industry and are exploring with AMD the possibility of taking advantage of this in the Microsoft family of products." The true multi-core design of the upcoming AMD Phenom processor family of products, based on Direct Connect Architecture, features an integrated memory controller, accelerating performance for productivity, content creation, entertainment, and gaming. In addition, this next-generation architecture includes AMD's Balanced Smart Cache for rapid access to memory, with a shared L3 cache for leading-edge performance on multi- threaded software. AMD Phenom triple-core processors are expected to deliver increased performance for multitasking usage models and multi- threaded applications, aligned with similar benefits available with the upcoming AMD Phenom quad-core processors. In addition, triple-core processors from AMD can provide significant performance advantages over similar dual-core AMD processors in key industry standard benchmarks, including SYSmark 2007 and 3DMark 2006, as well as similar quad-core AMD processors in certain gaming and digital content creation scenarios. "A continued commitment to elegant design and innovative processor architecture is instrumental to revolutionizing the technology industry," said Richard Shim, research manager for IDC's Personal Computing program. "The advent of triple-core processors is a valuable market opportunity for customers to deliver compelling solutions to end-users and further differentiate themselves within the desktop PC market." About AMD Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 14, 2007, Standard & Poor's Ratings Services affirmed its B/Negative/-- corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, S&P assigned its 'B' rating to the company's US$1.5 billion 5.75% senior convertible notes due 2012, and raised the rating on the company's existing senior unsecured debt to 'B' from 'B-', because the company no longer has secured debt in its capital structure. As reported in the Troubled Company Reporter on Aug. 13, 2007, Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro Devices Inc.'s private placement of US$1.5 billion 5.75% convertible senior notes due 2012. The 'CCC+/RR6' rating also applies to up to US$225 million of additional notes issued within the next 30 days to cover over-allotments. The 'BB-/RR2' rating on AMD's US$1.69 billion Term Loan B due 2010 is affirmed and withdrawn, as the company will use net proceeds from debt issuance, as well as available cash, to fully repay the term loan. Fitch also affirmed the company's Issuer Default Rating at 'B'; and Senior unsecured debt at 'CCC+/RR6'. As reported in the Troubled Company Reporter on July 26, 2007, Standard & Poor's Ratings Services affirmed its 'B/Negative/--' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, Standard & Poor's lowered the rating on the company's 7.75% senior notes due 2012 to 'B-' from 'BB-', which is now rated the same as the company's other senior unsecured notes, reflecting release of the collateral securing the issue. AGRI INTERNATIONAL: Moody's Assigns B2 Corporate Family Rating -------------------------------------------------------------- On September 25, 2007, Moody's Investors Service assigned a B2 corporate family rating to Agri International Resources Pte Ltd. At the same time Moody's has assigned a B2 rating to the US$150 million 5-year USD senior secured notes issued by SPV, AI Finance B.V., and guaranteed by AIRPL as well as its subsidiary Agri Resources B.V. The notes are also secured by 28,399 ha of palm oil plantations. The outlook for both ratings is stable. This is the first time Moody's has assigned ratings to the company. "AIRPL's rating reflects its close relationship with Bakrie Sumatera Plantations Tbk (BSP, rated B2) given BSP will manage AIRPL's plantations and crushing mills for annual management and marketing fees," says Wonnie Chu, a Moody's Analyst. "In addition, BSP has guaranteed to off-take at market prices 100% of the crude palm oil and palm kernel produced by Agri Resources, the operating subsidiary of AIRPL, and will likely become a major shareholder of AIRPL's plantation operation in the near term with an option to increase its shareholding to 51% from current 20% level," says Chu. "The rating also recognizes the potential yield and productivity improvements in the palm oil plantations under BSP management and the favorable state of industry fundamentals," says Chu, adding, "In addition, AIRPL has a sound liquidity profile, driven by its low capex and working capital requirements, as well as the prime production age of its plantations." Counterbalancing these positive factors is the company's privately-owned status - hence concerns about corporate governance and transparency - relatively small scale, short operating track record, historically low yield and exposure to volatile crude palm oil price movements. The projected financial profile of AIRPL for the next 2 years - Debt/EBITDA of approximately 4x and EBITDA/Int of 2.5x - appropriately positions the company at the B2 rating level when compared with its regional peers. The stable outlook reflects the continued favourable conditions of the palm oil industry in the near term, which should enable AIRPL to maintain its good liquidity profile. The outlook also incorporates Moody's expectation that AIRPL will maintain its close operational and business relationship with BSP. Near-term upward rating pressure is limited. The rating could be upgraded over time if AIRPL improves its home-grown production to enhance yield, translating into a sustained improvement in financial performance, as measured by Adjusted Debt/EBITDA below 3.0-3.5x and EBITDA/Interest of at least 3.0- 3.5x. On the other hand, the ratings may experience downward pressure if evidence emerges of (1) BSP reducing its ownership in Agri Resources; (2) a termination of management and off-take agreements; (3) further aggressive debt-funded acquisitions; and/or (4) crude palm oil prices falling beyond Moody's expectations, such that credit metrics show continuous deterioration with Adjusted Debt/EBITDA increasing to 5.0-5.5x, and EBITDA/Interest declining to 1.5-2.0x or below. Agri International Resources Pte Ltd is a private company incorporated in Singapore in 2007 with the objective of acquiring and developing oil palm plantations in Indonesia. It is 87.5% owned by Spinnaker Capital (based in HK), 10.9% by Lim Advisors (based in Singapore) and 1.5% by Jefferies Singapore Limited. The company has two subsidiaries, Agri Resources B.V. (AR) and AI Finance B.V. The former is an operating subsidiary owning two oil palm plantations, Great Four and Solegna, in Sumatra with a total planted area of 28,399 hectares. The latter is an SPV for the US$150m senior secured notes issuance. AR is 80% owned by AIRPL and 20% owned by Bakrie Sumatera Plantations Tbk (BSP), an Indonesian crude palm oil producer and rubber plantation company. CHINA AVIATION: CAO Spain Undergoes Voluntary Liquidation --------------------------------------------------------- China Aviation Oil (Singapore) Corp Ltd disclosed on Sept. 24, 2007, that its wholly owned subsidiary, China Aviation Oil Spain, S.A., was dissolved. CAO Spain, which has been dormant since its incorporation in 2003, was placed in voluntary dissolution and liquidation in July 2007. The dissolution of CAO Spain is not expected to have any material impact on the earnings per share and net tangible assets per share of the company for the financial year ending December 31, 2007. About China Aviation Oil (Singapore) Incorporated in 1983, China Aviation Oil (Singapore) Corporation Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. The company is undergoing restructuring. Its Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. EXCELLENT HOLDINGS: Creditors' Proofs of Debt Due on October 5 -------------------------------------------------------------- The creditors of Excellent Holdings Pte Ltd are required to file their proofs of debt by October 5, 2007, to be included in the company's dividend distribution. The company's liquidators are: Ramasamy Subramaniam Iyer Goh Thien Phong Kan Yut Keong c/o PricewaterhouseCoopers 8 Cross Street #17-00 PWC Building Singapore 048424 FLEXTRONICS INT'L: Unit Wants to Buy Arima's Notebook Operations ---------------------------------------------------------------- Flextronics International Ltd.'s unit, Flextronics Computing Sales and Marketing (L) Ltd., and Arima Computer Corporation signed a binding Letter of Intent where Arima will sell its notebook computer and server related business, operation and assets owned by Arima and Arima Computer JiangSu, Arima's subsidiary to Flextronics. The assets intended for sale include Arima's facilities at Wu- Jiang, as well as the entire stockholding of Arima's wholly owned subsidiaries Arima Computer (U.K.) Ltd., Arima Computer (Texas) Corporation , Arima Computer (California) Corporation and Arima Computer (Japan) Corporation. The transaction price is US$59.5 million (NTUS$1,963 million) over the book value of the disposed assets at closing. As of June 30, 2007, the book value of the relevant assets were about US$132 million (NT$4,356 million). The definitive sale and purchase agreement is expected to be executed within 45 days. Afterwards, Arima will immediately call a shareholders meeting to seek approval of the transaction. Flextronics will apply for the Investment Commission's approval according to applicable laws. The parties will proceed to close the deal on a date to be further agreed by both parties after Flextronics receives the approval from the Investment Commission. Arima indicates that the transaction will safeguard all affected Arima employees' interests. Flextronics intends to offer positions to substantially all of Arima's employees of the notebook and server business. Flextronics will also offer employee benefit and base compensation that are substantially similar in the aggregate to those provided by Arima. Moreover, the existing relationships between Arima and suppliers, customers and banks will remain unchanged. Prior to the closing of this transaction, Arima will continue to operate its business in the ordinary course. About Arima Computer Headquartered in Taipei, Taiwan, Arima Computer Corp. (TPE: 2381) -- http://www.arima.com.tw/-- designs, manufactures and distributes notebook computers and peripherals, as well as related components. The notebook computers are manufactured for individuals, offices, schools, plants and families. During the year ended Dec. 31, 2006, the company obtained about 84% and 16% of its total revenue from notebook computers and related components, respectively. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. In 2006, about 98% of the company's total revenue was from overseas markets. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on four continents. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Moody's Investors Service assigned a provisional (P)Ba1 rating to Flextronics International Ltd.'s proposed US$2.5 billion unsecured term loan that will be used to finance the cash consideration portion of the pending acquisition of Solectron Corporation. This provisional rating assumes a corporate family rating of Ba1. In addition, the rating for the proposed term loan reflect both the overall probability of default of the company, to which Moody's assumes a PDR of Ba1, and a loss given default of LGD 4. All of the company's ratings remain under review for possible downgrade pending consummation of the company's merger with Solectron, which is expected to close in October 2007. It is likely that if the transaction closes as contemplated, the CFR will be affirmed at Ba1. SHINE STAR: Court to Hear Wind-Up Petition on October 5 ------------------------------------------------------- The High Court of Singapore will hear on October 5, 2007, at 10:00 a.m., a petition to have the operations of Shine Star Sea Transport Pte Ltd wound up. Tianjin North United International Ship Agency Co Ltd filed the petition on September 13, 2007. Tianjin North's solicitor is: PK Wong & Associates LLC 9 Temasek Boulevard #26-03 Suntec City Tower Two Singapore 038989 =============== T H A I L A N D =============== BANK OF AYUDHYA: Fitch Assigns Positive Outlook to Nat'l Ratings ---------------------------------------------------------------- Fitch Ratings revised yesterday the outlook on the International and National Long-term ratings of the Bank of Ayudhya Public Company Limited to Positive from Stable. This follows the increasing commitment of GE Capital International Holdings Corporation to the bank, as evidenced by BAY's planned purchase of GECIH's auto loan business in Thailand, as well as additional capital increases in July and last week resulting in GECIH increasing its stake in BAY to 35% from 29%. BAY's ratings are now as follows: * Long-term foreign currency Issuer Default Rating (IDR) 'BBB-' (BBB minus) with Positive Outlook * Short-term foreign currency IDR 'F3' * National Long-term Rating 'A+(tha)' with Positive Outlook * National Short-term Rating 'F1(tha)' * Individual rating 'C/D' * Support rating '3' * Support Rating Floor at 'BB' * Subordinated debt rating at 'BB+' * National subordinated debt rating at 'A(tha)'. Earlier in January 2007, Fitch Ratings upgraded BAY's ratings after GECIH completed the acquisition of a 29% stake in the bank. The Outlook revision is based on the increasing commitment of GECIH, as well as BAY's stronger capital position and franchise, notwithstanding the difficult operating environment in 2007. While asset quality remains weak, strong capital buffers and an expected improved economic outlook in 2008, together with the operational and financial support of GECIH, should see its performance improve over the next one to two years. Downside risks could arise from a further period of weak economic growth and political instability which more severely impacts loan growth and asset quality. The capital raisings in 2007 enable BAY to address loan loss reserve and capital adequacy weaknesses, which had in part, previously constrained the bank's ratings. The increasing commitment from GECIH should also bolster the bank's retail banking franchise. GECIH has strong representation at both the board and senior management levels of BAY, including the newly appointed CEO and CFO. BAY could also benefit from GECIH's expertise in global transaction services, technology and operations. The shift towards higher-margin consumer banking should, additionally, help improve the bank's profitability in the medium term, although it could also increase earnings volatility. BAY reported net loss of THB7.8 billion in H107, due to significantly higher provisions and loss on debt restructuring. Impaired loans increased to THB76 billion, or 16.5% of total loans, from THB64 billion, or 13.8%, at end-2006. Although BAY's loan loss reserve coverage has continued to improve, rising to 49% of impaired loans at end-June 2007, this still appears low compared to some of its peers, implying a risk of further provisioning. While BAY does not expect any further large provisioning, the bank now has sufficient buffer to absorb a more aggressive clean up of its balance sheet. After capital increases -- THB27.8 billion in January 2007, THB9.1 billion in July 2007 and THB2.6 billion in September 2007 -- BAY's Total capital ratio and Tier 1 capital ratio rose to approximately 20% and 15%, respectively, at September 2007. These ratios are likely to fall to about 16% and 12%, respectively, by year-end following the completion of the acquisition of GE Capital Auto Lease with assets of about THB94 billion in used car and motorcycle financing. Additional provisioning and asset growth could see the capital ratios decline further, but the bank should still remain strongly capitalised. TOTAL ACCESS: Earns THB1.33-Billion Profit for Second Quarter ------------------------------------------------------------- Total Access Communications PCL has reported a THB1.332-billion consolidated net income for the second quarter of 2007, up 13.3% from the THB1.176 billion reported for the same period in 2006. For the three months ended June 30, 2007, the company earned a gross profit of THB4.891 billion, comprising of THB16.229 billion in revenues from sales and services minus cost of sales and services of THB11.337 billion. Selling and administrative expenses for the period totaled THB2.233 billion, interest income reached THB35.840 million and other income reached THB16.235 million. The company also recorded a foreign exchange loss of THB4.984 million for the second quarter. For the first half of the year, the company recognized a net income of THB2.891 billion, an increase of 18.8% from the THB2.433 billion net income for the same period in 2006. Gross profit is at THB10.024 billion, selling and administrative expenses totaled 4.576 billion, interest income reached THB53.258 million and other income is at THB75.773 million. A foreign exchange loss of THB32.052 million was also recorded for the first six months of 2007. As of June 30, 2007, the company had THB101.781 billion in total assets and THB54.269 billion in total liabilities, resulting in a shareholders' equity of THB47.412 billion. The company's balance sheets also showed an illiquid state as its THB23.997 billion of current liabilities exceeded its THB16.107 billion of current assets. Total Access Communications (DTAC) -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. * * * The Troubled Company Reporter-Asia Pacific reported on April 3, 2006, that Moody's Investors Service upgraded its corporate family and senior unsecured rating for Total Access Communications Public Co Ltd to Ba1 from Ba2 with a positive outlook. This concludes the review for possible upgrade commenced on October 21, 2005. Standard and Poor's gave the company a BB+ Long-term local and foreign issuer credit ratings. Fitch Ratings on July 18, 2006, affirmed DTAC's Long-term foreign currency Issuer Default Rating at BB+ and National Long- term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. TRUE CORP: Unit Freezes Investments Pending Info on NTC Policies ---------------------------------------------------------------- True Corp.'s subsidiary, True Online Co., will freeze all investments in high-speed Internet pending clarification by the National Telecommunications Commission regarding policies on frequencies and technology, the Bangkok Post reports. According to Noppadol Dej-udom, True Corp.'s general manager, True Online planned to invest in WiMax Wireless broadband technology as soon as the NTC issues next-generation broadband licenses. He also said that its new investment is also delayed by the proposed formation of a National Telecommunications and Broadcasting Commission. Mr. Noppadol predicted about 5 to 10 million broadband users in Thailand by 2009, as well as a 40% growth to 1 million subscribers by this year's end. Broadband users will also increase by 30% to 1.3 million next year, driven by a growth in the number of video-streaming users, he added. As for True, Mr. Noppadol expects 600,000 broadband customers by the end of 2007. True Corporation Public Company Ltd's -- http://www.truecorp.co.th/-- principal activities are the provision of telecommunication services and various value-added- services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. The company carries Standard & Poor's Ratings Services B+ corporate credit rating. The outlook is negative. The Troubled Company Reporter-Asia Pacific reported on Nov. 27, 2006, that Moody's Investors Service affirmed True Corporation Public Company Ltd's Ba3 corporate family rating and at the same time changed the rating outlook to negative from stable. * Good Fiscal Position Supports Baa1 Bond Ratings, Moodys Says -------------------------------------------------------------- In its annual report on Thailand, Moody's Investors Service says the country's Baa1 foreign and local currency government bond ratings are supported by a sustainable fiscal position and a macroeconomic performance that has so far largely withstood political uncertainties arising from the September 2006 military coup. The Baa1 government bond rating, along with Moody's assessment of a moderate risk of a payments moratorium in the event of a government default, serves as the basis for Thailand's A3 foreign currency country ceiling for bonds. "Thailand's rating indicators for the most part continue to place the country in line with its rating peers," said Tom Byrne, Moody's Senior Vice President, author of the report. The shift in the government budget into surplus between 2003 and 2006 reflects a policy capability for fiscal prudence. "Although a small deficit is likely in 2007, social welfare spending and planned public infrastructure initiatives are not likely to destabilize the fiscal position over the medium term" said Mr. Byrne. The ratio of government debt to GDP is on a declining trend and revenue mobilization has improved in recent years from a previous low level, he noted. There has, however, been some erosion in consumer confidence and business sentiment in the past year, resulting in lackluster investment, said the analyst. "By revising the Foreign Business Act, which imposes new constraints on foreign investment in some sectors, the military government has given mixed signals on the role of foreign participation in the economy," said Mr. Byrne. Nonetheless, he explained, Thailand's much improved external payments position coupled with an ample domestic savings rate provides some cushion to the economy from any diminishing of long-term, productive foreign investment inflows or other external shocks. Moody's stable outlook on the ratings anticipates that the current junta and future, post-election government will maintain prudent policies and sustain Thailand's relatively good credit fundamentals, said Byrne. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org October 21-24, 2007 Association of Insolvency & Restructuring Advisors Restructuring and Investing Conference Portman Ritz Carlton, Shanghai, China Web site: http://www.airacira.org/ November 14, 2007 Turnaround Management Association TMA Australia 4th Annual Conference and Gala Dinner Hilton, Sydney, Australia Web site: http://www.turnaround.org/ November 29, 2007 Turnaround Management Association Special Speaker Hilton, Sydney, Australia Web site: http://www.turnaround.org/ March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org TBA 2008 INSOL Annual Pan Pacific Rim Conference Shanghai, China Web site: http://www.insol.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Web site: http://www.insol.org/ October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Distressed Market Opportunities Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Homestead Exemptions under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences KERPs and Bonuses under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Diagnosing Problems in Troubled Companies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Equitable Subordination and Recharacterization Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***