T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 19, 2007, Vol. 10, No. 208 Headlines A U S T R A L I A ACE COMPUTER: Placed Under Voluntary Liquidation ADVANCED MARKETING: Wants More Time to Decide on Remaining Lease ANYWHERE TOWER: Placed Under Voluntary Liquidation AUSTRALIAN WASTE: Will Declare First Dividend on November 8 BORY INVESTMENTS: Sets Joint Meeting for October 25 COLES GROUP: ACCC Says No to Woolworths' Interest in Kmart FIFTY YEARS: Members to Hold Final Meeting on October 26 FLIGHT CENTRE: Augments Earnings After Planned PEP Sellout FORTESCUE METALS: Moody's Resumes Downward Study of Finance Unit IOCORE ASIA: Members to Receive Wind-Up Report on Oct. 30 MORE PROPERTY: Members Resolve to Liquidate Business O.R.A PTY: Will Declare Dividend on October 23 PEABODY ENERGY: Appoints VP & Assistant Operations Controller PEABODY ENERGY: Names Kenneth Wagner VP & Assistant Gen. Counsel PEABODY ENERGY: Declares Dividend of US$0.06 Per Share SUTTER PTY: Members and Creditors to Meet on October 29 X + OPEN: Inability to Pay Debts Prompts Wind-Up C H I N A & H O N G K O N G B.M. OPTICAL: Sets Annual Meeting for October 22 BILLION METRO: Creditors' Proofs of Debt Due on November 12 COOPER TIRE: Closes US$7MM Rongcheng Stake Sale to ArcelorMittal FIAT SPA: Finance Unit to Repay EUR123.4 Million Bonds FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz GLOBAL CROSSING: Picks Empirix for VoIP Service Monitoring GLOBAL POWER: Wants Court to Approve Plan Support Agreement GLOBAL POWER: Exclusive Plan-Filing Period Extended to Oct. 24 GOLDMEN ELECTRONIC: Court to Hear Wind-Up Petition on Nov. 28 INT'L PAPER: Gives US$1 Million to Support Zero Waste Campaign MOULIN (H.K.): Contributories and Creditors to Meet on Oct. 22 MOULIN GLOBAL: Sets Annual Meeting for October 22 PEACE CITY: Liquidator to Give Wind-Up Report on Oct. 22 PETROLEOS DE VENEZUELA: Ensures Gasoline Supply PETROLEOS DE VENEZUELA: Restarting El Palito Plant by Oct. 14 PETROLEOS DE VENEZUELA: Petroecuador Rents 2 Rigs for US$18,000 PROSPER GLORIES: Creditors' Proofs of Debt Due Today TRW AUTOMOTIVE: Inks Joint Venture Pact with Arvinmeritor Inc. UNCIA LIMITED: Liu Yuk Ming Stephen Quits as Liquidator UNRIVALED FLIBUSTER: Appoints Gicquel as Liquidator ZOOM & SIZES: Members Pass Resolution to Liquidate Business I N D I A AES CORP: Commences Cash Tender Offer for US$1.24 Bil. Sr. Notes BAUSCH & LOMB: Moody's Withdraws PIK & Sub Notes Ratings CABLE & WIRELESS: Dismisses Speculation on Business Disposal GENERAL MOTORS: To Cut 767 Jobs at Hammtramck Plant in December GENERAL MOTORS: New UAW Terms Cue Moody's Positive Outlook GMAC LLC: Finc'l. Services Arm Restructures Mortgage Operations GMAC LLC: Moody's Affirms Ba1 Senior Unsecured Rating TATA POWER: Bids for 4,000-MW Krishnapatnam Power Plant TATA POWER: World Bank's IFC to Finance 4,000MW Gujarat Project I N D O N E S I A ALLIANCE ONE: Completes Exchange Offer for 8-1/2% Senior Notes ANIXTER INT'L: To Report Third Quarter Earnings on October 23 BANK CENTRAL ASIA: Moody's Raises Issuer Rating to Ba2 BANK DANAMON: Moody's Ups Foreign Currency LTD Rating to B1 BANK INTERNASIONAL: Moody's Ups Foreign Currency LTDR to B1 BANK LIPPO: Moody's Raises Issuer Rating to Ba2 BANK MANDIRI: Moody's Ups FC Senior Debt Ratings to Ba2 BANK NEGARA: Moody's Ups FC Subordinated Debt Rating to Ba2 BANK NIAGA: Moody's Ups Currency Subordinated Debt Ratings BANK PERMATA: Moody's Raises For. Currency Deposit Rating to B1 BANK RAKYAT: Moody's Ups FC Subordinated Debt Ratings to Ba2 BANK TABUNGAN: Moody's Ups FCLT Deposit Rating to B1 BANK PAN: Moody's Lifts Foreign Currency LT Deposit Rating to B1 CA INC: Launches US$30 Million Technology Center in India EXCELCOMINDO PRATAMA: Moody's Ups Guaranteed Bonds Rating to Ba2 FOSTER WHEELER: To Hold Conference Call on November 7 GOODYEAR TIRE: Conversion Period for Conv. Notes Ends Dec. 31 INDOSAT: Moody's Affirms Ba1 LC Corporate Family Rating PERUSAHAAN LISTRIK: Moody's Ups Corporate Family Rating to Ba3 * Moody's Upgrades Indonesia's Key Ratings to Ba3 J A P A N BOSTON SCIENFIFIC: To Reduce Workforce by 2,300 Worldwide ELAN CORP: Third Parties Eye Biogen Acquisition ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008 FORD MOTOR: Continues Low-Level Contract Talks with UAW NOVA CORP: Union to File Protest w/ Labor Due to Delay in Wages NOVA CORP: Union Wants Head Indicted for Violating Labor Laws SANYO ELECTRIC: Cancels Sale of Semiconductor Unit SOLO CUP: Closes Biz Sale; Reduces Debt Up to US$325 Million K O R E A HYNIX SEMICON: Net Income Drops 56% to KRW168 Billion HYNIX SEMICON: To Spend KRW72.7 Billion for Upgrading Plants REMY WORLDWIDE: Wants to Employ AP Services as Crisis Manager RREMY WORLDWIDE: Wants to Assume Caterpillar Inventory Agreement M A L A Y S I A AVAYA INC: Provides IP Services to BNSF Railway SHAW GROUP: Names Brian Ferraioli as Chief Financial Officer N E W Z E A L A N D ANDERSON FINANCE: Undergoes Liquidation Proceedings BETTA PANELS: Accepting Proofs of Debt Until October 26 FIRST DATA: Moody's Rates US$3.75 Bln Sr. Unsecured Notes at B3 FML No 1: Fixes October 19 as Last Day to File Claims GAYHURST PROPERTY: Commences Wind-Up Proceedings GENEVA FINANCE: "A Lifeline for Others," The Dominion Post Says HAWKES BAY: Taps John Francis Managh as Liquidator KATANA PROPERTY: Appoints Official Assignee as Liquidator KERREZ ENTERPRISES: Accepting Proofs of Debt Until Nov. 23 MULTI BUILDING: Commences Liquidation Proceedings SOVEREIGN SUPPLIES: Fixes October 31 as Last Day to File Claims TRIDENT MARKETING: Taps Brown and Rodewald as Liquidators TYLOS GROUP: Shareholders Agree on Voluntary Liquidation P H I L I P P I N E S ALLIED BANKING: To Circulate 100,000 Cards Within Three Years BANGKO SENTRAL: Excess Liquidity Mop-up Operations to Continue NAT'L POWER: To Prepay US$1.3-Bil. Debt Within Next 6 Months NIHAO MINERAL: Revokes Subscription Deal with Mina Tierra NIHAO MINERAL: Delfin Castro Jr. Resigns as President, Director PAL HOLDINGS: SEC Approves Board-Endorsed Amendments to By-Laws PHILCOMSAT HOLDINGS: Indefinitely Postpones Stockholders Meeting * Gov't To Reduce Foreign Borrowings to Slow Down Peso's Rise S I N G A P O R E CHIP HUA: Accepting Proofs of Debt Until October 26 HSIN SEMICONDUCTOR: Placed Under Judicial Management OKS CREDIT: Pays Second and Final Dividend RIGHTPEOPLE PTE: Requires Creditors to File Claims by Nov. 12 T H A I L A N D KRUNG THAI: To Make Interest Payments for Debentures on Nov. 19 * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ACE COMPUTER: Placed Under Voluntary Liquidation ------------------------------------------------ At an extraordinary general meeting held on September 13, 2007, the members of Ace Computer Services Pty Limited resolved to voluntarily liquidate the company's business. Bruce Gleeson was appointed as liquidator. The Liquidator can be reached at: Bruce Gleeson Jones Partners Insolvency & Business Recovery About Ace Computer Ace Computer Services Pty Limited is in the business of computer maintenance and repair. The company is located at Dulwich Hill, in New South Wales, Australia. ADVANCED MARKETING: Wants More Time to Decide on Remaining Lease ---------------------------------------------------------------- Advanced Marketing Services Inc., Publishers Group Incorporated, and Publishers Group West Incorporated ask the U.S. Bankruptcy Court for the District of Delaware to extend the time by which they may assume or reject their sole remaining unexpired lease of a non-residential real property, located in Indianapolis, Indiana, with The Prudential Company of America as landlord. The Debtors seek extension of the Lease Decision Period through and including Oct. 31, 2007, without prejudice to their right to seek further extensions. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Court previously approved the Debtors' assumption and assignment to Perseus Books LLC of the leases for space in Berkeley and New York. He also notes that the Debtors have expressed intention to consummate that assignment before September 30. Under Section 365(d)(4)(B)(ii) of the Bankruptcy Code, the Court may grant a subsequent extension "only upon prior written consent of the lessor in each instance." In the Debtors' cases, Mr. Collins points out, they have obtained prior written consent of the lessor of the Indianapolis Lease to the requested October 31 extension. The Court will convene a hearing on October 26 at 11:00 a.m., to consider the Debtors' request. Pursuant to Del.Bankr.LR 9006-2, the Debtors' Lease Decision Period with respect to the Indianapolis Lease is automatically extended until the conclusion of that hearing. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia, and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of $213,384,791 and total debts of $216,608,357. Publishers Group West disclosed total assets of $39,699,451 and total debts of $83,272,493. Publishers Group Inc. disclosed zero assets but $41,514,348 in liabilities. On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On September 26, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. The hearing to consider confirmation of the Plan is set on Nov. 15, 2007. (Advanced Marketing Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). ANYWHERE TOWER: Placed Under Voluntary Liquidation -------------------------------------------------- On September 11, 2007, the members of Anywhere Tower Cranes Pty Limited passed a resolution to liquidate the company's business. Robert Moodie was tapped as liquidator. The Liquidator can be reached at: Robert Moodie Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia About Anywhere Tower Anywhere Tower Cranes Pty Limited is in the business of heavy construction equipment rental and leasing. The company is located at Wetherhill Park, in New South Wales, Australia. AUSTRALIAN WASTE: Will Declare First Dividend on November 8 ----------------------------------------------------------- Australian Waste Recyclers 1 Pty Limited, which is in liquidation, will declare its first dividend on November 8, 2007. Creditors who were not able to file their proofs of debt by the October 16 due date will be excluded from the company's dividend distribution. The company's liquidators are: Steven John Sherman Morgan John Kelly Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia About Australian Waste Australian Waste Recyclers 1 Pty Limited operates refuse systems. The company is located at St Marys, in New South Wales, Australia. BORY INVESTMENTS: Sets Joint Meeting for October 25 --------------------------------------------------- The members and creditors of Bory Investments Pty Limited will hold a joint meeting on October 25, 2007, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter P. Krejci GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia About Bory Investments Bory Investments Pty Limited provides management consulting services. The company is located at Balgowlah Heights, in New South Wales, Australia. COLES GROUP: ACCC Says No to Woolworths' Interest in Kmart ---------------------------------------------------------- The Australian Competition and Consumer Commission said that it opposes any attempt by Woolworths Ltd. to acquire Kmart and Officeworks from Coles Group Ltd., the Australian Associated Press reports. ACCC Chairman Graeme Samuel justifies that Woolworths' acquisition of Officeworks would not likely to substantially lessen competition because Woolworths does not presently operate a similar business to Officeworks, states AAP. However, ACCC's investigation found that "the proposed acquisition by Woolworths of Kmart, Big W's closest competitor in a number of important respects, would be likely to substantially lessen competition in a number of markets," AAP says. Mr. Samuel, according to the report, explained that if Woolworths were to acquire Kmart, there would be a reduction in "competitive tension in the relevant markets," and since Woolworths had requested the ACCC to assess its proposed acquisition of Officeworks and either Kmart or Target, thus ACCC's opposition. AAP quotes Mr. Samuel as saying, "The ACCC is particularly concerned about the effect of the proposed acquisition of Kmart in markets for the retail of basic footwear, men's basic apparel, women's basic apparel, children's basic apparel, toys, books and DVDs." The report states that ACCC has extended its timeline to allow further consideration of the proposed acquisition of Target by Woolworths. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. FIFTY YEARS: Members to Hold Final Meeting on October 26 -------------------------------------------------------- A final meeting will be held for the members of Fifty Years Pty Limited on October 26, 2007, at 9:30 a.m. At the meeting, G. D. D. Raffan, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: G. D. D. Raffan Foster Raffan Level 6, 8 West Street North Sydney, New South Wales 2060 Australia About Fifty Years Fifty Years Pty Limited is a distributor of electrical apparatus equipment wiring supplies and construction materials. The company is located at Meadowbank, in New South Wales, Australia. FLIGHT CENTRE: Augments Earnings After Planned PEP Sellout ---------------------------------------------------------- Flight Centre Ltd. has flagged a boost in earnings for the current fiscal year, Michael Sainsbury writes for The Australian. Mr. Sainsbury notes that after the airline cancelled plans to sell a stake to buy out Pacific Equity Partners, Flight Centre's managing director Graham Turner said that the 15% growth in operating profit was expected to translate into first-half pre- tax profit growth of about 30%, in comparison to a "relatively weak" first half in the previous corresponding period. The Australian quotes Mr. Turner as saying, "We will continue to target pre-tax growth in the region of 15% for the 12 months to June 30, 2008. The momentum gained during the second half of 2006-07 has continued into the early months of 2007-08. We have seen healthy sales growth, fuelled by solid performances from our overseas business and in Australia, where prevailing economic conditions have been favorable." Mr. Turner further added that despite an expected slowdown in profit growth in the second half of this financial year compared to a strong previous corresponding period, the company was still targeting pre-tax profit growth in the region of 15%, relates The Australian. About Flight Centre Headquartered at Brisbane, in Queensland, Australia, Flight Centre Ltd. -- http://www.flightcentre.com/-- is an Australian owned and New Zealand-run independent retail travel group, guaranteeing the lowest prices on all airfares. It had a turnover in excess of $3 billion worldwide and 18 years of consecutive profits until its shares plunged more than 8% following the announcement of its first ever annual profit decline. The company, which in the past has reported spectacular results, hit the wall in 2004-05 with two profit downgrades. Flight Centre announced 2004-05 profit of AU$67.91 million, down 17% from the previous period. Embattled Flight Centre then launched a restructuring drive aimed at saving costs and began working towards a turnaround in 2005/06 by focusing on ongoing development of its four main networks. It has implemented changes to its customer relations programs, following a comprehensive review of its other company initiatives. FORTESCUE METALS: Moody's Resumes Downward Study of Finance Unit ---------------------------------------------------------------- Moody's Investors Service said that it is continuing its review of the senior secured Ba3 rating of FMG Finance Pty. Ltd. for possible downgrade, affecting approximately US$1,900 millions of securities. The rating review continues to consider the project economics and progress towards completion currently scheduled for 15 May, 2008. "Delays have been experienced in construction of the railway, and although Fortescue has now arranged for three contractors to work on the project, delays are continuing," says David Howell, Moody's lead analyst for the company. According to independent engineer Behre Dolbear Australia ("BDA"), the railway part of the project is only 57% completed and rail construction is now predicted to be completed only in early 2008. The review focuses on the amount of liquidity reserves plus the amount that the parent will inject into the project to compensate for higher costs associated with delays including those associated with the recent cyclones. Fortescue Metals Group, based in Perth, is constructing an iron ore mine, railway and port in Western Australia's Pilbara region. When completed, the project will produce between 45 and 55 million tons of iron ore per annum for export. Fortescue raised equity funds of AU$504m in July 2007. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006, Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure. IOCORE ASIA: Members to Receive Wind-Up Report on Oct. 30 --------------------------------------------------------- A final meeting will be held for the members of Iocore Asia/Pacific Pty Limited on October 30, 2007, at 10:30 a.m. At the meeting, Salvatore Algeri and Timothy B Norman, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. The company also declared dividend on October 16, 2007. Creditors who were not able to file their proofs of debt by the October 9 due date were excluded from the company's dividend distribution. The company's liquidators are: Salvatore Algeri Timothy B. Norman 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Iocore Asia Iocore Asia/Pacific Pty Limited, which is also trading as Iocore Australia, provides computer related services. The company is located at Phillip, in ACT, Australia. MORE PROPERTY: Members Resolve to Liquidate Business ---------------------------------------------------- During a general meeting held on September 17, 2007, the members of More Property & Real Estate Pty Limited agreed to voluntarily liquidate the company's business. David Michael Morgan was appointed as liquidator. The Liquidator can be reached at: David Michael Morgan Clout & Associates Level 1, 144-148 West High Street Coffs Harbour, New South Wales Australia O.R.A PTY: Will Declare Dividend on October 23 ---------------------------------------------- O.R.A Pty Ltd -- formerly trading as Open-Systems Resources of Australia -- which is in liquidation, will declare dividend on October 23, 2007. Creditors who were not able to file their proofs of debt by the October 9 due date will be excluded from the company's dividend distribution. The company's liquidator is: G. M. Rambaldi Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About O.R.A. Pty O.R.A. Pty Ltd, which is also trading as Open Systems Resources Of Australia, provides computer related services. The company is located at South Yarra, in Victoria, Australia. PEABODY ENERGY: Appoints VP & Assistant Operations Controller -------------------------------------------------------------- Peabody Energy has promoted Gary T. Kacich as Vice President and Assistant Controller - Operations, reporting to Senior Vice President, Controller and Chief Accounting Officer L. Brent Stottlemyre. Mr. Kacich will be responsible for corporate and operations accounting, as well as the sales accounting, payroll, accounts payable and records retention functions. Reporting to Mr. Kacich are Payroll Manager Lynn K. Payne, Accounts Payable Manager Linda L. Son, Senior Manager of Sales Accounting Michael E. Fourney, Senior Manager of Accounting Rebecca J. Mead and Records Retention Administrator Jon A. Zinkgraf. Mr. Kacich has 20 years of financial experience and a strong background with Peabody. He joined Peabody in 1995 as Manager of Subsidiary Accounting. He has served in various accounting management positions, including Director of Corporate Accounting, Director of Financial Planning, Assistant Treasurer and Assistant Controller - Operations. Prior to joining Peabody, Mr. Kacich spent two years as Division Accounting Manager with Mallinckrodt Medical and five-plus years in the Ernst & Young audit function. Mr. Kacich holds a Bachelor of Science degree in Accountancy from the University of Missouri - Columbia. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants and the Missouri Society of Certified Public Accountants. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on Mar. 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. Moody's placed the instrument on review for downgrade. PEABODY ENERGY: Names Kenneth Wagner VP & Assistant Gen. Counsel ---------------------------------------------------------------- Peabody Energy has announced that Kenneth L. Wagner has been named Vice President and Assistant General Counsel with legal responsibility for corporate governance and Securities and Exchange Commission compliance for the company. Mr. Wagner will report to Executive Vice President and Chief Legal Officer Alexander C. Schoch. Mr. Wagner joined the company on Sept. 24. Mr. Wagner has 25 years of extensive corporate legal experience, most recently as Associate General Counsel for Bank of America. In that role, he provided advice and counsel to senior management on corporate governance, SEC compliance and executive and director compensation matters. He previously served in legal positions with Goodrich Corp., including Principal Counsel and Assistant Secretary. Earlier in his career, Mr. Wagner worked in private practice and as a Special Counsel for the SEC's Division of Corporation Finance. Mr. Wagner holds a Master of Laws in Securities Regulation from Georgetown University, as well as a Juris Doctorate and Bachelor of Arts in Journalism from the University of Kansas. He is admitted to practice law in several states, and serves on the national board of directors of the Society of Corporate Secretaries and Governance Professionals. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on Mar. 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. Moody's placed the instrument on review for downgrade. PEABODY ENERGY: Declares Dividend of US$0.06 Per Share ------------------------------------------------------ The board of directors of Peabody Energy Corporation on Oct. 18, 2007, declared a regular quarterly dividend on its common stock of US$0.06 per share. The dividend is payable on Nov. 23, 2007, to holders of record on Nov. 1, 2007. Peabody Energy (NYSE: BTU) is the world's largest private-sector coal company, with 2006 sales of 248 million tons of coal and US$5.3 billion in revenues. Its coal products fuel approximately 10 percent of all U.S. electricity generation and more than 2 percent of worldwide electricity. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on Mar. 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. Moody's placed the instrument on review for downgrade. SUTTER PTY: Members and Creditors to Meet on October 29 ------------------------------------------------------- Sutter Pty. Limited will hold a meeting for its members and creditors on October 29, 2007, at 10:00 a.m. At the meeting, B. Kijurina, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: B. Kijurina Smith Hancock Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia About Sutter Pty Sutter Pty Limited, which is also trading as Orana Film Transport, operates radio, television and electronic stores. The company is located at Penrith, in New South Wales, Australia. X + OPEN: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------ On September 13, 2007, the members and creditors of X + Open Systems Pty Ltd passed a resolution to liquidate the company's business due to its inability to pay its debts. Geoffrey McDonald was appointed as liquidator. The Liquidator can be reached at: Geoffrey Mcdonald c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About X + Open X + Open Systems Pty Ltd provides computer related services. The company is located at Berowra, in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ B.M. OPTICAL: Sets Annual Meeting for October 22 ------------------------------------------------ An annual meeting will be held for the members and creditors of B.M. Optical International Company Limited on October 22, 2007, at 10:30 a.m., at the office of Ferrier Hodgson Limited, 14th Floor of the Hong Kong Club Building, in 3A Chater Road, Hong Kong. At the meeting, Roderick John Sutton, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. BILLION METRO: Creditors' Proofs of Debt Due on November 12 ----------------------------------------------------------- Ng Lai Ching was appointed liquidator of Billion Metro Investment Limited on October 5, 2007. Mr. Ching requires the company's creditors to file their proofs of debt by November 12, 2007, to be included in the company's dividend distribution. The Liquidator can be reached at: Ng Lai Ching 2803 Universal Trade Centre 3-5 Arbuthnot Road Hong Kong COOPER TIRE: Closes US$7MM Rongcheng Stake Sale to ArcelorMittal ---------------------------------------------------------------- Cooper Tire & Rubber Company closed the sale of its wholly owned subsidiary's 25% interest in Rongcheng Chengshan Steel Cord Company to ArcelorMittal Wire Drawing Asia Sarl for $7.4 million. Cooper Tire's acquisition of 51% of Cooper Chengshan Passenger Tire Company Ltd., and Cooper Chengshan Tire Company Ltd., was completed in early 2006 and included a 25% ownership position in the steel cord factory which is located adjacent to the tire manufacturing facility in Rongcheng City, Shandong, China. "We continue to divest our interest in what we consider non-core businesses, which includes the steel cord business," Roy V. Armes, Cooper Tire President and CEO, said. "While it was not considered a core product for Cooper, it did provide a steady supply of quality steel cord to support our Chinese manufacturing facilities. This is a continuing effort by Cooper to focus on our core tire manufacturing and marketing efforts. The new owner will remain one of our key suppliers of steel cord." About Cooper Tire & Rubber Company Headquartered in Findlay, Ohio, Cooper Tire & Rubber Company (NYSE:CTB) -- http://www.coopertires.com/html/-- is a manufacturer of replacement tires. The company focuses on the manufacture and sale of passenger and light truck replacement tires. It also manufactures radial medium and bias light truck tires, and materials and equipment for the truck tire retread industry. The Company also manufactures and sells motorcycle and racing tires. Cooper has two business segments: North American Tire Operations and International Tire Operations. The North American Tire Operations segment produces passenger car and light truck tires, primarily for sale in the United States replacement market, and materials and equipment for the tread rubber industry. The International Tire Operations segment has manufacturing facilities in the United Kingdom and China. The segment has two administrative offices and a sales office in China. * * * As reported in the Troubled Company Reporter on Aug. 21, 2007, Moody's Investors Service affirmed these ratings on Cooper Tire & Rubber Company: (i) corporate family rating, B2; (ii) probability of default, B2; (iii) senior unsecured notes B2, LGD-4, 56%; (iv) shelf filing for unsecured notes, (P)B2 ,LGD-4, 56%; (v) shelf filing for preferred stock, (P)Caa1, LGD-6, 97%; and (vi) speculative grade liquidity, SGL-2. FIAT SPA: Finance Unit to Repay EUR123.4 Million Bonds ------------------------------------------------------ Fiat S.p.A.'s Fiat Finance & Trade Ltd. S.A., a company organized under the laws of Luxembourg, will repay EUR123,400,000 equal to the first amortization installment of the outstanding "Fiat Step Up Amortizing 2001 - 2011" bonds of EUR617,000,000 on Nov. 7, 2007. The repayment is in compliance with the provisions of the instructions to the rules of the markets organized and managed by Borsa Italiana S.p.A. In accordance with the conditions of the bond, the repayment will reduce by one-fifth the face value of each outstanding bond. As a result, the face value will then amount to EUR800 each for a total residual amount of EUR493,600,000. Consequently, the smallest denomination of each bond will thus be reduced from EUR1,000 to EUR800. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the TCR-Europe on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz ----------------------------------------------------- Fiat S.p.A. and JSC Avtovaz signed a memorandum of understanding as the basis for the establishment of cooperation initiatives aimed at supporting the expansion of Avtovaz, in the area of passenger cars encompassing engineering and technological processes, development, manufacturing, product sourcing, engines and other components. Fiat's involvement in the development of the Fiat brand in Russia based on prior agreements with other parties continues to be strong and is not affected by this MoU. Following the MoU, joint teams would be set up by the two groups to determine the feasibility and specificity of the nature of cooperation, both in the short and long term. The two companies expect to sign definitive agreements in the course of the coming months. "A cooperation with AUTOVAZ represents a significant step forward in our industrial strategy of targeted alliances. It is our view that Autovaz will re-emerge as a strong automotive player in a market that is showing significant growth potential. And we are delighted to be able to assist and participate in this process," Sergio Marchionne, Fiat Group's CEO, disclosed. "The memorandum signed is the most important stage in the Russian-European cooperation in the sphere of automobile production. Now we are entering a brand new level of relations with the Fiat Corporation which played the most decisive role in the construction of VAZ in the 60s of the last century. Fiat helped to design the most popular car in Russia which won the hearts and souls of our automobilists," Sergey Chemezov chairman of AvtoVAZ board of directors. "We hope that we shall obtain success once again, revive the authority and glory of AUTOVAZ," Mr. Chemezov added. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the TCR-Europe on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. GLOBAL CROSSING: Picks Empirix for VoIP Service Monitoring ---------------------------------------------------------- Global Crossing Ltd. has selected Empirix(R) Inc.'s Hammer XMS to monitor and test call quality on Global Crossing's global IP-based network. Global Crossing offers its enterprise and carrier customers a highly reliable worldwide network, designed for the convergence of voice, video and data. The company sought a partner that could help it ensure the highest levels of VoIP quality. Based on Global Crossing's commitment to customer satisfaction, it had the following VoIP monitoring and quality assurance requirements: -- Scalability to handle the pure volume and rapid growth associated with a Tier One network; -- Ability to correlate VoIP signaling and RTP transactions across a global VoIP network; -- Reporting and analysis of service quality by customer; -- Management of Service Level Agreement (SLA) metrics; and -- Deep diagnostics of VoIP call flows for rapid problem resolution. Empirix's Hammer XMS is a carrier-class monitoring solution designed to ensure the reliability and quality of next- generation services. Hammer XMS offers Network Engineering, Planning, Operations and Customer Care teams the ability to both efficiently and confidently deploy new services and maintain current services with higher quality and at a lower cost. Notes Jim Watts, Global Crossing Vice President, Engineering, "As part of our efforts to continually enhance our VoIP suite of services, Hammer XMS provides Global Crossing the ability to monitor and test IP call quality across our VoIP network. This allows a quicker response and better resolution times for network outages and customer impacting issues. Hammer XMS' ease of use, real-time reports, and feature sets deliver a viable, proactive network analysis environment." "This is a particularly exciting opportunity to see our partnership with Global Crossing enable yet another successful Hammer XMS implementation," said Duane Sword, Vice President of Product Management at Empirix. "Global Crossing understands the tremendous impact that consistent service quality can have worldwide. By applying our VoIP monitoring solution, the company has taken a strong, proactive approach to ensuring its customers' quality needs are always met by solving issues before the customer is even aware. We look forward to helping Global Crossing maintain its superior customer satisfaction ratings as demand for VoIP continues to grow." About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil, China and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a US$195 million stockholders' deficit, compared to a US$173 million stockholders' deficit at Dec. 31, 2005. GLOBAL POWER: Wants Court to Approve Plan Support Agreement ----------------------------------------------------------- Global Power Equipment Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve an agreement in support of the Debtors' Joint Chapter 11 plan of Reorganization. The agreement was entered into by the Debtors, the Official Committee of Unsecured Creditors, the Official Committee of Equity Security Holders, and holders of 100% of Global Power's 4.25% Convertible Senior Subordinated Notes. The Debtors relate that the Plan Support Agreement contemplates and provides the basis for the Parties' support for confirmation and consummation of the Plan and is based on a rights offering on private placement of up to US$90 million. The proceeds of which, the Debtors say, will be used to fund the Plan. The rights offering and private placement will be memorialized in a Backstop Stock Purchase Agreement, the Debtors add. The Court has set a hearing for October 24 to consider the Debtors' request. About Global Power Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham, Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M. Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq., at The Bayard Firm, represent the Debtors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. At Oct. 31, 2006, Global Power's balance sheet showed total assets of US$177,758,000 and total debts of US$99,017,000 Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. The Official Committee of Equity Security Holders is represented by Howard L. Siegel, Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels LLP. GLOBAL POWER: Exclusive Plan-Filing Period Extended to Oct. 24 -------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware issued a sixth bridge order extending Global Power Equipment Group Inc. and its debtor- affiliates' exclusive period to file a chapter 11 plan of reorganization to Oct. 24, 2007. Judge Shannon also extended the Debtors' exclusive period to solicit acceptances of that plan to Dec. 24, 2007. Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham, Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M. Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq., at The Bayard Firm, represent the Debtors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. At Oct. 31, 2006, Global Power's balance sheet showed total assets of US$177,758,000 and total debts of US$99,017,000 Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. The Official Committee of Equity Security Holders is represented by Howard L. Siegel, Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels LLP. GOLDMEN ELECTRONIC: Court to Hear Wind-Up Petition on Nov. 28 ------------------------------------------------------------- A petition to have Goldmen Electronic Company Limited's operations wound up will be heard before the High Court of Hong Kong on November 28, 2007, at 9:30 a.m. The petition was filed by Wellmate Corporation Limited on September 13, 2007. Wellmate Corporation's solicitors are: Tang and Lee Hopewell Centre, Room 3704, 37th Floor 183 Queen's Road East Hong Kong INT'L PAPER: Gives US$1 Million to Support Zero Waste Campaign -------------------------------------------------------------- International Paper, the National Park Foundation and the National Recycling Coalition has announced a new pilot program to evaluate ways to limit the impact of foodservice products in America's national parks. The study, funded in part by a donation of up to US$1 million by International Paper, will commence in the summer of 2008 and is aimed at moving toward "Zero Waste" across the park system by identifying best practices in foodservice waste reduction that can be transferred to national parks throughout the country. "At International Paper, we have already celebrated our first centennial of environmental stewardship, and now we're looking forward to helping the National Park System celebrate theirs," said John Faraci, International Paper's chairman and chief executive officer and National Park Foundation board member. "It's an exciting opportunity, but one where each of us must be prepared, right now, to provide strong support for the challenges the park system will face going forward." Through an agreement with the National Park Foundation, International Paper will produce a customized cup for use by parks, concessionaires and others. The cup, International Paper's fully compostable, recyclable ecotainer(TM), will display printed messages that will raise awareness about the National Park Centennial in 2016 and educate the public about conservation and environmental stewardship. International Paper will donate a penny for each commemorative cup sold, up to US$1 million, back to the National Park Foundation to help fund a joint effort between International Paper, the National Park Foundation and the National Recycling Coalition to evaluate foodservice waste management practices and educate employees, concessionaires and visitors about ways to reduce waste in the parks. "Becoming a zero-waste society means we each have a role to play, from the thoughtful design of a package to simple systems that take the package back to its basic element," said Kate Krebs, executive director of the National Recycling Coalition. "What better place to demonstrate Zero Waste than our national parks, where packaging can become a rich compost that can nurture the flora and fauna of our parks." Vin Cipolla, president and CEO of the National Park Foundation, said the project demonstrates that corporations can contribute not only charitable resources, but also the know-how and technology to make things happen. "The national parks have always been about partnerships - people with a common passion coming together for a larger good. Innovative partnerships like this one that can leverage the National Recycling Coalition and International Paper are essential for securing the next century of stewardship for our national parks," Mr. Cipolla said. About the National Park Foundation The National Park Foundation -- http://www.nationalparks.org -- is a 501(c)(3) organization chartered by Congress in 1967 to continue a century-long tradition of private philanthropy ensuring funding to preserve and enhance the legacy of our National Parks. As the official non-profit partner of America's National Parks, the National Park Foundation does not receive federal appropriations for their support. The National Park Foundation serves to strengthen the connection between the American people and their national parks by raising private funds, making strategic grants, creating innovative partnerships and increasing public awareness. Support of the National Park Foundation ensures that the evolving history and rich heritage of our Nation remains vital and relevant. About the National Recycling Coalition The NRC -- http://www.nrc-recycle.org/-- is a national, non- profit advocacy group with members that span all aspects of waste reduction, reuse and recycling in North America. NRC's objective is to eliminate waste and promote sustainable economies though advancing sound management practices for raw materials in North America. NRC works with its members and partners to sponsor programs and stakeholder forums that provide tools and nurture solutions for the recycling industry. Breaking new ground in how Americans think about waste, the Coalition is a strong and clear voice for recycling. About International Paper Based in Stamford, Connecticut, International Paper Co. (NYSE: IP) -- http://www.internationalpaper.com/-- is in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia. International Paper employs approximately 54,000 people in more than 20 countries, including China, and serves customers worldwide. * * * International Paper Co. carries Moody's Investors Service's Ba1 senior subordinate rating and Ba2 Preferred Stock rating. In December 2005, Moody's Investors Service placed International Paper Co.'s senior subordinate rating at 'Ba1'. The rating still holds to date with a stable outlook. MOULIN (H.K.): Contributories and Creditors to Meet on Oct. 22 -------------------------------------------------------------- The contributories and creditors of Moulin (H.K.) Logistics Company Limited will meet on October 22, 2007, at 2:30 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator: Roderick John Sutton c/o Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor 3A Chater Road Hong Kong MOULIN GLOBAL: Sets Annual Meeting for October 22 ------------------------------------------------- Moulin Global Eyecare Services Limited will hold an annual meeting for its contributories and creditors on October 22, 2007, at 2:30 p.m., at the office of Ferrier Hodgson Limited, 14th Floor of the Hong Kong Club Building, in 3A Chater Road, Hong Kong. At the meeting, Roderick John Sutton, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PEACE CITY: Liquidator to Give Wind-Up Report on Oct. 22 -------------------------------------------------------- Peace City Investment Limited will hold an annual meeting for its contributories and creditors on October 22, 2007, at 4:30 p.m., at the office of Ferrier Hodgson Limited, 14th Floor of the Hong Kong Club Building, in 3A Chater Road, Hong Kong. At the meeting, Roderick John Sutton, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PETROLEOS DE VENEZUELA: Ensures Gasoline Supply ----------------------------------------------- Petroleos de Venezuela, S.A., has ensured production of the appropriate volumes of gasoline to meet the domestic market requirements and honor the existing commitments to foreign customers. In the face of rumors about presumed shortage in gas stations in Barquisimeto, Lara state, the company warned the population against the handling by unethical sectors that try to spread unrest and nervousness among users. The stocks in the fuel distribution facilities nationwide are at the operational strategic levels able to meet the demand both in the domestic and foreign markets. In this way, the company reasserts its commitment to the reliable supply of fuel across the nation. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Restarting El Palito Plant by Oct. 14 ------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA will restart operations at its El Palito plant by Oct. 14, 2007, state news agency Agencia Bolivariana de Noticias reports. Business News Americas relates that the refinery was closed down on Oct. 3, 2007, to prevent damage stemming from a failure in the electrical system that powers the plant. According to published reports, the shutdown led to gasoline shortages. As reported in the Troubled Company Reporter-Latin America on Oct. 9, 2007, Petroleos de Venezuela said that it launched work to bring the catalytic cracker and alkylation units back on line at its 135,000 barrels-per-day El Palito plant after a power outage. El Palito plant's general manager said that technicians had to first check equipment and infrastructure before Petroleos de Venezuela would proceed with restarting the units. The El Palito plant encountered repeated outages amid refinery problems over the last year. El Palito had been running at its full capacity of 135,000 barrels per day until the units were taken off line. Meanwhile, Petroleos de Venezuela maintained gasoline supply for Venezuela's use. Export contracts was never affected, BNamericas notes. A source in the refining sector claimed that the gasoline shortages were rumors, saying that the plant was shut down due to planned maintenance, BNamericas reports. Petroleos de Venezuela refining vice-president Asdrubal Chavez said in a statement that El Palito is operating at 65% of its full capacity. He told BNamericas, "These situations in refineries are routine and normal." Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Petroecuador Rents 2 Rigs for US$18,000 --------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA will get some US$18,000 per day from Ecuadorian counterpart Petroecuador for two rigs to drill new wells in the Amazon. Business News Americas relates that Petroecuador will sign the rental contract with Petroleos de Venezuela in the coming days. According to the statement, the price is 50% of what Petroecuador pays private firms. The two rigs would help boost production to 180,000 barrels per day by year-end from 170,239 barrels per day, BNamericas notes, citing Petroecuador. The rigs are undergoing international certification to ensure optimum operation and safety, Petroecuador said in a statement. About Petroecuador Petroecuador, according to published reports, is faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much-needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PROSPER GLORIES: Creditors' Proofs of Debt Due Today ---------------------------------------------------- The creditors of Prosper Glories Limited are required to file their proofs of debt today, October 19, 2007, to be included in the company's dividend distribution. The company's liquidators are: Ho Kwan Yiu Junius Ho Wai Fung Henley Building, 18th Floor No. 5 Queen's Road Central Hong Kong TRW AUTOMOTIVE: Inks Joint Venture Pact with Arvinmeritor Inc. -------------------------------------------------------------- TRW Automotive Aftermarket, a unit of TRW Automotive Holdings Corp., entered into an agreement to create a Joint Venture with ArvinMeritor Inc. to distribute Gabriel and TRW branded shock absorber ranges for the European independent aftermarket. The intention is for the Joint Venture to begin operation and distribution in January 2008. "Shock absorbers are an integral element of our core chassis portfolio," Francois Augnet, vice president for TRW Automotive Aftermarket Europe and Asia Pacific, said. "We already offer a comprehensive TRW branded range to our European customers and are committed to enhancing it with the Gabriel programme to maintain and develop our leading chassis position in the European aftermarket." "By combining the strengths of ArvinMeritor's engineering and manufacturing competencies and the Gabriel brand name with TRW's extensive sales and distribution network we are confident that we can roll out successful shock absorber programmes for the European independent aftermarket," Mr. Augnet continued. With the recent sale of its European exhaust aftermarket business, ArvinMeritor has sharpened its focus on original equipment manufacturer systems engineering. This includes a renewed emphasis on its global ride control business. With the Joint Venture, TRW and ArvinMeritor will jointly control the future marketing, sales and distribution of the Gabriel and TRW aftermarket programmes throughout Western, Central and Eastern Europe. "This is a great example of how both partners can share in the investment, as well as reap the benefits," Marlen Silverii, general manager for ArvinMeritor's global ride control aftermarket business added. "The Gabriel aftermarket product line is technically very strong, and when partnered with TRW's growing aftermarket presence, it will offer our aftermarket customers a strong chassis alternative." About Arvinmeritor Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 19,000 people in 25 countries. About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries, including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services TRW Automotive Aftermarket provides high quality replacement parts, service, diagnostics and technical support to both the independent aftermarket and the vehicle manufacturer service channels. * * * Fitch assigned a 'BB' on TRW Automotive Holdings Corp.'s LT Issuer Default rating and 'BB-' on its Unsecured Debt rating. Fitch said the outlook is stable. UNCIA LIMITED: Liu Yuk Ming Stephen Quits as Liquidator ------------------------------------------------------- Liu Yuk Ming Stephen ceased to act as liquidator of Uncia Limited on September 30, 2007. The former Liquidator can be reached at: Liu Yuk Ming Stephen Progress Commercial Building, Room 2407 7-17 Irving Street, Causeway Bay Hong Kong UNRIVALED FLIBUSTER: Appoints Gicquel as Liquidator --------------------------------------------------- At an extraordinary general meeting held on October 5, 2007, a special resolution was passed appointing Bernadette Marie Gicquel as the company's liquidator. The Liquidator can be reached at: Bernadette Marie Gicquel Amtel Building, Room A, 14th Floor 144-148 Des Voeux Road Central Hong Kong ZOOM & SIZES: Members Pass Resolution to Liquidate Business ----------------------------------------------------------- On October 5, 2007, the members of Zoom & Sizes and Associates Limited passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt by November 12, 2007, to be included in the company's dividend distribution. The company's liquidator is: Lee Kwok On, Alexander Rooms 1901-2, Park-In Commercial Centre 56 Dundas Street, Kowloon ========= I N D I A ========= AES CORP: Commences Cash Tender Offer for US$1.24 Bil. Sr. Notes ---------------------------------------------------------------- The AES Corporation has commenced a cash tender offer for up to US$1.24 billion of its outstanding senior notes in accordance with the terms and conditions described in its Offer to Purchase dated Oct. 16, 2007. The tender offer will expire at 12:00 p.m., on midnight, New York City time, on Nov. 13, 2007, unless extended or earlier terminated. The total consideration payable for each series of Notes will be based on the yield to maturity of a specified U.S. Treasury reference security, plus a fixed spread. The three series of Notes subject to the tender offer, the acceptance priority levels, the applicable U.S. Treasury reference security for the Notes and the applicable fixed spread are enumerated: 1) Title of Security: 8.75% Senior Notes due 2008 CUSIP/ISIN Numbers: 00130HAV7 Aggregate Principal Amount Outstanding: US$201,809,000 Acceptance Priority Level: 1 Maturity Date/Earliest Redemption Date: June 15, 2008(1) Par Amount/Earliest Redemption Price(2)(3): US$1,000.00 Early Tender Premium(3): US$30.00 Reference Security: US$5.125% U.S.T. Note due June 30, 2008(2) Bloomberg Reference Page: PX3 Fixed Spread (basis points): +50 2) Title of Security: 9% 2nd Priority Sr. Sec. Notes due 2015 CUSIP/ISIN Numbers: 00130HBB0, U0080RAG5 Aggregate Principal Amount Outstanding: US$600,000,000 Acceptance Priority Level: 2 Maturity Date/Earliest Redemption Date: May 15, 2008(2) Par Amount/Earliest Redemption Price(2)(3): US$1,045.00 Early Tender Premium(3): US$30.00 Reference Security: US$5.625% U.S.T. Note due May 15, 2008 Bloomberg Reference Page: PX3 Fixed Spread (basis points): +50 3) Title of Security: 8.75% 2nd Priority Sr. Sec. Notes due 2013 CUSIP/ISIN Numbers: 00130HBA2, U0080RAF7 Aggregate Principal Amount Outstanding: US$1,200,000,000 Acceptance Priority Level: 3 Maturity Date/Earliest Redemption Date: May 15, 2008 Par Amount/Earliest Redemption Price(2)(3): US$1,043.75 Early Tender Premium(3): US$30.00 Reference Security: US$5.625% U.S.T. Note due May 15, 2008 Bloomberg Reference Page: PX3 Fixed Spread (basis points): +50 1. The 2008 Notes mature on June 15, 2008 and may be redeemed at any time at a redemption price equal to par plus a "make-whole" premium, if any. 2. May 15, 2008 is the earliest date at which the 2013 Notes and the 2015 Notes may be redeemed at a redemption price equal to a specified percentage of the principal amount. Prior to May 15, 2008, the 2013 Notes and 2015 Notes may be redeemed at any time at a redemption price equal to par plus a "make-whole" premium, if any. 3. Per US$1,000 principal amount of Notes that are accepted for purchase. Holders tendering their Notes on or prior to 5:00 p.m., New York City time, on Oct. 29, 2007, unless extended or earlier terminated, will receive the total consideration, which includes an early tender premium of US$30.00 per US$1,000 principal amount of Notes purchased. Holders that tender their Notes after the Early Tender Time but prior to the Expiration Time will receive the total consideration less the early tender premium. The company will pay the total consideration in respect of the 8.75% Senior Notes due 2008 and the 9.00% Second Priority Senior Secured Notes due 2015 that have been validly tendered and not withdrawn prior to the Early Tender Time and accepted for purchase by the company on Oct. 30, 2007. The company will pay (i) the total consideration for any 8.75% Second Priority Senior Secured Notes due 2013 that were validly tendered and not withdrawn prior to the Early Tender Time and accepted for purchase by AES and (ii) the Tender Offer Consideration for any Notes that were validly tendered and not withdrawn after the Early Tender Time and prior to the Expiration Time and accepted for purchase by the company on Nov. 14, 2007. In addition, in all cases, holders will receive accrued interest from the last interest payment date for such series of Notes to, but not including, the Early Settlement Date or the Final Settlement Date, as applicable. AES may increase or modify the Tender Cap subject to applicable law, depending on the principal amount of Notes validly tendered and not withdrawn without extending withdrawal rights to Holders. If the aggregate principal amount of Notes validly tendered and not withdrawn at the Expiration Time exceeds the Tender Cap, the company will (subject to the terms and conditions of the offer) limit the Notes it accepts pursuant to the Tender Cap and in accordance with the acceptance priority levels as set forth in the Offer to Purchase. Since the 8.75% Senior Notes due 2008 and the 9.00% Second Priority Senior Secured Notes due 2015 have an acceptance priority level of 1 and 2, respectively, and the aggregate principal amount of the 8.75% Senior Notes due 2008 and the 9.00% Second Priority Senior Secured Notes due 2015 combined is less than the Tender Cap, neither the 8.75% Senior Notes due 2008 nor the 9.00% Second Priority Senior Secured Notes due 2015 will be subject to proration; only the 8.75% Second Priority Senior Secured Notes due 2013 will be subject to proration. Except as set forth in AES's Offer to Purchase or as required by applicable law, Notes tendered prior to 5:00 p.m., New York City time, on Oct. 29, 2007, unless extended by AES in its sole discretion may only be withdrawn in writing before the Withdrawal Deadline, and Notes tendered after the Withdrawal Deadline but prior to the Expiration Time may not be withdrawn. The tender offer is conditioned on the satisfaction of certain conditions. If any of the conditions are not satisfied, AES is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Notes, in each event, subject to applicable laws, and may even terminate the tender offer. Citi is the Dealer Manager for the tender offer. Global Bondholder Services Corporation is acting as the Information Agent and Wells Fargo Bank, National Association is acting as the Depository. The offer is made only by an Offer to Purchase dated Oct. 16, 2007, and the information in this news release is qualified by reference to the Offer to Purchase. Persons with questions regarding the offer should contact the Dealer Manager, toll-free at (800) 558-3745 or collect at (212) 723-6106. Requests for documentation may be directed to the Information Agent, toll-free at (866) 294-2200. About AES Corporation 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. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$2 billion issuance of senior unsecured notes maturing 2015 and 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. The rating outlook is stable. BAUSCH & LOMB: Moody's Withdraws PIK & Sub Notes Ratings -------------------------------------------------------- Moody's Investors Service withdrew Bausch & Lomb Incorporated's proposed Caa1 ratings for US$175 million PIK notes and US$175 million senior subordinated notes. Concurrently, Moody's affirmed the company's existing ratings. The outlook for the proposed ratings remains stable. Recently, BOL revised its capital structure by increasing its proposed U.S. term loan by US$100 million to US$1.2 billion and increasing its offering of proposed senior unsecured notes to US$650 million from US$400 million. As a result, the company will not be issuing the proposed US$175 million senior PIK notes and the proposed US$175 million senior subordinated notes. Moody's continued the review for possible downgrade of Bausch & Lomb Incorporated's (Oldco) existing ratings with the expectation that they will be withdrawn at the close of the transaction. Ratings are subject to review of final documentation. These ratings were withdrawn from Bausch & Lomb Incorporated (Newco): -- Caa1 rating (LGD5/86%) on US$175 million Senior Unsecured PIK Toggle Option Notes; and -- Caa1 rating (LGD6/95%) on US$175 million Senior Subordinated Notes. This Bausch & Lomb Incorporated's (Newco) ratings were affirmed with updated LGD assessments: -- B2 Corporate Family Rating; -- B2 Probability of Default Rating; -- SGL-2 Speculative Grade Liquidity Rating; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$500 million Senior Secured Revolver; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$1,200 million U.S. Senior Secured Term Loan; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$300 million Delayed Draw Term Loan; and -- Caa1 rating (to LGD5/89% from LGD5/86%) on US$650 million Senior Unsecured Notes. This Bausch & Lomb, B.V.'s ratings were affirmed with updated LGD assessments: -- B1 rating (to LGD3/36% from LGD3/35%) on a US$575 million European Senior Secured Term Loan. The ratings related to Bausch & Lomb Incorporated (Oldco) ratings remain on review for possible downgrade and will be withdrawn at the close of the transaction. 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). CABLE & WIRELESS: Dismisses Speculation on Business Disposal ------------------------------------------------------------ Cable & Wireless plc is unlikely to sell its business, Jim Marsh, chief executive of Europe, Asia & U.S told Reuters, dismissing speculations. According to Mr. Marsh, considering C&W's unique asset capability, it might in fact be on the acquisition trail. He added that the telecoms group is investing significantly in Asia. "The question is, if you have a unique capability like we do, why would you want to sell that?" Mr. Marsh was quoted by Reuters as saying. "Surely it's more likely that you'd want to continue to build up the business you have today, by buying things. So it's unlikely that we will choose to sell the business when we've got such unique asset capability." Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% GENERAL MOTORS: To Cut 767 Jobs at Hammtramck Plant in December --------------------------------------------------------------- In December 2007, General Motors Corp. will initiate a lay off program at the Hamtramck assembly plant in Detroit, Michigan, affecting 767 workers, according to various reports. Due to the decline in sales, the assembly plant, which employs 1,847 hourly workers and manufactures Buick Lucerne and Cadillac DTS sedans, will be fusing two shifts into one on Dec. 14, 2007. The plant currently produces 40 cars per hour over two shifts. After Jan. 2, 2008, the plant will manufacture 56 cars per hour over one shift, sources report citing GM spokesman Tom Wickham. Sales of the Cadillac DTS are down 14% this year, while sales of the Lucerne have fallen 15%, sources disclosed referring to Autodata Corp. "The products are selling but the capacity is greater than the demand," Mr. Wickham said. "We have to make sure we don't have too much inventory out there." As reported in the Troubled Company Reporter on Sept. 27, 2007, GM reached a labor deal with the United Auto Workers union, bringing unprecedented job security with company commitments to invest in new products for its existing U.S. facilities, as well as a moratorium on plant closings and outsourcing of work over the life of the agreement. The UAW also was able to secure a commitment to hire 3,000 temporary workers into full-time, traditional employment. Sources say that under the labor contract, the Hamtramck plant, one of those who were promised jobs, will start production of a crossover vehicle in 2009 and a midsize Chevrolet sedan in 2012. The plant is expected to manufacture GM's planned electric hybrid vehicle, the Chevrolet Volt, in 2010. 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 Oct. 17, 2007, Standard & Poor's Ratings Services said that its long-term ratings on General Motors Corp. remain on CreditWatch with positive implications, where they were placed Sept. 26, 2007. S&P placed the ratings on CreditWatch when GM and its main union, the United Auto Workers, reached a tentative new labor contract. The UAW has since approved that contract, and GM discussed the contract's economics. S&P expect to resolve the CreditWatch listing by Oct. 31, 2007. As reported in the Troubled Company Reporter on Sept. 28, 2007, Fitch Ratings has affirmed and removed the Issuer Default Rating and debt ratings of General Motors from Rating Watch Negative following the announcement that GM has reached an agreement on a new contract with the United Auto Workers. Fitch currently rates GM as: IDR 'B'; Senior secured 'BB/RR1'; and Senior unsecured 'B- /RR5'. GM's Rating Outlook is Negative. GENERAL MOTORS: New UAW Terms Cue Moody's Positive Outlook ---------------------------------------------------------- Moody's Investors Service changed the outlook of General Motors Corporation's long-term-debt rating to positive from negative, and also raised the company's speculative grade liquidity rating to SGL-1 from SGL-3 following the company's announcement of the terms of its new contract with the UAW. GM's existing long-term ratings -- including B3 corporate family, Ba3 senior secured, and Caa1 senior unsecured -- are unchanged. The ratings of GMAC (senior rating of Ba1/Negative outlook) are also unaffected. The positive outlook recognizes the substantial long-term cost benefits of the new UAW contract, balanced against the significant near-term product and revenue challenges the company will continue to face during 2008 and 2009. Importantly, GM has a substantial liquidity position consisting of US$30 billion in cash and US$5.8 billion in long-term credit facilities. This liquidity position will provide ample financial flexibility during the next two years as GM faces these challenges and moves toward the 2010 period during which the substantial cost benefits of the new UAW contract begin to take hold. During the next 12 to 18 months if the company demonstrates the capacity to make progress in addressing product and revenue challenges -- stabilizing its share position, building market acceptance of new products, maintaining a disciplined approach toward the use of incentives, and limiting sales to the daily rental segment -- its rating could be considered for possible upgrade. Such an action would recognize Moody's view that GM is capable of making continuing progress in establishing a competitive and sustainable business model, and taking full advantage of the cost benefits that the UAW contract will afford by 2010. Any consideration for a possible upgrade would also reflect Moody's expectation that GM is capable of generating positive free cash flow, sustaining interest coverage exceeding 1x, and achieving EBITA margins approximating 2.5% during the 2009 time frame. Bruce Clark, senior vice president with Moody's, said, "This contract will help to significantly narrow the cost disadvantage that GM has relative to Asian transplants. Its various elements could save the company as much as US$4 billion per year, and lower wage and benefit costs by more than US$800 per vehicle." However, Mr. Clark cautioned that "While the contract has some truly transformational elements, meaningful cost benefits won't begin to take hold until 2010, and GM will face a pretty tough environment until then. The company's biggest challenge will remain on the revenue and product side -- producing automobiles that consumers want and that are priced high enough to generate a profit." GM's new UAW contract could lay the groundwork to significantly improve the company's long-term competitive position by allowing a two-tier wage structure, altering the conditions for idled worker participation in the JOBs bank program, and shifting responsibility for retiree health care to a UAW-managed VEBA. The two-tier wage structure could begin to yield moderate but increasing benefits during 2009, and the changes to the JOBs bank program will afford important flexibility to adjust manufacturing capacity to market conditions. The creation of the UAW-managed VEBA would free GM from about US$3.5 billion in annual retiree healthcare payments beginning in 2010. However, during 2008 and 2009 there will be minimal operational benefits from the contract, and GM will have to fund about US$4 billion in upfront cash payments to implement the agreement. In addition, the company will have to contend with considerable near-term market and competitive challenges. These include: the ongoing pressure on its US share position; the shift in North American consumer preference toward smaller vehicles; a financially weak supplier base; and the competitive pressures that force it to price its automobiles (as distinguished from trucks and SUVs) several thousand dollars less that similarly-equipped Asian vehicles. In addition, the US auto sector could face softening demand during 2008. As a result of these operational challenges, GM's key financial metrics will likely remain weak during the coming year with negative free cash flow, and interest coverage of less than 1x. The increase in the speculative grade liquidity rating to SGL-1 recognizes that GM will have very strong sources of liquidity to cover all cash requirements through 2008. These sources include about US$30 billion in cash and securities, and US$5.8 billion in committed credit facilities with maturities beyond 2009. These sources should enable GM to comfortably fund all cash requirements associated with the implementation of the new UAW contract, restructuring expenditures to accelerate hourly-worker attrition, debt maturities, and operating requirements through 2009. 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. GMAC LLC: Finc'l. Services Arm Restructures Mortgage Operations --------------------------------------------------------------- GMAC Financial Services, a subsidiary of GMAC LLC, is restructuring its mortgage operations, Residential Capital LLC, as severe weakness in the housing market and mortgage industry continues to prevail. ResCap will streamline its operations and revise its cost structure, which will enhance its flexibility, allowing it to scale operations up or down more rapidly to meet changing market conditions. On Oct. 15, 2007, a restructuring plan was approved that will include ResCap reducing its current worldwide workforce of 12,000 associates by approximately 25 percent, or by approximately 3,000 associates, with the majority of reductions occurring in the fourth quarter of 2007. The reduction in workforce is in addition to the measures undertaken in the first half of 2007 in which 2,000 positions were eliminated. "We deeply respect and value all of our associates. While workforce reductions are very difficult, we will treat our departing associates with sensitivity in keeping with our values," said Jim Jones, ResCap chief executive officer. The reduction in ResCap's workforce was influenced by sharp downturns in the U.S. residential real estate markets and the global dislocation of the mortgage finance and credit markets. The mortgage industry continues to experience lower overall origination volumes; illiquidity in the secondary market; and adverse trends in home price appreciation. As a result of the actions, ResCap will incur restructuring charges, which are expected to range from US$90 to US$110 million, which will include costs related to severance and other employee-related costs of approximately US$55 to US$65 million and the closure of facilities of approximately US$35 to US$45 million. The majority of the charges will be incurred in the fourth quarter of 2007. Consolidated charges are expected to result in future cash expenditures of approximately US$85 to US$95 million. The workforce reductions will include a range of administrative and managerial positions. Business units most affected by lower mortgage market origination volumes will incur the most reductions. All eligible associates affected by the workforce reduction will be provided severance packages and outplacement assistance. ResCap said it will continue to modify its product offerings based on market conditions, and has sharply reduced its exposure to nonprime and prime non-conforming loans this year. Nevertheless, ResCap added it will continue to offer a broad and competitive menu of high quality products and will pursue growth plans opportunistically in areas where the company maintains a competitive advantage. In addition, ResCap will continue to leverage its relationship with GMAC Bank and its efficient, dependable sources of funding. About Residential Capital, LLC Residential Capital LLC -- https://www.rescapholdings.com/ -- is a real estate finance company, focused primarily on the residential real estate market in the United States, Canada, Europe, Latin America and Australia. The company's diversified businesses cover the spectrum of the U.S. residential finance industry, from origination and servicing of mortgage loans through their securitization in the secondary market. It also provides capital to other originators of mortgage loans, residential real estate developers, and resort and timeshare developers. About GMAC GMAC LLC -- http://www.gmacfs.com/--formerly General Motors Acceptance Corporation, is a financial services company providing a range of services to a global customer base. It is wholly owned subsidiary of General Motors Corp. The company operates in three primary lines of business -- financing, mortgage and insurance. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. * * * In March 2007, Standard & Poor's Ratings Services affirmed its 'BB+/B-1' ratings on GMAC LLC. The outlook remains developing. At the same time, Standard & Poor's affirmed its ratings on GMAC LLC's 100%-owned subsidiary, Residential Capital LLC or ResCap (BBB/A-3). S&P said ResCap's outlook remains negative. GMAC LLC: Moody's Affirms Ba1 Senior Unsecured Rating ----------------------------------------------------- Moody's Investors Service affirmed GMAC's ratings (Ba1 senior unsecured, Not-Prime short-term), while maintaining its negative rating outlook. This followed Moody's decision to change the rating outlook for General Motors Corporation to positive from negative. Moody's expectation that GM's operating fundamentals will improve with the implementation of its new labor accord has positive implications for GMAC's credit profile, given the extent and scale of GMAC's business ties to GM. However, weakened performance at Residential Capital LLC, GMAC's residential mortgage finance subsidiary, continues to pose more immediate risks to GMAC's profile that warrants maintaining GMAC's negative rating outlook. ResCap's Ba1 senior unsecured rating is on review for possible downgrade, reflecting operating challenges and uncertainties regarding its funding and origination flows in its businesses due to continued volatility in the mortgage market. If ResCap's performance were to suffer additional setbacks, GMAC could decide to support ResCap financially, possibly to the detriment of its own stand-alone profile. Should such support become probable, Moody's would equalize GMAC's ratings with ResCap's ratings. Moody's analyst Mark Wasden said "extension of support by GMAC to ResCap potentially undermines the notion of separate operating and financial protocols between the companies." He added that "a down-streaming of support from GMAC's owners, however, could leave GMAC in a neutral position from a rating standpoint, all else equal." Positive developments at GM are likely to eventually be beneficial to GMAC's business results, if GM's profitability improves. Moody's notes, however, that there remains uncertainty regarding GM's long-term competitive positioning and performance. GM's credit profile will continue to be a key driver of GMAC's credit ratings. "On the other hand, GMAC's ratings are not likely to increase on the basis of any further improvement in GM's ratings, as long as uncertainties at ResCap remain at a heightened level," said Mr. Wasden. Earnings in GMAC's auto and insurance operations have proved resilient amidst GM-related challenges. Still, the firm is contending with finance margins that, while improved in 2007, remain weaker than in historical periods. GMAC's margins therefore have less capacity to absorb a negative turn in asset performance. Positively, GMAC has managed its liquidity well in light of recent challenges in the credit markets, though spread widening is likely to affect near-term results. GMAC LLC is a Detroit-based provider of retail and wholesale auto financing, residential mortgage financing, and auto extended warranty and insurance products. GMAC reported a June 30, 2007, six-month consolidated net loss of US$12 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. TATA POWER: Bids for 4,000-MW Krishnapatnam Power Plant --------------------------------------------------------------- Tata Power Ltd is among the bidders for the 4,000 MW Ultra Mega Power Plant at Krishnapatnam in Andhra Pradesh. The Krishnapatnam plant is one of the ten UMPP projects that the government has decided to develop through private-sector participation to meet the country's growing demand for power. As previously reported by the Troubled Company Reporter-Asia Pacific, Tata Power already secured one of the projects -- the 4,000-MW Mundra project in Gujarat. Among those in fray for the Krishnapatnam project are Reliance Energy, National Thermal Power Corporation, Essar Power, Jindal Steel & Power, Sterlite Industries, DS Construction and Larsen & Tourbo, The Times of India reports. Citing Power Finance Corporation, the news agency said the interested firms have to submit the bids by October 24. Power Finance is the nodal agency for the various ultra mega power projects. According to the Business Standard, Tata Power gained over 23% on reports that it was vying for the Krishnapatnam project. "The stock moved from [INR]1110.15 to [INR]1370.90 after touching 52-week high of [INR]1400," BS notes in an Oct. 17 report. "The counter witnessed robust volumes of more than 1.8 million shares. The stock price has nearly doubled since September 14, when it was quoting at [INR]743.75." About Tata Power Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * 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. TATA POWER: World Bank's IFC to Finance 4,000MW Gujarat Project --------------------------------------------------------------- International Finance Corporation will fund Tata Power Ltd.'s 4,000-MW ultra mega power project at Mundra in Gujarat, reports say. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 28, 2006, Tata Power was awarded the contract to build a Mundra plant after quoting a bid of INR2.26 per unit. In a later report, TCR-AP said that the company has tied up with various multilateral lending agencies and financial institutions to partly fund the debt of the project. "We are talking to Tatas and will participate in the project through a mix of debt and equity," the Press Trust of India quotes IFC Manager for South Asia Dept. Neil Gregory as saying. "We will also help them in obtaining syndicated loans from other financial institutions." The amount of equity and debt that IFC will provide is yet to be determined. IFC is the private-sector investment unit of the World Bank owned by nearly 180 member countries About Tata Power Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * 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 ================= ALLIANCE ONE: Completes Exchange Offer for 8-1/2% Senior Notes -------------------------------------------------------------- Alliance One International, Inc. completed an exchange offer for its outstanding 8-1/2% Senior Notes due 2012. Alliance One offered to exchange up to $150,000,000 aggregate principal amount of its 8-1/2% Senior Notes due 2012 which have been registered under the Securities Act of 1933, as amended, for a like principal amount of its original unregistered 8-1/2% Senior Notes due 2012, which were issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933 on March 7, 2007. The exchange offer expired at 5:00 p.m., New York City time, on Oct. 2, 2007. The exchange offer was made to satisfy Alliance One's obligations under a registration rights agreement entered into with the initial purchasers of the restricted notes at the time such notes were originally issued. Deutsche Bank Trust Company Americas acted as exchange agent for the exchange offer. The exchange offer was made only pursuant to Alliance One's prospectus, dated Aug. 30, 2007, which was filed with the Securities and Exchange Commission as part of Alliance One's Registration Statement on Form S-4. The Registration Statement was declared effective by the Securities and Exchange Commission on Aug. 29, 2007. About Alliance One Based in Morrisville, North Carolina, Alliance One International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. * * * The Troubled Company Reporter-Asia Pacific reported on Sept. 29, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for Alliance One International, Inc., and upgraded its B2 rating on the company's US$300 million senior secured revolver to B1. In addition, Moody's assigned an LGD3 rating to notes, suggesting note holders will experience a 37% loss in the event of a default. ANIXTER INT'L: To Report Third Quarter Earnings on October 23 ------------------------------------------------------------- Anixter International Inc. will report final results for the third quarter of 2007 on Tuesday, October 23, 2007, and broadcast a conference call to discuss these results at 9:30 a.m., central time. The call will be Webcast by CCBN and can be accessed at Anixter's Website at http://www.anixter.com/webcasts. The Webcast also will be available over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com, or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (http://www.streetevents.com). The Webcast will be archived on all of these sites for 30 days. About Anixter Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and has presence in 220 cities in 45 countries, including Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. The Troubled Company Reporter - Asia Pacific reported on Feb. 19, 2007, that Moody's Investors Service downgraded Anixter International Inc.'s corporate family rat