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 Tuesday, October 23, 2007, Vol. 10, No. 210 Headlines A U S T R A L I A BASIS YIELD: Liquidators File Second Supplement to Petition BRENTLY ENGINEERING: Will Declare First Dividend on Nov. 8 BUTSELAAR TRADING: To Declare Dividend on November 8 CHRYSLER LLC: Four Union Locals Reject UAW-Chrysler Labor Pact CHRYSLER LLC: Negotiator Urges UAW Leaders to Reject New Pact COLES GROUP: Woolworths Hopes on Coles Shareholders to Get Kmart COLES GROUP: Wesfarmers Taps Archie Norman to Handle Takeover COOL AS REFRIGERATION: Members Resolve to Liquidate Business DB METAL: Will Declare First Dividend on November 8 DEUGRO AUSTRALIA: Members Resolve to Liquidate Business HOUSEBOAT INDUSTRIES: Members and Creditors to Meet on Oct. 26 MSD DEVELOPMENTS: Appoints G. A. Crisp as Liquidator NEIL SLATER: Placed Under Voluntary Liquidation PEABODY ENERGY: Paying Dividend of US$0.06 Per Share SEYRIC TRADING: Members Resolve to Liquidate Business TERHIL JOMAR: Members Agree on Voluntary Liquidation C H I N A & H O N G K O N G AGRICULTURAL BANK: Profit for First Nine Months Increases 64% AGRICULTURAL BANK: CBRC Chairman Denies Split Up Reports ANDREW CORP: S&P Holds 'BB-' Corporate Credit & Debt Ratings ASIA TELEMEDIA: Files Evidence to Counter Wind-Up Petition BLESSEARN LIMITED: Court to Hear Wind-Up Petition on Nov. 14 CHINA SOUTHERN: To Open Direct Guangzhou-Vientianne Flights CHANGAN AUTO: Plans to Set Up Fourth R&D Center in Japan CITIC BANK: Top Official Denies Bear Stearns Acquisition Reports CHINA EVERBRIGHT: End-September NPL Ratio Down 5.97% CONDO CURTAIN: Creditors' Proofs of Debt Due on October 26 EASY FASHION: Names Seng and Lo as Liquidators FIAT SPA: European Commission Sets Inquiry Deadline to Nov. 21 GALAWELL INVESTMENT: Members Agree on Voluntary Wind-Up GREENTOWN CHINA: Forms JV with Wharf Unit on Hangzhou Project HAINAN AIRLINES: Plans To Set Up Insurance JV with Shin Kong HONICA WATCH: Liquidators Quit Post INT'L PAPER: Board Oks Amendment of Certificate of Incorporation KONKA GROUP: Inks Cooperation Agreement with Texas Instrument LANDMARK COMMODITIES: Placed Under Voluntary Liquidation ORIENTFIELDS ENTERPRISES: Appoints Mo Pui Lam as Liquidator TCL CORP: Rebuffs Reports on Philips Acquisition of TV Unit THE WALT DISNEY: Names Seng and Lo as Liquidators TOM GROUP: S&P Places BB+ Credit Rating on CreditWatch Negative YIU TING: Requires Creditors to File Claims by November 5 I N D I A GENERAL MOTORS: UAW Agreement Cues Fitch to Remove Neg. Watch GMAC LLC: S&P Places BB+/B-1 Credit Rating on Watch Negative ICICI BANK: U.S. Fed Okays Setting Up of New York Branch SOUTHERN IRON: To Consider Results and Merger Scheme on Thursday SPICEJET LTD: To Lease Two Boeing Aircraft to Air India SPICEJET LTD: Ties Up with S&R Works for In-Flight Marketing VISTEON CORP: Selling Largest UK Operation to Linamar I N D O N E S I A MCDERMOTT INT'L: Names Dennis Baldwin as Vice President & CAO MITEL NETWORKS: To Use Microsoft Office Communications Server LIPPO KARAWACI: 2007 3Q Net Profit Ups 12% to IDR255.2 Billion PERUSAHAAN GAS: ConocoPhillips Starts to Supply Gas J A P A N AMR CORP: Earns US$175 Million in Third Quarter Ended Sept. 30 BOSTON SCIENTIFIC: Mulls Restructuring & Sale of Some Businesses DELPHI CORP: Disclosure Statement Hearing Adjourned Until Nov. 8 ELAN CORP: Third Parties Eye Biogen for Likely Acquisition ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008 SEIYU LTD: Wal-Mart to Invest JPY100BB to Buy Remaining Stake SENSIENT TECH: Paying US$0.18 Per Share Quarterly Dividend SPANSION INC: Posts US$72 MM Net Loss in Quarter Ended Sept. 30 TENNECO INC: Elects Dennis J. Letham to Board of Directors TIMKEN CO: Invests US$6 Million on Industrial Expansion K O R E A ACTUANT CORP: Two-for-One Stock Split Takes Effect on Nov. 8 REMY WORLDWIDE: Selects Shearman & Sterling as Lead Counsel REMY WORLDWIDE: Court Approves Kurtzman Carson as Noticing Agent REMY WORLDWIDE: Wants Until December 22 to File Schedules SUN MICROSYSTEMS: Spares Scottish Unit from Worldwide Job Cuts M A L A Y S I A CELESTICA INC: Tax Benefit Error Cues Firm to Cut Q2 Earnings KAI PENG: Bursa to Delist Securities on October 30 MALAYSIA AIRLINE: Subsidiary Expands Operation SOLUTIA INC: Court Approves Fifth Amended Disclosure Statement SOLUTIA INC: Court Sets November 29 Plan Confirmation Hearing TENAGA NASIONAL: Sees Profit as Demand for Electricity Rises PAXELENT CORP: Malayan Bank Plans Legal Suits to Recover Debts TITAN CHEMICALS: Incorporates Titan Intl. as New Unit N E W Z E A L A N D ABSOLUTELY NATURAL: Fixes Oct. 26 as Last Day to File Claims AIR NEW ZEALAND: Passenger Load Up 6.7% in September 2007 AQUAFORM LTD: Fixes Nov. 30 as Last Day to File Claims CONSTANT CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 9 LOMAS ENVIRONMENTAL: Names R.L. Merlo as Liquidator OTAGO CONTINUOUS: Shareholders Resolve to Liquidate Business PAKURANGA EARTHMOVERS: Court to Hear Wind-Up Petition on Feb. 14 ROSIER GROUP: Enters Wind-Up Proceedings SOLITAIRE INTERNATIONAL: Fixes Nov. 12 as Claims Filing Deadline TITOKI INVESTMENTS: Commences Wind-Up Proceedings P H I L I P P I N E S BANCO DE ORO-EPCI: Obliged to Pay RCBC Unit Damages for Breach BANGKO SENTRAL: IMF Finds Modest Effects of Forex Intervention BANGKO SENTRAL: Mulls Widening Scope of 2nd Forex Liberalization BANGKO SENTRAL: Resumes Talks with Treasury on US$1-Bil. Bonds BENGUET CORP: Sets Annual Stockholders' Meeting for December 18 FORD MOTOR: Expresses Possible Expansion of Philippine Facility NAT'L POWER: PSALM Lines Up Five More Assets for Auction in 2008 PAL HOLDINGS: Botched Trustmark Offer Cues Lifting of Suspension RIZAL COMM'L: Unit Reaches Favorable Ruling in Case v. EPCI WENDY'S INT'L: Partners with Berjaya to Open 70 Malaysian Units ZIPPORAH REALTY: SEC OKs Change in Name to "Sta Lucia Land Inc." * IMG Urges Less Export Dependence, More Forex Rate Flexibility S I N G A P O R E ADVANCED MICRO: Posts US$396 Mln Net Loss for Third Quarter 2007 ADVANCED MICRO: TRC Capital Offers Mini-Tender of 5 Mln Shares CKE RESTAURANTS: Reports US$90MM Same-Store Sales for Two Units LEVI STRAUSS: Completes US$525M Tender Offer of 12.25% Sr. Notes SPECTRUM BRANDS: Postpones Strategic Asset Sale T H A I L A N D BANK OF AYUDHYA: 3rd Qtr. Net Income Jumps 54% to THB2.88 Bil. FEDERAL-MOGUL: Sept. 30 Balance Sheet Upside-Down by US$1.4 Bil. TMB BANK: Sells 19% Ownership in Siam Ferro to Maximum Holding V I E T N A M * Vietnam to Raise VND38 Trillion in Government Bond in 2008 * BOND PRICING: For the Week 22 October to 26 October 2007 - - - - - - - - ================= A U S T R A L I A ================= BASIS YIELD: Liquidators File Second Supplement to Petition ----------------------------------------------------------- Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham, as joint provisional liquidators and foreign representatives of Basis Yield Alpha Fund (Master), has filed with the U.S. Bankruptcy Court for the Southern District of New York (Manhattan) a second supplement to their August 29, 2007 petition for recognition of the Cayman Islands liquidation proceeding as a foreign main proceeding. Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, relates that the Liquidators filed the First Supplement to the Petition on September 5 to notify the Bankruptcy Court of additional grounds supporting the request, as well as recognition from the High Court of Justice, Chancery Division, Companies Court, in England. Citigroup Global Markets Limited, however, had argued that the First Supplement does not answer all of the factual questions that are relevant to whether recognition is proper as either a main or non-main proceeding. Ms. Dine tells Judge Gerber that the Second Supplement was filed in a continuing effort to promptly notify the Bankruptcy Court of a change in status concerning the commencement of other foreign proceedings under Section 1518(2) of the Bankruptcy Code. Ms. Dine notes that, on September 6, the Liquidators filed an application in the Supreme Court of New South Wales, seeking to compel certain parties to turn over, among other things, documents and funds in their possession. Specifically, the Liquidators asked that, pursuant to Section 581 of the Corporations Act 2001 and Section 68(b) of the Civil Procedure Act of 2005, Basis Capital Funds Management Limited should produce to the Supreme Court by September 28: (a) any books and records of Basis Yield; and (b) all documents created or dated on or after March 1, 2007, and which record or evidence: * operational, credit and investment advice provided to Pac-Rim Investments Limited or Basis Yield; * funds received from investors or subscribers on behalf of the Basis Yield Fund; and * communications with any officer, employee, agent, or servant of: -- Lehman Brothers International (Europe); -- Merril Lynch International; -- Merril Lynch International (Australia) Ltd.; -- JP Morgan Chase Bank NA; -- JP Morgan Australia Group Limited; -- Goldman Sachs International; -- Goldman Sachs JBWere Pty Ltd.; -- Citigroup Global Markets Limited; -- Citigroup Global Markets Australia Pty Limited; -- Morgan Stanley; -- Morgan Stanley Australia Limited; -- Deutsche Bank; and -- Bear Stearns. The Liquidators also asked the Supreme Court to direct Goldman Sachs, Citigroup Global Markets Australia, Morgan Stanley Australia, JP Morgan Australia, and Merrill Lynch (Australia) to produce any Basis Yield books and records, and any documents created or dated on or after March 1, recording: (1) the sale and purchase of investment products on Basis Yields' behalf; (2) dealings with the proceeds of sale and purchases of investment products; (3) communications of all offers received from third parties in relation to the sale of Basis Yields' investment products, which were repossessed following issue of notices of default; (4) foreign currency and other hedge transactions; (5) the decision to issue default notices to Basis Yields; (6) valuation of Basis Yields' portfolios; (7) calculation of amounts claimed in the default notices; and (8) correspondence with Basis Capital Funds Management. The Supreme Court of New South Wales promptly approved the Application on the same day. Judge Gerber is set to conduct an evidentiary hearing on Nov. 19 to consider the request for recognition of Basis Yield's liquidation proceedings. The hearing may be continued to November 20, if necessary. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Basis Yield operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. Chapter 15 Ancillary Case On August 29, 2007, the Liquidators filed a petition before the U.S. Bankruptcy Court for the Southern District of New York seeking recognition of Basis Yield's liquidation in the Cayman Islands as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code. The Liquidators also asked the U.S. Court to enjoin and restrain U.S. creditors from commencing actions with respect to the Fund's assets in the United States. Basis Yield is estimated to have more than US$100,000,000 in total assets and total liabilities, and less than 49 creditors, the Chapter 15 petition said. The Liquidators noted that in excess of US$50,000,000 of Basis Yield's assets, held by various financial institutions, are located within the United States. Basis Capital has said losses in Basis Yield could exceed 80%, Tiffany Kary and Jenny Strasburg at Bloomberg report. BRENTLY ENGINEERING: Will Declare First Dividend on Nov. 8 ---------------------------------------------------------- Brently Engineering Pty Ltd will declare its first dividend on November 8, 2007. Creditors who cannot file their proofs of debt by that date will be excluded from the company's dividend distribution. The company will also hold a final meeting for its members on November 15, 2007, at 9:30 a.m. The company's liquidator is: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia About Brently Engineering Brently Engineering Pty Ltd is a distributor of industrial machineries and equipments. The company is located at Lane Cove West, in New South Wales, Australia. BUTSELAAR TRADING: To Declare Dividend on November 8 ---------------------------------------------------- Butselaar Trading Co. Pty Ltd will declare its first and final dividend on November 8, 2007. Creditors are asked to file their proofs of debt by that day to be included in the company's dividend distribution. The members will also meet on November 15, 2007, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia About Butselaar Trading Located at Hawthorn, in Victoria, Australia, Butselaar Trading Co Pty Ltd is an investor relation company. CHRYSLER LLC: Four Union Locals Reject UAW-Chrysler Labor Pact -------------------------------------------------------------- Four large union locals, representing a majority vote of Chrysler's 45,000 union members, rejected the United Auto Workers union's pact with Chrysler LLC over the weekend, according to various reports. Locals from Delaware, Missouri and Ohio turned down the pact on Saturday while a Detroit local with 2,200 UAW members, vetoed it on Sunday. Reports say the UAW-Chrysler pact failed to be ratified by 54% of the members of the UAW Local 1183, in Newark, Delaware. About 79% production workers and 66% skilled trade workers of the 2,900-member Local 110 in Fenton, Missouri, turned down the pact. Union locals who vetoed the deal include the Detroit Axle plant, the St. Louis North pick up plant and a stamping plant in Twinsburg, Ohio. On the other hand, UAW Local 868 in Georgia, which represents just 94 members, accepted the labor contract. Approximately 78% members of Local 72, a union local with 800 workers in Kenosha, Wisconsin, voted yes, while 22% were against the deal. As reported in the Troubled Company Reporter on Oct. 19, 2007, Bill Parker, Chair of the 2007 UAW Chrysler National Negotiating Committee, who voted against the new tentative labor agreement between Chrysler LLC and the United Auto Workers union, released a minority report to the members of the UAW Chrysler Council, urging the Council to reject Chrysler's offer and let the Committee return to the bargaining table. As previously reported, the UAW Chrysler Council, which includes local union leaders from Chrysler LLC facilities throughout the U.S., voted overwhelmingly to recommend ratification of the tentative agreement reached on Oct. 10, 2007. Mr. Parker, however, disclosed that the National Negotiating Committee had a split vote on the contract. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CHRYSLER LLC: Negotiator Urges UAW Leaders to Reject New Pact ------------------------------------------------------------- Bill Parker, Chair of the 2007 UAW Chrysler National Negotiating Committee, who voted against the new tentative labor agreement between Chrysler LLC and the United Auto Workers union, released a minority report to the members of the UAW Chrysler Council, urging the Council to reject Chrysler's offer and let the Committee return to the bargaining table. As reported in the Troubled Company Reporter on Oct. 16, 2007, the UAW Chrysler Council, which includes local union leaders from Chrysler LLC facilities throughout the U.S., voted overwhelmingly to recommend ratification of the tentative agreement reached on Oct. 10, 2007. Mr. Parker, however, disclosed that the National Negotiating Committee had a split vote on the contract. GM-UAW Agreement He enumerates his concerns with the General Motors Corp. Agreement: a) The establishment of a two-tier wage and benefit package for the "entry level" employees. Two tiers of workers create divisions within the union, pressure to reduce the top tier in the direction of the second tier and efforts to drive the second tier even lower. b) The division of our facilities into core and non-core jobs. Many of the best jobs in the plants - currently held by high seniority employees -- will be filled in the future with entry level employees. c) The elimination of all janitors throughout the company. d) The elimination of any general wage increase throughout the life of the agreement, along with cost of living allowance diversions to a degree never seen before. In the worst years of the 1980s, workers always had at least one 3% raise. The COLA diversions projected in the contract will far exceed the sum of all previous COLA diversions combined. e) A two-year limitation on receiving job bank funds if an open job exists anywhere in the company. After that, a worker could be forced to move anywhere in the country to the open job, wherever it is. f) The failure to provide any sort of equality of sacrifice or to provide for a catch-up if the company turns around in the future. Chrysler-UAW Agreement Aside from the above concerns, Mr. Parker outlines additional areas of concern: a) No Commitment Beyond Current Production Virtually no Chrysler plant received commitment beyond the scope of their new product, unlike the GM contract which committed to product past the current lifecycle being built today. When GM locals seek to negotiate local agreements, they won't be confronted with the threat of no new product, because it is locked into their national agreement. Unbelievably, the Chrysler agreement does not give workers the same protection. The GM agreement brought back to the U.S. several products slated for outsourcing. Yet, the Chrysler contract failed at that. Several of the next products will be built in Mexico, Canada or China. b) Four Facilities To Be 100% Entry Level The establishment of permanent two-tier relations will be a threat to the unity and solidarity within the union. But unlike GM, Chrysler has facilities that are 100% entry level once traditional employees leave. Those entry level employees won't have any place to move up for they will have signed for entry level wages for life. Under the tentative agreement, Toledo Machining, Marysville Axle, Chrysler Transport, and all Mopar facilities are those facilities. c) Reduced Seniority Opprotunities Classifications are being totally eliminated from production jobs on Smart teams. In exchange for a few pennies per hour, members are giving up any classification variation for team members. d) No Roll-Over of Temporaries The GM agreement rolled over 3,000 temporary employees to permanent, full-time, traditional status. At Chrysler, none were rolled-over. e) Added Costs for Retirees Pattern for Chrysler in 2007 also means accepting the 2005 concessions made at GM and Ford Motor Co., meaning the dollar an hour active workers held on to will be eaten away by future COLA diversions (after the first ten cents is snatched each quarter). In 2005 and 2006, this Council insisted that it wanted no health care costs passed on to retirees. f) Skilled Trades Issues The trades avoided many of the issues facing production; however, retiree pensions and benefits for new hires will be different than for traditional employees. The effort to reduce the number of trades will continue through annual packages -- something not offered to production workers. New, under this contract, is that skilled trades employees on layoff or in the job bank can be called to take open jobs in production, though they will kept their skilled wages. Although, separate trades are protected under the "trades consolidation" language, the door is now open for management to expect one trade to do the work of other trades. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. COLES GROUP: Woolworths Hopes on Coles Shareholders to Get Kmart ---------------------------------------------------------------- Woolworths Ltd.'s last chance to acquire Coles Group Ltd.'s Kmart line brand relies on Coles' shareholders, Vanda Carson writes for The Sydney Morning Herald. SMH relates that Woolworths, after being denied by The Australian Competition and Consumer Commission from acquiring Coles Group's Kmart, is pinning its hopes on the slim chance that the Coles shareholders will reject Wesfarmers' bid on November 7, alternatively hoping that Wesfarmers may offload the underperforming Kmart from its acquisition bid. However, the report says that Wesfarmers had been firm on not selling Kmart to a direct competitor. As reported by the Troubled Company Reporter-Asia Pacific on October 19, 2007, regulator ACCC disapproved Woolworths' purchase of Kmart because "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." 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. COLES GROUP: Wesfarmers Taps Archie Norman to Handle Takeover ------------------------------------------------------------- Coles Group Ltd. procurer, Wesfarmers Ltd., disclosed that Archie Norman joined the company to advise it on its acquisition of Coles, various reports say. Mr. Norman, according to Robert Fenner of Bloomberg News, ran the ailing U.K. retailer Asda Group Plc for almost nine years before selling the company to Wal-Mart Stores Inc. in June 1999 for GBP6.7 billion, which was seven times the company's market value when he started. In an article by Reuters, analysts say that Wesfarmers faces a difficult job turning around Coles Group's struggling core supermarkets and liquor business, which has posted flat sales and lost market share to larger rival Woolworths. Wesfarmers further said in its statement that Mr. Norman also acted as a consultant for Permira, which was planning to bid for Coles earlier this year, conveys Reuters. Bloomberg quotes Wesfarmers managing director Richard Goyder as saying, "Archie's great retail expertise in leading the team that so successfully turned around Asda will make a tremendous contribution before and after we embark on that task." According to the Reuters, Mr. Goyder said that "(Norman) is already familiar with Coles given his visits to Australia during the due diligence phase of the transaction and his very active involvement in the management presentations in May." Both reports say that Mr. Norman will occupy deputy chairman of the board overseeing Coles' core food, liquor and convenience store businesses and on the recruitment of executives after the takeover. 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. COOL AS REFRIGERATION: Members Resolve to Liquidate Business ------------------------------------------------------------ At an extraordinary general meeting held on September 17, 2007, the members of Cool As Refrigeration Pty. Ltd. resolved to voluntarily liquidate the company's business. N. Giasoumi and R. D. Grant were named as liquidators. The Liquidators can be reached at: N. Giasoumi R. D. Grant Dye & Co. Pty Ltd 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Cool Dynamics Cool Dynamics Refrigeration Pty Ltd is a distributor of refrigeration equipments and supplies. The company is located at Dandenong South, in Victoria, Australia. DB METAL: Will Declare First Dividend on November 8 --------------------------------------------------- DB Metal Products Pty Ltd, which is in liquidation, will declare its first dividend on November 8, 2007. Creditors who were not able to file their proofs of claim by October 3, 2007, will be excluded from the company's dividend distribution. The company's liquidator is: B. L. Morgan Rodgers Reidy Chartered Accountants Level 10, 200 Queen Street Melbourne, Victoria 3000 Australia About DB Metal DB Metal Products Pty Ltd, which is also trading as DB Metal Acoustics, is in the business of sheet metal work. The company is located at Doveton, Victoria, Australia. DEUGRO AUSTRALIA: Members Resolve to Liquidate Business ------------------------------------------------------- During a general meeting held on September 12, 2007, the members of Deugro Australia Pty Limited resolved to voluntarily liquidate the company's business. J. P. Downey was appointed as liquidator. The Liquidator can be reached at: J. P. Downey J P Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About Deugro Australia Deugro Australia Pty Limited, which is also trading as Olivevale Cattle Station, is a land subdivider and developer, except for cemeteries. The company is located at Mareeba, in Queensland, Australia. HOUSEBOAT INDUSTRIES: Members and Creditors to Meet on Oct. 26 -------------------------------------------------------------- The members and creditors of Houseboat Industries Pty Ltd will meet on October 26, 2007, at 9:35 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: R. A. Sutcliffe Ground Floor, 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 About Houseboat Industries Houseboat Industries Pty Ltd is in the business of boat building and repairing. The company is located at Eildon, in Victoria, Australia. MSD DEVELOPMENTS: Appoints G. A. Crisp as Liquidator ---------------------------------------------------- On September 6, 2007, the Federal Court of Australia appointed G. A. Crisp as the liquidator for MSD Developments Pty Ltd. The Liquidator can be reached at: G. A. Crisp c/o RSM Bird Cameron Partners Level 8, 525 Collins Street Melbourne, Victoria 3000 Australia About MSD Developments MSD Developments Pty Ltd is in the business of heavy construction. The company is located at Cormer, in Victoria, Australia. NEIL SLATER: Placed Under Voluntary Liquidation ----------------------------------------------- During a general meeting held on September 14, 2007, the members of Neil Slater Signage Pty Ltd resolved to voluntarily liquidate the company's business. Sule Arnautovic was tapped as liquidator. The Liquidator can be reached at: Sule Arnautovic Jenkins Peake Chartered Accountants PO Box 1570 Geelong, Victoria 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 About Neil Slater Neil Slater Signage Pty Ltd operates nonclassifiable establishments. The company is located at Mordialloc, in Victoria, Australia. PEABODY ENERGY: Paying 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. SEYRIC TRADING: Members Resolve to Liquidate Business ----------------------------------------------------- On September 17, 2007, the members of Seyric Trading International Pty Ltd agreed to voluntarily liquidate the company's business. N. Giasoumi and R. D. Grant were named as liquidators. The Liquidators can be reached at: N. Giasoumi R. D. Grant Dye & Co. Pty Ltd 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Seyric Trading Seyric Trading International Pty Ltd operates manufacturing industries. The company is located at Bayswater, in Victoria, Australia. TERHIL JOMAR: Members Agree on Voluntary Liquidation ---------------------------------------------------- At an extraordinary general meeting held on September 17, 2007, the members of Terhil Jomar Pty Ltd agreed to voluntarily liquidate the company's business. The company's liquidators are: N. Giasoumi R. D. Grant Dye & Co. Pty Ltd 165 Camberwell Road Hawthorn East, Victoria 3123 Australia About Terhil Jomar Terhil Jomar Pty Ltd is involved with highway and street construction, except for elevated highways. The company is located at Helensvale, in Queensland, Australia. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: Profit for First Nine Months Increases 64% ------------------------------------------------------------- Agricultural Bank of China made an operating profit of more than CNY70 billion (US$9.3bil) in the first nine months, up more than 64% from CNY42.57 billion a year earlier, The Business Star reports, citing a statement from the bank's president, Xiang Jun. The bank, the last state lender yet to be bailed out by the government, reported record operating profits of CNY58.1 billion (US$7.73bil) last year as it wiped CNY4.2 billion worth of non- performing loans off its books, the report says. Meanwhile, preparations for AgBank's long-awaited restructuring were proceeding smoothly, but the authorities were still working on the details, Mr. Xiang was quoted as saying by the official Financial News. Mr. Xiang said the bank would follow a restructuring and IPO path similar to that taken by China's other three big state lenders. The Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. AGRICULTURAL BANK: CBRC Chairman Denies Split Up Reports -------------------------------------------------------- Liu Mingkang, chairman of the China Banking Regulatory Commission, doused speculation that the Agricultural Bank of China could be split up as part of a restructuring to prepare it for a stock market listing, Reuters reports. According to Mr. Liu the bank would be overhauled in the same way as other big banks. "In my eyes there will be no difference, talking about their reform and restructuring, by nature, in process, in goals, in implementation -- no difference," he said. Asked by Reuters whether that meant that AgBank would not hive off some of its 14,500 rural branches into independent companies, Mr. Liu replied: "The most valuable thing for a bank is their outlets, their network," adding that the bank would be restructured integrally. "That means they will be reshaped as a whole." The Troubled Company Reporter-Asia Pacific reported on Oct. 12, 2007, that the Agricultural Bank of China may move some of its 14,500 rural branches to independent companies in order to speed up a government bailout. Citing the report from Bloomberg, the TCR-AP said that the bank plans to reduce its ownership in unprofitable offices to trim delinquent debt. AgBank is saddled with a non-performing loan ratio of 23% and analysts estimate the bailout cost will far exceed US$100 billion. The bill is expected to include a US$40 billion infusion of capital from Central Huijin, an investment agency now owned by China Investment Corp, the country's new sovereign wealth fund. The Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. ANDREW CORP: S&P Holds 'BB-' Corporate Credit & Debt Ratings ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its ratings on Hickory, North Carolina-based CommScope Inc. and Westchester, Illinois-based Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn following its acquisition and debt refinancing. The outlook is stable. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to CommScope's US$2.5 billion first-lien credit facilities. The US$2.1 billion term loan and US$400 million revolving credit facility are rated 'BB-', with a recovery rating of '3', indicating the expectation for meaningful (50%- 70%) recovery in the event of a payment default. Proceeds from the term loan will be used to partially fund its US$2.6 billion acquisition of Andrew. "The ratings on CommScope after the acquisition reflect an increase in leverage, a short operating track record at current profitability levels, and integration challenges," said Standard & Poor's credit analyst Lucy Patricola. "These are offset partially by solid market positions with major telecommunications providers and good cash flow." CommScope's market position in coaxial cable and environmentally secure cabinets used by wireline carriers complements Andrew's key business that provides antennae used in wireless base stations. CommScope's financing of the acquisition increases leverage substantially from recent levels of about 1.5x. Based on the following assumptions, pro forma debt to EBITDA is about 4x, within expectations for the rating. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. ASIA TELEMEDIA: Files Evidence to Counter Wind-Up Petition ---------------------------------------------------------- Asia TeleMedia Limited has valid grounds to oppose the winding up petition filed by an unnamed petitioner after considering the advice from its legal advisors, Infocast News says. According to the report, Asia TeleMedia has filed evidence in opposition and attended the court hearing on October 15 to strenuously object the petition. No date has yet been fixed for the court hearing of the winding up petition. The Troubled Company Reporter-Asia Pacific reported on Oct. 3, 2007, that a court in Hong Kong will hear the wind-up petition filed by an unnamed petitioner against Asia Telemedia Ltd on October 15, 2007. The petition alleged that the company was indebted to and had failed to satisfy the "Petitioner" of a debt in the amount of approximately HK$70,270,000 as at April 26, 2007, together with interest, the TCR-AP noted. Included in the amount claimed is a loan payable of approximately HK$58,084,000 and an accrued interest of approximately HK$12,186,000. The right to the alleged debt under a repayment agreement dated April 27, 2004, entered into between the company and a former creditor was alleged to have been assigned by the former creditor to the Petitioner in February 2007. Meanwhile, in the event that the court rules against Asia TeleMedia in the proceedings, the company intends to settle the outstanding debt through fund raising exercise. According to the estimation of the legal advisors of Asia TeleMedia, the company has sufficient time to conduct the necessary fund raising exercise before the winding up process concludes. Hong Kong-based Asia TeleMedia Limited -- http://www.asiatelemedia.tv./-- along with its subsidiaries, is principally engaged in securities broking, underwriting, asset management, share margin financing and investment holding. The company's holding company is United Telecom Limited. Asia Telemedia Ltd's unaudited balance sheet as of June 30, 2007, went upside down by HK41.98 million on total assets of HK$129.93 million and total liabilities of HK$171.91 million. BLESSEARN LIMITED: Court to Hear Wind-Up Petition on Nov. 14 ------------------------------------------------------------ A petition to have Blessearn Limited's operations wound up will be heard before the High Court of Hong Kong on November 14, 2007, at 9:30 a.m. The petition was filed by AHMED, Mohammad Faroque on Sept. 3, 2007. CHINA SOUTHERN: To Open Direct Guangzhou-Vientianne Flights ----------------------------------------------------------- China Southern Airlines will launch direct flight service between Guangzhou, capital of South China's Guangdong Province, and Vientiane of Laos from November 6, Xinhuanet News reports. This will be the only flight linking Guangzhou and Laos, the report adds. With the flight dubbed CZ3057, Airbus A319 aircraft will take off from Guangzhou at 8:50 a.m. every Tuesday and Friday, and reach Vientiane at 10:20 a.m. The returning flight CZ3058 will take off at 11:20 a.m. from Vientiane and arrive in Guangzhou at 14:40. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. CHANGAN AUTO: Plans to Set Up Fourth R&D Center in Japan -------------------------------------------------------- Changan Auto Group is planning to set up its fourth Research & Development center in Japan to help achieve its aim of developing both domestic and overseas markets, Asia Pulse says, citing a report from Shanghai Securities News. Xu Liuping, president of Changan Auto Group, was quoted by the Securities News as saying that Japan enjoys the advantage of refined designs and Changan Auto needs to improve in this aspect. So far Changan has set up three R&D centres in Chongqing, Shanghai and Italy. Changan spent CNY4.5 billion (US$598 million) in R&D in the period of 2001 to 2006, accounting for 4% of its sales income. Its R&D centres employ over 3,000 people and have independently developed six-model concept vehicles and 10-model complete vehicles, Asia Pulse notes. Mr. Xu added that the company plans to invest CNY12 billion in R&D towards 2010. He added that Changan Auto Group will offer about 30-model new vehicles within next three years. Chongqing Changan Chongqing, China-based Chongqing Changan Automobile Company Limited is principally engaged in the development, manufacture and sale of mini passenger vehicles, minivans, commercial vehicles and passenger cars. The company offers its products under seven brands: mini passenger vehicles are under the brand Changan Star; minivans are under the brand Changan, and passenger cars are under the brands Alto, Lingyang, Fiesta and Mondeo. It also manufactures and distributes various engines, under the brand Jiangling. During the year ended December 31, 2005, the company manufactured 489,368 vehicles and sold 474,625 vehicles, accounting for approximately 8.24% of the domestic market. Chongqing Changan Automobile has formed partnership with Suzuki Motor Corporation and Ford Motor Company. The company has 12 major subsidiaries/associates. The Troubled Company Reporter - Asia Pacific reported that Fitch Rating assigned, on September 20, 2006, a long-term foreign and local currency Issuer Default ratings of BB to Chongqing Changan Automobile Co. Ltd. The rating outlook is stable. CITIC BANK: Top Official Denies Bear Stearns Acquisition Reports ---------------------------------------------------------------- China Citic Bank is not in talks to acquire a stake in Bear Stearns, contrary to media reports on the planned stake purchase, Infocast News reports, citing a Chinese regulator and a top CITIC official. In a statement filed with the Hong Kong Stock Exchange, the bank said: "At present, the company has not entered into any negotiation nor reached an agreement or intention with Bear Stearns or other related parties in relation to the acquisition of shares in Bear Stearns." There has been a wide speculation regarding the planned stake purchase after China Banking Regulatory Commission Vice Chairman Jiang Dingzhi and CITIC Group President Chang Zhenming told reporters that CITIC Bank is in discussion to buy a stake in Bear Stearns. "At present, the company does not have any plan to acquire any shares in Bear Stearns. The company also undertakes no plans to acquire shares in Bear Stearns within at least next three months," the statement said. CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned subsidiary of the state conglomerate Citic Group (S&P: BB+ long- term and B short-term foreign currency counterparty credit rating). With 41 branches, CITIC Bank had total assets of CNY689.5 billion at the end of September 2006. The bank carries Fitch Ratings' Individual strength of D and support rating of 2 following its IPO which, improved the bank's capitalization, strengthened ability of the government to support and CNCB's historically close relationship with the central government. The Troubled Company Reporter-Asia Pacific reported on May 10, 2007, that Moody's Investors Service handed a Bank's Bank Financial Strength Rating of D- to CITIC Bank. CHINA EVERBRIGHT: End-September NPL Ratio Down 5.97% --------------------------------------------------- China Everbright Bank's non-performing loan ratio at the end of September was 5.97%, down 1.61 percentage points from the beginning of the year, Infocast News says. The outstanding NPL at the end of September fell by CNY1.917 billion from the start of 2007. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/-- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China has approved mid-sized lender China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. CONDO CURTAIN: Creditors' Proofs of Debt Due on October 26 ---------------------------------------------------------- The creditors of Condo Curtain Wall Company Limited are required to file their proofs of debt by October 26, 2007, to be included in the company's dividend distribution. The company's liquidators are: Desmond Chung Seng Chiong Roderick John Sutton c/o Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor 3A Chater Road Hong Kong EASY FASHION: Names Seng and Lo as Liquidators ---------------------------------------------- Natalia K M Seng and Susan Y H Lo were named liquidators for Easy Fashion Company Limited on September 28, 2007. The Liquidators can be reached at: Natalia K M Seng Susan Y H Lo Three Pacific Place, Level 28 1 Queen's Road East Hong Kong FIAT SPA: European Commission Sets Inquiry Deadline to Nov. 21 -------------------------------------------------------------- The European Commission has established Nov. 21, 2007, as its inquiry deadline for Fiat S.p.A.'s proposed acquisition of Ergom S.p.A., Thomsom Financial reports. As reported in the TCR-Europe on Aug. 6, 2007, Fiat is acquiring the entire share capital of Ergom Holding for a "symbolic" price and that Ergom is in a financial crisis and owes money to Fiat. Ergom, which supplies car shelves and fuel tanks to Fiat, employs 4,000 people at 11 sites in Italy, France, Brazil, Poland, and Turkey, Thomson Financial relates citing an industry source. The supplier has sales of EUR540 million, 80% of which were to Fiat. According to TCR-Europe, Fiat considers its acquisition of Ergom as strategic, since it would guarantee the supply of components. 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 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. GALAWELL INVESTMENT: Members Agree on Voluntary Wind-Up ------------------------------------------------------- At an extraordinary general meeting held on October 5, 2007, the members of Galawell Investment Limited agreed to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt by Nov. 12, 2007, to be included in the company's dividend distribution. The company's liquidator is: Ng Lai Ching 2803 Universal Trade Centre 3-5 Arbuthnot Road Hong Kong GREENTOWN CHINA: Forms JV with Wharf Unit on Hangzhou Project ------------------------------------------------------------- Greentown China has formed a joint venture with Harbour Centre Development Ltd, a unit of Wharf (Holdings), to develop land in Hangzhou, eastern China, Infocast News reports. Greentown will take 60% of the joint venture, while Harbour Centre will own the remaining stake. The site, which was acquired by Greentown for CNY3.49 billion, will be developed into residential and commercial properties with a total gross floor area of 296,800 square meters. Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. The TCR-AP also reported that, on October 26, 2006, Standard & Poor's Ratings Services said that it had assigned its 'BB' long- term corporate credit rating to Greentown China Holdings Ltd. The outlook is stable. At the same time, it assigned its 'BB' issue rating to a proposed US$375 million issue of senior unsecured fixed-rate notes. The issue is due 2013 and redeemable after 2010. The proceeds will be used primarily for land acquisitions, development costs, and general corporate purposes. HAINAN AIRLINES: Plans To Set Up Insurance JV with Shin Kong ------------------------------------------------------------ Hainan Airlines is planning to set up a joint venture with Taiwan's Shin Kong Financial group early next year, Infocast News reports, citing Hainan Chairman Chen Feng. According to Mr. Chen, preparations for the 50-50 joint venture between Hainan Airlines' parent HNA Group and Shin Kong are underway, after it received approval from the Chinese government. The venture still needs further approval from other regulators, Mr. Chen added. Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 31, 2005. Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 31, 2005. HONICA WATCH: Liquidators Quit Post ----------------------------------- Kam Chi Kan Elson and Yu Shi Kuen quit as liquidators of Honica Watch Limited on September 28, 2007. The former Liquidators can be reached at: Kam Chi Kan Elson Yu Shi Kuen The Centre Mark, Room 801 287-299 Queen's Road Central Hong Kong INT'L PAPER: Board Oks Amendment of Certificate of Incorporation ---------------------------------------------------------------- International Paper Co.'s Board of Directors has authorized an amendment to the company's certificate of incorporation to declassify the board of directors and to provide for the annual election of directors. The company's proxy statement will include a proposal to shareholders, recommended by the board, to approve the amendment at the 2008 annual shareholders' meeting. The directors of International Paper currently are elected by class to staggered three-year terms. If the amendment is approved, declassification will be phased in over a three-year period. Beginning with the 2011 annual meeting, all directors will be elected annually for one-year terms. The phased-in approach allows for a simplified transition under both New York law and the company's certificate of incorporation, and provides needed continuity throughout the company's transformation plan. "Our board of directors has reviewed these issues carefully and decided to begin instituting this change," said John Faraci, International Paper chairman and chief executive officer. "Over the past several years, the company considered the issue of annual director elections, and with the transformation plan well underway, we believe the timing is right to move forward." Separately, the board of directors also unanimously authorized an amendment to the company's certificate of incorporation to provide for the election of directors by majority vote, following a 2007 shareholder proposal, endorsed by the board, in favor of the change. The company's proxy statement will include a proposal to shareholders, recommended by the board, to approve this amendment at the 2008 annual shareholders' meeting. Details of these actions will be provided in the company's proxy statement, which will be sent to all shareholders in advance of the 2008 annual meeting. 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, including China. * * * 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. KONKA GROUP: Inks Cooperation Agreement with Texas Instrument ------------------------------------------------------------- Konka Group Co Ltd, one of China's top television and mobile handset makers, has signed a cooperation agreement with Texas Instruments to develop Internet Protocol TV (IPTV)-related products, XFN-Asia reports. Under the agreement, the two parties will develop and produce IPTV-related products including terminals based on Texas Instruments' DaVinci technology, a statement from Konka said. The move will help promote the commercialization of household intelligence terminals, it added. No financial details were provided. Headquartered in Shenzhen, Guangdong Province, the People's Republic of China, Konka Group Co., Ltd. -- http://www.konka.com/-- is a manufacturer of electronics and telecommunications products. The Company has established five manufacturing bases, located in Mudanjiang, Shaanxi Province, Dongguan, Anhui Province and Chongqing. It also has a nationwide sales and services network, with 300 sales branches, 7,000 retailers and 30,000 services centers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on July 10, 2006. LANDMARK COMMODITIES: Placed Under Voluntary Liquidation -------------------------------------------------------- On October 3, 2007, the members of Landmark Commodities Limited met and agreed to voluntarily liquidate the company's business. Sung Mi Yin was named as liquidator. The Liquidator can be reached at: Sung Mi Yin Ritz Plaza, Suite No. A, 11th Floor 122 Austin Road, Tsimshatsui Kowloon Hong Kong ORIENTFIELDS ENTERPRISES: Appoints Mo Pui Lam as Liquidator ----------------------------------------------------------- On October 12, 2007, the members of Orientfields Enterprises Limited passed a resolution to liquidate the company's business. Mo Pui Lam was appointed as liquidator. The Liquidator can be reached at: Mo Pui Lam Champion Building, Flat E, 15th Floor Nos. 287-297 Des Voeux Road Central Hong Kong TCL CORP: Rebuffs Reports on Philips Acquisition of TV Unit ----------------------------------------------------------- Dutch consumer electronics firm Philips, together with the Chinese TCL Corporation, has denied reports that they are into acquisition talks, Sinocast China reports. According to an Oct. 11 report by the Troubled Company Reporter- Asia Pacific, Philips will commence a tender offer to purchase TCL Multimedia. Christina Zhang, spokeswoman for Philips China, said that the company has not notified the talk. Though TCL's chairman, Li Dongsheng, has not commented on the report, the company's spokesman, Wang Yifei, also denied the report, Sinocast notes. TCL will not sell the Hong Kong listed unit that has developed color TV as its main business, Lu Renbo, research at the State Council, China's cabinet, told the news agency. This is because the color TV business, its backbone, accounts for 51% to the group's total business, though TCL is also engaged in cell phone, computer, as well as LCD module business. In April, Philips was said to eye TCL's color TV business. However, the plan turned to ash mainly due to the disagreement from France-based Thomson SA, a shareholder of TCL Multimedia, TCR-AP said, citing sources. TCL Multimedia on October 1 appointed Leong Yue Wing, the former executive vice president of Business Group Entertainment Solution at Philips, as the CEO, a move making industry watchers believed the rumor. But Lian Qichun, general manager of TCL Brand Center, said that Leong Yue Wing has retired from Philips and has nothing to do with the Dutch company. About TCL Corp Headquartered in Guangdong Province, China, TCL Corporation -- http://www.tcl.com-- Corporation is principally engaged in the manufacture of TV sets and handset products. TCL Corp is the parent of Hong Kong-listed TV maker TCL Multimedia Technology Holdings Ltd and cellphone maker TCL Communication . Xinhua Far East China Ratings has downgraded on April 7, 2006, the domestic currency issuer credit rating of TCL Corporation to "BB" from "BBB". The ratings outlook remains negative. About TCL Multimedia Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclhk.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. On Aug. 31, 2006, the Troubled Company Reporter-Asia Pacific reported that TCL Multimedia Technology Holdings Limited's European operations posted a CNY763 million loss, which caused losses of the TCL Corp. group to widen to CNY737.56 million. Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is expecting to post a loss for the full-year because first-half losses had been so large. In the first half of 2006, TCL reported a net loss of CNY737.56 million, after a loss of CNY320.24 million in 2005. The TCR-AP report recounted that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT. TTE Europe SAS, TCL's European unit, filed a declaration of insolvency on May 24, 2007, in France after it failed to settle a number of outstanding liabilities. THE WALT DISNEY: Names Seng and Lo as Liquidators ------------------------------------------------- On September 28, 2007, Natalia K M Seng and Susan Y H Lo were appointed liquidators for The Walt Disney Studios Asia Pacific Limited. The Liquidators can be reached at: Natalia K M Seng Susan Y H Lo Three Pacific Place, Level 28 1 Queen's Road East Hong Kong TOM GROUP: S&P Places BB+ Credit Rating on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit rating on TOM Group Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's also placed its 'BB+' issue rating on US$150 million convertible bonds due 2008 issued by the company's subsidiary TOM Holdings Ltd. on CreditWatch with negative implications. "The CreditWatch actions primarily reflect a significant weakening of the underlying earnings prospects of TOM's wireless Internet services business, which has historically contributed near 90% of the group's revenue," said Standard & Poor's credit analyst Lawrence Lu. The wireless segment's revenue slumped 32.9% in the second quarter of 2007, partly due to a structural change in the industry. Wireless application protocol (WAP) service providers are now required to prompt users with fee reminders as they use WAP services. This has led to an overall reduction in revenue for WAP service providers, as customers have been more conscious about service costs. TOM's wireless revenue has also been affected by the successful strategic alliances between China Mobile Ltd. (A/Positive/--) and select mobile phone producers. The producers have embedded menus in their handsets that complement China Mobile's best- selling wireless value-added services. The CreditWatch status will be resolved after Standard & Poor's: (1) fully considers the longer-term implications of the recent structural changes to the wireless Internet services sector; (2) holds further discussions with TOM's management about its competitive response to China Mobile's recent strategic initiatives; and (3) assesses the credit impact of the company's current business restructuring. The rating is likely to be lowered unless Standard & Poor's is satisfied that TOM can arrest some of the negative impact of these issues on its operating performance. About TOM Group Limited TOM Group Limited (stock code: 2383) is listed on the Main Board of the Stock Exchange of Hong Kong. A leading Chinese-language media conglomerate in Greater China, TOM Group has diverse business interests in Internet (TOM Online), Outdoor Media (TOM Outdoor Media Group), Publishing, Television and Entertainment across markets in Mainland China, Taiwan and Hong Kong. In each of the areas it operates, TOM Group has secured market leadership. YIU TING: Requires Creditors to File Claims by November 5 --------------------------------------------------------- At an extraordinary general meeting held on October 2, 2007, the members of Yiu Ting Company Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt by Nov. 5, 2007, to be included in the company's dividend distribution. The company's liquidators are: Wu Wallen Hong Kong Trade Centre, 7th Floor 161-167 Des Voeux Road Central Hong Kong ========= I N D I A ========= GENERAL MOTORS: UAW Agreement Cues Fitch to Remove Neg. Watch ------------------------------------------------------------- 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: General Motors Corp. -- IDR 'B'; -- Senior secured 'BB/RR1'; -- Senior unsecured 'B-/RR5'. GM's Rating Outlook is Negative. Fitch will review the terms of the new agreement, but does not anticipate an Outlook revision or rating change as a result of the contract alone. Any change in the Rating Outlook is not expected until aclear path to positive free cash flow is established, and Fitch estimates that the full removal of retiree health care costs will be insufficient in itself to accomplish this. The ability to achieve positive free cash flow will also hinge upon GM's ability to stabilize volume and revenues in North America, and to establish further improvement in its fixed cost structure through restructuring actions and labor outsourcing. The contract has yet to be ratified, which could remain a hurdle. Failure to ratify the contract, which would send the parties back to the negotiating table, would likely result in another Rating Watch Negative placement. Terms of the contract that Fitch will be focusing on include: -- The funding amount, structure and timetable of an independent VEBA trust to remove retiree healthcare liabilities from the balance sheet; -- The terms of any contingent funding requirements for GM related to the VEBA trust; -- Changes to job classifications and wage rates - effectively the establishment of a two-tier wage scale through greater flexibility in labor outsourcing to parts manufacturers and/or other third-party suppliers; -- Changes to health care costs for retirees and existing workers; -- Risks associated with any changes to pension obligations from wage rates, or to pension benefits paid; -- The flexibility to downsize manufacturing and personnel costs in response to cyclical market conditions or product performance; -- Commitments by GM to maintain employment levels (including the terms of any job banks) or product programs at U.S. manufacturing operations; -- The cost of payments to workers for ratification, and the costs of any subsequent buyout packages; -- GM's liquidity position following the financing of VEBA and other costs related to the terms of the contract. A subsequent review of the Rating Outlook or rating will encompass the impact of these contract terms in the context of additional rating factors listed below: -- GM's liquidity buffer and ability to finance large working capital requirements, economic and product cycles and restructuring actions over the next several years; -- Fitch's Recovery Rating analysis estimates that further plant closings and restructuring actions, beyond what is currently contemplated, will be needed to restore North American operations to viable operating margins in the absence of an upturn in revenue performance; -- GM's liquidity over the past several years has been boosted by numerous asset sales that have reduced asset protection for debt holders and GM's earnings capacity. Asset sales have included a controlling interest in GMAC, Allison Transmission, its electro-motive division and shareholdings in Suzuki and Fuji Heavy Industries. Proceeds have been used to finance operating losses, substantial costs related to Delphi, the funding of an independent VEBA related to an earlier healthcare agreement with the UAW, and a price adjustment related to the sale of GMAC, all of which have reduced available liquidity; -- Despite the potential removal of health care liabilities, GM's balance sheet has added significant incremental debt over the past several years, and the potential absence of free cash flow available over the near term will preclude significant debt reduction from existing levels; -- Ongoing heavy costs related to its agreement with Delphi, and any additional costs required to assist in Delphi's emergence from bankruptcy; -- The impact of local labor agreements on GM's fixed cost structure; -- GM's North American revenue performance which will remain under pressure for at least the next twelve months due to deteriorating economic conditions, the impact of a recessionary housing market on pickup sales, and weak performance across a number of GM's product segments; -- Strong performance of GM's international operations, and the ability of those operations to contribute to the servicing of consolidated liabilities. 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: S&P Places BB+/B-1 Credit Rating on Watch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services has placed its ratings on GMAC LLC, including its 'BB+/B-1' counterparty credit rating, on CreditWatch with negative implications. "The CreditWatch action follows the announcement of GMAC's 100% owned subsidiary, Residential Capital LLC (BBB-/Watch Neg/A-3), of a significant downsizing of its operations," said S&P's credit analyst John K. Bartko. "The plan includes an employee reduction of approximately 3,000 or 25% of the total headcount. Additionally, the cost of the reduction, which will be reflected as a fourth-quarter 2007 charge on Residential Capital LLC's books, will be approximately US$100 million." Residential Capital LLC has historically been a significant contributor to GMAC's operating performance. However, recent market conditions have increasingly pressured operations at Residential Capital LLC, which has reported sizable losses in each of the previous three quarters. Though Residential Capital LLC's downsizing of its business may represent a prudent move over the longer term, the decision to contract the business and S&P's concerns about the near and longer term prospects for Residential Capital LLC prompted the placement of GMAC's and Residential Capital LLC's ratings on CreditWatch. In the near term, S&P's concerns have grown regarding the reduced probability of improvement in third- quarter results versus those of the second quarter for Residential Capital LLC. This concern is driven by results to date of other lenders in the mortgage business, which has reflected both credit- and market-related charges and marks. S&P also considered S&P's expectations of continued weakness in the housing and mortgage markets through the rest of 2007 and into 2008, and hence ongoing pressure on Residential Capital LLC business over the intermediate term. Finally, S&P is concerned about increasing uncertainty surrounding Residential Capital LLC's downsized business model, as it would be challenging for Residential Capital LLC to earn a satisfactory return by increasing its focus on higher quality, lower yielding asset types with funding dependence on the collateralized capital markets. "Resolution of the CreditWatch listing will be driven by third- quarter results and company expectations for future results," Mr. Bartko said. 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. ICICI BANK: U.S. Fed Okays Setting Up of New York Branch -------------------------------------------------------- ICICI Bank Limited, on Friday, sought and obtained the United States Federal Reserve's approval to set up a branch in New York. The branch in the Big Apple would engage in wholesale banking, including trade financing and factoring services, to U.S.-based subsidiaries of Indian companies, media reports say citing a Federal Reserve statement. The U.S. Fed pointed out that ICICI's application met the requirements of International Banking Act and the bank is also supervised by the Reserve Bank of India. The Fed also determined that the bank has set in place anti-money-laundering policies and has taken additional steps to combat money laundering and other illegal dealings. According to the Business Standard, the bank waited for three years to open a U.S. branch. The branch will be an efficient way to service clients and will also allow ICICI to raise funds in the U.S. markets, ICICI Bank Joint Managing Director Chanda Kochhar told BS. Currently, ICICI only operates a representative office in New York and engages in non-bank activities through various subsidiaries, Reuters noted. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. SOUTHERN IRON: To Consider Results and Merger Scheme on Thursday ---------------------------------------------------------------- Southern Iron & Steel Company Ltd's board of directors will hold a meeting on Thursday, Oct. 25, to consider the company's financial results for the quarter and half-year ended Sept. 30, 2007. The board will also deliberate on a draft scheme of amalgamation of the company with JSW Steel Ltd, including a valuation report and recommendations made by PriceWaterHouse Coopers, the valuers appointed to value the business of the two companies. Headquartered in Salem, India, Southern Iron & Steel Company Limited is engaged in the business of manufacturing pig iron, billets, bars and rods. The Company produces these products at its integrated steel plant located in the district of Salem, Tamil Nadu. The plant has a capacity of 0.3 metric tons per annum. Southern Iron and Steel Company Ltd. also has plants for the generation of power and production of oxygen. On July 20, 2006, CRISIL Ratings reaffirmed the outstanding 'D' rating on the INR280 million Non-Convertible portion of the Optionally Convertible Debenture Issue of Southern Iron & Steel indicating that the instrument continues in default. The original instrument has been restructured and is due for redemption in two installments on May 17, 2007, and May 17, 2008. SPICEJET LTD: To Lease Two Boeing Aircraft to Air India ------------------------------------------------------- Spicejet Ltd has signed an agreement with Air India for the wet lease of two of the company's Boeing 737- 800 aircrafts, for operating daily flights between Lucknow, Varanasi, Jaipur and Nagpur & Jeddah. During the term of the agreement, the company will operate around 120 flights and will carry around 20,000 Haj pilgrims. The company was one of the successful bidders for the tender floated by Air India. As per the agreement, the company will provide its aircraft, pilots and the cabin crew and will also be responsible for the overall maintenance of the aircraft and insurance. Air India will take care of the in-flight catering and passenger handling. This is the first time that Air India has assigned a Cost Carrier the responsibility to fly pilgrims for Haj. Siddhanta Sharma, Executive Chairman, of the company said, "It is a historic moment for us and we are happy to partner Air India. This is first time an Indian Low Cost Carrier has been retained for Haj flights. This is an acknowledgement of our capabilities to undertake overseas operations. I also take this opportunity to extend my wishes to all the pilgrims travelling to Jeddah by Air India flights to be operational by us," he further added. The company has been adding new destinations and increasing the frequency of flights within its existing network. It is the only airline in the LCC segment to post respectable profits in the last quarter. The company is ready to begin its overseas operations next year, after three years of domestic flying, subject to approval by The Cabinet and the Ministry of Civil Aviation. Gurgoan, India-based SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier. In fiscal 2006, SpiceJet carried over 1.6 million passengers. As of May 31, 2006, the company operated over 60 daily flights covering 13 destinations, including eight Boeing 737-800 aircraft. SpiceJet has integrated with various travel related Websites, such as indiatimes, makemytrip, travelguru and cleartrip. The company has launched a co-branded credit card with State Bank of India in association with MasterCard. In fiscal 2006, SpiceJet entered into a sale and lease back agreement with Babcock & Brown Aircraft Management along with its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing 737-800/-900ER aircraft. Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. SPICEJET LTD: Ties Up with S&R Works for In-Flight Marketing ------------------------------------------------------------ SpiceJet Ltd has entered into a marketing tie-up with S&R Works for its in-flight promotional activities. The tie-up is in line with SpiceJet's strategy to increase its ancillary revenues to 7 per cent by FY '08. As per the tie-up, S&R Works will sell onboard advertising properties of SpiceJet. To start with the companies have identified points such as the space on head-rest cover, tray table, and reverse side of boarding pass and overhead bins of the aircraft. With an aim to boost its ancillary revenues, SpiceJet also disclosed a whole host of initiatives which would include sale of fast food, novelty items such as electronic gadgets, wallets, jewelry etc. on all its 15 aircraft flying to the 15 destinations. SpiceJet is also running onboard contest for passengers. Announcing the onboard promotions, Samyukth Sridharan, SpiceJet Chief Commercial Officer said, "Having achieved a remarkable position in the industry in terms of adding new destinations, expanding operations and on-time performance; we are now working towards generating ancillary revenues. Onboard ad space selling and other promotional activities is a strategic step taken by us to raise ancillary revenues and with this initiative we aspire to give our advertisers a chance to impact their brand presence and reach out to millions of passengers that we fly everyday." "We are aiming to raise 7% ancillary revenues by the year end FY '08 with the new in-flight services and stay profitable without burdening our passengers with increased fares," he further added. Gurgoan, India-based SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier. In fiscal 2006, SpiceJet carried over 1.6 million passengers. As of May 31, 2006, the company operated over 60 daily flights covering 13 destinations, including eight Boeing 737-800 aircraft. SpiceJet has integrated with various travel related Websites, such as indiatimes, makemytrip, travelguru and cleartrip. The company has launched a co-branded credit card with State Bank of India in association with MasterCard. In fiscal 2006, SpiceJet entered into a sale and lease back agreement with Babcock & Brown Aircraft Management along with its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing 737-800/-900ER aircraft. Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. VISTEON CORP: Selling Largest UK Operation to Linamar ----------------------------------------------------- Visteon Corporation has signed a non-binding Memorandum of Understanding outlining the understanding and status of discussions regarding the sale of its Swansea, United Kingdom operation to Linamar Corporation, a Canadian- based auto parts manufacturer. The proposed sale, which supports Visteon's three-year improvement plan, is subject to due diligence, certain third party agreements, definitive documentation, anti-trust clearance and corporate approvals. The proposed sale of the Swansea facility, which is Visteon's largest operation in the UK, will be a significant milestone in the company's plan to address non-core facilities and improve its financial performance. Visteon recently disclosed that Visteon UK Limited lost approximately US$110 million on revenue of US$540 million during 2006. "This transaction will represent another major step to achieve Visteon's profit improvement plan, while continuing to strengthen our global engineering and manufacturing footprint," said Donald J. Stebbins, Visteon president and chief operating officer. "We are committed to working with our customers, employees, unions and Linamar to reach final agreements and bring the transaction to closure as quickly as possible." This action, which will complete the company's divestiture of its chassis business, builds on the progress already made in addressing its performance in the UK. Visteon previously exited its brake business, successfully transferred unprofitable business to lower cost countries, and significantly reduced its salaried workforce in the UK. As part of the proposed transaction, which is expected to be completed by year end, Visteon will transfer the manufacturing facility and associated assets, as well as contracts and certain intellectual property rights. The 400 employees currently employed in the facility are also expected to transfer to the new owner. Other details of the MOU were not disclosed. "When finalized, this proposed transaction will provide a viable alternative to closure for the Swansea facility, while enabling Visteon to achieve its business objectives," said Steve Gawne, managing director of Visteon's UK operations. "The Swansea plant will be a strong strategic fit within Linamar's expanding driveline division." This proposed transaction also builds on Visteon's three-year improvement plan that was announced in 2006. As part of that plan, the company is addressing 30 underperforming and non- strategic operations, improving its base operations in efficiency and taking a number of steps to grow the business. The proposed sale of Swansea is the 20th action announced. The restructuring actions are expected to generate annual savings of approximately US$400 million. The company has also achieved a number of other significant milestones, including addressing two-thirds of its restructuring items and significantly shifting its manufacturing and engineering footprints to cost-competitive countries. Nearly 60 percent of Visteon's hourly manufacturing personnel are now in lower cost countries, compared with 48 percent at the end of 2005. By 2009, Visteon plans to have 75 percent of its manufacturing personnel and half of its engineering workforce in cost-competitive countries. Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has more than 170 facilities in 24 countries and employs around 50,000 people. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries, including Mexico and India, and employs approximately 50,000 people. * * * As reported in the Troubled Company Reporter on April 10, 2007, Fitch Ratings has taken these actions regarding the ratings of Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. ================= I N D O N E S I A ================= MCDERMOTT INT'L: Names Dennis Baldwin as Vice President & CAO ------------------------------------------------------------ McDermott International Inc. has appointed Dennis S. Baldwin as its Vice President and Chief Accounting Officer. In this role, Mr. Baldwin replaces Michael S. Taff, who was appointed Senior Vice President & Chief Financial Officer in April 2007. With 23 years of financial and accounting experience, Mr. Baldwin comes to McDermott from Integrated Electrical Services where he served as Chief Accounting Officer. Prior to Integrated Electrical Services, Baldwin served as vice president and corporate controller for two energy service companies, Veritas DGC, Inc. and Universal Compression Holdings, Inc. In addition, Mr. Baldwin held a variety of financial and accounting roles at Cemex, Cooper Industries and Price Waterhouse. Baldwin holds a Bachelor of Business Administration degree in Accounting from Sam Houston State University, a Master of Business Administration degree from the University of Houston, and is a Certified Public Accountant in Texas. "We are pleased to welcome Dennis to McDermott," said Mike Taff, Senior Vice President and Chief Financial Officer of McDermott. "His background and experience will be a valuable addition to our financial management team." Headquartered in Houston Texas, McDermott International, Inc. (NYSE:MDR) -- http://www.mcdermott.com/-- through its subsidiaries, an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries -- including Indonesia and the United Kingdom -- with more than 20,000 employees. * * * The Troubled Company Reporter-Asia Pacific reported on July 6, 2007, that Moody's Investors Service upgraded the ratings of McDermott International Inc. and its subsidiaries. Moody's raised MII's Corporate Family Rating to Ba3 from B1. The Babcock & Wilcox Company's senior secured bank facility rating was raised to Baa3 (LGD-1, 6%) from Ba2 (LGD-2, 19%). The rating outlook for J. Ray is positive, while the rating outlooks for MII and B&W are both stable. On May 29, 2007, Standard & Poor's Ratings Services has raised its corporate credit rating on diversified energy services provider McDermott International Inc. and its subsidiaries, J. Ray McDermott S.A. and The Babcock & Wilcox Co., to 'BB' from 'B+'. The outlook is stable. In addition, S&P raised the rating on B&W's senior secured bank debt to 'BB+' from 'B+', upgraded J. Ray's senior secured bank debt to 'BB' from 'B+', revised the recovery rating on B&W's debt to '1' from '3', and left the recovery rating on J. Ray's debt unchanged at '3'. The '1' recovery rating indicates a high expectation of full (100%) recovery in the event of a payment default, and the '3' recovery rating indicates an expectation of meaningful (50%-80%) recovery). MITEL NETWORKS: To Use Microsoft Office Communications Server -------------------------------------------------------------- Mitel Networks will use the Microsoft Office Communications Server 2007 platform including its call management capabilities for a future generation of solutions. Mitel optimizes Office Communications Server 2007 to deliver a rich unified communications experience to businesses. Mitel is building solutions on Office Communications Server 2007 to focus both on specific vertical markets and small and medium businesses, a historical stronghold for Mitel. Mitel has a long-standing commitment to build on the Microsoft platform and is extending that with Office Communications Server 2007. Microsoft and Mitel share a long-term vision of software- powered communications. With the announced availability of Office Communications Server 2007, Mitel will feature its unified communications solutions with Microsoft to provide new and existing customers, including over 100,000 users already addressed by the Mitel unified communications solution that integrates with the Microsoft software, a paced, easy and rewarding migration roadmap with a seamless software upgrade. Mitel's vision that mission critical voice communications-based applications must seamlessly integrate with other business solutions to enhance the user experience and the effectiveness of "in the moment" interactions has underpinned its relationship with Microsoft. Together, the companies are facilitating the rapid integration of solutions that enable customers to evolve their communications environment and solve common business challenges such as dispersed teams, disjointed communications, and complicated collaboration efforts in a global environment. "Mitel was early to the unified communications table, first with real-time collaboration and continues as one of Microsoft's partners with Office Communications Server 2007," said Gurdeep Singh Pal, corporate vice president, Unified Communications Group, at Microsoft. "Together, we will continue to demonstrate the value of Mitel's solutions that integrate with Microsoft's solutions to help customers streamline communications between people and organizations, regardless of medium, modality, platform, device or location." Multimate, a large multi-state law firm in the U.S., are two of the many Mitel customers who have benefited from the easy integration of the Mitel 3300 IP Communications Platform (ICP), Mitel Live Business Gateway and Microsoft to unify their communications and improve employee productivity. "In the competitive 'Do It Yourself' retail market, being innovative and reliable in automation sets us apart from competition towards our franchisers," said Jerry Otto, IT and communications infrastructure manager, Multimate Head Office. "The combined Microsoft Office Communications Server 2007, Microsoft Exchange Server 2007 and Mitel IP communications with Mitel Mobile Extension not only adds value to our centralized IT and communications services offering, it enables co-workers from the head office to work and communicate in a standardized way in any of our 75 franchise outlets." The 3300 ICP, operating as a gateway and using industry-standard protocols, allows for a customers' legacy voice infrastructure to benefit from the integrated unified communications solutions of Mitel and Microsoft. Mitel's Live Business Gateway currently allows for the full benefits of the Microsoft Office Communications Server 2007 to be extended to such Mitel applications as Mobile Extension, Contact Center, Attendant Console, Mitel 5300 Intelligent Directory and Mitel IP Phones. These solutions are available and are featured at Microsoft Technology Centers. "Mitel has been unwavering in its commitment to providing customers with the ability to lever their Microsoft infrastructure as a platform for enhanced office collaboration," said Paul Butcher, president and chief operating officer, Mitel. "We add value to Microsoft's core applications and collaboration suite by providing a comprehensive unified communications solution to knowledge workers, office workgroups, and beyond, while reaching to the specialized communications needs of employees in vertical markets who operate away from the PC." Mitel will be joining Microsoft for the Office Communications 2007 launch events in various locations throughout the world. Mitel Networks Corp. -- http://www.mitel.com/-- provides unified communications solutions and services for business customers. Mitel's voice-centric IP-based communications solutions consist of a combination of telephony hardware and software that integrate voice, video and data communications with business applications and processes. Mitel is headquartered in Ottawa, Canada, with offices, partners and resellers worldwide. It has also operations in the United Kingdom and Indonesia. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 2, 2007, Standard & Poor's Ratings Services revised its bank loan and recovery ratings on Ottawa, Ontario-based business communications solutions provider Mitel Networks Corp.'s proposed US$460 million senior secured credit facility. The bank loan rating on Mitel's proposed US$330 million first-lien credit facility has been revised to 'B+', with a recovery rating of '2', from 'BB-', with a recovery rating of '1'. LIPPO KARAWACI: 2007 3Q Net Profit Ups 12% to IDR255.2 Billion -------------------------------------------------------------- PT Lippo Karawaci Tbk reported a net profit of IDR255.2 billion in the third quarter ended Sept. 30, 2007, a 12% increase from the profit booked in the same period last year, The Jakarta Post reports, citing the comp