T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, October 24, 2007, Vol. 10, No. 211 Headlines A U S T R A L I A AKOONA PTY: Members Resolve to Liquidate Business ALTHEA INVESTMENTS: Commences Liquidation Proceedings B & S GARAGE: Members' Final Meeting Set for October 30 BRYBAR PTY: Commences Liquidation Proceedings CHATTEM INC: Dec. Trial Set for Dexatrim Liability Suit in CA CHRYSLER LLC: UAW Leaders Urge Key Locals to Accept Labor Pact COEUR D'ALENE: Sets Shareholders Special Meeting for Dec. 3 EVANS & TATE: Creditors Agree to Defer Final Meeting to December FOSADA PTY: Sole Member Decides to Liquidate Business KWIKTURN PTY: To Declare First and Final Dividend on Oct. 26 MAZEBOWL PTY: Placed Under Voluntary Liquidation M. & T. PERFORMANCE: Sets Final Meeting for October 25 NOONARM PTY: Shareholders Decide to Liquidate Business SYMBION HEALTH: Primary Plans to Block Healthscope Deal Again THE QUEENSLAND: Members and Creditors to Meet on October 25 C H I N A & H O N G K O N G AGRICULTURAL BANK: Deloitte and NAO Complete Special Audit ARCELOR NEGOCE: Placed Under Voluntary Liquidation BILLION PROFITS: Placed Under Voluntary Liquidation CITIC GROUP: Unit in Mutual US$1BB Investment with Bear Stearns COASTAL GREENLAND: Moody's Assigns (P)B1 Corporate Family Rating COASTAL GREENLAND: S&P Assigns 'B+' Corporate Credit Rating EARN BEST: Liquidators Quit Post EXPORT MARKET: Tang Wai Kit Quits as Liquidator FONTANA ESTATES: Liquidators Quit Post HAINAN AIRLINES: Merges with 3 Other Firms to Form Grand China JUST YIELD: Appoints Tsoi Ching Ching as Liquidator SHIMAO PROPERTY: To Inject CNY7.67BB in Assets to Sister Firm SOUND YEAR: Members to Hold Final Meeting on November 23 TAS JOINT: Shareholders Agree on Voluntary Liquidation VOLKSWAGEN AG: To Restructure Auto Parts Venture in China WILSON DRAYAGE: Creditors' Meeting Set for November 2 YEE FUNG: Blaauw and Stephen Quit as Liquidators ZTE CORP: Bags Supply Deal with Telekom Malaysia I N D I A ATV PROJECTS: Incurs INR25-Mil. Net Loss in Qtr. Ended Sept. 30 BALLARPUR INDUSTRIES: BILT Scheme Gets Unanimous Approval BANK OF BARODA: Board to Consider Q2 Results on Oct. 31 BANK OF INDIA: To Release 2nd Qtr. Results on Oct. 29 BAUSCH & LOMB: Extends Debt Securities Tender Offers to Oct. 26 RAIN CALCINING: U.S. Unit to Raise US$235 Million from Bond Sale I N D O N E S I A ANEKA TAMBANG: Moody's Reviews Rating for Possible Upgrade BANK NEGARA: Provides Credit Line to Nusa Surya BANK NEGARA: Plans to Sell 40% of BNI Securities GARUDA INDONESIA: Final Report Says Pilot Failure Caused Crash MEDIA NUSANTARA: S&P Affirms 'B+' Corporate Credit Rating TELKOM INDONESIA: Moody's Affirms LCC Family Rating at Ba1 J A P A N ALL NIPPON: To Cut Fares by 15 Percent Starting April 1, 2008 BOSTON SCIENTIFIC: Posts US$272MM Net Loss in Q3 Ended Sept. 30 BOSTON SCIENTIFIC: S&P Holds Ratings and Removes Negative Watch HITACHI ZOSEN: Unit Wins Sasol Reactor Construction Contract JAPAN AIRLINES: R&I Affirms BB+ Rating with Stable Outlook SENSIENT TECH: Earns US$20.7 Million in Quarter Ended Sept. 30 SENSIENT TECH: Selects Neil Cracknell as Deputy Group Executive XEROX CORPORATION: Earns US$753 Mln in First Nine Months of 2007 * Japanese Brewers Still Stable Despite Pressures, Moody's Says K O R E A CHOROKBAEM MEDIA: Signs Contract w/ Broadcasting Company MBC DAEYUVESPER: Signs Installation Contract w/ Agricultural Assoc KANA SOFTWARE: Expects 3rd Qtr. Revenue of US$16.3 to US$16.7MM M A L A Y S I A SHAW GROUP: Appeal to Acquisition Claim Judgment Still Pending SHAW GROUP: Appeals IRS Adjustments for 2002-2003 Tax Returns SHAW GROUP: Continues Review of Accounting for Acquisitions SHAW GROUP: La. Court Allows Reusche to File Amended Complaint SOLUTIA INC: Court Approves Fifth Amended Disclosure Statement SOLUTIA INC: Court Sets November 29 Plan Confirmation Hearing TRANSMILE GROUP: Inks Lease Contract with Air Hong Kong N E W Z E A L A N D ALI SOLUTIONS: Fixes Nov. 30 as Last Day to File Claims CITYWIDE BUILDERS: Appoints A.M. Oorschot as Liquidator EASTRIDGE FLOWERS: Shareholders Agree on Voluntary Liquidation FERNHILL: Accepting Creditors' Proofs of Debt Until Nov. 1 INDONZ ENTERPRISES: Wind-Up Petition Hearing Set for Nov. 8 MILLCROFT PUBLISHING: Creditors' Proofs of Debt Due on Nov. 1 PACIFIC PAINTING: Creditors Proofs of Debt Due on Nov. 1 RTB CONTRACTING: Court to Hear Wind-Up Petition on Oct. 25 SYLVIA PARK: Fixes Nov. 12 as Last Day to File Claims TUFFCOAT PLASTERING: Taps Vance and Jordan as Liquidators P H I L I P P I N E S ATLAS CONSOLIDATED: Unit Eyes Steel Plant in Guangxi, China BANGKO SENTRAL: Projects 5% Growth Rate in Remittances for 2008 BANGKO SENTRAL: Supports Multilateralization of Chiang Mai Deal BANGKO SENTRAL: Gov't to Infuse PHP40 Bil. on Installment Basis PHIL. LONG DISTANCE: Cable Operators Seek to Halt MyTV Services PHIL. LONG DISTANCE: Unit Sells 9.8% Stake in Eastern Telecom SAN MIGUEL: Units Buy 34% Stake in Bank of Commerce for PHP2BB S I N G A P O R E AAR CORP: Elects Norman R. Bobins as Director ADVANCED MICRO: Urges Rejection of TRC's Mini-Tender Offer SAWATEC (ASIA PACIFIC): Creditors' Proofs of Debt Due on Nov. 19 SOVEREIGN SPECIALTY: Proofs of Debt Due on Nov. 19 UNITED TEST: Moody's Assigns (P)B2 to Second Lien Notes T H A I L A N D BANK OF AYUDHYA: To Sell Off THB25 Bil. in Bad Loans By Year-End BLOCKBUSTER INC: Paying US$18.75 Per Share Dividend on Nov. 15 * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= AKOONA PTY: Members Resolve to Liquidate Business ------------------------------------------------- At an extraordinary general meeting held on September 4, 2007, the members of Akoona Pty Ltd resolved to voluntarily liquidate the company's business. Peter Geroff and Gregory Moloney were tapped as liquidators. The Liquidators can be reached at: Peter Geroff c/o Ferrier Hodgson (Qld) Level 7, 145 Eagle Street Brisbane, Queensland 4000 Australia About Akoona Pty Located at Brisbane, in Queensland, Australia, Akoona Pty Ltd is an investor relation company. ALTHEA INVESTMENTS: Commences Liquidation Proceedings ----------------------------------------------------- The members of Althea Investments Pty Ltd met on September 10, 2007, and agreed to voluntarily liquidate the company's business. M. J. Fitzpatrick was named as liquidator. The Liquidator can be reached at: M. J. Fitzpatrick c/o KPMG Level 16, Riparian Plaza 71 Eagle Street Brisbane, Queensland 4000 Australia About Althea Investments Althea Investments Pty Ltd provides engineering services. The company is located at Brisbane, in Queensland, Australia. B & S GARAGE: Members' Final Meeting Set for October 30 ------------------------------------------------------- B & S Garage Door Operators Pty Ltd will hold a final meeting for its members on October 30, 2007, at 10:00 a.m. At the meeting, John l. Greig, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John L. Greig Deloitte Touche Tohmatsu Riverside Centre Level 25, 123 Eagle Street Brisbane, Queensland 4000 Australia Telephone:(07) 3308 7000 About B & S Garage B & S Garage Door Operators Pty Ltd provides electrical work. The company is located at Darra, in Queensland, Australia. BRYBAR PTY: Commences Liquidation Proceedings --------------------------------------------- During a general meeting held on September 13, 2007, the members of Brybar Pty Ltd agreed to voluntarily liquidate the company's business. Morgan Lane and Michael Peldan were appointed as liquidators. The Liquidators can be reached at: Morgan Lane Michael Peldan Worrells Solvency & Forensic Accountants 8th Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4300 Facsimile:(07) 3225 4311 Web site: http://www.worrells.net.au About Brybar Pty Located at Carindale, in Queensland, Australia, Brybar Pty Ltd is an investor relation company. CHATTEM INC: Dec. Trial Set for Dexatrim Liability Suit in CA ------------------------------------------------------------- The Dexatrim with ephedrine products liability lawsuit pending against the Company is set for trial in Santa Monica, California on Dec. 3, 2007. That lawsuit is styled Grace Gunduz v. Herbalife International of America, Inc., et al., Superior Court of the State of California, County of Los Angeles. In the case, the plaintiff seeks compensation for primary pulmonary hypertension, a condition she allegedly developed after ingesting ephedrine containing products manufactured by Herbalife International of America, Inc., EAS and the Company. The Company did not provide further details on this suit in its latest quarterly report filed on Form 10-Q with the U.S. Securities and Exchange Commission. Chattanooga, Tenn.-based Chattem Inc. manufactures and markets branded consumer products, including over-the-counter healthcare products and toiletries and skin care products. Its products include Gold Bond medicated powder, Icy Hot topical analgesic, Dexatrim appetite suppressant, and Bullfrog sunblock. Chattem has operations in the U.K., Australia, and Puerto Rico. * * * Chattem Inc.'s 7% Exchange Senior Subordinated Notes due 2014 carry Moody's Investors Service's 'B2' rating and Standard & Poor's 'B' rating. CHRYSLER LLC: UAW Leaders Urge Key Locals to Accept Labor Pact -------------------------------------------------------------- United Auto Workers union leaders are trying to sweet talk members at three Chrysler LLC plants in Indiana, Michigan and Illinois, each employing more than 1,00 workers, to approve a tentative labor contract between the union and the carmaker, various sources say. According to Josee Valcourt of the Wall Street Journal, lobbying efforts are directed at: * members of a key local in Kokomo, Indiana, who are voting today, Oct. 23, 2007, * members of a key local in Sterling Heights, Michigan, who are voting on tomorrow, and * members of a small local in Belvidere, Illinois, voting later this week. As reported in yesterday's Troubled Company Reporter, 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. 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. Union officials are expected to release the results later this week, the AFP reports. As previously reported, 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. 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. COEUR D'ALENE: Sets Shareholders Special Meeting for Dec. 3 ----------------------------------------------------------- Coeur d'Alene Mines Corporation has filed a definitive proxy statement regarding the proposed acquisition of Bolnisi Gold NL and Palmarejo Silver and Gold Corporation. The company expects to commence mailing the proxy statement and all relevant materials to Coeur shareholders early this week. A special meeting of the shareholders of Coeur, to consider matters relating to the proposed acquisitions of Bolnisi and Palmarejo, will be held on Dec. 3, 2007 at 9:30 a.m., local time, at The Coeur d'Alene Resort and Conference Center, Second Street and Front Avenue, Coeur d'Alene, Idaho. Coeur stockholders of record as of the close of business on Oct. 19, 2007 will be entitled to vote at the special meeting. The merger is expected to close in the fourth quarter of 2007. As previously announced on May 3, 2007, Coeur, Bolnisi, and Palmarejo entered into agreements to merge, which were approved unanimously by their respective Boards of Directors. Pursuant to the agreements, Coeur will acquire all of the shares of Bolnisi, and all the shares of Palmarejo not owned by Bolnisi, in a transaction valued at approximately US$1.1 billion. The combination will create the world's undisputed leader in silver. The Board of Directors of Coeur unanimously approved the transaction and the issuance of Coeur common stock, and recommends that all Coeur shareholders vote "FOR" the issuance of Coeur shares in the transaction and the amendment to Coeur's articles of incorporation to increase the authorized number of Coeur shares. The proposals require the approval of a majority of the Coeur shares that are present or represented by proxy at the shareholder meeting. Shareholders are encouraged to read the company's definitive proxy materials in their entirety as they provide, among other things, a detailed discussion of the process that led to the proposed merger and the reasons behind the Board of Directors' unanimous recommendation that stockholders vote FOR the issuance of Coeur shares in the transaction and the amendment to Coeur's articles of incorporation to increase the authorized number of Coeur shares. Coeur shareholders are reminded that their vote is very important regardless of the number of shares of common stock they own. Whether or not shareholders are able to attend the Special Meeting in person, they should complete, sign and date the proxy card and return it in the prepaid and addressed envelope as soon as possible or submit a proxy through the Internet or by telephone as described on the proxy card accompanying the definitive proxy statement. Shareholders who have questions about the merger or need assistance in submitting their proxy or voting their shares should contact D.F. King & Co., Inc., which is assisting Coeur, toll-free at (800) 901-0068 or (collect) at (212) 269-5550 . Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. EVANS & TATE: Creditors Agree to Defer Final Meeting to December ---------------------------------------------------------------- On their second meeting, Evans & Tate Ltd. creditors passed a resolution in favor of adjourning the meeting until December 14, when they will decide whether to wind up the group, end its administration or execute a deed of company arrangement that results in a better return to creditors than liquidators, the Australian Associated Press reports. According to AAP, administrator Martin Jones, a partner at Ferrier Hodgson, recommended the put-off saying it would allow the administrators to observe the possible conclusion of a sale process and gain a fuller picture of the creditor's loss. However, Mr. Jones told creditors he did not recommend that the group be wound up and he did not rule out ultimately recommending a DOCA, relates AAP. Mr. Jones, as stated in the report, further told creditors that the financial affairs of the Evans & Tate group, which includes 20 companies, could be assessed in a short period following a sale. AAP notes that total fund available to secured creditors are AU$110.445 million, while unsecured creditors' claims are more than AU$48 million. Mr. Jones, adds AAP, said that Evans & Tate's liabilities exceeded its assets by AU$68.8 million. The report quotes Mr. Jones as saying, "It's trite to say but there is insufficient revenue in relation to debt." Notably, Mr. Jones's preliminary assessment, based on limited access to information, was that the group may well have been trading while insolvent in July. Mr. Jones added, "The determination of insolvency triggers off potential claims. . . such as voidable transactions." Reportedly, De Bortoli Wines and McWilliam's Wines are understood to be bidding to acquire Evans & Tate's assets and operations, facilitated by receivers McGrath Nicol. AAP further notes that the factors that contributed to the collapse of the group included failure to integrate acquisitions -- particularly Cranswick Wines, Wine Source and Scott Street Portfolio Inc -- plus poor inventory management, problems with information systems and high turnover of staff. About Evans & Tate Headquartered in Wembley, Western Australia, Evans & Tate Limited -- http://www.etw.com.au/-- is an Australian wine company listed on the Australian Stock Exchange. The primary businesses of the Evans & Tate Wine Group are the production, marketing and distribution of a number of branded, exclusive labeled and unbranded wines; contract winemaking; wine trading; viticultural services; and wine tourism through its Visitor Centers. The Troubled Company Reporter-Asia Pacific reported on Aug. 27, 2007, that Evans & Tate's board of directors placed it under voluntary administration. On Aug. 21, 2007, Australia and New Zealand Bank, Evans & Tate's largest creditor, appointed Voluntary Administrators (Martin Jones and Bruce Carter of Ferrier Hodgson) and Receivers & Managers (Peter Anderson, Shaun Fraser and Andrew Birch of McGrathNicol) to Evans & Tate Ltd and its subsidiaries. FOSADA PTY: Sole Member Decides to Liquidate Business ----------------------------------------------------- On September 17, 2007, the sole member of Fosada Pty Ltd resolved to voluntarily liquidate the company's business. D. R. Vasudevan was appointed as liquidator. The Liquidator can be reached at: D. R. Vasudevan Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About Fosada Pty Fosada Pty Ltd operates holding companies. The company is located at Richmond, in Victoria, Australia. KWIKTURN PTY: To Declare First and Final Dividend on Oct. 26 ------------------------------------------------------------ Kwikturn Pty Ltd, which is in liquidation, will declare its first and final dividend on October 26, 2007. Creditors who were able to file their proofs of debt by the Oct. 18 due date will be included in the company's dividend distribution. The company's liquidator is: B. J. Marchesi Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia About Kwikturn Pty Kwikturn Pty Ltd operates manufacturing industries. The company is located at Taren Point, in New South Wales, Australia. MAZEBOWL PTY: Placed Under Voluntary Liquidation ------------------------------------------------ During a general meeting held on September 7, 2007, the members of Mazebowl Pty Ltd resolved to voluntarily liquidate the company's business. Glenn Michael Shannon and Terry Grant van der Velde were named as liquidators. The Liquidators can be reached at: Terry Grant Van Der Velde Glenn Michael Shannon c/o SV Partners Web site: http://www.svpartners.com.au About Mazebowl Pty Located at Warwick, in Queensland, Australia, Mazebowl Pty Ltd is an investor relation company. M. & T. PERFORMANCE: Sets Final Meeting for October 25 ------------------------------------------------------ A final meeting will be held for the members an creditors of M. & T. Performance Pty Ltd on October 25, 2007, at 10:30 a.m. At the meeting, Andrew Fielding, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Andrew Fielding PPB Chartered Accountants Business Reconstruction Specialists Level 4, 31 Sherwood Road Toowong, Queensland 4066 Australia About M & T Performance M & T Performance Pty Ltd, which is also trading as Quick Fit Nerang, operates auto and home supply stores. The company is located at Ashmore, in Queensland, Australia. NOONARM PTY: Shareholders Decide to Liquidate Business ------------------------------------------------------ During a general meeting held on September 14, 2007, the shareholders of Noonarm Pty Ltd agreed to voluntarily liquidate the company's business. Tony Cordner was appointed as liquidator. The Liquidator can be reached at: Tony Cordner c/o Cordner Wilson Ludeke Riverwalk Place, Level 2 238 Robina Town Centre Drive Robina, Queensland 4226 Australia Telephone:(07) 5575 9567 About Noonarm Pty Noonarm Pty Ltd, which is also trading as Q B D The Book Shop, operates book stores. The company is located at Darra, in Queensland, Australia. SYMBION HEALTH: Primary Plans to Block Healthscope Deal Again ------------------------------------------------------------- Primary Health Care Ltd. will vote its 20% stake against takeover target Symbion Health Ltd.'s plan to sell its diagnostic division to Healthscope Ltd., aiming to derail Australia's biggest healthcare deal a second time, Peter Vercoe of Bloomberg News reports. Mr. Vercoe recounts that Primary previously used its 20% stake in Symbion to block a Healthscope-led buyout of Symbion in September, forcing both companies to restructure the deal to negate Primary's stake. Mr. Vercoe quotes Primary as saying, "Given Primary's intentions, the outcome of the vote is far from certain." Though Primary, who wants to buy some of Symbion's medical centers and pathology and radiology units, doesn't have enough shares to block the AU$1.7 billion sales of Symbion's 270 medical and diagnostic centers to Healthscope, it may be able to scupper the second part of the bid -- an AU$1.4 billion buyout of Symbion's drug distribution and vitamin business, which needs 75% approval, states Bloomberg. A Troubled Company Reporter-Asia Pacific report on October 9, 2007, stated that under the revised proposal, Healthscope will acquire Symbion's pathology, diagnostic imaging and medical center businesses. Symbion shareholders will get AU$2.516 billion to AU$2.646 million for the diagnostics businesses via the issue of Healthscope shares and the assumption of debt by Healthscope, while Ironbridge and Archer would acquire Symbion's pharmacy services and consumer businesses via a scheme of arrangement. The private-equity firms would acquire Symbion for AU$1.77 a Symbion share. About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). THE QUEENSLAND: Members and Creditors to Meet on October 25 ----------------------------------------------------------- The Queensland Beef Processing Co. Pty Ltd will hold a final concurrent meeting for its members and creditors on October 25, 2007, at 10:00 a.m. At the meeting, the members and creditors will be asked to: -- fix further remuneration of the company's liquidator; -- receive the liquidator's report on the company's wind-up proceedings and property disposal; -- approve, subject to the consent of the Australian Securities and Investments Commission, that the books and records of the company be destroyed following the six month period after dissolution; and -- discuss other relevant business. The company's liquidator is: Julie Williams Insolvency and Turnaround Solutions Level 4, 360 Queen Street Brisbane, Queensland 4000 Australia Telephone:(07) 3221 7433 Facsimile:(07) 3221 7433 About The Queensland Beef The Queensland Beef Processing Co Pty Ltd is a distributor of meat products. The company is located at Hemmant, in Queensland, Australia. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: Deloitte and NAO Complete Special Audit ---------------------------------------------------------- Agricultural Bank of China's share reform plan is almost ready for implementation, but a specific reform plan is still under study, the China Daily reports, citing the bank's president, Xiang Junbo. According to Mr. Xiang, global auditor Deloitte Touche Tohmatsu had already finished an audit of the bank's 2005 and 2006 financial reports, and issued credit and non-credit audit results. Meanwhile the National Audit Office has completed a special audit over ABC's non-performing loans. Once the reform plan is approved, financial reshuffle will start immediately, Mr. Xiang added. China Daily notes that Mr. Xiang stressed the importance of the capital injection from Central Huijin Investment Co Ltd, an investment arm of the central bank, to carry out an equity transformation reform. The bank's president explained that capital infusion by Central Huijin is critical to improving capital structure, lifting the capital adequacy ratio and introducing strategic investors with the bank. Mr. Xiang further said that ABC might follow a similar path to the other three "Big Four" banks -- the Industrial and Commercial Bank of China, Bank of China and China Construction Bank, all of which welcomed Central Huijin as their largest shareholder in their reforms, the report relates. In compliance with the directives by the State Council, ABC will choose an appropriate time for an initial public offering only after completion of financial reshuffle, equity transformation and introduction of strategic investors, China Daily points out. As the equity reform plan is still under discussion, IPO preparation will not start until the plan is approved, Mr. Xiang conveyed. 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'. ARCELOR NEGOCE: Placed Under Voluntary Liquidation -------------------------------------------------- On September 28, 2007, the sole shareholder of Arcelor Negoce Distribution China Holding Limited passed a resolution to liquidate the company's business. Fang Da Jun was appointed as liquidator. The Liquidator can be reached at: Fang Da Jun Room 501/41/30 Nujiang Road Shanghai, 200062, PRC BILLION PROFITS: Placed Under Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on October 2, 2007, the members of Billion Profits Development Limited agreed to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt by Nov. 14, 2007, to be included in the company's dividend distribution. The company's liquidators are: Leung Po Ki May MLC Consultants Limited Wing On House, Room 403, 4th Floor 71 Des Voeux Road Central Hong Kong CITIC GROUP: Unit in Mutual US$1BB Investment with Bear Stearns --------------------------------------------------------------- Citic Securities, a subsidiary of Chinese conglomerate Citic Group, has forged a deal with New York-based firm, Bear Stearns, to mutually invest in each other to form a broad alliance, Reuters says. According to a joint statement issued by the two companies, both will invest US$1 billion as they will collaborate to develop financial products and services in China and form a Hong Kong- based joint venture. The China Daily notes that the joint investment deal is equivalent to Citic buying 6% of New York-based Bear Stearns. On the other hand, Reuters says Bear Stearns would buy US$1 billion of CITIC debt that would over time amount to a 2% stake in the Beijing-based firm. Bear Stearns will also be given the option to buy an additional 5% of the company, exercisable over the course of five years. Neither company could hold more than 9.9 percent of the other's stock. The deal is subject to a definitive agreement. The companies said they have agreed to negotiate only with each other. Bear Stearns Chairman and Chief Executive Jimmy Cayne said that he expects the deal to close within 120 days. The deal needs approval from China's State Council and securities regulators and shareholders, press reports note. Bear Stearns, the fifth biggest US securities firm, fell as much as 37% this year in New York trading. The collapse of the subprime mortgage market hit the company harder than larger rivals, pushing two of its hedge funds into bankruptcy. State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch COASTAL GREENLAND: Moody's Assigns (P)B1 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service has assigned a (P)B1 corporate family rating to Coastal Greenland Limited. At the same time, Moody's has assigned a (P)B2 foreign currency senior unsecured rating to CGL's proposed bond issue. The outlook for both ratings is stable. This is the first time that Moody's has assigned ratings to CGL and expects to lift them from their provisional status upon the completion of the bond issuance. "CGL's (P)B1 corporate family rating reflects the company's exposure to the relatively high execution risk associated with rapid expansion against the backdrop of a volatile regulatory and operating environment," says Kaven Tsang, Moody's lead analyst for CGL, adding, "It also reflects the company's relatively aggressive capital structure with adjusted debt/capitalization ratio staying at around 55-60% over the medium term." "At the same time, the rating reflects the company's relatively long operating history and diversified geographic coverage in China," says Tsang. "Despite its experience in weathering through the property cycle in China, CGL has been undergoing a rapid expansion and it still needs to establish a track record in managing its enlarged business," adds Tsang. CGL's near term operating cash flow will be weak and volatile given its heavy working capital requirements for the construction of development and investment properties. Operating cash flow interest coverage, on average, will remain modest at around 3-4x, a level comparable with other B1 rated property developers in the region. The (P) B2 senior unsecured bond rating reflects legal and structural subordination risks, as CGL's secured and subsidiary debt-to-total assets ratio will continue to stay at over 20% in the medium term. Moody's notes that the proposed bond issuance has a warrant structure. Such structure will have minimal impact on CGL's financial profile and the eventual exercise of warrants is not expected to trigger the change of control covenant. The stable outlook reflects Moody's expectation that the company will successfully achieve its sales plan, and also expand its land bank and development business in a disciplined manner. The rating could undergo a downgrade if CGL: (1) fails to execute its business plan, or China's property market experiences a significant downturn, such that OCF generation is weaker than anticipated; and/or (2) materially accelerates development and executes an aggressive land acquisition plan without a corresponding increase in cash inflow. In terms of financial metrics, Moody's would regard the following as signals for negative rating pressure: (1) adjusted debt/capitalization consistently above 60-65%; or (2) OCF interest coverage falling below 2x. Rating improvement will be constrained over the next 12-18 months because of the relatively high business risks associated with the company's rapid expansion. However, upward rating pressure could emerge in the medium term if CGL establishes a sustainable track record in: (1) achieving planned sales over the next 2-3 years; (2) demonstrating strong financial discipline and soundly monitoring its business and financial risks; and (3) achieving an improved financial profile, with adjusted leverage below 45-50% and OCF interest coverage above 4x. Coastal Greenland Limited is a Chinese property developer focusing on medium to high-end market residential and commercial property developments. It has an attributable land bank of 4.3 million sqm in six major economic areas in China. Founded in 1990, the company was listed on the Hong Kong stock exchange in 1997, and has a current market capitalization around HK$6 billion. COASTAL GREENLAND: S&P Assigns 'B+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned its 'B+' long-term corporate credit rating to Coastal Greenland Ltd. The outlook is stable. At the same time, it issued its 'B' issue rating to a proposed issue of U.S. dollar-denominated guaranteed senior notes. US$77.5 million of the net proceeds will be used to redeem the company's 2008 senior notes. The remainder will be used to acquire land and property projects, and for general working capital purposes. "The rating on CGL reflects the company's low liquidity, weak credit protection measures, and an accelerated expansion strategy with heavy capital requirements," said Standard & Poor's credit analyst Bei Fu. Like many of its peers, CGL is vulnerable to an evolving regulatory environment and the highly competitive and cyclical nature of the property market in China. These weaknesses are, however, mitigated by CGL's low-cost land bank, long operating history, with a proven track record in managing a diverse portfolio in various cities, and its access to alternative financing sources from various strategic partners to fund its expansion. The issue rating on the proposed bond issue is one notch below the corporate credit rating on CGL as Standard & Poor's expects the company's ratio of priority debt to total consolidated assets to range between 15% and 30% over the next three years. At the end of the March 2007, this ratio stood at 32%, exceeding Standard & Poor's notching thresholds. If this ratio declines to less than 15% for a consistent period, the issue rating on the bond will be rated the same as the corporate credit rating on CGL. CGL is a multi-city residential property developer with a presence in 10 cities in China, including Wuhan, Beijing, and Shenyang. EARN BEST: Liquidators Quit Post -------------------------------- Chan Shu Kin and Chow Chi Tong quit as liquidators of Earn Best Development Limited on October 12, 2007. The former Liquidators can be reached at: Chan Shu Kin Chow Chi Tong Tung Ning Building, 9th Floor 249-253 Des Voeux Road Central Hong Kong EXPORT MARKET: Tang Wai Kit Quits as Liquidator ----------------------------------------------- On October 4, 2007, Tang Wai Kit quit as liquidator of Export Market Development Limited. The former Liquidator can be reached at: Tang Wai Kit On Hong Comm. Bldg., 18th Floor 145 Hennessy Road Wanchai, Hong Kong FONTANA ESTATES: Liquidators Quit Post -------------------------------------- On September 27, 2007, Jan G W Blaauw and Cheung Man, Stephen quit as liquidators of Fontana Estates Limited. The former Liquidators can be reached at: Jan G W Blaauw Cheung Man, Stephen Prince's Building, 22nd Floor Central, Hong Kong HAINAN AIRLINES: Merges with 3 Other Firms to Form Grand China -------------------------------------------------------------- A new Chinese airline will emerge as a result of the merger among Hainan Airlines, China's fourth-largest carrier, Xinhua Airlines, Shanxi Airlines, and Chang'an Airlines, and is just months away from starting operations, Agence France Presse reports, citing Hainan Chairman Chen Feng. Grand China Air, the enterprise that will result from the merger, "will complete all the (preparation) work and be launched formally before the end of the year," Mr. Chen said. After the merger, the company plans to list abroad, the chairman added. According to AFP, Grand China Air would have a fleet of roughly 240 to 250 aircraft, making it a close rival of Chinese aviation's Big Three. The smallest of those, China Eastern, had a fleet of 209 aircraft at the end of June, but plans to buy several additional planes in the coming years. "HNA Group (Grand China's parent) will introduce about 20 to 30 planes every year in the next five years," Mr. Chen added. Hainan Air has ordered 10 Boeing 787s, but is currently in the process of dealing with a delivery delay, according to Mr. Chen. 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. JUST YIELD: Appoints Tsoi Ching Ching as Liquidator --------------------------------------------------- At an extraordinary general meeting held on October 3, 2007, a special resolution was passed appointing Tsoi Ching Ching as the liquidator of Just Yield Limited. The Liquidator can be reached at: Tsoi Ching Ching Witty Commercial Building Rooms 12C-E, 11th Floor 1A-1L Tung Choi Street Mongkok, Kowloon Hong Kong SHIMAO PROPERTY: To Inject CNY7.67BB in Assets to Sister Firm ------------------------------------------------------------- Shimao Property agreed to inject some CNY7.67 billion worth of assets into Shanghai Shimao Co Ltd in exchange for a 64.2% interest in the firm, Infocast News reports. Under the deal, Shimao Property will inject into Shanghai Shimao some retail and commercial properties that have aggregate net asset value of CNY7.67 billion in exchange for the issue by the sister firm of 630 million new A shares at a subscription price of CNY12.05 per share. In addition, Shanghai Shimao, which is currently listed on the Shanghai stock exchange, will issue an additional 62.24 million new A shares to Shimao Enterprises, a new subsidiary of Shimao Property. Shimao Property Holdings Limited -- http://www.shimaogroup.com/ -- is a large-scale developer of real estate projects in China, specializing in high-end developments in prime locations. The company's business portfolio comprises the development of residential properties, retail properties, offices and hotels. The company has 15 projects at various stages of development located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou, Kunshan, Changshu, Shaoxing and Wuhu. The Troubled Company Reporter-Asia Pacific reported on June 13, 2007, that Standard & Poor's Ratings Services said that its rating on Shimao Property Holdings Ltd. (BB+/Stable/--) was not immediately affected by the company's recent proposal to inject most of its retail and commercial assets into A-sharelisted Chinese property company, Shanghai Shimao Co. Ltd., in return for ultimate controlling ownership in the company. In addition, on July 24, 2007, Fitch Ratings has assigned a Long-term Foreign Currency Issuer Default Rating of 'BB+' to China-based Shimao Property Holdings Limited. Simultaneously, Fitch has assigned issue ratings of 'BB+' to Shimao's US$350 million senior notes due 2016 and USD250m senior floating rate notes due 2011, respectively. The Outlook for the IDR is Stable. SOUND YEAR: Members to Hold Final Meeting on November 23 -------------------------------------------------------- The members of Sound Year International Limited will hold their final meeting on November 23, 2007, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the 21st Floor of Chinachem Tower, 34-37 Connaught Road Ctl, in Central, Hong Kong. TAS JOINT: Shareholders Agree on Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on October 12, 2007, the shareholders of Tas Joint Venture Limited agreed to voluntarily wind up the company's operations. Luk Wing Hay was appointed as liquidator. The Liquidator can be reached at: Luk Wing Hay Surson Commercial Building, 9th Floor 140-142 Austin Road Tsimshatsui, Kowloon VOLKSWAGEN AG: To Restructure Auto Parts Venture in China --------------------------------------------------------- Volkswagen AG will begin a restructuring program to strengthen its management over the auto parts suppliers in China, China Knowledge reports. The restructuring plan, which is called "Qualification Supplier China Program", will help Volkswagen to enhance its control on the product quality and to optimize the costs when expanding its sales scale in China, a statement from the German firm said. Volkswagen will join hands with a third party to carry out supervision and training over the domestic auto parts suppliers, the news agency says. Meanwhile, the domestic auto parts suppliers will be asked to provide future development plans and find the defects in aspects of the production, technology, management and workflow. More and more Chinese suppliers will be included in Volkswagen's global sourcing system. Volkswagen set a foot in China in 1985. Currently it has already had 300 auto parts suppliers in China. The value of its sourcing from China amounted to be US$1 billion in 2006, supplying its Chinese venture with Shanghai Automotive Industry Corp and First Automotive Works Group. The company has adjusted its sales target upward by 26% to 900,000 in China this year. About Volkswagen Group Headquartered in Wolfsburg, Germany, the Volkswagen Group -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and further seven countries in the Americas, like Mexico, Africa, and Asia. Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle- related services on every working day. * * * Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by former Chief Executive Bernd Pischetsrieder and former Volkswagen brand head, Wolfgang Bernhard. In November 2006, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year-on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. WILSON DRAYAGE: Creditors' Meeting Set for November 2 ----------------------------------------------------- The creditors of Wilson Drayage Limited will meet on November 2, 2007, at 10:30 a.m., at the 15th Floor of Wilson Logistics Centre YEE FUNG: Blaauw and Stephen Quit as Liquidators ------------------------------------------------ Jan G W Blaauw and Cheung Man, Stephen quit as liquidators of Yee Fung Estates Limited on September 27, 2007. The former Liquidators can be reached at: Jan G W Blaauw Cheung Man, Stephen Prince's Building, 22nd Floor Central, Hong Kong ZTE CORP: Bags Supply Deal with Telekom Malaysia ------------------------------------------------ ZTE Corp. had inked a supply deal with Telekom Malaysia Bhd where the Chinese firm will provide 70% of a purchase order for power products, including telecoms equipment such as mixed-base station power systems and embedded power systems, Reuters reports. According to the report, no financial details of the agreement were given. State-controlled Telekom Malaysia, the country's dominant fixed- line provider, ranks 37th in the world, a statement from the ZTE said. Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. The Troubled Company Reporter-Asia Pacific reported on Dec. 1, 2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. ========= I N D I A ========= ATV PROJECTS: Incurs INR25-Mil. Net Loss in Qtr. Ended Sept. 30 --------------------------------------------------------------- ATV Projects India Ltd incurred a net loss of INR25.2 million on revenues of INR43.42 million in the three months ended Sept. 30, 2007. The bottom line is an improvement compared to the INR49.3-million net loss booked in the same quarter last year. In the July-Sept. 2007 quarter, ATV incurred operating expenditures aggregating INR25.81 million, bringing the company's operating profit to INR37.97 million. Interest charges of INR37.97 million resulted in the company's booking a loss before depreciation and tax of INR4.84 million. Depreciation for the quarter under review totaled INR4.84 million while taxes aggregated INR10,000. The company did not provide for interest on long term loans, debentures and arrears of interest along with liquidated damages as it is a sick unit. The company further pointed out that since it has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profit in the near future and hence it is not considered necessary to create deferred tax assets in accordance with Accounting standard - 22 Issued by the Institute of Chartered Accountants of India. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?2470 ATV Projects India Ltd undertakes engineering and construction projects, besides manufacturing heavy engineering and industrial equipment. The company's projects include power plants, off- site facilities, oil pipelines and sugar mills. ATV Projects also manufactures thermoplastic elastomer products. The company has private and public sector customers, domestically and abroad. The company is a sick industrial undertaking and has submitted a revised One-Time Settlement proposal to its secured lenders, which has been approved by them. The company is currently awaiting the lenders' formal sanction. BALLARPUR INDUSTRIES: BILT Scheme Gets Unanimous Approval --------------------------------------------------------- Ballarpur Industries Ltd said that the scheme of arrangement and reorganization with BILT Graphic Paper Products Ltd got the unanimous approval of its equity shareholders, unsecured creditors and secured creditors. The approval was granted at a court-convened meeting on Oct. 19, 2007. As part of the scheme, it would be mandatory for the investors to sell 40% of their holdings back to the company at a price of INR125 per share. Pursuant to the restructuring, Moneycontrol.com relates, BILT is transferring its three units to its subsidiary BPH for a cash consideration of INR19.5 billion. It will utilize INR9.4 billion for the compulsory buy-back of shares and INR10.1 billion for repaying debt. Before the buy-back, share capital of BILT will be split into '5' shares of face value of INR2 each from the current face value of INR10. BPH (Netherland) is an 80% owned subsidiary of BILT, while 20% is held by JP Morgan. BPH already holds Sabah Forest Industries. BILT is transferring three units under BPH, which in turn will raise funds in the form of debt & private equity to pay BILT for its plants. This is expected to reduce the JP Morgan's stake from 20% to 4% and BILT's stake to 77%. The balance 19% stake will be held by the private equity. According to Moneycontrol, the benefits of the restructuring are: (a) Better valuation: Internationally paper companies trade at much better valuation than in India. BILT had historically traded at EV/EBIDTA of ~5x, currently it is trading at EV/EBIDTA of 8x where as BPH is expected to raise funds at a EV/EBIDTA of ~10x. (b) Refinancing of Debt through international route will help the company to bring down its average interest cost from 8% to 7%. (c) For FY 08 an EPS of INR4.3 (without restricting) was expected, but with the current restructuring initiative of the company, it is expected that EPS of INR6.5, a growth of 51%, will be achieved. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of May 15, 2007, the company still carry those ratings. BANK OF BARODA: Board to Consider Q2 Results on Oct. 31 ------------------------------------------------------- Bank of Baroda informed the Bombay Stock Exchange that its board of directors will hold a meeting on Oct. 31, 2007, inter alia, to consider the bank's unaudited financial results for the second quarter and half year ended Sept. 30, 2007, and relevant Segment Reporting. As previously reported by the Troubled Company Reporter-Asia Pacific, the bank doubled its net profit to INR3.31 billion for the first quarter ended June 30, 2007, from the INR1.63 billion earned in the same quarter in 2006. Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * As reported by the Troubled Company Reporter-Asia Pacific on July 11, 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due in 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: US$250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. Fitch said the outlook on all ratings is stable. BANK OF INDIA: To Release 2nd Qtr. Results on Oct. 29 ----------------------------------------------------- The Bank of India will disclose on Oct. 29 its unaudited financial results for the second quarter and half year ended Sept. 30, 2007. To consider the results, the bank's board of directors will hold a meeting on the same date. In the quarter ended June 30, 2007, the bank posted a net profit of INR3.15 billion for the first quarter ended June 30, 2007. Headquartered in Mumbai, India, Bank of India -- http://www.bankofindia.com-- 2628 branches in India spread over all states/ union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * Standard & Poor's Ratings Services assigned on March 26, 2007, its 'BB' issue rating to the bank's Hybrid Tier I notes to be issued by India's Bank of India (BOI; BBB-/Stable/A-3), acting through its Jersey branch. These notes are being issued under the bank's US$1 billion medium-term notes program. BAUSCH & LOMB: Extends Debt Securities Tender Offers to Oct. 26 --------------------------------------------------------------- Bausch & Lomb is extending to 8:00 a.m., New York City time, on Oct. 26, 2007, the expiration date in regard to its offers to purchase its outstanding: (i) 6.95% Senior Notes due 2007; (ii) 5.90% Senior Notes due 2008; (iii) 6.56% Medium-Term Notes due 2026; (iv) 7.125% Debentures due 2028; (v) 2004 Senior Convertible Securities due 2023, and (vi) Floating Rate Convertible Senior Notes due 2023; all pursuant to its cash tender offers and consent solicitations for the Debt Securities and the Convertible Debt Securities. On Oct. 4, 2007, the company has received tenders and consents representing a majority in principal amount of each series of the Debt Securities and the consent payment deadline has passed and withdrawal rights have terminated with respect to the Debt Securities. All other terms and conditions of the tender offers and consent solicitations are unchanged. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including closing of the proposed merger between the company and an affiliate of Warburg Pincus LLC, which is expected to occur on or about Oct. 26, 2007. Citigroup Global Markets Inc., Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc. are acting as dealer managers for the tender offers and consent solicitations. Questions regarding the transaction and the procedures for consenting may be directed to Citigroup Global Markets Inc. by telephone at (800) 558-3745 (toll-free), Banc of America Securities LLC by telephone at (888) 292-0070 (toll-free) for the Debt Securities and (888) 583-8900 x2200 (toll-free) for the Convertible Debt Securities, Credit Suisse Securities (USA) LLC by telephone at (212) 325-7596 (collect) or J.P. Morgan Securities Inc. by telephone at (212) 270-1477 (collect). Global Bondholder Services is the information agent for the tender offers and consent solicitations. Requests for documentation should be directed to Global Bondholder Services at (866) 540-1500 (toll-free). About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). * * * As reported in the Troubled Company Reporter on Oct. 18, 2007 Moody's Investors Service affirmed these ratings and updated LGD assessments of Bausch & Lomb's: (i) B2 corporate family rating; (ii) B2 probability of default rating; (iii) SGL-2 speculative grade liquidity rating; (iv) B1 rating (to LGD3/36% from LGD3/35%) on a US$500 million senior secured revolver; (v) B1 rating (to LGD3/36% from LGD3/35%) on a US$1,200 million U.S. senior secured term loan; (vi) B1 rating (to LGD3/36% from LGD3/35%) on a US$300 million delayed draw term loan; and (vii) Caa1 rating (to LGD5/89% from LGD5/86%) on US$650 million senior unsecured notes. The outlook for these ratings remains stable. RAIN CALCINING: U.S. Unit to Raise US$235 Million from Bond Sale ---------------------------------------------------------------- Rain Calcining Ltd disclosed in a regulatory filing with the Bombay Stock Exchange that a wholly owned subsidiary, CII Carbon L.L.C., USA, is offering senior subordinated notes to raise US$235 million. The proceeds of the issue will be used to repay the bridge facility of the same amount availed by Rain Calcining to complete the acquisition Of CII Carbon. In June, Reuters relates, the company agreed to acquire CII for US$595 million in an all-cash deal. The sale of the notes, which debt will mature in 2015, is guaranteed by Rain Calcining for US$90 million. The company has tapped Citigroup to act as sole arranger and bookrunner for the sale. As reported by the Troubled Company Reporter-Asia Pacific on Oct. 22, 2007, Moody's Investor Services assigned a B3 rating to the US$235-million guaranteed notes. Fitch Ratings gave a 'B-' rating to the notes. According to the rating agencies, the outlook on the ratings is stable. According to Reuters, investor presentations are scheduled to be held in Singapore, Hong Kong, London and in the United States this week. Headquartered in Hyderabad, India, Rain Calcining Ltd -- http://www.raincalcining.com/-- is one of the top five producers of calcined coke globally, and is the largest in Asia. It has an annual production capacity of 0.6 million tons, and its plant is located in Visakhapatnam (India). Aside from calcining, the company also operates in the power and trading segments. On Oct. 19, 2007, Moody's Investors Service assigned a B2 corporate family rating to Rain Calcining and a B1 rating to its secured bank facility. On the same date, Fitch gave the company a 'B' long-term foreign currency issuer default rating. ================= I N D O N E S I A ================= ANEKA TAMBANG: Moody's Reviews Rating for Possible Upgrade ---------------------------------------------------------- Moody's Investors Service has put on review for possible upgrade the B1 corporate family rating of PT Aneka Tambang (Persero) Tbk. This rating action follows Antam's improved financial profile driven largely by increased sales volume and prices of nickel, in spite of the disruptions in its FeNi3 smelter facility since June 2007. The FeNi3 facility is reported to have resumed partial operations since August 2007. "The strong price performance and expanded production volume have mitigated the negative impact of rising operating costs - stemming largely from the increase in fuel prices partly due to the removal of state subsidies," says Moody's lead analyst for the company, Kathleen Lee. "Antam is also moving up the value-chain into ferronickel production, diversifying its product base to reduce its overall reliance on nickel, as well as considering several joint-venture projects to secure longer-term sources of base materials -- all of which will likely improve its operating profile in the longer term," says Lee. "However, the potentially majority debt-funded nature of these investments, the acquisitions contemplated at a time when commodity prices are at the top end of the cycle, and the uncertainties surrounding a smooth resumption of full operation at its FeNi3 facility, present a degree of risk that could alter its present strong financial metrics," adds Lee. The rating review will focus on (1) the measures and safeguards undertaken by Antam to ensure a sustainable smooth running of its FeNi3 facility; and (2) the planned acquisitions and joint venture projects as well as the funding arrangements and the resultant impact on its financial and operating profiles. PT Aneka Tambang (Persero) Tbk is a vertically integrated and diversified Indonesian mining and metals company that focuses on nickel and gold. The Indonesian government owns 65% of the company's shares and its shares are listed on the Jakarta and Australian stock exchanges. BANK NEGARA: Provides Credit Line to Nusa Surya ----------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk extended its credit line facility of IDR884.24 billion and added to that credit line another IDR765 billion to PT Nusa Surya Ciptadana, with a credit tenor of five years. NSC is a multifinance company that focuses on motorcycle financing. This credit facility will be used as additional working capital in the financing of new motorcycle purchases for the Honda, Yamaha and Suzuki brands, as well as financing of new and second-hand cars. In 2008, NSC is targeting for a total of IDR1.09 trillion in its automotive financing. The new Credit Agreement was signed by Kemal Ranadireksa, BNI's Director of Consumer Banking, with Maria Elisabeth Kanadi, President Director of PT Nusa Surya Ciptadana, in Jakarta. This credit facility represents BNI's commitment to increase its consumer credit portfolio in the form of indirect financing for automotive purchases through a multifinance company. "BNI's outstanding car and motorcycle credit currently accounts for 18% of our total consumer credit," says Kemal. About Nusa Surya NSC was founded in 2000 as a business group that comprised of PT Nusa Surya Ciptadana (multifinance), PT Nusantara Sakti (dealer for Honda Motor in Central Java), PT Nusantara Surya Sakti (dealer for Honda Motor in areas outside of Central Java), and PT Semagang Packaging Industry (pulp and paper industries). About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter-Asia Pacific on Troubled Company Reporter , Oct 19, 2007 ( Source: TCRASIA) Moody's Investors Service has raised the foreign currency long- term debt and foreign currency long-term deposit ratings of PT Bank Negara Indonesia (Persero) Tbk. The Not-Prime short-term deposit and bank financial strength ratings are unaffected. "This action follows a similar action taken on Indonesia's sovereign ratings on October 18, 2007, and concludes the review initiated on August 1, 2007," says Beatrice Woo, a Moody's VP/Senior Credit Officer. The detailed ratings are: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. All ratings carry a stable outlook On April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. BANK NEGARA: Plans to Sell 40% of BNI Securities ------------------------------------------------ PT Bank Negara Indonesia (Persero) Tbk, which currently holds a 99% stake in PT BNI Securities, plans to sell the 40% to a strategic investor next year, Antara News reports. According to the report, this company move is a way to bid a boost in the brokerage unit's performance. Gatot Suwondo, BNI vice president director, told Antara that three investors have expressed their interest in the stake. They are from South Korea, Japan and the Middle East, he added without disclosing the names of the potential investors. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 19, 2007, Moody's Investors Service has raised Bank Negara's foreign currency subordinated debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. The ratings carry a stable outlook On April 20, 2007, Standard & Poor's Ratings Services raised PT Bank Negara Indonesia (Persero) Tbk's long-term counterparty credit ratings to 'BB-' from 'B+'. The outlook is stable. At the same time, the Bank Fundamental Strength Rating of the bank remains unchanged at 'D'. GARUDA INDONESIA: Final Report Says Pilot Failure Caused Crash -------------------------------------------------------------- The final report on the PT Garuda Indonesia's crash landing in March at Yogyakarta airport that killed 21 people showed pilot error as the cause of the disaster, various reports say. The Troubled Company Reporter-Asia Pacific reported on March 8, 2007, that Garuda Indonesia Airline Boeing 737-400 plane carrying 140 people burst into flames on landing at Yogyakarta airport. The flight was carrying some Australian diplomats, officials and journalists who had been accompanying Foreign Minister Alexander Downer. The final report reportedly determined that Captain Marwoto Komar did not follow company procedures that required him to fly a stabilized approach, and he did not abort the landing and go around when the approach was not stabilized. United Press International states that the findings said Captain Komar, despite the 15 warnings from the Ground Proximity Warning System, landed the plane even though the jet was traveling at an excessive airspeed and steep flight path angle. Captain Komar and his co-pilot, Gagam Rohman, initially claimed that a sudden gust of wind downed their craft, but the black boxes recovered from the gutted 737 revealed no adverse weather conditions, Deutsche Presse-Agentur relates. The transport safety committee, however, refused to attribute the crash to pilot error despite the findings, Reuters says. Tatang Kurniadi, head of National Transport Safety Committee, told Reuters that the pilot was not 100% at fault; there were flaws in the system that has led to the accident as well. The airport's rescue and firefighting service vehicles were incapable of reaching the accident site and did not have appropriate fire suppressants, Deutsche Presse-Agentur says, citing a transport safety committee statement. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sep. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. MEDIA NUSANTARA: S&P Affirms 'B+' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' long-term local and foreign currency corporate credit rating on Indonesia's integrated media company, PT Media Nusantara Citra. The outlook has been revised to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' rating on the senior secured debt issued by MNC's wholly-owned subsidiary, Media Nusantara Citra B.V. The notes are unconditionally and irrevocably guaranteed by MNC and its subsidiaries. "The positive outlook reflects MNC's favorable market position in the Indonesian TV market, established audience share, and operating performance that will allow the company to maintain its steady cash flow generation," said Standard & Poor's credit analyst Manuel Guerena. The outlook also assumes that MNC will not be required to provide financing or other type of support to related parties, especially now that it is a publicly-listed company. MNC is Indonesia's largest integrated media company. It has interests in free-to-air TV broadcasts channels, print media, and radio stations. "The company's accelerated growth, organically and through acquisitions, is expected to continue," Mr. Guerena said. "Its EBITDA margin for the six months ended June 2007 also improved to 35% from 30% for the year ended December 2006." MNC leads the growing Indonesian advertising market, with about 39% of the audience share and 34% of the gross TV advertising spending as of June 2007. In addition, Indonesia's strong growth in advertising spending is expected to continue in the near to medium term. "Indonesia's economic performance is improving and its current advertising spending is low at 0.03% of GDP, compared with similar markets, such as 0.5% in the Philippines," he said. Among MNC's weaknesses are the uncertain scale of any potential corporate transaction, its revenue concentration on a single TV station, and the intense competition in a cyclical industry. Standard & Poor's may consider raising the rating if MNC maintains stronger financial metrics, especially FFO to debt above 30% and debt to EBITDA below 3x, even as it pursues growth opportunities within its core business. About Media Nusantara Headquartered in Jakarta, PT Media Nusantara Citra -- http://www.mnc.co.id/-- is an integrated media company with operations in television broadcasting network, radio and print media. It is the leader in Indonesia's FTA TV broadcasting market, owning 3 FTA TV networks out of a total of 11, and captured the largest audience and ADEX shares in 2005. MNC is 100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta Stock Exchange. TELKOM INDONESIA: Moody's Affirms LCC Family Rating at Ba1 ---------------------------------------------------------- Moody's Investors Service has changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. "The change in outlook is a function of continued high levels of growth in the Indonesian telecommunications sector as well as perceived efforts by Telkom to improve standards of corporate governance, financial reporting and overall transparency," says Laura Acres, a Moody's Vice President. "Telkom is the largest telecommunications operator in Indonesia; it dominates the fixed line market and through Telkomsel has a 56% share of cellular subscribers; the company also enjoys a sound financial profile and strong cash flow generation," adds Acres, also Moody's lead analyst for the company. Notwithstanding these positive factors, Telkom's underlying credit profile also acknowledges country specific issues, such as uncertainty surrounding Indonesia's political and economic environment. Any deterioration in the political system or changes in the regulatory regime could have an impact on Telkom's operating profile and prospects for growth. Moody's also anticipates Telkom could have negative free cash flow in 2007 reflecting a higher than normal level of capex as the company makes investments in areas that are expected to drive future, long-term growth. As Telkom is 51% owned by the Indonesian government (Ba3/stable), Moody's overlays the company's standalone credit strength with a joint default analysis for government-related issuers. This involves estimating the likelihood that in the event of impending failure, the government would assist sufficiently to prevent default. Moody's has assigned a medium level of support and dependency to Telkom under this approach, which has no impact on the Ba1 rating. The outlook for the local currency corporate family rating is positive in the expectation that an improving socio-economic environment within Indonesia will have positive implications for Telkom's overall credit profile. Telkom's financial metrics exhibit strong investment grade characteristics; upward pressure on the local currency rating will largely be a function of continued stability in the economic, political and social environment which will reduce uncertainties in the operating environment. Specifically, Moody's would look for Telkom to maintain its existing solid financial profile. Any improvement in Telkom's underlying credit profile would result in a commensurate improvement in its final rating. Downward pressure on the rating is unlikely given the positive outlook, however the outlook could revert to stable as, given the parlous state of the socio-economic and political environment, event risk is always a possibility. Such risk would have to manifest itself in a significant change in either Telkom's financial or operating profile, concurrently with a change in the sovereign rating downwards, which is unlikely. About Telkom Indonesia Telkom, listed on the Jakarta Stock Exchange, is the largest telecommunications company in Indonesia. It is 51.19% owned by the Government of Indonesia, with the remaining shares publicly held. Telkom and its affiliates provide fixed-wire line, fixed- wireless, mobile, pay-TV, data & internet, and network & interconnection services. As of 30th June 2007 Telkom had 8.7 million fixed line customers, 5.1m fixed wireless subscribers and, through Telkomsel, 42.8m cellular subscribers. Telkom holds a 65% stake in Telekomunikasi Selular ("Telkomsel") -- itself rated Baa2/stable -- the largest cellular provider in Indonesia. ========= J A P A N ========= ALL NIPPON: To Cut Fares by 15 Percent Starting April 1, 2008 ------------------------------------------------------------- All Nippon Airways Co., Ltd., said that it will cut fares by 15% for some flights linking cities through major hubs, compared with current fares for direct flights that are being canceled, Chris Cooper writes for Bloomberg News. All Nippon spokesman Rob Henderson told Mr. Cooper that ANA will offer tickets 10% to 15% cheaper for flights via Tokyo, Osaka and Nagoya airports starting April 1, 2008. Bloomberg states that next fiscal year as the airline tries to boost the percentage of seats filled on flights, ANA will cut seven direct routes, linking cities such as Fukuoka in southwestern Japan and Sendai in the north. About All Nippon Airways Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The Troubled Company Reporter-Asia Pacific reported on April 20, 2007, that Moody's Investors Service placed the Ba1 senior unsecured debt ratings of All Nippon Airways Co., Ltd. under review for possible upgrade. The rating action reflects ANA's high and stable profitability despite the ongoing price hikes of aircraft fuel, as well as Moody's view that the company's financial flexibility is likely to be further improved by its recently announced asset disposition related to its hotel business. BOSTON SCIENTIFIC: Posts US$272MM Net Loss in Q3 Ended Sept. 30 --------------------------------------------------------------- Boston Scientific Corporation disclosed financial results for the third quarter ended Sept. 30, 2007, as well as guidance for net sales for the fourth quarter of 2007. Reported net loss for the third quarter of 2007 was US$272 million. Reported results for the third quarter of 2007 included after-tax acquisition- and divestiture-related charges of US$435 million, which included an expected loss of approximately US$352 million, primarily associated with the impairment of goodwill in connection with the anticipated sale of the company's auditory and drug pump businesses and US$75 million of in-process research and development related to the acquisition of Remon Medical Technologies Inc. Adjusted net income for the quarter, excluding acquisition- and divestiture-related charges and amortization expense, was US$299 million. Reported net income for the third quarter of 2006 was US$76 million. Reported results for the third quarter of 2006 included after-tax acquisition-related charges of US$77 million. Adjusted net income for the third quarter of 2006, excluding acquisition-related charges and amortization expense, was US$271 million. Net sales for the third quarter of 2007 were US$2.048 billion as compared to US$2.026 billion for the third quarter of 2006. Worldwide sales of the company's drug-eluting coronary stent systems for the third quarter of 2007 were US$448 million as compared to US$572 million for the third quarter of 2006. Worldwide sales of coronary stent systems for the third quarter of 2007 were US$507 million as compared to US$607 million for the third quarter of 2006. Worldwide sales of the company's CRM group for the third quarter of 2007 were US$517 million, as compared to worldwide CRM sales of US$446 million for the third quarter of 2006. "The quarter represented something of a turn for us, with a number of positive developments, including our attaining the number one position in worldwide drug-eluting stent sales, significant market share growth in drug-eluting stents, strong year-over-year cardiac rhythm management growth and continued solid growth in Endosurgery," said Jim Tobin, president and chief executive officer of Boston Scientific. "Going forward, the restructuring initiatives we announced earlier this week will help us better focus on our core businesses and priorities, to strengthen the company for the future and should lead to improved, long-term, profitable sales growth." Guidance for Fourth Quarter 2007 The company estimates net sales for the fourth quarter of 2007 between US$2.05 billion and US$2.15 billion. At Sept. 30, 2007, the company's consolidated balance sheet showed US$31.334 billion in total assets, US$15.817 billion in total liabilities, and US$15.517 billion in total shareholders' equity. About Boston Scientific Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. BOSTON SCIENTIFIC: S&P Holds Ratings and Removes Negative Watch --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Natick, Massachussetts-based Boston Scientific Corp. (including the 'BB+' corporate credit rating) and removed them from CreditWatch, where they were placed with negative implications Aug. 3, 2007. The rating outlook is negative. "The rating action reflects expectations that more aggressive cost-cutting efforts and moderate debt paydown (via asset sales) will modestly improve debt protection measures, notwithstanding continuing pressures in two of the company's key markets," said Standard & Poor's credit analyst Cheryl Richer. The 'BB+' rating reflects Boston Scientific's broad portfolio of market-leading medical devices and its strong cash flows. These strengths are offset by high debt leverage, operational difficulties, and a contraction in both the cardiac rhythm management and drug-eluting stent markets. The company's acquisition of Guidant Corp. increased debt to $9 billion from $2 billion; debt was $8.9 billion at June 31, 2007, and debt leverage increased to more than 4x for the 12 months ended June 31, 2007 as a result of continued EBITDA erosion. In August 2007, Boston Scientific paid down $750 million of debt. Pro forma (but adjusted for $125 million and $25 million of operating leases and unfunded post retirement benefit obligations, respectively), debt to EBITDA was 3.8x at June 30, 2007. S&P expect leverage to approach 3.5x by year end 2008, unless the company experiences a further, substantial erosion in sales. About Boston Scientific Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. HITACHI ZOSEN: Unit Wins Sasol Reactor Construction Contract ------------------------------------------------------------ Sasol confirmed that it had awarded a contract to Japanese manufacturer, Hitachi Zosen Mechanical Corporation, a wholly- owned subsidiary of Hitachi Zosen Corporation, to construct a Sasol Advanced Synthol reactor. The new SAS reactor is needed for Sasol to increase its 150 000 barrel a day (b/d) synthetic fuels operation at Secunda in South Africa by 20% to 180,000 b/d by 2015. Sasol uses its advanced Synthol reactors to produce synthesis gas which is converted into a large range of valuable liquid fuels and chemical products. "Sasol supplies about 35% of South Africa's liquid fuel needs. The Secunda expansion project will help us meet major growth opportunities in both our domestic and international markets. We will use both natural gas and coal as feedstock to produce our advanced range of synthetic transportation fuels," says Sasol executive director Dr Benny Mokaba. "We have constructed seven similar reactors for Sasol since 1998, and, as one of the leading reactor fabricators in the world, will continuously strive to supply high quality and effective equipment that enhances the development of clean and environmentally friendly new energy resources," says Hisao Matsuwake, president of HMC. The SAS reactor will weigh about 867 tons, be 8m in diameter and about 12 stories (38m) tall. Sasol currently uses nine SAS reactors at Secunda. Sasol has designed and perfected these reactors to convert coal and natural gas into high quality synthetic transportation fuels such as petrol, diesel and jet fuel, as well as a range of chemicals. "Innovation is core to our culture as exemplified by our proprietary coal- and gas-to-liquid conversion technology, where Sasol is recognised as a global leader. Our scientists have over the past 50 years evolved this synthetic transportation fuel technology to levels where South Africa can significantly reduce its dependence on crude oil," says Mokaba. About Sasol Sasol is an integrated oil and gas company with substantial chemical interests. Based in South Africa and operating worldwide, Sasol is listed on the NYSE and JSE stock exchanges. We are the leading provider of liquid fuels in South Africa and a major international producer of chemicals. Sasol uses proprietary Fischer-Tropsch technologies for the commercial production of synthetic fuels and chemicals from low-grade coal and natural gas. We manufacture more than 200 fuel and chemical products that are sold worldwide. In South Africa we also operate coal mines to provide feedstock for our synthetic fuels plants. Sasol operates the only inland crude oil refinery in South Africa. The group produces crude oil in offshore Gabon, supplies Mozambican natural gas to end-user customers and petrochemical plants in South Africa, and with partners involved in gas-to-liquids fuel joint ventures in Qatar and Nigeria. Internet address: http://www.sasol.com/ About Hitachi Zosen Headquartered in Osaka, Japan, Hitachi Zosen Corporation -- http://www.hitachizosen.co.jp-- develops, manufactures, sells and maintains machinery and systems. The company has five business segments. The Environment and Plant segment offers refuse incineration plants, industrial waste treatment plants, biomass energy systems, water and sludge treatment plants and others. The Ship and Sea segment is involved in the building, improvement and repair of ships, and the creation of ocean structures. The Steel, Construction and Logistics segment offers bridges, hydraulic gates, steel chimneys, water pressure pipes, offshore engineering, disaster prevention systems, and others. The Machinery and Motors segment includes steel-making machinery, food machines, medical equipment, power generators and internal combustion engines. The Others segment is involved in electronic and control systems, package software, information systems and other businesses. As reported in the Troubled Company Reporter-Asia Pacific on May 31, 2007, Rating and Investment Inc. has upgraded the BB- issuer rating of Hitachi Zosen Corporation from negative to a stable outlook. JAPAN AIRLINES: R&I Affirms BB+ Rating with Stable Outlook ---------------------------------------------------------- Rating and Investment Information, Inc., has affirmed its BB+ rating on Japan Airlines International Co., Ltd., with a stable outlook. Air Transportation Business of Japan Airlines Corp. (JAL) Group is almost back on track for recovery with the return of passengers once dropped following safety problems and with the increased yield from upward fare revision and growth of business travelers. Higher fuel cost pushed by a soaring crude oil prices is offset by controlling fuel consumption through reorganization of route network and fuel surcharges. R&I evaluates FY2007-2010 Medium-Term Revival Plan essential for promoting self-rehabilitation has been progressing as scheduled. With the capital increase carried out in July 2006, the consolidated capital equity ratio has improved to 14.9% as of March 2007 and financial condition is more stable. R&I also consider the group will continue to receive support from a government-affiliated financial institution. Taken all the above, R&I has affirmed the Issuer Ratings at BB+. The ratings for bonds still reflect subordination in recovery risk by one notch. Funding for fiscal year 2007 has been virtually finalized and R&I sees the company is free of financing difficulty in the meantime. Nevertheless, the achievement of Medium-Term Revival Plan is a requisite for securing future refinancing. Out of the JPY50 billion reduction in personnel cost outlined in the Plan, measures worthy of over JPY20 billion, such as modifying the retirement benefit plan and improving capacity, are yet to be employed, and some needs to draw up specific measures to implement in the next term and after. Although JAL has taken measures such as shifting to highly profitable routes and strengthening overall product competitiveness, the synergy effects have not shown up yet. There are also many issues to be cleared before the business structure for generating stable profit is established. Any delay in the implementation and synergy effects will exert a huge downward pressure on its rating. In the event the group faces a harsher funding environment despite its efforts, it would be difficult to maintain the current ratings. R&I affirmed the same Issuer Ratings for JAL as the holding company and Japan Airlines International Co., Ltd. (JALI) as a core operating company, given their strong integrity with the group. U.S. Justice Department and European Commission are tightening control over air cargo price fixing and JAL is now under investigation. No such implication is factored into the current rating as it is uncertain if any cartel fine will be imposed. However, R&I considers this issue as business uncertainty and will closely follow its progress. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. SENSIENT TECH: Earns US$20.7 Million in Quarter Ended Sept. 30 -------------------------------------------------------------- Sensient Technologies Corporation reported net earnings of US$20.7 million for the three months ended Sept. 30, 2007, compared to US$16.9 million for the same period in 2006. Revenue reached a record level of US$294.3 million for the third quarter, up 4.8% from the comparable quarter in 2006. The Company expects that revenue growth for the remainder of 2007 will exceed 7%. "Today we announced another quarter with excellent results," said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. "This quarter all of our groups reported higher revenue and profits. We are well-positioned for future growth." Business Review The Flavors & Fragrances Group reported record third quarter revenue and operating income. Revenue for the third quarter increased 4.0% to US$197.2 million. Operating income was up 8.9% to US$29.9 million compared to US$27.4 million in the third quarter of 2006. Year-to-date revenue increased 6.6% to US$584.3 million and operating income was up 12.6% to US$87.2 million. Group revenue in the quarter benefited from improved pricing. Foreign currency translation also had a favorable impact on quarterly revenue. Quarterly profit rose as a result of improved pricing, favorable foreign currency translation and improvements in operating efficiencies. Group operating margins in the quarter improved 70 basis points in comparison to the third quarter of 2006. The Color Group's revenue increased 4.1% to US$90.7 million for the quarter ended Sept. 30, 2007, compared to US$87.1 million in last year's third quarter. Operating income for the quarter was US$15.9 million, up 14.6% from US$13.9 million reported in the third quarter of 2006. Year-to-date revenue increased 5.8% to US$282.2 million and operating income was up 10.5% to US$50.3 million. Quarterly revenue for the Color Group reflects solid growth in food and beverage colors and favorable foreign currency translation. Higher volumes and improved product mix contributed to the increase in Color Group profits for the third quarter. Group operating margins in the quarter improved 160 basis points in comparison to the third quarter of 2006. 2007 Outlook Sensient has increased its reported 2007 diluted earnings per share guidance to US$1.62. The previous range for guidance was between US$1.56 and US$1.59. For 2008, Sensient expects its diluted earnings per share to be between US$1.73 and US$1.77. Headquartered in Milwaukee, Wisconsin, Sensient Technologies Corp. -- http://www.sensient-tech.com/-- manufactures and markets colors, flavors and fragrances. Sensient also employs technologies to develop specialty chemicals for inkjet inks, display imaging systems and other applications. The company's principal products include flavors, flavor enhancers and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food colors; cosmetic and pharmaceutical additives; inkjet inks, technical colors, and specialty dyes and pigments, and chemicals for laser printing and flat screen displays. Sensient maintains operations in Argentina, Belgium, China, and Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Standard & Poor's Ratings Services has revised its outlook on Milwaukee, Wis.-based Sensient Technologies Corp. to stable from negative. At the same time, Standard & Poor's affirmed its 'BB+' corporate credit and senior unsecured debt ratings on the company. Approximately USUS$508 million of debt was outstanding as of June 30, 2007. SENSIENT TECH: Selects Neil Cracknell as Deputy Group Executive --------------------------------------------------------------- Sensient Technologies Corporation has elected Neil Cracknell to the position of Vice President and Deputy Group Executive of the Flavors & Fragrances Group. Mr. Cracknell joined the Company in September 1994 as Manager of Sales and Marketing for Colors Europe. He became Managing Director, Colors Europe in 2000 and Vice President of Sensient Pharmaceutical Technologies in 2002. In June 2002, he was promoted to President of Sensient Dehydrated Flavors. At Dehydrated Flavors, he has maximized plant utilization while continuing to increase profitability. Mr. Cracknell has a Master's degree in Business Administration from the University of Bath and a Bachelor of Science degree from Loughborough University. "Neil Cracknell has played a significant role in the Company's success as President of Dehydrated Flavors," said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. "He brings strong management skills to his new position." Headquartered in Milwaukee, Wisconsin, Sensient Technologies Corp. -- http://www.sensient-tech.com/-- manufactures and markets colors, flavors and fragrances. Sensient also employs technologies to develop specialty chemicals for inkjet inks, display imaging systems and other applications. The company's principal products include flavors, flavor enhancers and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food colors; cosmetic and pharmaceutical additives; inkjet inks, technical colors, and specialty dyes and pigments, and chemicals for laser printing and flat screen displays. Sensient maintains operations in Argentina, Belgium, China, and Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Standard & Poor's Ratings Services has revised its outlook on Milwaukee, Wis.-based Sensient Technologies Corp. to stable from negative. At the same time, Standard & Poor's affirmed its 'BB+' corporate credit and senior unsecured debt ratings on the company. Approximately US$508 million of debt was outstanding as of June 30, 2007. XEROX CORPORATION: Earns US$753 Mln in First Nine Months of 2007 ---------------------------------------------------------------- Xerox Corporation posted a net income of US$753 million on US$4.3 billion of revenues for the first nine months ended Sept. 30, 2007, compared with a net income of EUR996 million on EUR3.8 billion of revenues for the same period in 2006. At Sept. 30, 2007, the company's consolidated balance sheet showed US$23.4 billion in total assets, US$15.5 billion in total liabilities and US$7.9 billion in shareholders' equity "This quarter's solid results are proof positive that our business model is on track, generating double-digit profit growth and fueling a strong annuity pipeline that serves us well for the long term," said Anne M. Mulcahy, Xerox chairman and chief executive officer. "With the industry's broadest set of digital color systems, we're knocking down cost and quality barriers to make color printing affordable for businesses of any size. Now, color makes up more than half of our total equipment sales," she added. "Our investments in innovation, rich portfolio of services, and acquisitions of companies that strengthen our leadership in document management are delivering value for our customers and our shareholders. The result is strong third-quarter performance, leading us to increase our expectations for full- year earnings growth." During the third quarter, Xerox saw the benefit of the 38 office and production products launched this year as well as broader distribution to small and mid-size businesses through the acquisition of Global Imaging Systems. Equipment sales were up 14 percent over the prior year, including a 2 point benefit from currency. Already in 2007, Xerox has rolled out more than twice the number of new products it launched last year. More than two-thirds of Xerox's equipment sale revenue comes from products launched in the past two years. Just recently, Xerox closed on its US$32 million acquisition of Advectis, Inc., which provides one of the mortgage industry's most widely-used solutions for electronic document collaboration. The all-cash purchase of Advectis expands Xerox's expertise in automating work processes, helping customers in document-intensive businesses like lending and finance to reduce costs and simplify how work gets done. &nb