T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 26, 2007, Vol. 10, No. 213 Headlines A U S T R A L I A ABC ACCENT: Placed Under Voluntary Liquidation AUSTRALIAN - AMERICAN: Commences Liquidation Proceedings CARLI PTY: Members to Hold Final Meeting on November 2 CHRYSLER LLC: UAW Local 685 Rejects Tentative Labor Agreement DR. NGUYEN-PHUOC: Members Decide to Wind Up Operations ENESCO GROUP: Plan Confirmation Hearing Set for Nov. 28 ERIC WHITBREAD: Commences Liquidation Proceedings EVANS & TATE: Receivers Opt for McWilliam's as Procurer J F PLASTERING: Members Agree on Voluntary Liquidation MAYDIS PTY: Members to Receive Wind-Up Report Today PROPERTY NATIONAL: Supreme Court Enters Wind-Up Order SYMBION HEALTH: To Push Through w/ Healthscope Revised Proposal TRACKSELL PLANT: Members' Meeting Set for Nov. 5 VINCE PETITTO: Will Declare First and Final Dividend on Oct. 31 ZINIFEX LTD: Posts 13% Production Boost for Quarter to Sept. 30 C H I N A & H O N G K O N G ALERIS INT'L: Merging Monterrey Unit to Monclova Plant in Mexico ASAT HOLDINGS: Nasdaq Scraps Delisting Decision BEIJING SHOUGANG: To Drastically Cut Productions for Olympics CHINA SOUTHERN: 1st Half Profit Soars 49% on Strong Demand DANA CORP: Gets Go Signal to Begin Soliciting Votes on Plan EVER LARGE: Placed Under Voluntary Liquidation HONG GLAP: Members to Receive Wind-Up Report on Nov. 13 HONG KONG YOSHITOKU: Creditors' Proofs of Debt Due on Nov. 15 HOPSON DEVELOPMENT: Names Zhao Hai as Deputy Chairman HOTEL TYCOON: Commences Liquidation Proceedings ILI TECHNOLOGY: Fitch Hands BB+(twn) on Issuer Default Rating JIANGXI COPPER: Rising Costs Cut 9-Months Profit by 8.7% JOINT OCEAN: Members to Hold General Meeting on Nov. 15 LEE SHING: Members to Hear Wind-Up Report on November 9 MOBIL LPG: Members' Final General Meeting Set for Nov. 12 ROBERTSON: Creditors and Contributories to Meet on Nov. 20 SPANSION INC: Inks Pact with SMIC To Form MirrorBit(R) Products SPANSION INC: Names Gary Wang as President for China Unit THE THAI-ASIA: Requires Shareholders to File Claims by Nov. 15 WORLD MATCH: Sets General Meeting for November 12 I N D I A AES CORP: Unit Says It Will Proceed with Brasiliana Stake Buy AES CORP: Shuts Down Alamitos Power Station's Unit 6 BAUSCH & LOMB: Named Defendant in 573 Product Liability Suits EMCO LTD: Earns INR103.58 Million in Sept. 30, 2007 Quarter MYSORE CEMENTS: To Expand Plants' Capacity; Seeks Govt. Nod MYSORE CEMENTS: Net Profit Up 3% in Qtr. Ended Sept. 30, 2007 RPG LIFE SCIENCES: Members Approves Scheme of Arrangement UTSTARCOM INC: Gets Notice of Default from 7/8% Notes Trustee I N D O N E S I A BANK NEGARA: Nine-Month Profit Ups 10% to IDR1.56 Trillion GARUDA: Customs Suspends 6 Airlines Due to Requirement Failure HILTON HOTELS: Prices Cash Tender Offer for 7.430% CLP Notes ORBITAL SCIENCES: Earns $15.7 Million in Quarter Ended Sept. 30 REXAM PLC: To Build New Beverage Can Plant in Denmark J A P A N AZEL CORP: R&I Affirms BB Issuer Rating and BB- Long-term IR NOVA CORP: Labor Regulator Asks President to Answer Wage Issues SANYO ELECTRIC: Settles Patent Dispute with 3M Co. K O R E A GENEXEL-SEIN: Adjusts Conversion Price of 2nd Convertible Bonds EVEREX INC: Adjusts Price of Eighth Bond With Warrants TOWER AUTOMOTIVE: Court Oks PCT'S Bid for Deal with Plaintiffs TOWER AUTOMOTIVE: Dec. 10 Hearing Set for ERISA Suit Settlement M A L A Y S I A LITYAN HOLDINGS: Names New CEO and Executive Director MANGIUM INDUSTRIES: Unit Defaults on Loan from Two Banks SHAW GROUP: Appeals IRS Adjustments for 2002-2003 Tax Returns SHAW GROUP: Stone Acquisition-Related Appeal Still Pending SHAW GROUP: Continues Review of Accounting for Acquisitions SUNWAY INFRASTRUCTURE: Unit Buys MTSB as Special Purpose Vehicle TALAM CORP: Unit Acquires Chinese Firm for MYR45 Million N E W Z E A L A N D FIRST DATA: Subsidiary Reaches Agreement with Meijer FOXKITCHENS LTD: Appoints Official Assignee as Liquidator GLINK GRAPHICS: Fixes November 2 as Last Day to File Claims HAYWARD HUNT: Taps Official Assignee as Liquidator JUNO GROUP: Commences Liquidation Proceedings MARPLE INVESTMENTS: Creditors' Proofs of Debt Due on Oct. 4 MRC GROUNDS: Fixes Nov. 5 as Last Day to File Claims PAPAKURA MOTORS: Appoints Official Assignee as Liquidator PRADO CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 1 SOLOMON NOMINEES: Taps Rhys Michael Barlow as Liquidator TACLOBAN LTD: Accepting Proofs of Debt Until Nov. 2 P H I L I P P I N E S BANGKO SENTRAL: May Be Obliged to Pay Old Central Bank's Debts CHINA BANKING CORP: PSE Approves Listing of Additional Shares CHINA BANKING CORP: Danilo Alcoseba Steps Down as Board Advisor LAFAYETTE MINING PHILS: Ships US$8.38 Million During 3rd Quarter PHIL LONG DISTANCE: Expects PHP34-Billion Net Income for 2007 RIZAL COMM'L: Turns 3,042 Preferred Stock to 1,096 Common Shares * PLDT Head Makes Suggestions to Reach 1st World Status in 2027 * Businessmen Urges Government to Watch Appreciation of Currency S I N G A P O R E GENESIS TECHNOLOGIES: Accepting Proofs of Debt Until Nov. 2 INTEGRAL PERIPHERALS: Pays First and Final Dividend FLEXTRONICS INT'L: Earns US$121 Mil. in Quarter Ended Sept. 28 REFCO INC: Shareholders Sue Mayer Brown Over Role in Collapse STATS CHIPPAC: Posts US$27.9MM Net Income in Qtr. Ended Sept. 30 T H A I L A N D BANK OF AYUDHYA: Fitch Assigns 'A+' Nat'l Rating to Debentures KRUNG THAI: Shortlists 500 Clients for Possible Market Listing TOTAL ACCESS: Expects 65 Mil. Mobile Phone Subscribers in 2008 TOTAL ACCESS: Suspends 3G Investment Pending Clearer NTC Policy * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ABC ACCENT: Placed Under Voluntary Liquidation ---------------------------------------------- On September 19, 2007, the members of ABC Accent Pty Ltd passed a resolution to liquidate the company's business. Robert Roxburgh Elliott of Brigden & Partners was appointed as liquidator. The Liquidator can be reached at: Robert Roxburgh Elliott GPO Box 2564 Sydney, New South Wales 2001 Australia About ABC Accent ABC Accent Pty Ltd is involved with the footwear business. The company is located at Richmond, in Victoria, Australia. AUSTRALIAN - AMERICAN: Commences Liquidation Proceedings -------------------------------------------------------- During a general meeting held on September 14, 2007, the members of Australian - American Association Ltd agreed to voluntarily liquidate the company's business. Scott Cameron Turner was appointed as liquidator. The Liquidator can be reached at: Scott Cameron Turner Level 4, 151 Macquarie Street Sydney, New South Wales 2000 Australia About Australian-American Australian-American Association Ltd, which is also trading as Australian American Centre, provides social services. The company is located at Sydney, in New South Wales, Australia. CARLI PTY: Members to Hold Final Meeting on November 2 ------------------------------------------------------ The members of Carli Pty Ltd will hold their final meeting on November 2, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicholas Craig Malanos c/o Star Dean Willcocks 32 Martin Place, Level 1 Sydney, New South Wales 2000 Australia Telephone:(02) 9223 2944 Facsimile:(02) 9223 3011 About Carli Pty Carli Pty Ltd operates gift, novelty and souvenir shop. The company is located at Victoria Park East, in West Australia, Australia. CHRYSLER LLC: UAW Local 685 Rejects Tentative Labor Agreement ------------------------------------------------------------- United Auto Workers Local 685, with 4,500 employees at three Chrysler LLC transmission plants in Kokomo, Indiana, rejected a tentative labor contract between the union and the carmaker by a 72% margin, Mike Ramsey of Bloomberg News reports citing local president Guy Barger. The result has raised the likelihood of the pact to fail on an overall level. Results for nearby Local 1166 were not available, Mr. Ramsey relates. As reported in yesterday's Troubled Company Reporter, union leaders were trying to sweet talk members at three Chrysler 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. Lobbying efforts were directed at: * members of a key local in Kokomo, Indiana, who voted Oct. 23, 2007, * members of a key local in Sterling Heights, Michigan, who are voting today, Oct. 24, 2007, and * members of a small local in Belvidere, Illinois, voting later this week. 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. 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. DR. NGUYEN-PHUOC: Members Decide to Wind Up Operations ------------------------------------------------------ During a general meeting held on September 14, 2007, the members of Dr. Nguyen-Phuoc Pty Limited agreed to voluntarily wind up the company's operations. Ozem Kassem and Deryk Andrew were named as liquidators. The Liquidators can be reached at: Ozem Kassem Deryk Andrew Level 10, 76-80 Clarence Street Sydney Australia Telephone:(02) 8221 8433 About Dr. Nguyen-Phuoc Dr. Nguyen-Phuoc Pty Limited operates offices and clinics of medical doctors. The company is located at Greystanes, in New South Wales, Australia. ENESCO GROUP: Plan Confirmation Hearing Set for Nov. 28 ------------------------------------------------------- The Hon. A. Benjamin Goldgar of the U.S. Bankruptcy Court for the Northern District of Illinois set a hearing at 1:30 p.m., on Nov. 28, 2007, to consider confirmation of the Second Amended Plan of Liquidation filed Enesco Group, Inc. and its debtor- affiliates. Objections to the Plan, if any, are due Nov. 19. Judge Goldgar had given his conditional approval on the adequacy of the Disclosure Statement explaining the Plan and has also set Nov. 19 as the last day to oppose the disclosure statement. About Enesco Group Based in Itasca, Illinois, Enesco Group, Inc. -- http://www.enesco.com/-- is a producer of giftware, and home and garden decor products. Enesco's product lines include some of the world's most recognizable brands, including Disney, Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane, Border Fine Arts, among others. Enesco distributes products to a wide array of specialty gift retailers, home decor boutiques and direct mail retailers, as well as mass-market chains. The company serves markets operating in Europe, particularly in the United Kingdom and France, as well in the Asia Pacific in Australia and Hong Kong. The company also has Latin American operations in Mexico. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. In schedules of assets and debts filed with the Court, Enesco disclosed total assets of US$61,879,068 and total debts of US$231,510,180. Chad H. Gettleman, Esq., and Brad A. Berish, Esq., at Adelman & Gettleman, Ltd., represent the Official Committee of Unsecured Creditors. William R. Baldiga, Esq., Jessica M. Paris, Esq., and Robert J. Stark, Esq., at Brown Rudnick Berlack Israels LLP; and Thomas V. Askounis, Esq., at Askounis & Borst, PC, represent the Ad Hoc Committee of Equity Security Holders. ERIC WHITBREAD: Commences Liquidation Proceedings ------------------------------------------------- During a general meeting held on September 13, 2007, the members of Eric Whitbread Shoes Pty Ltd agreed to voluntarily liquidate the company's business. Jennifer Harwood was named as liquidator. About Eric Whitbread Eric Whitbread Shoes Pty Ltd operates shoe stores. The company is located at Parramatta, in New South Wales, Australia. EVANS & TATE: Receivers Opt for McWilliam's as Procurer ------------------------------------------------------- Receivers for winemaker Evans & Tate Ltd. have announced a preferred buyer for the Margaret River company, ABC News reports. The report says that McWilliam's Wines consortium, after a seven week tender preferred by receivers McGrath-Nicol, has been chosen as the preferred procurer of the Margaret River company. The sale is expected to be finalized by the end of November. Evans & Tate, who went into receivership after ANZ bank foreclosed on a AU$100 million debt in August, had previously been involved in a merger prospect with McWilliam's Wines, but the deal fell through, relates ABC. McWilliam's Wines, according to ABC, declined to comment on this matter. 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. J F PLASTERING: Members Agree on Voluntary Liquidation ------------------------------------------------------ At an extraordinary general meeting held on September 20, 2007, the members of J F Plastering & Construction Pty Limited agreed to voluntarily liquidate the company's business. David Anthony Hurst and Andrew Hugh Jenner Wily were named as liquidators. The Liquidators can be reached at: David Anthony Hurst Andrew Hugh Jenner Wily Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia About J F Plastering J F Plastering & Construction Pty Ltd provides business services. The company is located at Abbotsford, in New South Wales, Australia. MAYDIS PTY: Members to Receive Wind-Up Report Today --------------------------------------------------- Maydis Pty Limited will hold a final meeting for its members today, October 26, 2007, at 11:00 a.m. At the meeting, the members will receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: B. P. Woodward B P Woodward & Associates Suite 501, 83 York Street Sydney, New South Wales 2000 Australia About Maydis Pty Locate at Pampoolah, in New South Wales, Australia, Maydis Pty Limited is an investor relation company. PROPERTY NATIONAL: Supreme Court Enters Wind-Up Order ----------------------------------------------------- On September 17, 2007, the Supreme Court of New South Wales entered an order directing the wind up of Property National Pty Ltd's operations. Riad Tayeh and Randall Joubert were appointed as liquidators. The Liquidators can be reached at: Riad Tayeh Randall Joubert c/o de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2124 Australia Telephone:(02) 9633 3333 Facsimile:(02) 9633 3040 About Property National Property National Pty Ltd -- http://www.propertynational.com-- provides investment advice. The company is located at Neutral Bay, in New South Wales, Australia. SYMBION HEALTH: To Push Through w/ Healthscope Revised Proposal --------------------------------------------------------------- Symbion Health Limited noted the announcement made by Primary Health Care Limited regarding it intention to vote against Symbion Health's proposal to merge its diagnostics business with Healthscope Limited and to also vote against the proposed scheme of arrangement in relation to Symbion Health's consumer and pharmacy business. Primary has made its announcement without having received or considered the explanatory memorandum which is to be issued by Symbion Health in relation to the Diagnostics Proposal and the C&P Proposal. Given the Symbion Health shareholder approval requirements, it is possible that the Diagnostics Proposal and the C&P Proposal can be implemented even if Primary votes against the proposal. The relevant Symbion Health shareholder approval requirements are set out below: * for the Diagnostics Proposal: approval is only required from the holders of more than 50% of the total number of Symbion Health shares voted at the Symbion Health shareholder meeting to consider the Diagnostics Proposal; and * for the C&P Proposal: approval is required from a majority in number of Symbion Health shareholders present and voting at the shareholder meeting holding at least 75% of the total number of Symbion Health shares voted at the shareholder meeting to consider the C&P Proposal. In addition, approval is required from the holders of more than 75% of the total number of Symbion Health shares voted at the meeting to consider the financial assistance resolution which relates to the C&P Proposal. The Diagnostics Proposal is not conditional on the C&P Proposal. The C&P Proposal is conditional on the Diagnostics Proposal. The Chairman of Symbion Health, Paul McClintock, said: "When Symbion Health agreed to proceed with the Diagnostics Proposal and the C&P Proposal, Symbion Health recognized the possibility that the Diagnostics Proposal might be implemented and the C&P Proposal might not be implemented. "Primary's 20% shareholding in Symbion Health is unlikely to be sufficient to block the Diagnostics Proposal, and we believe the Diagnostics Proposal alone would create significant value for Symbion Health shareholders. Once the Diagnostics Proposal is approved, Symbion Health shareholders should vote for the C&P Proposal unless they consider that there would be greater value for Symbion Health shareholders to continue to own these businesses as part of a standalone listed entity. Symbion Health Directors continue to unanimously recommend the Diagnostics Proposal and the C&P Proposal in the absence of a superior proposal and subject to the receipt of satisfactory reports from the independent expert." Symbion Health notes that Primary may change its voting intention, including if there is a material change in circumstances or in the structure of the proposal. Symbion Health also notes that Primary is able to sell its shares in Symbion Health to a third party who may vote in favor of the Diagnostics Proposal and / or the C&P Proposal. Symbion Health notes that Primary has not made any comment about its willingness to support the original proposal. If, on or before midday (Melbourne time) on the fifth day after the release of the explanatory memorandum in relation to the Diagnostics Proposal and the C&P Proposal, Primary makes a public and legally binding commitment (in an acceptable form) to support the original proposal, Symbion Health, Healthscope and the IAC consortium will seek to implement the original proposal. 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). TRACKSELL PLANT: Members' Meeting Set for Nov. 5 ------------------------------------------------ Tracksell Plant Services Pty Limited will hold a meeting for its members on November 5, 2007, at 10:00 a.m. At the meeting, M. J. M. Smith, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: M. J. M. Smith Smith Hancock Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia About Tracksell Plant Tracksell Plant Services Pty Limited is involved with heavy construction. The company is located at Parramatta, in New South Wales, Australia. VINCE PETITTO: Will Declare First and Final Dividend on Oct. 31 --------------------------------------------------------------- Vince Petitto Pty Ltd will declare its first and final dividend on October 31, 2007. Creditors who were not able to file their proofs of debt by the October 12 due date will be excluded from the company's dividend distribution. The company's deed administrator is: D. A. Hurst Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia About Vince Petitto Vince Petitto Pty Ltd, which is also trading as V P Interiors, is a distributor of wood office and store fixtures, partitions, shelving and lockers. The company is located at Silverwater, in New South Wales, Australia. ZINIFEX LTD: Posts 13% Production Boost for Quarter to Sept. 30 --------------------------------------------------------------- Zinifex Ltd. started the financial year on a strong note with total zinc production in concentrate for the September quarter, 13% higher than for the same period last year. The increased production occurred at Century which benefited from steady operations and by not incurring a major maintenance shutdown as was the case last year. Lead in concentrate output was comparable to that produced during the September quarter last year. On September 1, ownership of and operational responsibility for Zinifex\u2019s smelters was transferred to Nyrstar, the world\u2019s largest producer of zinc metal. Therefore in this review we report smelter production for the last time and only the first two months of this financial year. For this period production of zinc metal was in line with the same period last year and lead was nearly four times higher due to Port Pirie being shut for planned maintenance for most of July and August last year. Zinc prices continued to weaken during the September quarter averaging US$3,237 per tonne, 4% lower than for the comparative quarter in 2006. The zinc price in Australian dollars has been impacted more significantly due to the weakening US dollar. Despite zinc stocks falling further from already low levels and sound market fundamentals, the markets are taking their pricing cues from expectations that new zinc supply will enter the market in 2008 returning it to surplus. We hold the view that any surplus to emerge next year is likely to be modest given continuing strong demand in China and the tendency evident in recent years for new mines to be delayed and /or deliver lower than expected tonnage. Lead prices have again surged to record levels approaching US$4,000 per tonne on the back of ongoing supply issues and strong demand. LME stocks of lead fell by nearly 50% during the quarter to less than a day\u2019s supply when the Chinese government introduced an export tax which resulted in a significant fall in that country\u2019s lead exports. We remain positive on the near term outlook for lead where supply issues continue to hold the market\u2019s attention. During the past quarter Zinifex transferred its smelting businesses to Nyrstar. More recently we announced that part or all of our approximately 60% interest in Nyrstar would be sold in a public offering of Nyrstar shares. The offer is expected to close on 26 October with the final quantity sold and price paid for Nyrstar shares announced on 29 October. We are pleased with interest shown so far. Our strategy to grow our mining business continues to gather pace. We have been actively exploring all our international projects as well as progressing the development of our Dugald River zinc project in Australia and the Izok Lake copper/zinc project in Canada. Drilling at the Silver King prospect near our Century mine confirmed the presence of significant mineralization with a resource expected to be confirmed shortly. In addition nearby drilling also intersected significant mineralization suggesting the deposit extends further than previously thought. Zinifex also completed earning its 70% interest in the Menninnie Dam project in South Australia and is awaiting further assay results to enable a resource to be calculated. The Board\u2019s search for a new Chief Executive Officer is progressing well and we are confident an announcement will be made this calendar year. About Zinifex ZINIFEX: Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. ================================ C H I N A & H O N G K O N G ================================ ALERIS INT'L: Merging Monterrey Unit to Monclova Plant in Mexico ---------------------------------------------------------------- Aleris International Inc. will consolidate the operations of its Monterrey, Mexico facility into its Monclova, Mexico plant, which was part of the recently acquired Wabash Alloys, LLC. In addition, the operations of Wabash Alloy's Guelph, Canada facility will be consolidated into the operations of Aleris and former Wabash Alloys facilities. Both actions are currently underway. The Monterrey plant, which employed approximately 41 people, produced specification aluminum alloys that were delivered to customers in both ingot and molten form. The Guelph plant, which employed approximately 50 people, produced niche specification alloys, which were delivered primarily in ingot form to customers in Canada and the United States. "The closures are part of our ongoing initiatives to optimize our production footprint and maximize productivity while continuing to provide the highest quality products and services to our valued customers," said Ed Hoag Vice President and General Manager, Specification Alloys. About Aleris International Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico, China and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent US$105 million 9% senior notes due 2014, which are an add-on to the company's existing $600 million 9% senior notes due 2014. ASAT HOLDINGS: Nasdaq Scraps Delisting Decision ----------------------------------------------- ASAT Holdings Limited, on September 21, 2007, said that the Company received a Nasdaq Staff Determination letter dated September 17, 2007, indicating that the Company's market value of listed securities had been below US$35,000,000 as required for continued inclusion by Marketplace Rule 4320(e)(2)(B) (the "Rule") and that its American Depositary Shares ("ADSs") were, therefore, subject to delisting. On September 24, 2007, ASAT requested an appeal hearing before a Nasdaq Listing Qualifications Panel to avoid delisting. ASAT subsequently appealed to the Panel and provided information and other communication to the Panel. On October 17, 2007, ASAT was informed by the Panel that the Company had regained compliance with the US$35,000,000 market value requirement. As a result, the appeal hearing will be moot and cancelled, and ASAT's ADSs will remain listed on The Nasdaq Capital Market. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia, Hong Kong and Europe. At April 30, 2007, ASAT Holdings Limited's consolidated balance sheet showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in US$88.3 million total stockholders' deficit. BEIJING SHOUGANG: To Drastically Cut Productions for Olympics ------------------------------------------------------------- Beijing Shoungang Steel Co. Ltd has pledged to drastically cut production next summer so that the 2008 Olympic Games can enjoy better air quality, Xinhuanet News reports. Specifically, the Beijing Shougang Group pledged an output reduction of more than 70% from next July to September. The steel company, built in 1919 and located 17 kilometers west of the Tian'anmen Square, has been known to be the worst polluter in Beijing for years, China Knowledge says. According to the requirement of the State Council, or the country's cabinet, Shougang will reduce the annual output of 8 million tons at the Beijing plant to 4 million tons at the end of this year. The target output for 2008 is set to be 4.2 million tons. According to China.com, one of China's online news portals, during the third quarter next year, the group will maintain the monthly output at 200,000 tons, 30% of its normal capacity. In those three months, the company will carry out the minimum amount of production necessary to ensure that the plant and machinery can continue to function. Beijing Shougang has also made specific plans for emission control. In 2008, the emissions of soot, dust and sulfur dioxide will be reduced by 50.32%, 49.22% and 49.18% respectively, the news agency says. "The production is basically suspended during that period, which brings about great economic losses to the group," the group's president, Zhu Jimin, said. "But the government may do something to make up for it, such as refunding taxes." The State Council has promised that all the taxes collected from 2006 to 2009, totaling CNY3.8 billion (US$5.7 million), will be refunded. As one of the efforts made by the Chinese government to improve air quality, the steel company began in 2005 to relocate its facilities to a tiny island in Hebei Province, some 200 kilometers east of Beijing. The new plant will be completed in 2010. Based in Beijing, China, Beijing Shougang Co., Ltd. -- http://www.sggf.com.cn/index-1.asp-- is principally engaged in the iron and steel industry. The company mainly produces steel wire rods, square steel billets, steel plates, chemical products, gas, coke, pig iron and granulating slag. The company also provides compact discs, software, color-coated boards and building materials, through its subsidiaries. As of Dec. 31, 2005, the Company had three major subsidiaries and three major associates. The company has been widely accused of being one of Beijing's major polluters. Beijing Shougang carries Xinhua Far East China Ratings BB+ issuer credit rating. CHINA SOUTHERN: 1st Half Profit Soars 49% on Strong Demand ---------------------------------------------------------- China Southern Airlines returned to profit in the first half of 2007 due to strong customer demand as well as appreciation of the Chinese yuan against the U.S. dollar, which helped limit fuel costs, Reuters reports. In a disclosure with the Shanghai Stock Exchange, the company, under Chinese accounting standards, posted a net profit of CNY1.87 billion in the first half of 2007, as compared with a net profit of CNY1.26 billion in the same period last year. Turnover for the company also jumped to CNY16.502 billion in the 2007 first half as compared with a turnover of 14.11 billion in the same period last year. Operating costs increased to CNY12.33 billion from CNY11.81 billion a year earlier. Jet fuel accounts for roughly 70% of the Chinese carrier's operating costs. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. DANA CORP: Gets Go Signal to Begin Soliciting Votes on Plan ----------------------------------------------------------- Dana Corp. and its debtor-affiliates obtained the U.S. Bankruptcy Court for the Southern District of New York's consent to begin soliciting votes from creditors on their Joint Plan of Reorganization. In approximately one week, Dana expects to begin mailing solicitation packages to eligible creditors, who are required to submit their ballots by November 28, 2007. Before it could proceed with the solicitation process, Dana was required to show that the disclosure statement attached to the Plan contained "adequate information" necessary for parties entitled to vote on the Plan make an informed judgment on the Plan. Dana thrice amended the Plan and the Disclosure Statement to address objections raised by parties-in-interest and provide updates to recent developments in their Chapter 11 cases. The Plan, as amended, provides for (i) the Debtors' restructuring as a sustainable, viable business through several restructuring initiatives that were undertaken during the Chapter 11 cases; and (ii) a global settlement among the Debtors and their unions, Centerbridge Partners, L.P., and certain creditors. In November 2006, Dana outlined its restructuring goals, aiming to achieve a total of US$405,000,000 to US$540,000,000 in combined annual cost and margin improvement. Among other initiatives, Dana reached agreements for pricing adjustments with its major customers General Motors Corp., Toyota Motor Engineering & Manufacturing North America, Inc., Ford Motor Company, and Chrysler Company, LLC. The Plan provides for the disposal of preferred shares of reorganized Dana, to be named New Dana Holdco after the Debtors' emergence from Chapter 11, which is expected to raise US$790,000,000 in new capital. Centerbridge and members of an ad hoc steering committee, which hold in the aggregate approximately US$800,000,000 in Dana bonds, have agreed to backstop the rights offering, pursuant to the terms of a commitment letter, which remains subject to Bankruptcy Judge Burton R. Lifland's approval. Centerbridge will (i) pay US$250,000,000 for New Series A Preferred Stock of New Dana Holdco, and (ii) together with six other backstop parties, invest up to US$540,000,000 for New Series B Preferred Stock not purchased by "qualified investors", which constitute holders of bonds and trade claims of at least US$25,000,000. The Plan provides for the full payment of administrative, secured claims and reinstatement of Asbestos personal injury claims but provides for zero recovery to holders of the existing Dana stock Dana and subordinated claims. General unsecured creditors will obtain 72% to 86% recovery, depending on the total amount of claims that will ultimately be allowed in the class. Dana expects to shell out 78 to 86 cents on the dollar if the total allowed amount is between US$2,500,000,000 and US$2,750,000,000, and notches lower at 72 to 78 cents on the dollar if the total allowed amount is between US$2,750,000,000 and US$3,000,000,000. Holders of general unsecured claims, including bondholder and trade claims, will be entitled to vote on the Plan. The Debtors will post the tabulated voting results on the Plan on Dec. 6, 2007. The Debtors have scheduled a hearing to seek confirmation of the Plan on Dec. 10, 2007 at 10:00 a.m., Eastern Time. Objections to the Plan's confirmation are due Nov. 28. About Dana Corporation Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. EVER LARGE: Placed Under Voluntary Liquidation ---------------------------------------------- On October 4, 2007, the sole shareholder of Ever large Investment Limited passed a resolution to liquidate the company's business. Wong Lung Tak, Patrick was appointed as liquidator. The Liquidator can be reached at: Wong Lung Tak, Patrick China Insurance Group Building 141 Des Voeux Road Central Hong Kong HONG GLAP: Members to Receive Wind-Up Report on Nov. 13 ------------------------------------------------------- Hong Glap Investment (China) Limited will hold a final meeting for its members on November 13, 2007, at 10:00 a.m., at the 7th Floor of Allied Kajima Building, in 138 Gloucester Road, Hong Kong. At the meeting, Wong Poh Weng and Wong Tak Man Stephen, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. HONG KONG YOSHITOKU: Creditors' Proofs of Debt Due on Nov. 15 ------------------------------------------------------------- On September 19, 2007, the shareholders of Hong Kong Yoshitoku Company Limited passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt by Nov. 15, 2007, to be included in the company's dividend distribution. The company's liquidators are: Lai Kar Yan, Derek Darach Eoghan Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong HOPSON DEVELOPMENT: Names Zhao Hai as Deputy Chairman ----------------------------------------------------- Hopson Development Holdings Limited appointed Zhao Hai as its new executive director and deputy chairman effective Oct. 23, 2007, Infocast News reports. In addition, the company also appointed Xue Hu as an executive director. Mr. Zhao assumed senior roles with Marriott from 1998 to 2007 and was responsible for the development of Marriott's business and hotel projects in the PRC. He was the senior vice president of development, Marriott International China, Beijing, PRC prior to joining Hopson Development. Mr. Zhao is entitled to an annual salary of US$5 million and options to subscribe for 1 million shares of Hopson Development. Hong Kong-based Hopson Development Company Holdings Limited (Hopson) is one of the largest property developers in China. Its principal businesses are residential developments in four major cities: Guangzhou, Beijing, Shanghai and Tianjin. The Troubled Company Reporter-Asia Pacific reported that, on Jan. 19, 2007, Standard & Poor's Ratings Services placed its BB+ long-term corporate credit rating on Hopson Development Holdings Ltd on CreditWatch with negative implications. The TCR-AP reported that Moody's Investors Service on July 11, 2006, downgraded the corporate family and senior unsecured ratings of Hopson Development Holdings Limited to Ba2 from Ba1. The ratings outlook is stable. This concludes the ratings review initiated on June 13, 2006. HOTEL TYCOON: Commences Liquidation Proceedings ----------------------------------------------- The creditors of Hotel Tycoon Travel Limited, on September 28, 2007, appointed Chan Kin Hang, Danvil as the company's provisional liquidator. Mr. Chan can be reached at: Chan Kin Hang, Danvil Ginza Square Room 2301, 23rd Floor 565-567 Nathan Road Yaumatei, Kowloon ILI TECHNOLOGY: Fitch Hands BB+(twn) on Issuer Default Rating ------------------------------------------------------------- Fitch Ratings, on Oct. 25, 2007, assigned Taiwan's Ili Technology Corp. a National Long-term Issuer Default Rating (IDR) of 'BB+(twn)'. The Outlook on the rating is Stable. Fitch has also assigned a National rating of 'AA(twn)' to the TWD160 million three-year zero coupon senior secured convertible bonds to be issued in November 2007. The final rating on the new issue is contingent upon receipt of final documents conforming to information already received, as well as issuance approval from local authorities. The IDR reflects Ilitek's market position as one of the major designers of driver integrated circuit (IC) for small-and medium-sized thin film transistor liquid crystal display (TFT- LCD) in Taiwan and China. The IDR also reflects Ilitek's strong IC design capability with a very experienced research and development (R&D) team, as well as the support in wafer foundry provided by Powerchip Semiconductor Corp. (PSC). With its pin-to-pin compatible strategy, cost advantage supported by PSC, as well as dedicated marketing and relentless sales efforts, Ilitek has become the largest supplier of display driver ICs (DDI) for local-brand handset TFT-LCDs in China over the past year. A good financial profile characterized by its above average profitability, low capex requirements and low financial leverage also supports the IDR. A significant increase of IC shipment propelled Ilitek's H107 revenues to NT$964 million, up 20 times from NT$46 million in the same period a year earlier. Its EBITDAR margin rose to 20.3% in H107, from 3.2% in 2006. Its total adjusted debt net of cash/operating EBITDAR ratio remained negative at 1.4x at end-H107. The issue rating reflects the enhanced credit worthiness supported by the full and unconditional guarantor, Mega International Commercial Bank Company Limited ('A-' (A minus)/'AA(twn)'/Stable). In addition to limited management track records, the IDR is also constrained by the company's small operational scale, concentrated sales among top clients and within the small/medium sized TFT-LCD sector, as well as a short product life that usually leads to a sharp decline in ASPs and obsolescence of unsold inventory. Its top five clients accounted for around 65% of the company's sales in the first half of 2007 (H107). DDI for small/medium sized TFT-LCD accounted for 99% of its sales in 2006. Factors moderating the above concerns include likely continuous revenue growth for the coming two to three years (underpinned by shipment increases of DDI-applied devices in China), the outsourcing trend of liquid crystal module (LCM) companies in Japan, and the company's ability to quickly launch new products through its streamlined R&D process. The Stable Outlook reflects Fitch's expectation that Ilitek's core competence is likely to help it weather cyclical market conditions and maintain credit metrics within the existing rating. Established in July 2004, Ilitek is a fabless IC design company focusing on driver IC for 1.4-inch to 4.3-inch TFT-LCDs. Ilitek serves customers with both standard products (around 80% of revenues) and customised application-specific integrated circuit (ASIC) products (20%). In terms of IC shipment in 2006, Ilitek was ranked as Taiwan's fifth largest provider of DDI for small/medium sized TFT-LCDs. Exports accounted for 74.1% of its revenues in H107. Ilitek is 18.9%-owned by affiliates of PSC. JIANGXI COPPER: Rising Costs Cut 9-Months Profit by 8.7% -------------------------------------------------------- Jiangxi Copper Co.’s net profit in the first nine months fell 8.7% to CNY3.25 billion as a result of the rising costs of raw materials and sales, China Knowledge relates. In a filing with the local bourse, the company disclosed a revenue from January to September of CNY28.56 billion, compared with CNY17.92 billion last year. Earnings per share during the same period were CNY1.1, decreasing by 15.06% year-on-year. Jiangxi Copper, according to China Knowledge, attributed the revenue increment to the rising sales volume of its products and its selling price during the period. However, the company's operating cost during the period also rose 109.9% to CNY24.09 billion from CNY11.48 billion last year. Meanwhile, the company issued 127.8 million A-shares via a private placement in September at the price of CNY31.30 per share, which raised approximately CNY4 billion. Jiangxi Copper Company Limited -- http://www.jxcc.com/english/enjtgs/enindex.htm-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. JOINT OCEAN: Members to Hold General Meeting on Nov. 15 ------------------------------------------------------- A final general meeting will be held for the members of Joint Ocean International Limited on November 15, 2007, at 11:00 a.m., at Room 502 of Hang Bong Commercial Centre, in 28 Shanghai Street, Kowloon. At the meeting, Ying Tze Yeuk, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LEE SHING: Members to Hear Wind-Up Report on November 9 ------------------------------------------------------- Lee Shing Yue Construction Company Limited will hold a meeting for its members on November 9, 2007, at 2:30 p.m., at the 32nd Floor of One Pacific Place, in 88 Queensway, Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. MOBIL LPG: Members' Final General Meeting Set for Nov. 12 --------------------------------------------------------- The members of Mobil LPG Investment Company Limited will hold their final general meeting on November 12, 2007, at 9:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Wong Lung Tak, Patrick China Insurance Group Building Room 1101, 11th Floor 141 Des Voeux Road Central Hong Kong ROBERTSON: Creditors and Contributories to Meet on Nov. 20 ---------------------------------------------------------- The creditors and contributories of Robertson Products Limited will meet on November 20, 2007, at 10:00 a.m. and 10:30 a.m., respectively, at the office of Grant Thornton, 13th Floor of Gloucester Tower, The Landmark, 15 Queen's Road Central, Hong Kong. At the meeting, Alan C. W. Tang and Wong Kwok Man, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SPANSION INC: Inks Pact with SMIC To Form MirrorBit(R) Products --------------------------------------------------------------- Spansion Inc. has intensified its focus in the China market by partnering with foundry leader, Semiconductor Manufacturing International Corporation. Spansion will transfer its 65nm MirrorBit(R) technology to SMIC for foundry services on 300mm wafers in China. SMIC and Spansion have also signed a preliminary memorandum of understanding which would allow SMIC to enter selected segments of the Flash memory market with a license to manufacture and sell 90nm and 65nm and potentially future Spansion MirrorBit(R) Quad products for the China content delivery market. Spansion has been investing in China for over 10 years and is now a leading Flash memory provider to the top consumer electronics and wireless OEMs in the region. The investment started with the establishment by AMD, Spansion's former parent company, of the Suzhou final manufacturing facility - now one of the world's largest producers of memory Multi-chip Packages. Since then, Spansion has added local design centers in Suzhou and Beijing, and sales and marketing offices in Beijing, Shanghai and Shenzhen. Through the foundry agreement with SMIC, Spansion will have wafer-manufacturing capabilities in China. "By partnering with SMIC, a leading foundry in China, we can better serve our customers, with products made in China for the China market," said Bertrand Cambou, president and CEO of Spansion Inc. "As a result of our team's success, we have the opportunity to take our business to the next level and expand opportunities in this exploding region." As the market leader in China, SMIC provides a complete integrated circuit foundry solution to help its customers fulfill their China Strategy. SMIC has diversified its memory portfolio to include NAND Flash, NOR Flash, and Specialty DRAM as part of its growth strategy to enter potential market segments. SMIC has also announced development of 90nm 2Gb NAND Flash and 2Gb- TSOP products based on Saifun 2-bit-per-cell as well as the Quad NROM four- bit-per-cell technology, scheduled to enter commercial production as early as the fourth quarter 2007. "As Spansion has made strategic plans for the China market, SMIC has made great strides anticipating the growing Flash memory market. Our partnership with the NOR Flash memory technology leader fortifies these strategic synergies," said Dr. Richard Chang, president and CEO of SMIC. "With the booming China consumer electronics market comes the opportunity to create and nurture the growth of various Flash memory services and markets. We look forward to collaborating with Spansion to manufacture its leading-edge MirrorBit technology and develop Flash-based content delivery applications." Spansion In China Spansion has more than 1,300 employees in Greater China who continue to build momentum with the top OEMs, as demonstrated by the awards Spansion has received. For the third consecutive year, Lenovo awarded Spansion Best Supplier for 2006 and Inventec, a leading ODM/OEM awarded Spansion Best Partner earlier this year. Spansion's other leading partners in the Greater China region include ARCA Technology Corporation and MediaTek, Inc., one of the world's top ten fabless semiconductor companies for wireless communications and digital media solutions. Spansion has a final manufacturing facility in Suzhou, one of the world's largest memory producers of Multi- chip Packages (MCPs), design centers in Suzhou and Beijing and sales and marketing offices in Beijing, Shanghai and Shenzhen. About SMIC Headquartered in Shanghai, China, Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 0981.HK) -- http://www.smics.com/-- is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35um to 90nm and finer line technologies. SMIC has a 300mm wafer fabrication facility (fab) under pilot production and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab under construction in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. About Spansion Spansion Inc. -- http://www.spansion.com/-- (Nasdaq: SPSN), headquartered in Sunnyvale, California, and parent of Spansion LLC, is a leading provider of flash memory semiconductors that's after its initial public offering in December 2005, is owned approximately 38% by Advanced Micro Devices and 25% by Fujitsu Limited. The company has European operations in France, Asia-Pacific facilities in Japan, China, Malaysia and Thailand, as well as sales offices in Latin American countries including Brazil and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Fitch Ratings has assigned a rating of 'B+/RR2' to Spansion Inc.'s US$550 million senior secured floating- rate notes due 2013 issued pursuant to Rule 144A, the net proceeds from which will be used to repay the outstanding obligations under the company's US$500 million senior secured term loan facility due 2012. The remainder of net proceeds will be used for general corporate purposes, including capital expenditures and working capital. Fitch has withdrawn the 'BB-/RR1' rating of the approximately US$500 million senior secured term loan facility in anticipation of Spansion's repayment of this tranche of debt. Additionally, Fitch has downgraded the US$175 million senior secured revolving credit facility due 2010 to 'B+/RR2' from 'BB-/RR1.' In conjunction with the refinancing, Fitch has affirmed these ratings: -- Issuer Default Rating of 'B-'; -- US$250 million of 11.75% senior unsecured notes due 2016 at 'CCC+/RR5'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 at 'CCC/RR6'. Fitch said the rating outlook remains negative. Approximately US$1.1 billion of total debt is affected by Fitch's actions. SPANSION INC: Names Gary Wang as President for China Unit --------------------------------------------------------- Spansion Inc. has appointed Gary Wang, previously corporate vice president of Asia Pacific Sales and Marketing, to the newly created position of president, Spansion Greater China. Reporting directly to the Office of the CEO, Mr. Wang will serve as a liaison with strategic customers, government officials, and alliance partners and ensure Spansion's business strategies are aligned to meet the requirements in China. "Gary and his team have done an outstanding job in increasing our revenue and share in the region," said Bertrand Cambou, president and CEO of Spansion Inc. "We now look forward to Gary's leadership in expanding our strategic relationships to enable Spansion to capitalize on new market opportunities in the rapidly growing China consumer electronics and wireless markets." Spansion is one of the leading Flash memory solution providers, working with the top consumer electronics OEMs and wireless handset manufacturers in the Greater China region. Spansion has over 1,300 employees located in China with a final manufacturing facility in Suzhou, design centers in Suzhou and Beijing and sales and marketing offices in Beijing, Shanghai and Shenzhen. "I look forward to further collaborating with our customers, partners and the government in the region," said Mr. Wang. "China is revving up for an electronics revolution that will drive a new wave of growth in Flash memory and I am confident that our relationships in the region will create new innovations to meet demand." About Spansion Spansion Inc. -- http://www.spansion.com/-- (Nasdaq: SPSN), headquartered in Sunnyvale, California, and parent of Spansion LLC, is a leading provider of flash memory semiconductors that's after its initial public offering in December 2005, is owned approximately 38% by Advanced Micro Devices and 25% by Fujitsu Limited. The company has European operations in France, Asia-Pacific facilities in Japan, China, Malaysia and Thailand, as well as sales offices in Latin American countries including Brazil and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Fitch Ratings has assigned a rating of 'B+/RR2' to Spansion Inc.'s US$550 million senior secured floating- rate notes due 2013 issued pursuant to Rule 144A, the net proceeds from which will be used to repay the outstanding obligations under the company's US$500 million senior secured term loan facility due 2012. The remainder of net proceeds will be used for general corporate purposes, including capital expenditures and working capital. Fitch has withdrawn the 'BB-/RR1' rating of the approximately US$500 million senior secured term loan facility in anticipation of Spansion's repayment of this tranche of debt. Additionally, Fitch has downgraded the US$175 million senior secured revolving credit facility due 2010 to 'B+/RR2' from 'BB-/RR1.' In conjunction with the refinancing, Fitch has affirmed these ratings: -- Issuer Default Rating of 'B-'; -- US$250 million of 11.75% senior unsecured notes due 2016 at 'CCC+/RR5'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 at 'CCC/RR6'. Fitch said the rating outlook remains negative. Approximately US$1.1 billion of total debt is affected by Fitch's actions. THE THAI-ASIA: Requires Shareholders to File Claims by Nov. 15 -------------------------------------------------------------- The Thai-Asia Fund Limited requires its shareholders and former shareholders who have not received their dividend entitlement for the year 2003, 2004 and 2005 to file their proofs of debt by Nov. 15, 2007, to be included in the company's dividend distribution. The company's liquidators are: Lai Kar Yan (Derek) Darach Haughey One Pacific Place, 35th Floor 88 Queensway, Hong Kong Telephone: (852) 2852 6495 WORLD MATCH: Sets General Meeting for November 12 ------------------------------------------------- A final general meeting will be held for the members and creditors of World Match Limited on November 12, 2007, at 10:00 a.m. and 11:00 a.m., respectively, at Room 1512-13 of Shui On Centre, Wanchai. At the meeting, Lui Siu Tang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AES CORP: Unit Says It Will Proceed with Brasiliana Stake Buy ------------------------------------------------------------- AES Brasil head Britaldo Soares told reporters that it is still keen on buying a 49.9% stake in the Brasiliana holding firm from Banco Nacional de Desenvolvimento Economico e Social SA. As reported in the Troubled Company Reporter-Latin America on Oct. 16, 2007, AES Corp. said that it could use up to US$600 million from the placement of senior unsecured notes to fund the acquisition of the Brasiliana stake. Banco Nacional, along with AES, would hire an independent auditor to appraise Brasiliana's value. Banco Nacional wants to sell its 49.99% stake in Brasiliana, where AES holds 50.01%. Mr. Soares commented to BNamericas, "AES' main interest in Brazil is its Brasiliana stake and we're interested in using our option to purchase the shares we don't own." He was referring to AES' right of first refusal. BNamericas states that these firms are also considering buying the stake: -- EDB, -- Cemig, and -- CPFL Energia. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. About AES Corporation AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$2 billion issuance of senior unsecured notes maturing 2015 and 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. AES CORP: Shuts Down Alamitos Power Station's Unit 6 ---------------------------------------------------- The AES Corp. has shut down the 495-megawatt Unit 6 at its Alamitos natural gas-fired power station in California for unplanned work, according to a report by the California Independent System Operator. Reuters relates that the 1,997-megawattAlamitos plant is in Long Beach in Los Angeles County. It has six units, including: -- 175-megawatt Unit 1, -- 175-megawatt Unit 2, -- 332-megawatt Unit 3, -- 335-megawatt Unit 4, -- 485-megawatt Unit 5, and -- 495-megawatt Unit 6. The other units are continuing operations, Reuters states. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to USUS$2 billion from USUS$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's USUS$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. BAUSCH & LOMB: Named Defendant in 573 Product Liability Suits ------------------------------------------------------------- Bausch and Lomb Inc. disclosed that its has been named as a defendant in approximately 573 product liability lawsuits pending in various U.S. federal and state courts as well as certain other non-U.S. jurisdictions. These include 550 individual actions filed on behalf of individuals who claim they suffered personal injury as a result of using a ReNu solution, and a federally filed consolidated class action. On Aug. 14, 2006, the Judicial Panel on Multidistrict Litigation created a coordinated proceeding and transferred an initial set of MoistureLoc product liability lawsuits to the Federal District Court for the District of South Carolina. On Jan. 2, 2007, the New York State Litigation Coordinating Panel ordered the consolidation of cases filed in New York State, and assigned the coordination responsibilities to the Supreme Court of the State of New York, New York County before the Honorable Helen Freedman of the Commercial Division of the New York County Supreme Court. On Oct. 11, 2007, the U.S. District Court for the District of South Carolina granted B&L's motion to dismiss the consolidated class action. As of Oct. 16, 2007, 209 of the 225 cases filed in federal courts have been transferred to the JPML. Also, 308 of the 344 cases filed in state courts have been filed in the New York Consolidated Proceeding. These cases and claims involve complex legal and factual questions relating to causation, scientific evidence, actual damages and other matters. Litigation of this type is also inherently unpredictable, particularly given that these matters are at an early stage, there are many claimants and many of the claimants seek unspecified damages. Accordingly, it is not possible at this time to predict the outcome of these matters or to reasonably estimate a range of possible loss. While the company intends to vigorously defend these matters, it could in future periods incur judgments or enter into settlements that individually or in the aggregate could have a material adverse effect on its results of operations and financial condition in any such period. 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. EMCO LTD: Earns INR103.58 Million in Sept. 30, 2007 Quarter ----------------------------------------------------------- Emco Ltd. reported a net profit of INR103.58 million in the three months ended Sept. 30, 2007, up 19% from the INR86.81 million earned in the same period in 2006. The improve bottom line is largely attributable to the increase in revenue. The company's total income rose 41% from INR1.3 billion in the July-Sept. 2006 quarter to INR1.84 billion in the second quarter ended Sept. 30, 2007. In the latest quarter under review, the company incurred operating expenditures of INR1.59 billion leaving the company an operating profit of INR250.82 million. The company noted in the results filed with the Bombay Stock Exchange that a petition for approval of a scheme of amalgamation with Urja Engineers Ltd and India Energy Investments Pvt Ltd is pending before the Honorable High Court of Bombay. Accordingly, the latest quarterly results still do not include the results of the two entities. A copy of Emco's financial results for the quarter ended Sept. 30, 2007, is available for free at the Bombay Stock Exchange and at http://ResearchArchives.com/t/s?2487 Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the company offers metering solutions like tamper- proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating, effective May 23, 2007. MYSORE CEMENTS: To Expand Plants' Capacity; Seeks Govt. Nod ----------------------------------------------------------- Mysore Cements Ltd will be expanding its plants' capacity and has accordingly sought government approval. In a filing with the Bombay Stock Exchange, the company disclosed that it has submitted applications to the Ministry of Environment and Forests, Govt. of India, New Delhi together with the pre-feasibility reports for getting the prior environmental clearance from the government for the expansion of capacity at four plants: 1. Expansion of clinkerisation capacity front 1.2 MTPA to 3.1 MTPA at Narsingarh, District Damoh, Madhya Pradesh. 2. Expansion of the cement grinding capacity from 0.8 MTPA to 2.7 MTPA at Madora, District Jhansi, Uttar Pradesh. 3. Expansion of the cement grinding capacity from 1.0 MTPA to 2.0 MTPA at Imlai, District Damoh, Madhya Pradesh. 4. Expansion of the Cement manufacturing capacity from 0.4 MTPA to 1.2 MTPA at Ammasandra, District Tumkur, Karnataka. Mysore Cements Ltd. is engaged in the cement business. Its products include cement, sponge iron and M.S. ingots. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Mysore Cements has a stockholder's equity deficit of US$14.57 million. The company reported at least two consecutive yearly net losses -- INR899.09 million in the year ended March 31, 2006, and INR247.87 million in the year ended March 31, 2005. The company's board of directors later decided to adopt for its reporting period a calendar year-end from the previous March 31 financial year-end. Therefore the last audited period consists of the nine months from April 1, 2006 to Dec. 31, 2006. For that nine-month period, the company booked a net loss of INR98.62 million. MYSORE CEMENTS: Net Profit Up 3% in Qtr. Ended Sept. 30, 2007 ------------------------------------------------------------- Mysore Cements Ltd.'s unaudited results for the three months ended Sept. 30, 2007, show a net profit of INR197.49 million, 3% down the INR203.31-million earned in the same period a year ago. For the July-Sept. 2007 quarter, the company reported revenues totaling INR1.53 billion and incurred expenditures of INR1.29 billion, bringing an operating profit of INR205.69 million. The company also booked net interest charges of INR6.09 million, depreciation of INR33.64 million and INR2.11 million in taxes. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at the Bombay Stock Exchange and at http://ResearchArchives.com/t/s?2484 Mysore Cements Ltd. is engaged in the cement business. Its products include cement, sponge iron and M.S. ingots. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Mysore Cements has a stockholder's equity deficit of US$14.57 million. The company reported at least two consecutive yearly net losses -- INR899.09 million in the year ended March 31, 2006, and INR247.87 million in the year ended March 31, 2005. The company's board of directors later decided to adopt for its reporting period a calendar year-end from the previous March 31 financial year-end. Therefore the last audited period consists of the nine months from April 1, 2006 to Dec. 31, 2006. For that nine-month period, the company booked a net loss of INR98.62 million. RPG LIFE SCIENCES: Members Approves Scheme of Arrangement --------------------------------------------------------- The equity shareholders of RPG Life Sciences Ltd approved the company's proposed scheme of arrangement with RPG Pharmaceuticals Ltd, Instant Holdings Ltd, Instant Trading, and Investment Ltd. According to a regulatory filing with the Bombay Stock Exchange, shareholders approved the scheme with requisite majority at their court-convened meeting on Oct. 23, 2007. The scheme, according to a TCR-Asia Pacific report on June 28, 2007, provides for these terms: 1. Sale of pharmaceuticals business to RPG Pharmaceuticals for INR46 crore. This consideration will be discharged in the form of equity shares of INR11,49,50,800 representing 1,43,68,850 equity shares of INR8 each fully paid-up at an aggregate premium of INR34,50,49,200. The appointed date for the same is April 2, 2007. The shares of RPG Pharmaceuticals will be issued to the members of the company in the ratio of 1:1. 2. Sale of investments of the company to Instant Holdings for a consideration of INR53 crore. This consideration will be discharged by Instant Holdings in the form of equity shares of INR9,95,00,000 representing 99,50,000 equity shares of INR10 each fully paid-up at an aggregate premium of INR43,05,00,000. The appointed date for the same is April 1, 2007. These shares will be issued to the company. 3. Merger of Instant Trading with Instant Holdings. Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. UTSTARCOM INC: Gets Notice of Default from 7/8% Notes Trustee ------------------------------------------------------------- UTStarcom, Inc., disclosed that on Oct. 15, 2007, it received a notice of default from U.S. Bank National Association, as indenture trustee, pursuant to which the Trustee asserted that the company was in default of certain obligations under the Indenture, dated as of March 12, 2003, as amended by the First Supplemental Indenture, dated Jan. 9, 2007, as further amended by the Second Supplemental Indenture, dated July 26, 2007, between the company and the Trustee with respect to the company's 7/8% Convertible Subordinated Notes due 2008 (CUSIP Nos. 918076AA8 and 918076AB6). The specific purported defaults referred to in the Notice of Default are: (1) the company's failure to file with the Securities and Exchange Commission and provide copies to the Trustee of its Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2007, and its Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2007, as required by the Indenture and the Trust Indenture Act and (2) the company's failure to deliver to the Trustee the officer's certificate of compliance of the company required by the Indenture. Pursuant to the Second Supplemental Indenture, any failure by the company to comply with covenants in the Original Indenture as amended by the First Supplemental Indenture relating to the filing of reports required to be filed with the SEC under the Securities Exchange Act of 1934, as amended and the furnishing of copies of SEC Reports and the officer's certificate of compliance of the company required by the Original Indenture to the Trustee before 5:30 p.m., New York City time, on October 15, 2007 would not constitute a default under the Indenture. The Notice of Default states that the Covenant Reversion Date provided for by the Second Supplemental Indenture had passed and that the company's failure to cure the purported defaults within 60 consecutive days after the date of the Notice of Default, would constitute an "Event of Default" under the Indenture. The company previously reported in its Notifications of Late Filing on Form 12b-25 filed on Nov. 11, 2006, March 2, 2007, May 10, 2007, and Aug. 9, 2007 that the filing of its First Quarter 2007 Form 10-Q and Second Quarter 2007 Form 10-Q, as well as certain other SEC Reports that the company has now filed with the SEC, had been delayed for the reasons stated therein. Update The company filed its First Quarter 2007 Form 10-Q with the SEC on Oct. 17, 2007 and Second Quarter 2007 Form 10-Q on Oct. 19, 2007. The company contends that as of Oct. 19, 2007, it has, prior to the Demand Date set forth in the notice of default: (i) filed all required reports with the SEC and furnished them to the Trustee, and (ii) delivered the officer's certificate of compliance required by the Original Indenture to the Trustee. Therefore, the company believes that that no Event of Default under the Indenture occurred. About UTStarcom UTStarcom, Inc. -- http://www.utstar.com/-- (Nasdaq: UTSI) provides IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost- efficient, end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in the United States, China, Korea and India. ================= I N D O N E S I A ================= BANK NEGARA: Nine-Month Profit Ups 10% to IDR1.56 Trillion ---------------------------------------------------------- PT Bank Negara Indonesia Tbk's nine months 2007 net profit increased 10.8% to IDR1.56 trillion from the IDR1.41-trillion reported for the same period in 2006, Reuters reports. According to the report, the increase in the January-September net profit is helped by strong loans growth. However, the bank's net interest income fell by around 4% to IDR5.32 trillion, as net interest margin fell to 4.86% from 5.46% in 2006, the report says. The report relates that Bank Negara's outstanding loans, excluding lending from its sharia unit, rose by about a third to around IDR74 trillion as of the end of September. Reuters notes that despite the strong loan growth, the bank managed to lower its net non-performing loan ratio to 4.7%, below the central bank guidance of 5%, from 11.58% a year ago. Indonesia is forecasting around 20% loan growth from the country's US$187 billion banking sector this year, the report adds. 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 Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara Indonesia (Persero) Tbk.'s foreign currency long-term debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. On April 20, 2007, Standard & Poor's Ratings Services raised Bank Negara's long-term counterparty credit ratings to 'BB-' from 'B+'. GARUDA: Customs Suspends 6 Airlines Due to Requirement Failure -------------------------------------------------------------- Indonesian control and supervision department at the custom office prohibited six carriers of PT Garuda Indonesia from flying due to failure in meeting custom requirements, causing the airline to cancel four flights and delay seven others, The Jakarta Post reports. According to Xinhua News, the customs office has held five jetliners, and will seize another one. Eko Darmanto, head of the Control and Supervision department at the custom office, said the ban for the five airplanes was imposed on October 24, and another one on the 25th, The Post relates. Xinhua News points out that the six Boeing 737-400s came under inquiry as Garuda reportedly leased them under temporary import scheme whose term already expired. Mr. Darmanto told The Post that the Garuda failed to fulfill its administrative obligation on customs over the operation of the six aircrafts. Furthermore, The custom office sent a warning to Garuda in May to settle the problem but the carrier ignored it, he added. Garuda spokesman Pujobroto said his firm had been negotiating with the custom office to release its airplanes following the ban, The Post adds. 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. HILTON HOTELS: Prices Cash Tender Offer for 7.430% CLP Notes ------------------------------------------------------------ Hilton Hotels Corporation has determined the total consideration in U.S. dollars to be paid pursuant to its cash tender offer and related consent solicitation for its 7.430% Chilean Inflation- Indexed Notes Due 2009. The total consideration payable for the CLP Notes accepted for payment that were validly tendered with consents and not validly withdrawn at or prior to 5:00 p.m., New York City time, on Oct. 1, 2007, will be approximately US$130.02 per CLP50,000 original principal amount of CLP Notes, representing the conversion of the CLP total consideration of CLP65,560.95 per CLP50,000 original principal amount of CLP Notes into U.S. dollars at a rate of CLP504.25 for every US$1.00. All of the CLP Notes were validly tendered and not validly withdrawn prior to the CLP Note Consent Payment Deadline and, accordingly, all CLP Notes are eligible to receive the total consideration. Holders whose CLP Notes are accepted for payment in the tender offer will receive accrued and unpaid interest for such CLP Notes from the last interest payment date to, but not including, the payment date for the CLP Notes purchased in the tender offer. The applicable total consideration and tender offer consideration to be paid in respect of securities purchased pursuant to Hilton's cash tender offers and related consent solicitations for its 7.625% Notes due 2008, 7.200% Notes due 2009, 8.250% Notes due 2011, 7.625% Notes due 2012, 7.500% Notes due 2017 and 8.000% Quarterly Interest Bonds due 2031, announced in Hilton's press release dated as of Oct. 19, 2007, remain unchanged. The tender offer for each issue of Securities will expire at 8:00 a.m., New York City time, on Oct. 24, 2007. As indicated in the Offer to Purchase, it is expected that the Offer Expiration Date will be extended to coincide with the date that the Merger becomes effective. Each tender offer and consent solicitation is being made independently of the other tender offers and consent solicitations and Hilton reserves the right to terminate, withdraw or amend each tender offer and consent solicitation independently of the other tender offers and consent solicitations at any time and from time to time. The tender offers and consent solicitations relating to the Securities are made upon the terms and conditions set forth in Hilton's Offer to Purchase and Consent Solicitation Statement dated Sept. 12, 2007 and the related Consent and Letter of Transmittal, as amended. The tender offers and consent solicitations are being conducted in connection with the previously announced merger agreement that provides for the acquisition of Hilton by BH Hotels LLC, an entity controlled by investment funds affiliated with The Blackstone Group L.P. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including the Merger having occurred, or such Merger occurring substantially concurrent with the Offer Expiration Date. However, the completion of the tender offers and consent solicitations is not a condition to completion of the Merger. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the Offer to Purchase. Hilton has retained Bear, Stearns & Co. Inc. and UBS Investment Bank to act as the lead Dealer Managers for the tender offers and lead Solicitation Agents for the consent solicitations, and they can be contacted at (877) 696-BEAR (toll-free) ((212) 272- 5112 (collect)) and (888) 719-4210 (toll-free) ((203) 719-4210 (collect)), respectively. Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated are also acting as Dealer Managers and Solicitation Agents in connection with the tender offers and the consent solicitations. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll-free). About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's disclosure that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. ORBITAL SCIENCES: Earns $15.7 Million in Quarter Ended Sept. 30 --------------------------------------------------------------- Orbital Sciences Corporation disclosed financial results for the third quarter and first nine months of 2007. Third quarter net income increased 84% to US$15.7 million in 2007, compared to US$8.5 million in 2006. Orbital's third quarter revenues increased 46% to $289.5 million in 2007, compared to US$197.8 million in 2006. The company's third quarter operating income rose 54% to US$23.2 million in 2007, compared to US$15.1 million in 2006. Commenting on Orbital's third quarter 2007 results, Mr. David W. Thompson, chairman and chief executive officer, said, "The company reported strong revenue growth in all three of our business segments, boosted profit in most product lines, and generated solid free cash flow in the third quarter. Following the pattern established earlier in the year, communications satellites, human space systems and missile defense programs drove our revenue growth in the quarter." For the first nine months of 2007, Orbital reported revenues of US$791.0 million, up 35% compared to US$587.0 million in the first nine months of 2006. The company's operating income for the first nine months of 2007 was US$62.3 million, up 30% compared to US$47.8 million during the same period in 2006. Net income for the first nine months of 2007 was US$41.0 million, compared to US$27.3 million in the first nine months of 2006. Interest expense for the third quarter and first nine months of 2007 decreased to US$1.3 million and US$3.6 million, respectively, compared to US$3.1 million and US$9.3 million, respectively, in the same periods in 2006. The reduction in interest expense is due to lower interest rates on long-term debt as a result of Orbital's December 2006 refinancing transaction. At Sept. 30, 2007, the company's consolidated balance sheet showed US$778.8 million in total assets, US$350.1 million in total liabilities, and $428.7 million in total shareholders' equity. Cash Flow and Balance Sheet Orbital reported free cash flow of US$22.4 million for the third quarter of 2007. The company repurchased approximately 700,000 shares of its common stock for US$15.0 million in the third quarter of 2007. This stock repurchase is part of a 12-month, US$50 million securities repurchase program authorized by the company's Board of Directors in April 2007. Orbital's unrestricted cash and marketable securities balances were US$197.8 million and US$34.5 million, respectively, as of Sept. 30, 2007. New Business Highlights During the third quarter of 2007, Orbital received approximately US$420 million in new firm and option contract bookings. In addition, the company received approximately US$35 million of option exercises under existing contracts. Year-to-date, Orbital received approximately US$1.51 billion in new firm and option contract bookings, and approximately US$240 million of option exercises under existing contracts. As of Sept. 30, 2007, the company's firm contract backlog was approximately US$1.96 billion and its total backlog, including options, indefinite-quantity contracts and undefinitized orders, was approximately US$4.06 billion. About Orbital Sciences Headquartered in Dulles, Virginia, Orbital Sciences Corp. (NYSE: ORB) -- http://www.orbital.com/-- develops and manufactures small rockets and space systems for commercial, military and civil government customers. The company has operations in Indonesia. * * * As reported in the Troubled Company Reporter on Oct. 16, 2007, Moody's Investors Service upgraded the corporate family and probability of default ratings of Orbital Sciences Corp. to 'Ba1' from 'Ba2', due to expectations for continued strong operating results while the company maintains modest debt levels, resulting in strong anticipated free cash flow generation over the near term. In addition, Moody's assigned a 'Baa3' rating to Orbital's re-financed US$100 million senior secured revolving credit facility due 2012. The ratings outlook is stable. REXAM PLC: To Build New Beverage Can Plant in Denmark ----------------------------------------------------- Rexam Plc disclosed plans to build a greenfield aluminium beverage can plant in Fredericia, Denmark. The new facility, which is the first of its kind in Denmark, represents a capital investment of some GBP78 million (EUR112 million) spread over three years, two thirds of which will be incurred in 2008. The plant is expected to be operational during the first half of 2009 and is being built in response to strong growth in the region and increasing customer demand. It will initially have a capacity of 1.2 billion cans and produce 33cl and 50cl cans. Due to this strong growth, the European beverage can industry overall is running at very high utilization rates. The new plant supports Rexam's capacity needs and will help to optimize its supply of beverage cans to the Northern European market. "This is a significant investment for our customers and for Rexam," Leslie Van de Walle, Chief Executive Officer, Rexam, commented. "The European beverage can market, excluding Germany, has grown annually by 8% in recent years and is anticipated to continue to grow at a similar rate over the next three years fuelled, among others things, by strong growth in the Nordic region. Our new plant will enable us to capture growth, better serve our customers and further consolidate our global leadership position in beverage cans." Mr. Van De Walle added. Headquartered in London, England, Rexam Plc -- http://www.rexam.com/-- is a global consumer packaging company and a beverage can maker. Rexam serves the beverage, beauty, pharmaceuticals and food markets with around 100 manufacturing operations in more than 20 countries, including Brazil and Indonesia and generated revenues of GBP3.7 billion. * * * In June 2007, Moody's Investors Service assigned a provisional (P)Ba2 rating to the proposed issuance of capital securities by Rexam Plc rated Baa3 for senior unsecured debt. The assigned rating and the basket designation will be subject to satisfactory final documentation. Moody's said the outlook for the ratings is stable. ========= J A P A N ========= AZEL CORP: R&I Affirms BB Issuer Rating and BB- Long-term IR ------------------------------------------------------------ Rating and Investment Information, Inc. has conducted reviews and has affirmed the ratings for Azel Corp. R&I affirms its BB issuer rating, and its BB- long-term issue rating for Tokyo-based Azel. The outlook for the ratings is stable. Headquartered in Tokyo, Japan, Azel Corporation -- http://www.azel.co.jp/-- is a construction company. The company operates in four business segments. The condominium segment is engaged in the planning, development, construction and sale of condominiums under the name Angel series. The real estate segment is involved in the leasing, purchase, sale and maintenance of real estate properties. The construction segment is primarily engaged in the construction of public and government facilities, condominiums, apartments and office buildings. The leisure segment is engaged in the leasing of entertainment facilities, the management of amusement places and hotels. NOVA CORP: Labor Regulator Asks President to Answer Wage Issues --------------------------------------------------------------- The Osaka Central Labor Standards Supervision Office wants to question the president of English-language school Nova Corp. over delayed wage payments, Kyodo News reports. This, while four executives of the school resign. Kyodo relates that the Osaka labor standards watchdog has quizzed foreign teachers and other Nova employees about the wage payment delays and now wants to hear from Nova President Nozomu Sahashi. Mr. Sahashi, according to Kyodo, is suspected to have violated the Labor Standards Law. A report by the Troubled Company Reporter-Asia Pacific on October 19, 2007, stated that the Labor Standards Law stipulates that an employer remunerate its workers at least once a month on a designated day. In line with this, three auditors and the school's longest- serving director have submitted their resignations, believed to be because they were unable to get in touch with Mr. Sahashi. According to a separate report by the TCR-AP on October 19, 2007, the General Union, representing Nova's employees, claims that wages for the school's 4,000 or so foreign instructors are usually paid in the middle of the month, but the September salaries were delayed, and the company had told instructors that the payment for October will be delayed. The TCR-AP further added in its report that pay was also delayed for some 2,000 Japanese staff in July and August. Employees also have yet to receive payments that were due in late September. About Nova Corp. Osaka-based company, Nova Corporation-- http://www.nova.ne.jp/ -- is primarily engaged in the operation of language schools. The Company has seven subsidiaries and two associated companies. The Company is involved in the teaching of languages, the creation of international environment of different languages and cultures, the provision of real time services, the development and provision of network contents, the development of hardware technology, the building of human network, as well as the organization of member groups to provide services internationally. The Company also has subsidiaries and associates, which are engaged in advertisement services, interior construction, facility and commodity sale, overseas study services, computer system services, real estate brokerage, facility leasing and installment sale, capital management, cleaning services, sanitary management, multimedia goods sale, Internet connection services, customer services and assistance to foreigners. Nova has reported two consecutive net losses -- JPY3.09-billion net loss for fiscal year ended March 31, 2006, and JPY2.89 billion for the year ended March 31, 2007. On June 19, 2007, the Troubled Company Reporter - Asia Pacific reported that the Ministry of Economy, Trade and Industry suspended Nova Corp from selling long-term contracts for language schools starting June 14, 2007, for lying to customers about its services. SANYO ELECTRIC: Settles Patent Dispute with 3M Co. -------------------------------------------------- 3M Co. has reached a settlement agreement with Sanyo Electric Co., Ltd., regarding a patent for lithium ion battery components, Marie Connor writes for the St. Paul Business Journal. According to Ms. Connor, 3M filed the suit against Sanyo and other companies in March with the Minnesota District Court and the United States International Trade Commission. Among the terms of the settlement, writes Ms. Connor, is that Japan-based Sanyo is licensed under 3M's patents covering particular cathode materials. The financial terms of the deal were not revealed. Lithium ion batteries, notes Ms. Connor, are used and are a preferred source of power in consumer electronics products such as laptop computers, cell phones and portable electronic devices. Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/ --is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others