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 Monday, October 29, 2007, Vol. 10, No. 214 Headlines A U S T R A L I A BASIS YIELD: Files MoL Supporting Foreign Insolvency Recognition BDJH PTY: Members to Receive Wind-Up Report on November 7 BUSINESS INTEGRATION: Members Pass Resolution to Liquidate Firm BUSINESS INTEGRATION: Members Agree on Voluntary Liquidation CARRYCALL PTY: Members Resolve to Liquidate Business CHRYSLER LLC: 55% UAW Workers Voted to Accept Tentative Pact CONVERGENCY SERVICES: Members Agree on Voluntary Liquidation HOWDEN GROUP: Commences Liquidation Proceedings JAMES HOWDEN: Commences Liquidation Proceedings KINETIC CONCEPTS: Earns US$59 Mil. in 3rd Quarter Ended Sept. 30 LEON UNIVERSAL: Commences Wind-Up Proceedings MURMAT PTY: Members Agree on Voluntary Liquidation SYMBION HEALTH: Primary Health Unit to Commence Proceedings TOTALFLOW LOGISTICS: Liquidator Presents Wind-Up Report C H I N A & H O N G K O N G CITIC GROUP: Bear Stearns Pact Won't Affect Review, Moody's Says HARTCOURT COS: Posts US$246,216 Net Loss in Qtr. Ended Aug. 31 HERCULES INC: Earns US$42.4 Million Third Quarter Ended Sept. 30 IDS CREATION: Names Au Chun Fai Jeffrey as LIquidator IMPACT DESIGNS: Members to Hold Final Meeting on Nov. 26 LI FUNG: Placed Under Voluntary Liquidation LISCO ENGINEERING: Appoints Chiong and Sutton as Liquidators SERVICEMASTER CO: S&P Affirms 'B+' Rating on US$2.65-Mil. Loan SHANGHAI LAND: Sets Annual General Meeting for November 13 ZTE CORP: Strong Sales & Expansion Hike 9 Months Profit by 45.9% I N D I A IFCI LTD: Net Profit Quadruples in Second Quarter IFCI LTD: Shareholders OK Hike in Foreign Holding Limit to 74% INDUSTRIAL DEV'T BANK: Books INR1.56BB Profit in July-Sept '07 LML LTD: To File Audited Results by December 31 I N D O N E S I A ANIXTER INT'L: Third Qtr. Net Income Drops 15% to US$64.8 Mil. AVNET INC: Posts 1st Quarter Net Income of US$105.5 Million BANK DANAMON: Nine-Month Profit Ups 75% to IDR1.6 Trillion DIRGANTARA: SC Quashes Commercial Court's Bankruptcy Ruling FREEPORT MCMORAN: Deutsche Bank Reaffirms Buy Rating on Shares INDOFOOD: Indofood to Acquire London Sumatra for IDR8.4 Trillion INDOSAT: Shareholder Accused of Violating Anti-Monopoly Laws TUPPERWARE BRANDS: Earns US$6.9 MM in Quarter Ended Sept. 29 J A P A N DELPHI CORP: U.S. District Court to Hear ERISA Suit on Nov. 13 HARMAN INT'L: Equity Firms Drop Merger; Inks New Buyback Deal NOVA CORP: Files for Bankruptcy with JPY43.9-Billion Debt SANYO ELECTRIC: GE Retains Sanyo Name in Acquired Lease Firm SOLO CUP: Debt Reduction Prompts S&P's Positive CreditWatch K O R E A HYNIX SEMICONDUCTOR: Signs Long-Term License Pact with Ovonyx MAGNACHIP SEMICONDUCTOR: Posts US$38.8MM Net Loss for 3rd Qtr. M A L A Y S I A MALAYSIA AIRLINES: Malaysia-Singapore Route Opens for Air Asia TENAGA NASIONAL: 4th Qtr Earnings Fall 77% Due to Weak Currency SATERAS RESOURCES: Securities Delisted as Court Lifts Stay N E W Z E A L A N D B.S.TAEGE: Names Parsons and Kenealy as Liquidators CITYWIDE PRENAIL: Fixes November 1 as Last Day to File Claims MIDWAY TIMBER: Commences Wind-Up Proceedings RIRI ENTERPRISES: Commences Liquidation Proceedings SUPA CHEAP: Court to Hear Wind-Up Petition on January 31 P H I L I P P I N E S BANGKO SENTRAL: Sees Possible Surge in Derivatives Market LAND BANK: Opens New Remittance Center in San Francisco, Calif. PHIL LONG DISTANCE: Smart Told to Answer Cable Operators' Claims * Imports for August Rises 1.8% to US$4.971 Bil. On Electronics * Lower Debt, Strong Peso, Privatization May Cue Rating Upgrade S I N G A P O R E FREESCALE SEMICON: Weak Results Cue Moody's to Review Ratings NETIK PTE: Creditors' Proofs of Debt Due on November 30 REFCO INC: Shareholders Sue Mayer Brown Over Role in Collapse REGIONAL (FAR EAST): Receiving Proofs of Debt Until Nov. 29 STEADY PILING: Pays First and Final Dividend S R I L A N K A * Fitch Comments on Sri Lankan Finance Companies T H A I L A N D TMB BANK: THB35BB Recapitalization Will Last 3-4 Years, FM Says - - - - - - - - ================= A U S T R A L I A ================= BASIS YIELD: Files MoL Supporting Foreign Insolvency Recognition ---------------------------------------------------------------- Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham, as the authorized foreign representatives of Basis Yield Alpha Fund (Master), delivered to the United States Bankruptcy Court for the Southern District of New York a memorandum of law supporting the recognition of the Foreign Debtor's insolvency proceeding that is pending before the Grand Court of the Cayman Islands pursuant to Chapter 15 of the Bankruptcy Code. The Foreign Representatives told Bankruptcy Judge Robert Gerber that their request for recognition satisfies both the letter and the spirit of Chapter 15. Representing the Foreign Representatives, Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, states that Chapter 15 furthers two principle policies -- comity and cooperation. She adds that Chapter 15 aids the coordination and administration of international insolvency cases. Congress has made clear that comity and cooperation are centerpieces of Chapter 15 and should guide courts' interpretations of it, Ms. Dine says. Therefore, she says, in Section 1507 of the Bankruptcy Code, comity is raised to the introductory language to make it clear that it is the central concept to be addressed. Since the passage of Chapter 15, the Bankruptcy Court has recognized, and extended comity to, a number of Cayman Island proceedings, Ms. Dine relates, citing, among others: -- In re SPhinX, 351 B.R. at 120, recognizing proceeding as a foreign non-main proceeding; -- In re Amerindo Internet Growth Fund Ltd., Chapter 15 Case No. 07-10327 (RDD) (Balm. S.D.N.Y. Mar. 6, 2007), recognizing a foreign main proceeding where the debtor was an investment company registered in the Cayman Islands which commenced business with a Cayman Islands investment manager and a Cayman Islands administrator, who maintained the books and records in the Cayman Islands; and -- In re Bancredit Cayman Ltd. (In Liquidation), Chapter 15 Case No. 06-11026 (SMB) (Bankr. S.D.N.Y. June 15,2006), recognizing proceeding as foreign main proceeding. Ms. Dine asserts that the facts surrounding the Foreign Debtor's case, together with central principles of comity and cooperation, dictate that the Bankruptcy Court follow the decisions in those proceedings, and grant the Foreign Representatives' request for recognition. Consistent with Chapter 15 and its underlying policies, the Foreign Representatives seek entry of a Bankruptcy Court order recognizing the Cayman Islands Proceeding as either a main or non-main proceeding. Ms. Dine says Cayman Islands courts exercise jurisdiction over companies incorporated in the Cayman Islands. Challenging Propriety of Conduct Since the filing of Basis Yield's Chapter 7 case on August 29, 2007, the Foreign Representatives have commenced two other proceedings, Ms. Dine recalls. On September 5, the Foreign Representatives filed the First Supplement to the Verified Petition, informing the Bankruptcy Court that the Foreign Representatives petitioned the High Court of Justice, Chancery Division, Companies Court, in England pursuant to Section 426 of the Insolvency Act of 1986 and obtained recognition of the Foreign Representatives as joint provisional liquidators from the High Court of Justice. Subsequently, on October 3, the Foreign Representatives filed the Second Supplement to the Verified Petition, notifying the Bankruptcy Court that the Supreme Court of New South Wales granted the Foreign Representatives' application for orders compelling certain parties to turn over certain documents and funds in their possession. Ms. Dine says that third parties, including many creditors and investors of the Foreign Debtor, have appeared in the proceedings pending in the Cayman Islands and Australia. To date, however, no foreign court or party appearing before a foreign court has challenged the propriety of the conduct of a liquidation proceeding in the Cayman Islands, Ms. Dine notes. Recognition of Foreign Main Proceeding Ms. Dine states that Section 1517 sets forth a straightforward procedure for U.S. courts to recognize a Cayman Island proceeding. Ms. Dine explains that recognition of a foreign proceeding is required if: (i) the foreign proceeding for which recognition is sought is a foreign main proceeding or foreign non-main proceeding within the meaning of Section 1502; (ii) the foreign representative applying for recognition is a person or body; and (iii) the petition meets the Section 1515 requirements. "Simply put, [the Bankruptcy] Court should recognize the Cayman Islands Proceeding because the Cayman Islands Proceeding satisfies those requirements," Ms. Dine tells Judge Gerber. Foreign Debtor's COMI is in Caymans According to Ms. Dine, a foreign main proceeding is defined as a "foreign proceeding pending in the country where the debtor has the center of its main interests." COMI, she says, is not defined by the Bankruptcy Code; rather, "[i]n the absence of evidence to the contrary, the debtor's registered office ... is presumed to be the center of the debtor's main interests." Section 1516(c) is consistent with and supported by relevant international law, Ms. Dine asserts, explaining that the Guide to Enactment of the UNCITRAL Model Law on Cross-Border Insolvency states that COMI "corresponds to the formulation in the European Union Convention on Insolvency Proceedings, thus building on the emerging harmonization as regards the notion as a 'main' proceeding." Accordingly, the Bankruptcy Court should consider decisions in other countries interpreting COMI, Ms. Dine maintains, citing Bear Stearns, 2007 WL 2683661, at *5. Particularly, she notes, the EU Convention referenced in the Guide is an insolvency scheme and contains the same presumption as Section 1516(c). Ms. Dine insists that the Foreign Representatives have established, by uncontested evidence, their entitlement to the presumption that the Foreign Debtor's COMI is in the Cayman Islands, hence, the Bankruptcy Court may grant recognition upon that basis alone. If required to prove the Foreign Debtor's COMI, Ms. Dine says, the Foreign Representatives can establish that the Foreign Debtor's connections to the Cayman Islands include, inter alia: * The Foreign Debtor is incorporated in the Cayman Islands; * The Foreign Debtor's registered office is located in the Cayman Islands; * The Foreign Debtor's direct investors, the feeder funds -- BYAF and BYAF(US) -- are Cayman Islands entities; * The Foreign Debtor regularly enters multi-million dollar transactions with BYAF; * Both of the Foreign Debtor's feeder funds are registered mutual funds regulated by the Cayman Islands Monetary Fund; * Approximately 10% of the Foreign Investors' indirect investors investors in the feeder funds are located in the Cayman Islands; * The Foreign Debtor's administrator, Fortis; its pre-filing attorneys, Walkers; and its pre-filing auditors, Ernst & Young (Cayman) Ltd., are located in the Cayman Islands and, upon information and belief, employ residents of that area; * The Foreign Debtor's investment manager, Pac-Rim Investments Ltd., is a Cayman Islands company; * The Foreign Debtor's cash assets are principally located in the Cayman Islands, and substantial amounts of cash were in the custody of the Cayman Islands Administrator pre-filing; * The Foreign Debtor's statutory books and records, investor register, and BYAF's investor register are all located in the Cayman Islands. Further, when parties decided to transact business with the Foreign Debtor, a company domiciled in the Cayman Islands, they had a reasonable and legitimate expectation that, in the event of a liquidation, it would occur in the Cayman Islands under applicable Cayman Islands law. "COMI is in the Cayman Islands, not only because of the myriad connections the Foreign Debtor has with the Cayman Islands, but also because every party that transacted with the Foreign Debtor knew that the Foreign Debtor is a Cayman Islands entity and each creditor has impliedly subjected itself to the laws of the Cayman Islands, " Ms. Dine tells Judge Gerber. Accordingly, the Foreign Representatives want the Bankruptcy Court to find that COMI is in the Cayman Islands. Standard for Recognition of Foreign Non-Main Proceeding Under Section 1502(5), a foreign non-main proceeding is one that is brought in a country that is not a debtor's COMI, but rather is brought as any other proceeding "pending in a country where the debtor has an establishment," Ms. Dine states. On the other hand, she adds, "establishment" is defined as "any place of operations where the debtor carries out a non-transitory economic activity." Ms. Dine explains that the Foreign Debtor has a establishment in the Cayman Islands, and thus, at the very least, is entitled to recognition as a foreign non-main proceeding. The Foreign Representatives attest that finding a establishment is the minimum possible result in Basis Yield's Chapter 7 case. Judge Gerber will hold a hearing on November 19, 2007, at 9:45 a.m., New York Time, to decide whether Basis Yield has more of its important connections with the Caymans so the U.S. Court can take a secondary role, allowing the assets to be liquidated and distributed to customers under non-U.S. law. Objections are due November 6 at 4:00 p.m. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands-based mutual fund managed by Basis Capital Fund Management Ltd. in Australia. Basis Capital is fully licensed and regulated by the Australian Securities and Investment Commission as a Responsible Entity. Basis Capital is a founding member of the Australian Chapter of the Alternative Investment Management Association. Basis Yield operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. Road to Bankruptcy Following the volatility in the market related to the United States sub-prime lending defaults, by June 2007, Basis Yield began to suffer a significant devaluation of its asset portfolio. The devaluation of the Fund's secured assets led to margin calls from trade counterparties, which Basis Yield was ultimately unable to meet. This, in turn, resulted in the issuance of several default notices by the counterparties and the exercise of their rights under their agreements to close out trades and to seize or sell Basis Yield assets that had been the subject of repurchase agreements or over which they held security interests. Default notices were issued by, inter alia, J.P. Morgan Chase Bank N.A., Goldman Sachs International, Citigroup Global Markets Limited, Morgan Stanley, Lehman Brothers International (Europe), and Merrill Lynch International. In addition, two counterparties issued bid lists for Basis Yield's assets, which resulted in additional downward pressure on the relevant asset classes and a further devaluation of the Fund's assets. Basis Yield disputed many of the default notices issued or purportedly issued by various parties. Basis Capital stopped redemptions from its Yield Alpha Fund and Aust-Rim Opportunity Fund in July 2007 after both funds lost 9% and 14% in June, Bloomberg says. Basis Capital retained The Blackstone Group to act as financial advisor to the Yield Alpha Fund and Pac-Rim Opportunity Funds. Blackstone's role included negotiating with investment banks to prevent adverse pricing and selling of both funds' assets. For the past five years, the Yield Alpha Fund returned 15.5% on average while the Aust-Rim Opportunity Fund provided almost 15% return on average, according to Bloomberg, citing a July 2007 report by Zenith Investment Partners posted on Basis Capital's Web site. Bloomberg notes that the Basis Capital funds had the highest five-star ratings from Standard & Poor's before the ranking was put "on hold" on July 17, 2007, because of "issues potentially affecting the management of the fund," according to S&P. Chapter 15 Ancillary Case On August 29, 2007, the Liquidators filed a petition before the U.S. Bankruptcy Court for the Southern District of New York seeking recognition of Basis Yield's liquidation in the Cayman Islands as a "foreign main" proceeding under Chapter 15 of the U.S. Bankruptcy Code. The Liquidators also asked the U.S. Court to enjoin and restrain U.S. creditors from commencing actions with respect to the Fund's assets in the United States. Basis Yield is estimated to have more than US$100,000,000 in total assets and total liabilities, and less than 49 creditors, the Chapter 15 petition said. The Liquidators noted that in excess of US$50,000,000 of Basis Yield's assets, held by various financial institutions, are located within the United States. Basis Capital has said losses in Basis Yield could exceed 80%, Tiffany Kary and Jenny Strasburg at Bloomberg report. BDJH PTY: Members to Receive Wind-Up Report on November 7 --------------------------------------------------------- The members of BDJH Pty Limited will meet on November 7, 2007, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia About BDJH Pty BDJH Pty Limited is in involved in the Marinas business. The company is located at Balgowlah, New South Wales, Australia. BUSINESS INTEGRATION: Members Pass Resolution to Liquidate Firm --------------------------------------------------------------- During a general meeting held on September 17, 2007, the members of Business Integration Solutions Pty Ltd agreed to voluntarily liquidate the company's business. Colin McIntosh Nicol and Johan Vorster were named as liquidators. The Liquidators can be reached at: Colin McIntosh Nicol Johan Vorster McGrathNicol IBM Centre, Level 8 60 City Road Southbank, Victoria 3006 Australia Telephone:+61 3 9038 3100 Web site: http://www.mcgrathnicol.com About Business Integration Business Integration Solutions Pty Ltd provides business services. The company is located at Melbourne, in Victoria, Australia. BUSINESS INTEGRATION: Members Agree on Voluntary Liquidation ------------------------------------------------------------ The members of Business Integration Solutions Australia Pty Ltd met on Sept. 17, 2007, and agreed to voluntarily wind up the company's operations. Colin McIntosh Nicol and Johan Vorster were named as liquidators. The Liquidators can be reached at: Colin McIntosh Nicol Johan Vorster McGrathNicol IBM Centre, Level 8 60 City Road Southbank, Victoria 3006 Australia Telephone:+61 3 9038 3100 Web site: http://www.mcgrathnicol.com About Business Integration Solutions Business Integration Solutions Australia Pty Ltd provides management consulting services. The company is located at Melbourne, in Victoria, Australia. CARRYCALL PTY: Members Resolve to Liquidate Business ---------------------------------------------------- Durng a general meeting held on September 20, 2007, the members of Carrycall Pty Limited agreed to voluntarily liquidate the company's business. Sule Arnautovic was appointed as liquidator. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Level 4, 55 Hunter Street Sydney, New South Wales 2000 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 About Carrycall Pty Carrycall Pty Limited is in the business of local trucking without storage. The company is located at Leppington, in New South Wales, Australia. CHRYSLER LLC: 55% UAW Workers Voted to Accept Tentative Pact ------------------------------------------------------------ Results from four major Chrysler LLC plants in Michigan came in favor of a tentative labor contract between the carmaker and the United Auto Workers union, tilting the ratification scale towards the approval of the pact, Josee Valcourt and Neal E. Boudette of the Wall Street Journal report citing people familiar with the matter. Except for a union local in Beldivere, Illinois, about 55% of the total vote count from 26 of 27 union locals has accepted the tentative agreement. As reported on Friday's Troubled Company Reporter, 78% of the union members at Chrysler's assembly plant in Warren, Michigan, accepted the contract, and 86% of workers at a metal stamping plant in Sterling Heights, Michigan, voted yes. Both plants have a total of 5,200 workers. 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 $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 $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 $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. CONVERGENCY SERVICES: Members Agree on Voluntary Liquidation ------------------------------------------------------------ On September 17, 2007, the members of Convergency Services Pty Ltd agreed to voluntarily wind up the company's operations. Colin McIntosh Nicol and Johan Vorster were appointed as liquidators. The Liquidators can be reached at: Colin McIntosh Nicol Johan Vorster McGrathNicol IBM Centre, Level 8 60 City Road Southbank, Victoria 3006 Australia Telephone:+61 3 9038 3100 Web site: http://www.mcgrathnicol.com About Convergency Services Convergency Services Pty Ltd, which is also trading as Convergency Services, is in the business of telephone communications, except radiotelephone. The company is located at Melbourne, in Victoria, Australia. HOWDEN GROUP: Commences Liquidation Proceedings ----------------------------------------------- On September 13, 2007, the members of Howden Group Australia Nominees Pty Limited agreed to voluntarily liquidate the company's business. John Morgan was appointed as liquidator. The Liquidator can be reached at: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9240 9972 About Howden Group Located at Blacktown, in New South Wales, Australia, Howden Group Australia Nominees Pty Limited is an investor relation company. JAMES HOWDEN: Commences Liquidation Proceedings ----------------------------------------------- The members of James Howden Australia Pty Limited met on September 13, 2007, and agreed to voluntarily liquidate the company's business. John Morgan was named as liquidator. The Liquidator can be reached at: John Morgan PKF Chartered Accountants & Business Advisers Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9240 9972 About James Howden James Howden Australia Pty Limited, which is also trading as Howden Research Australia, is a distributor of durable goods. The company is located at North Sydney, in New South Wales, Australia. KINETIC CONCEPTS: Earns US$59 Mil. in 3rd Quarter Ended Sept. 30 ---------------------------------------------------------------- Kinetic Concepts, Inc., reported net earnings of US$59.0 million for the third quarter of 2007, up 21%, compared to US$49.0 million for the same period one year ago. The company reported third quarter 2007 total revenue of US$410.9 million, an increase of 17% from the third quarter of 2006. Total revenue for the first nine months of 2007 was US$1.18 billion, an 18% increase from the prior-year period. Foreign currency exchange movements favorably impacted total revenue for the third quarter and first nine months of 2007 by 2% compared to the corresponding periods of the prior year. For the first nine months of 2007, net earnings were US$170.7 million, up 18%, compared to US$144.1 million from last year. "I am pleased that we continued to execute on our 2007 business plan," said Catherine Burzik, president and chief executive officer of KCI. "V.A.C.(R) remains the only clinically-proven system that delivers effective negative pressure wound therapy. Looking forward, we will continue to make necessary changes and improvements in the business to enable longer-term top and bottom line growth for our shareholders." Gross profit for the third quarter and first nine months of 2007 was US$204.2 million and US$565.5 million, respectively, representing increases of 24% and 21% from the same periods of the prior year. Gross profit margin improved 290 basis points in the 2007 third quarter, compared to the year-ago period, due primarily to increased market penetration, improved revenue realization levels and increased sales force and service productivity. Operating earnings for the third quarter and first nine months of 2007 were US$98.9 million and US$272.2 million, respectively, representing increases of 24% and 20% from the same periods of the prior year. Share-Based Compensation During the third quarter and first nine months of 2007, the company recorded share-based compensation expense totaling approximately US$6.6 million and US$17.9 million, respectively, before income taxes, under the provisions of Statement of Financial Accounting Standards No. 123R. Income Tax Rate The effective income tax rates for the third quarter and the first nine months of 2007 were 34.2% and 33.7%, respectively, compared to 35.0% and 32.5% for the corresponding periods in 2006. The lower income tax rate for the first nine months of the prior year resulted from the favorable resolution of tax contingencies. The effective tax rate for the full year of 2006 was 33.1%. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed US$948.0 million in total assets, US$355.8 million in total liabilities, and US$592.2 million in total shareholders' equity. Refinancing During the third quarter of 2007, KCI completed a new US$500 million revolving credit facility due July 2012. The company used a portion of the new facility to repay the remaining outstanding balance of US$114.1 million due on its senior credit facility due August 2010. The company also redeemed the remaining US$68.1 million due under its 73/8% senior subordinated notes due August 2013. The company recorded refinancing expenses associated with these transactions of US$4.5 million, net of income taxes, in the third quarter of 2007. These expenses included the write-off of capitalized debt issuance costs associated with the repayment of our previous debt and the payment of a make-whole premium due to the holders of our senior subordinated notes. Share Repurchase Program During the third quarter of 2007, the company's Board of Directors authorized a one-year extension of the company's previously announced US$200.0 million share repurchase program through Sept. 30, 2008. This program had a remaining authorized amount for share repurchases of $87.5 million as of Sept. 30, 2007. In addition, the company has a pre-arranged purchase plan pursuant to Rule 10b5-1 of the Exchange Act, which is authorized through Sept. 30, 2008. No open market repurchases were made under the share repurchase program during the third quarter of 2007. Outlook As of Oct. 23, 2007, KCI is tightening its projections for 2007 total revenue to US$1.58 - US$1.60 billion based on continued demand for its V.A.C. negative pressure wound therapy devices and related supplies. About Kinetic Concepts Headquartered in San Antonio, Kinetic Concepts Inc. (NYSE: KCI) -- http://www.kci1.com/-- designs, manufactures, markets and services a wide range of proprietary products that can improve clinical outcomes and can help reduce the overall cost of patient care. KCI has an infrastructure across all health care settings, including acute care hospitals, extended care facilities and patients' homes in the United States, Canada, Australia and most major European countries. * * * As reported in the Troubled Company Reporter on July 24, 2007, Moody's Investors Service assigned a Ba2 rating to Kinetic Concepts, Inc.'s new US$500 million senior secured revolving bank facility. Moody's also affirmed the company's 'Ba2' Corporate Family Rating. The outlook is positive. LEON UNIVERSAL: Commences Wind-Up Proceedings --------------------------------------------- At an extraordinary general meeting held on September 17, 2007, the members of Leon Universal Trading Pty Ltd agreed to voluntarily liquidate the company's business. Wayne Benton was named as liquidator. The Liquidator can be reached at: Wayne Benton PPB, Chartered Accountants Level 10,90 Collins Street Melbourne, Victoria About Leon Universal Leon Universal Trading Pty Ltd is a distributor of durable goods. The company is located at West Footscray, in Victoria, Australia. MURMAT PTY: Members Agree on Voluntary Liquidation -------------------------------------------------- During a general meeting held on September 10, 2007, the members of Murmat Pty 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 Murmat Pty Murmat Pty Ltd, which is also trading as Lucky Tom's Complete Kitchenware & Hospitality Supp, operates gift, novelty and souvenir shops. The company is located at Leichhardt, in New South Wales, Australia. SYMBION HEALTH: Primary Health Unit to Commence Proceedings ----------------------------------------------------------- A wholly owned subsidiary of Primary Health Care Limited intends to commence proceedings against Symbion Health and its directors regarding the form of the resolution to be put to Symbion Health shareholders in respect of the proposed merger of Symbion Health's diagnostics businesses with Healthscope Limited and the break fee and lock-up obligations of Symbion Health under the Transaction Implementation Deed released to the ASX on 8 October 2007. The Symbion Health Board believes that the Primary proceedings are baseless and totally without merit. Symbion Health will be asking the court for an urgent hearing to dispose of Primary's application, particularly in advance of the proposed date for the meetings to consider the Diagnostics Proposal and the proposed scheme of arrangement in respect of the consumer and pharmacy business of Symbion Health on 30 November 2007. By blocking the original proposal and now commencing litigation in respect of the Diagnostics Proposal, Primary appears to be seeking to disrupt the Revised Proposal and prevent Symbion Health shareholders as a whole from obtaining the benefits of the proposal. The Symbion Health Board believes that the interests of Primary are not aligned with the interests of Symbion Health shareholders as a whole. Furthermore, no superior proposal has been made to Symbion Health shareholders by Primary. The Symbion Health Board continues to unanimously recommend the Revised Proposal in the absence of a superior proposal and subject to the receipt of satisfactory reports from the independent expert. The Symbion Health Board will continue to act in the best interests of Symbion Health shareholders as a whole. 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). TOTALFLOW LOGISTICS: Liquidator Presents Wind-Up Report ------------------------------------------------------- The members and creditors of Totalflow Logistics Services Pty Limited met on October 17, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Scott Darren Pascoe SimsPartners Level 5, 55 Hunter Street Sydney, New South Wales 2000 Australia Telephone:(02) 9256 7700 About Totalflow Logistics Totalflow Logistics Services Pty Limited is involved in the business of general warehousing and storage. The company is located at Wetherill Park, in New South Wales, Australia. ================================ C H I N A & H O N G K O N G ================================ CITIC GROUP: Bear Stearns Pact Won't Affect Review, Moody's Says ---------------------------------------------------------------- Moody's Investors Service says that CITIC Securities' announcement that it is in talks with Bear Stearns to form a comprehensive strategic alliance is unlikely to have any rating implications for CITIC Group. CITIC Group is the largest shareholder of CITIC Securities, and both its baseline credit assessment (BCA) of 12 (equivalent to a D BFSR) and Baa2 long-term senior unsecured debt rating remain on review for possible upgrade, as announced on July 30, 2007. "The proposed alliance between CITIC Securities and Bear Stearns awaits regulatory approval in China," says Laurie Cang, a Moody's VP/Senior Analyst. "As such, the transaction may not yet have taken on its final structure, while the alliance, as proposed, would have a neutral impact on our view of CITIC and not necessarily influence -- in any particular direction -- our review of its ratings for possible upgrade," adds Cang. "Relative to CITIC's total assets of more than US$120 billion, the deal is not large and its proposed structure would not appear to exert any significant demand on the financial resources of CITIC or its group members," says Cang. Moody's believes that CITIC Securities and hence CITIC should benefit from the proposed transaction. The strengths of Bear Stearns would be useful to CITIC Securities as it expands, including the former's conservative and sophisticated risk management practices, leading positions in institutional clearing and prime brokerage, and growing, albeit modest, investment banking business. However, Moody's views the benefits of the proposed alliance as only emerging over a long time horizon and whether it would serve as a catalyst for CITIC developing a market niche remains to be seen. Moody's will consider these factors and the final structure of any alliance in its review for possible upgrade of CITIC's ratings. "We will focus on near-term financial evidence which reinforces positive trends, particularly with regard to its liquidity, leverage and cash flow coverage ratios," says Cang, adding, "Audited financials by large reputable international accounting firms would provide a greater level of comfort." In the near-to-intermediate term, improvements in financial discipline and transparency could also be credit positive, whereas overly aggressive mergers & acquisitions, which turn out to be financially disadvantageous, could exert negative rating pressure. CITIC Group, headquartered in Beijing, is a conglomerate investment company wholly owned by the State Council of the Chinese government. As of end-2006, it had consolidated total assets of RMB935.7 billion (USD120.3 billion). CITIC Securities is engaged in the securities service industry in China. Its major business lines include security brokerage, investment banking, and asset management. CITIC Group is the largest shareholder of CITIC Securities. Moody's does not rate CITIC Securities. State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. HARTCOURT COS: Posts US$246,216 Net Loss in Qtr. Ended Aug. 31 -------------------------------------------------------------- The Hartcourt Companies Inc. reported a net loss of US$246,216 for the first quarter ended Aug. 31, 2007, compared with a net loss of US$126,741 for the same period ended Aug. 31, 2006. There was no revenue during the three months ended Aug. 31, 2007, and 2006, because the company entered into a definitive agreement to sell the IT distribution business and therefore the sales from IT distribution business has been classified into discontinued operation category for three months ended Aug. 31, 2007, and comparable period in the preceding years. The company's consolidated balance sheet at Aug. 31, 2007, showed US$1.22 million in total assets, US$1.21 million in total liabilities, and $12,919 in total shareholders' equity. The company's consolidated balance sheet at Aug. 31, 2007, also showed strained liquidity with US$70,434 in total current assets available to pay US$1.21 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Aug. 31, 2007, are available for free at http://researcharchives.com/t/s?247f Going Concern Doubt As reported in the Troubled Company Reporter on Sept. 18, 2007, Kabani & Company Inc., expressed substantial doubt about Hartcourt Companies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended May 31, 2007. The auditing firm noted that the company incurred net losses and experienced negative cash flows from operations in the last six years. As of May 31, 2007, the company accumulated deficit of approximately US$69 million. About The Hartcourt Companies Headquartered in Shanghai, China, The Hartcourt Companies, Inc. -- http://www.hartcourt.com-- was incorporated in Utah. The company specializes in the Chinese information technology market. In August 2006, the company decided to enter the post- secondary education market in China. HERCULES INC: Earns US$42.4 Million Third Quarter Ended Sept. 30 ---------------------------------------------------------------- Hercules Incorporated reported net income for the quarter ended Sept. 30, 2007, of US$42.4 million as compared to a net income of US$34.2 million for the third quarter of 2006. Net income from ongoing operations for the third quarter of 2007 was US$53.4 million, an increase of 28% per diluted share as compared to net income from ongoing operations of US$40.9 million in the third quarter of 2006. During the quarter, the company purchased about 1.15 million shares of common stock for a cost of about US$22.8 million pursuant to its previously announced US$200 million share repurchase authorization. Net sales in the third quarter of 2007 were US$544.2 million, an increase of 6% from the same period last year. Reported profit from operations in the third quarter of 2007 was US$72.9 million, an increase of 1% compared with the same period in 2006. Profit from ongoing operations in the third quarter of 2007 was US$84.2 million, an increase of 10% compared with US$76.4 million in the third quarter of 2006. Interest and debt expense was US$17 million in the third quarter of 2007, up US$0.3 million compared with the third quarter of 2006. Net debt, total debt less cash and cash equivalents, was US$669 million at Sept. 30, 2007, a decrease of US$154.7 million from year-end 2006. Capital spending was US$24 million in the third quarter and US$77.8 million year to date. This compares to US$26.3 million and US$49.2 million in the third quarter and year to date periods last year, respectively. Nine Month-Result Highlights Net income for the nine months ended Sept. 30, 2007, was US$150.4 million as compared to a net loss of US$3.4 million for the same period in 2006. Net income from ongoing operations for the nine months ended Sept. 30, 2007, was US$134.9 million, an increase of 27% per diluted share versus the same period in 2006. Cash flow from operations for the nine months ended Sept. 30, 2007, was US$247.5 million, an increase of US$140.5 million as compared to the same period last year. The company has now received US$223.2 million of tax refunds during the year and expects to receive an additional US$21.2 million in the first half of 2008. Net sales for the nine months ended Sept. 30, 2007, were US$1.596 billion, an increase of 8% as compared to the same period in 2006, excluding the impact of the FiberVisions transaction. Interest expense for the nine months ended Sept. 30, 2007, was US$52 million, a decrease of US$2.1 million from the same period of last year. As of Sept. 30, 2007, the company reported total assets of US$2.7 billion, total liabilities of US$2.3 billion, and total stockholders' equity of US$458.4 billion. Full-text copies of the company's financials are available for free at http://ResearchArchives.com/t/s?2485. Outlook "We continue to demonstrate solid growth in revenues, earnings per share and cash flow," commented Craig A. Rogerson, president and chief executive officer. "Our priority is to continue to invest in high return opportunities supporting our two global franchises. We also began returning excess cash flow to our shareholders by reinstituting a common stock dividend and through share repurchases." About Hercules Inc Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. * * * In September 2006, Moody's placed the company's long-term corporate family rating, senior unsecured debt rating and probability of default rating at Ba2, senior subordinate rating at Ba3, and junior subordinate debt rating at B1. These ratings still hold to date. The outlook is positive. Standard & Poor's placed the company's long-term foreign and local issuer credits at BB which still hold to date. The outlook is positive. IDS CREATION: Names Au Chun Fai Jeffrey as LIquidator ----------------------------------------------------- On Sept. 29, 2007, a special resolution was passed appointing Au Chun Fai Jeffrey as liquidator for IDS Creation Limited. The Liquidator can be reached at: Au Chun Fai Jeffrey Tesbury Centre, 16th Floor 28 Queen's Road East Admiralty, Hong Kong IMPACT DESIGNS: Members to Hold Final Meeting on Nov. 26 -------------------------------------------------------- The members of Impact Designs Limited will hold their final meeting on November 26, 2007, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the 31st Floor of The Center, 99 Queen's Road, in Central, Hong Kong. LI FUNG: Placed Under Voluntary Liquidation ------------------------------------------- Li & Fung Industrial Limited commenced liquidation proceedings on October 8, 2007. Rainier Hok Chung Lam and John James Toohey were appointed as liquidators. The Liquidators can be reached at: Rainier Hok Chung Lam John James Toohey Prince's Building Central, Hong Kong LISCO ENGINEERING: Appoints Chiong and Sutton as Liquidators ------------------------------------------------------------ Desmond Chung Seng Chiong and Roderick John Sutton were named liquidators of Lisco Engineering Limited on October 5, 2007. The Liquidators can be reached at: Desmond Chung Seng Chiong Roderick John Sutton Ferrier Hodgson Limited Hong Kong Club Building, 14th Floor SERVICEMASTER CO: S&P Affirms 'B+' Rating on US$2.65-Mil. Loan -------------------------------------------------------------- Standard & Poor's affirmed its 'B+' bank loan rating on Memphis, Tennessee-based The ServiceMaster Co.'s US$2.65 billion term loan. The rating was removed from CreditWatch, where it was originally placed with developing implications on Aug. 3, 2007, following the company's execution of an amendment to its new US$3.3 billion senior secured credit agreement. The facility is rated one notch above the corporate credit rating on ServiceMaster, with a recovery rating of '2', indicating the expectation for substantial (70%-90%) recovery in the event of a payment default. "The amendment provided the holders of the bank loan the right to parcel the existing US$2.65 billion term loan into two tranches, up to 90 days from the closing date," said Standard & Poor's credit analyst Jean Stout. "The 90-day period has expired and the term loan remains intact." At the same time, Standard & Poor's affirmed its other ratings on ServiceMaster, including its 'B' corporate credit rating. The rating outlook is negative. ServiceMaster provides a variety of outsourcing services to both residential and commercial customers, with major segments including lawn care, pest control, and home warranties. "The ratings on ServiceMaster reflect its very highly leveraged financial profile following its acquisition by an investment group led by Clayton, Dubilier & Rice Inc.," said Ms. Stout. "Ratings support is provided by ServiceMaster's good business positions in its fragmented and competitive end markets, which have historically translated into good cash flow generation from a fairly diverse portfolio of services." ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM) currently serves residential and commercial customers through a network of over 5,500 company-owned locations and franchised licenses. The company's brands include TruGreen, TruGreen LandCare, Terminix, American Home Shield, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec. The core services of the company include lawn care and landscape maintenance, termite and pest control, home warranties, disaster response and reconstruction, cleaning and disaster restoration, house cleaning, furniture repair, and home inspection. The company has operations in Australia, Chile, China, Dominican Republic, Hong Kong, Indonesia, Japan, and the United Kingdom, among others. SHANGHAI LAND: Sets Annual General Meeting for November 13 ---------------------------------------------------------- Shanghai Land Holdings Limited will hold an annual general meeting for its members on November 13, 2007, at 2:00 p.m., at the 18th Floor of Two International Finance Centre, 8 Finance Street, in Central, Hong Kong. At the meeting, Stephen Liu Yiu Keung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ZTE CORP: Strong Sales & Expansion Hike 9 Months Profit by 45.9% ---------------------------------------------------------------- ZTE Corp.'s net profit for the nine months to September 31, 2007, rose 45.9% year-on-year to CNY602.85 million, helped by strong sales growth and overseas market expansion, Infocast News reports. According to Infocast, operating revenue rose 47% in the 2007 nine-month period to CNY23.45 billion from the figure recorded a year earlier. In a statement with the Shanghai Stock Exchange, the company said that revenue from its wireless communications system products, such as TD-SCDMA, CDMA and Global System for Mobile communication (GSM), surged 84% from a year earlier. In addition, the company said that it has further strengthened cooperation with major domestic telecom operators such China Mobile and China Unicom in the nine months. Moreover, the company continued to expand business in overseas markets, especially in emerging markets of Africa and Asia, and strengthened cooperation with international telecom operators, the company's statement said. For the third quarter ended September 2007, the company posted net profit of CNY143 million (US$19.11 million), up 116% from a year earlier, as it continues a drive into more developed overseas markets. About ZTE Corp Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. The Troubled Company Reporter-Asia Pacific reported on Dec. 1, 2006, that Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. ========= I N D I A ========= IFCI LTD: Net Profit Quadruples in Second Quarter ------------------------------------------------- IFCI Ltd's net profit for the quarter ended Sept. 30, 2007, rose more than four times to INR4.97 billion from the INR1.16 billion recorded for the quarter ended Sept. 30, 2006. Total income for the current second quarter rose 83% to INR5.96 billion while expenditures aggregated INR1.52 billion, bringing the company an operating profit of INR7.48 billion. A copy of IFCI's financial results for the three months ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2491 For the half-year ended Sept. 30, 2007, the company earned a net profit of INR7.44 billion on revenues of INR10.81 billion. Revenues include other income of INR1.4 billion, INR1.32 billion of which represents interest on income tax refund. A copy of IFCI's financial results for the six months ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2492 IFCI Limited -- http://www.ifciltd.com/-- caters to the long- term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. IFCI is currently in the process of selecting a strategic investor to whom it will divest a 26% stake. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. IFCI LTD: Shareholders OK Hike in Foreign Holding Limit to 74% -------------------------------------------------------------- IFCI Ltd's investment limit for foreign investors has been increased to 74%. In a regulatory filing with the Bombay Stock Exchange, the company said that its shareholders, at its meeting the previous month, have approved the hike of foreign holding limit. Before the hike, foreign investors can only hold up to 24% in the company. Foreign institutional investors held 21.2% stake as of Sept. 30, the Press Trust of India says. As reported by the Troubled Company Reporter-Asia Pacific on May 8, 2007, IFCI's board of directors proposed the increase to give clarity about the headroom up to which a strategic foreign investor would be able to pick up stake in the company. The company is currently in the process of choosing the strategic investor in whom it plans to divest a 26% stake. IFCI reportedly wants to raise as much as US$250 million in selling up the fresh equity. Eight bidders are currently lining up for the stake: 1. General Electric Capital Corporation; 2. Infrastructure Development Finance Company Ltd; 3. Cargill Financial Services Corporation; 4. Natixis; 5. The Blackstone Group L.P.; 6. Consortium of Sterlite Industries (India) Ltd and Morgan Stanley & Co.; 7. Consortium of Shinsei Bank Ltd, Punjab National Bank and J.C. Flowers & Co. LLC; and 8. Consortium of Standard Chartered Bank, WL Ross & Co. LLC, GS Capital Partners VI Fund, and Housing Development Finance Corporation Ltd. IFCI CEO and MD Atul Kumar Rai told PTI that there could be a consolidation of bidders, indicating the decrease in the present number of bidders. IFCI Limited -- http://www.ifciltd.com/-- caters to the long- term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. INDUSTRIAL DEV'T BANK: Books INR1.56BB Profit in July-Sept '07 -------------------------------------------------------------- Industrial Development Bank of India Ltd filed with the Bombay Stock Exchange its unaudited results for the quarter ended Sept. 30, 2007. The regulatory filing shows that the bank earned a net profit of INR1.56 billion for the July-Sept. 2007 quarter, a bit of an improvement from the INR1.39-billion profit booked in the same period last year. Total income rose 44% to INR23.64 million while operating expenses jumped 32% to INR19.86 billion. IDBI recounted that the erstwhile United Western Bank Ltd was amalgamated with the bank on Oct. 3, 2006. Hence, the bank pointed out, the results for the period ended Sept. 30, 2007, include the operations of UWB and hence are not comparable with the results for the previous quarter. A copy of the bank's unaudited financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2497 Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, the financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * As part of the application of Moody's Investors Service's refined joint default analysis and updated bank financial strength rating methodologies, the rating agency, on April 24, 2007, affirmed Industrial Development Bank of India's BFSR at D-. Moody's also maintains the bank's Foreign Currency Deposit Rating at Ba2. LML LTD: To File Audited Results by December 31 ----------------------------------------------- LML Ltd informed the Bombay Stock Exchange that the company will publish audited results for the quarter and year ended Sept. 30, 2007, on or before Dec. 31, 2007. Accordingly, the company will not be publishing unaudited financial results for the last quarter ended on Sept. 30, 2007. As previously reported by the Troubled Company Reporter-Asia Pacific, LML posted a net loss of INR112.5 million for the three months ended June 30, 2007, despite enhanced revenues. The bottom line for that reporting period is an improvement compared to the INR133.2-million loss booked in the same quarter in 2006. Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. LML'S board of directors, at a meeting on Sept. 8, 2006, decided that the company has become a sick industrial company under the Sick Industrial Companies (Special Provisions Act) 1985. The company is currently working for the restructuring of its business. ================= I N D O N E S I A ================= ANIXTER INT'L: Third Qtr. Net Income Drops 15% to US$64.8 Mil. -------------------------------------------------------------- Anixter International Inc. recorded net income of US$64.8 million for the three months ended Sept. 28, 2007, a declined of 15% from last year, compared to net income of US$76.2 million for the three months ended Sept. 29, 2006. Robert Grubbs, President and CEO, stated, "The 14 percent sales growth generated in the current quarter was particularly encouraging in light of the significant economic uncertainty that existed during the quarter, especially relating to the difficult credit environment in the U.S., our largest market. Our growth reflects the fact that we continued to see strong growth in most major geographies and end markets that we serve on a global basis. Based on our results through the first nine months we are in a good position to have another record setting year of sales and earnings." For the three-month period ended Sept. 28, 2007, the company had sales of US$1.52 billion. Included in the current year's third quarter results were sales of US$31.7 million from a series of acquisitions completed in the past year. In the prior year period, the company had sales of US$1.33 billion. The third quarter 2006 results included US$22.8 million, or 53 cents per diluted share, of income primarily associated with a refund received from the Internal Revenue Service. Excluding the refund from the prior year third quarter, net income in the current quarter increased 21%. This refund resulted from the final settlement of income taxes covering the period of 1996 through 1998. The interest income portion of this settlement of US$7.7 million (after-tax impact of US$4.7 million) was reflected on the 'Other, net' line of the prior year quarter's income statement. The remaining portion of the settlement was recorded as an US$18.1 million reduction to the 2006 third quarter tax provision. Operating income in the third quarter increased 23% to US$118.2 million as compared to US$96.1 million in the year ago quarter. For the latest quarter, operati0ng margins were a record 7.8 percent compared to 7.2 percent in the third quarter of 2006. Recent Sales Trends Commenting on recent sales trends, Mr. Grubbs said, "Third quarter sales growth was very much in line with the expectation we laid out when we reported our second quarter results. After adjusting for a series of acquisitions completed in the past year, as well as for the favorable foreign exchange impact of US$35.9 million on third quarter 2007 sales, our third quarter sales grew at a year-over-year organic rate of 9 percent. Once again we want to highlight that the consecutive quarter growth trend for the second quarter exceeded normal historical growth patterns. We cautioned that as a result of this, consecutive quarter growth from the second to third quarter would likely be below normal historical patterns, which it was. Looking at the second and third quarters together, we see a growth pattern that in total through the first nine months was similar to historical patterns." Mr. Grubbs continued, "Sales growth in the current quarter was especially positive in light of the economic uncertainty that existed throughout much of the quarter, particularly in the U.S. Once again the diversity of the end markets and geographies that we serve, and the fact that a majority of these markets performed well, contributed to good overall performance. The factors driving our organic growth were consistent with those we have seen during the past couple of years. In the most recent quarter, we again experienced good levels of larger project business, together with solid day-to-day trends throughout all parts of the business. At the same time, we have continued to experience strong growth in the security and OEM markets. Copper prices had no meaningful impact on our organic growth in the most recent quarter as year-on-year price fluctuations stabilized. Market-based copper prices averaged approximately US$3.48 per pound during the quarter compared to US$3.54 per pound in the year ago third quarter." "In North America we saw year-over-year sales grow by 8 percent to US$1.07 billion in the most recent quarter," commented Mr. Grubbs. "Foreign exchange rates generated an additional US$11.4 million in third quarter sales as compared to the year ago quarter. During the quarter we saw a few project timing issues that pushed out some business that we thought would finalize in the third quarter to future dates. This delayed project timing, however, was primarily confined to western Canada, where a very strong economy and a concurrent tight labor market are causing project construction timelines to slip. Thus, the market is good and we remain confident in the overall probability of these sales. At the same time we experienced very solid new order flows in North America, particularly in the enterprise cabling and security solutions market." Mr. Grubbs went on to say, "In Europe, we saw sales climb by 32 percent, or an increase of US$77.5 million, versus the year ago quarter, of which US$21.0 million was due to exchange rate differences and US$31.7 million was due to acquisitions. Taking out exchange rate differences and sales from acquisitions, overall sales in Europe grew organically by approximately 10 percent as compared to the year ago quarter. More specifically, our efforts to expand our presence in the electrical wire & cable market in Europe resulted in sales of US$55.9 million in the quarter as compared to US$42.3 million in the year ago quarter. Excluding US$4.0 million of favorable foreign exchange effects, sales in the European electrical wire & cable market were approximately 23 percent higher than the year ago quarter." "In the emerging markets of Latin America and Asia Pacific, we saw a 38 percent increase in year-on-year sales, including a favorable impact of US$3.5 million relating to currency exchange rate effects. Growth was again particularly strong in Asia Pacific, where we posted year-on-year growth of approximately 65 percent," continued Mr. Grubbs. Third Quarter Operating Results "As a result of solid sales growth, third quarter operating margins were 7.8 percent as compared to 7.2 percent in the year ago period," said Mr. Grubbs. "In North America, our operating margins were 8.6 percent as compared to 7.8 percent in the year ago quarter, with sales growth again producing additional operating leverage." Mr. Grubbs added, "In Europe, operating margins in the most recent quarter were 4.9 percent as compared to 5.0 percent in the year ago quarter. This slight decline in operating margins reflects a drop in gross margins as we realized less benefit from copper price volatility than we did in the year ago quarter. Overall, we were again encouraged by the results in the most recent quarter as well as the near-term outlook for our business in Europe." "Third quarter operating margins in the emerging markets were 7.8 percent as compared to 6.9 percent in the year ago quarter. Continued sales growth throughout these markets once again allowed us to leverage infrastructure costs that resulted in improved operating margins," added Mr. Grubbs. Cash Flow & Leverage "In the third quarter we generated US$10.0 million in cash from operations as compared to US$17.4 million used in operations in the year ago quarter," said Dennis Letham, Executive Vice President-Finance. "The positive cash flow in the quarter reflects the slower consecutive growth rates we discussed above and the related effects of that on additional working capital needs." "Increased working capital requirements associated with our year-on-year sales growth, combined with two acquisitions completed in the first nine months for total consideration of US$41.7 million and the repurchase of US$162.7 million of our outstanding shares during the first quarter of 2007, have increased our debt-to-total capital ratio. At the end of the third quarter that ratio was 49.6 percent as compared to 45.7 percent at the end of 2006. For the third quarter our weighted- average cost of borrowed capital was 4.3 percent as compared to 5.5 percent in the year ago quarter. At the end of the third quarter, approximately 78 percent of our total borrowings of US$1.03 billion had fixed interest rates, either by the terms of the borrowing agreements or through hedging contracts. We also had US$246.9 million of available, unused credit facilities at September 28, 2007, which provide us with the resources to support continued strong organic growth and to pursue other strategic alternatives, such as acquisitions, in the coming quarters." Business Outlook Mr. Grubbs concluded, "The record sales and earnings performance in the first nine months of 2007 is the result of many of the same underlying trends that generated record performances over the past couple of years. Assuming no significant deterioration in the economy during the final months of 2007, we will again have a record-setting year for sales, earnings and return on equity. That said, we do expect that fourth quarter sales and earnings, consistent with historical patterns for the fourth quarter, will show a modest decline from the results we reported for the recently completed third quarter. This projected decline is exclusively based on the fact that there are fewer working days in the fourth quarter due to the Thanksgiving and Christmas holidays." "As we look to the start of a new year, we remain focused on building on our strategic initiatives of growing our security and OEM supply businesses, adding to our supply chain services offering, enlarging the geographic presence of our electrical wire & cable business, and expanding our product offering," said Mr. Grubbs. "There is no question that the uncertainties that have developed in the credit markets in the past couple of months have introduced an element of risk in evaluating future growth. Nonetheless, if we continue to be successful with our strategic initiatives we will be in a position to continue to drive solid sales and earnings growth as we head into 2008." About Anixter Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and has presence in 220 cities in 45 countries, including Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. The Troubled Company Reporter - Asia Pacific reported on Feb. 19, 2007, that Moody's Investors Service downgraded Anixter International Inc.'s corporate family rating to Ba2 from Ba1. In elated rating action, Moody's lowered the ratings of Anixter Inc.'s US$200 million guaranteed senior unsecured notes to Ba1 from Baa3 and Anixter's 3.25% LYON's notes to B1 from Ba2. The rating outlook was changed to stable from negative. Fitch Ratings affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter: -- Issuer Default Rating 'BB+' -- Senior unsecured debt 'BB-' AI: -- Issuer Default Rating 'BB+' -- Senior unsecured notes 'BB+' -- Senior unsecured bank credit facility at 'BB+' Fitch's action affects approximately US$700 million of public debt securities. The Rating Outlook is Stable. AVNET INC: Posts 1st Quarter Net Income of US$105.5 Million ----------------------------------------------------------- Avnet, Inc., reported revenue of US$410 billion for the first quarter of fiscal 2008, ended September 29, 2007, representing an increase of 12.3% over first quarter fiscal 2007. Net income for first quarter fiscal 2008 was US$105.5 million, or US$0.69 per share on a diluted basis, as compared with net income of US$64.1 million, or US$0.44 per share on a diluted basis, for the first quarter last year. Excluding debt extinguishment costs that negatively impacted the prior year quarter, net income and diluted earnings per share increased 31% and 25%, respectively, over the year-ago period. Included in these results is stock compensation expense of US$0.05 per diluted share in the current year first quarter as compared with US$0.03 per share in the same period last year. Operating income for first quarter fiscal 2008 was US$165.2 million, up 14.0% as compared with operating income of US$145.0 million in the year ago quarter. Operating income as a percent of sales was 4.0%, up 6 basis points from last year's first quarter, with both operating groups contributing to the improvement. This represents the eighth consecutive quarter of year-over-year operating income margin expansion, excluding certain charges in prior periods. Roy Vallee, Chairman and Chief Executive Officer, commented, "Once again, our highly diversified revenue base contributed to our solid performance as better than expected growth from the Asia region offset weaker sales in the Americas. While year- over-year organic revenue growth slowed to 2.3% this quarter, positive contributions from acquisitions contributed to continued year over year improvement in key quarterly financial metrics including operating income, EPS and return on capital employed. With another US$700+ million of annual revenue from acquisitions completed or announced in the current quarter, our acquisition strategy continues to broaden our revenue base, create cross selling opportunities and add further operating leverage to our business model going forward." Operating Group Results Electronics Marketing sales of US$2.49 billion in the first quarter fiscal 2008 were up 2.3% year over year on a reported basis and essentially flat when adjusted to exclude the impact of changes in foreign currency exchange rates. EM sales in the EMEA and Asia regions increased 4.6% and 9.5%, respectively, year over year, while the Americas decreased 4.8%. Excluding the impact of changes in foreign currency exchange rates, year- over-year revenue at EM EMEA was down 2.7%. EM operating income of US$130.2 million for first quarter fiscal 2008 was up 3.6% over the prior year first quarter operating income of US$125.6 million and operating income margin of 5.2% was up 7 basis points over the prior year quarter. Mr. Vallee added, "EM's results were a reflection of the seasonally slower September quarter, but were better than our expectations as inventories throughout the supply chain continue to decline. Even though sales in the lower margin Asia region increased to 30% of total EM as compared with 28% in the year ago quarter, EM's global operating income margin improved year over year for the eighth consecutive quarter. Our Asia team's disciplined approach to profitable growth with higher asset velocity translated 9.5% year over year top line growth into a 48 basis point improvement in operating income margin and a 673 basis point improvement in return on working capital, resulting in record quarterly sales and profits for the region. Technology Solutions sales of US$1.61 billion in the first quarter fiscal 2008 were up 32.5% year over year on a reported basis and up 2.6% on a pro forma basis, as defined in the Non- GAAP Financial Information section. On a pro forma basis, first quarter fiscal 2008 sales in Asia and EMEA were up 31.6% and 20.1%, respectively, year over year while sales in the Americas were down 5.1%. Excluding the impact of changes in foreign currency exchange rates, TS EMEA's pro forma year over year revenue growth was 11.0%. TS operating income was US$58.5 million in the first quarter fiscal 2008, a 50.1% increase as compared with first quarter fiscal 2007 operating income of US$39.0 million, and operating income margin of 3.6% increased by 42 basis points over the prior year first quarter due to the change to net revenue accounting treatment of the sales of supplier service contracts. Mr. Vallee further added, "Technology Solutions performance in the first quarter of fiscal 2008 was further evidence of the leverage that we are achieving through value-creating acquisitions. Year over year, TS operating income grew 1.5 times faster than revenue as both the Access and Azure acquisitions contributed to operating margin expansion in our enterprise computer product business. With the Magirus and Acal acquisitions in EMEA, TS will become the leading pan-European value-add distributor with roughly US$2.5 billion of projected annual revenue in the region. These acquisitions will not only strengthen TS' competitive position in new markets, they will also further diversify our revenue base as TS will soon be generating close to 40% of its revenue from outside the Americas as compared with 30% just a year ago." Cash Flow During the first quarter of fiscal 2008, the Company used $34 million of free cash flow (as defined later in this release), excluding cash used for acquisitions. As a result, the Company ended the quarter with $521 million of cash and cash equivalents and net debt (total debt less cash and cash equivalents) of $702 million. On a rolling four quarter basis, the Company generated $749 million of free cash flow, excluding cash used for acquisitions. Ray Sadowski, Chief Financial Officer, stated, "The continued improvement in our credit statistics allowed us to negotiate a new five-year credit facility with a bank group that includes 18 lenders. The facility not only contains better terms and conditions than the one it supersedes, but also extends those terms an additional two years. With over $500 million in cash on hand and $950 million of standby lines of credit, we are in a strong position to continue pursuing growth opportunities that create additional shareholder value." Outlook For Avnet's second quarter fiscal 2008, management expects normal seasonality at both operating groups with sales at EM to be in the range of US$2.40 billion to US$2.50 billion and anticipates sales for TS to be between US$2.05 billion and US$2.15 billion. Therefore, Avnet's consolidated sales are forecasted to be between US$4.45 billion and US$4.65 billion for the second quarter of fiscal 2008. Management expects the second quarter earnings to be in the range of US$0.83 to US$0.87 per share, up 24% - 30% as compared with last year's second quarter. The above EPS guidance does not include the amortization of intangibles or integration charges related to the acquisitions that have closed or will close in the December quarter. About Avnet Inc Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * The Troubled Company Reporter on March 6, 2007, reported that Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. BANK DANAMON: Nine-Month Profit Ups 75% to IDR1.6 Trillion ---------------------------------------------------------- PT Bank Danamon Tbk's nine-month net profit net profit increased 75% to IDR1.6 trillion from a year ago due to strong loan growth, Reuters reports. According to Reuters, the bank's net interest income rose 29% to around IDR5.3 trillion, compared to the same period last year. Asia Pulse notes that Bank Danamon, with assets valued at IDR87.98 trillion, recorded a 22.44% increase in outstanding credit to IDR50.15 trillion from IDR40.96 trillion. The bank chalked up a net margin of 10.4%, second after PT Bank Rakyat Indonesia, the report adds. Bank President Sebastian Paredes told Asia Pulse that the increase was due to faster growth in operating profit over increase in operating cost, and a decline in provisions. Mr. Paredes said the amount of loans disbursed by the bank was above the average by banks in the country following success in credit expansion for the small and medium enterprises sector, Asia Pulse relates. About Bank Danamon Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15,2007, Fitch Ratings upgraded the National Long-term rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA- (idn)') while affirming all its other ratings as follows: * Long term foreign currency Issuer Default Rating (IDR) 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4' and * Support Rating Floor 'B'. DIRGANTARA: SC Quashes Commercial Court's Bankruptcy Ruling ----------------------------------------------------------- The Indonesian Supreme Court has accepted the appeal filed by PT Dirgantara Indonesia over the Commercial Court's recent bankruptcy ruling against the aircraft manufacturer, The Jakarta Post reports. As reported by the Troubled Company Reporter-Asia Pacific on Sept. 7, 2007, the commercial court declared Dirgantara Indonesia bankrupt at the request of some of the aircraft maker's dismissed workers, in a bid to extract retirement funds. The court declared victory of the claim of Dirgantara Indonesia Employees' Communication Forum Trade Union by affirming bankruptcy of the company, the TCR-AP reported, citing Arif Minardi, general chairman of the trade union as saying. The TCR-AP said that the panel of judges was of the opinion that the elements of bankruptcy were fulfilled, among which were two or more creditors whose credits were not settled by the company. Dirgantara filed an appeal for the Commercial Court's decision to be reversed. Thomson Financial relates that court spokesman Joko Pribadi said a panel of Supreme Court judges came out with the appeal ruling on the aircraft manufacturer on October 22. Supreme Court Judge Mariana Sutadi Mariana said the appeal was accepted because the former employees had no legal right to file an insolvency petition against a public company wholly owned by the government, The Post relates. Under the existing bankruptcy law, the finance minister is the only party that is allowed to take a state-owned company to the bankruptcy court, the report explains. MSN News relates that Mr. Pribadi said that the ruling quashed the September 4 decision by Indonesia's commercial court that declared Dirgantara Indonesia bankrupt as outstanding debts were greater than assets. Mr. Pribadi told MSN that with the ruling, all asset assessments in course are to be halted. Thomson Financial recounts that following the initial court verdict, auditors were appointed to assess the assets of the company in view of liquidating them to pay off its debts. The Post notes that the Supreme Court's panel of judges, after accepting Dirgantara Indonesia's appeal, ordered the company to pay compensation to its 6,500 former workers in the form of pension payments worth about IDR200 billion (about US$21.8 million). PTDI Workers Union Communication Forum Chairman Arif Minardi said that despite the Supreme Court's ruling, PTDI was still under the obligation to pay out the pension fund, The Post relates. Mr. Minardi has just talked with the company directors, and the directors promised him that the matter will be settled, meaning that they will pay the pension fund, he added. About Dirgantara Indonesia Headquartered in Bandung, Indonesia, PT Dirgantara Indonesia -- http://www.indonesian-aerospace.com/-- is one of the indigenous aerospace companies in Asia with core competence in aircraft design, development and manufacture of civilian and military regional commuter aircraft. In its production line, Dirgantara Indonesia has delivered more than 300 units of aircraft and helicopters, defense system, aircraft components and other services. According to press reports, the company was not able to fully recover from the 1998 Asian financial crisis, and has sought government help to turn its business around. It has urged the government to support the industry by purchasing aircraft from PT DI, and is currently marketing its products to neighboring countries in the region. The Troubled Company Reporter-Asia Pacific reported on September 13, 2006, that the Indonesian Government intends to provide IDR40 billion in bailout funds to Dirgantara Indonesia. FREEPORT MCMORAN: Deutsche Bank Reaffirms Buy Rating on Shares -------------------------------------------------------------- Deutsche Bank has reaffirmed its "buy" rating on US miner Freeport McMoRan Copper & Gold's shares, Business News Americas reports. According to BNamericas, Deutsche Bank raised its target price for Freeport McMoRan shares by 32% to US$145 from US$110. Deutsche Bank said in a statement that a positive outlook for copper prices and Freeport McMoRan's good leverage support the recommendation and target price. Freeport McMoRan has sturdy position. However, the firm could still face the possibility of lower-than-expected copper prices and production cost pressures, BNamericas states, citing Deutsche Bank. Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper & Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries, engages in the exploration, mining, and production of copper, gold, and silver. The company has operations in Indonesia. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 16, 2007, that Fitch Ratings upgraded these ratings of Freeport-McMoRan Copper & Gold Inc. FCX -- US$1 billion Secured Bank Revolver to 'BB+' from 'BB'; -- 6.875% secured notes due 2014 to 'BB+' from 'BB'; -- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-'; -- 7% convertible notes due 2011 to 'BB' from 'BB-'. In addition, Fitch affirmed these ratings on FCX: -- Issuer Default Rating at 'BB'; -- US$500 million PT Freeport Indonesia/FCX Secured Bank Revolver at 'BBB-'; -- Convertible Preferred Stock at 'B+'. Fitch also assigned a rating of 'BB+' to FCX's new US$2.45- billion five-year term loan A. Proceeds of the loan were used to repay the US$2.45 billion remaining under the term loan due March 2014. The term loan amortizes at 10% per annum with the remainder due at maturity. On March 29, 2007, Moody's Investors Service upgraded Freeport- McMoRan Copper & Gold Inc.'s corporate family rating to Ba2 from Ba3. On March 27, 2007, Standard & Poor's Ratings Services assigned its 'B' preferred stock rating to the proposed US$2.5 billion US6.75% mandatory convertible preferred stock offering of Freeport-McMoRan Copper & Gold Inc. INDOFOOD: Indofood to Acquire London Sumatra for IDR8.4 Trillion ---------------------------------------------------------------- PT Indofood Sukses Makmur will take over PT London Sumatra Indonesia Plantations in a deal estimated to cost IDR8.4 trillion (US$913 million), the Jakarta Post reports. Pursuant to the transaction, Indofood will purchase a 64.4% stake in London Sumatra from its major shareholders and will hold a tender offer to buy the remaining 35.6% from public investors, the report cites Indofood Vice President Franciscus Welirang as saying. According to various press report, Indofood shareholders have approved the acquisition deal, which would be executed through the company's subsidiaries, PT Salim Ivomas Pratama and Indofood Agri Resources Ltd. Indo Agri is listed in Singapore. Through Salim Ivomas, Indofood will buy 500.09-million London Sumatra shares from First Durango and Ashmore Funds as well as London Sumatra's US$47 million mandatory convertible notes, which could be converted into 269.34 million shares, for a total of IDR5 trillion, the Post adds. Indofood will also spend IDR711.9 billion to buy Eddy Kusnadi Sariaatmadja's 8% stake in London Sumatra equal to 109.52 million shares, The Post relates. The company will then hold a tender offer to buy the other 35.6% of London Sumatra's shares from the public at IDR6,900 each, the report adds. Indofood Finance Director Thomas Tjhie told The Post that to finance the acquisition, the company would use IDR5.71 trillion from a bank loan secured by Salim Ivomas, IDR1.2 trillion in internal funds controlled by the company's edible oil and fat division and IDR1.45 trillion in a stand-by loan. PT Bank Central Asia and a number of foreign banks, including Sumitomo Mitsui Banking Corp., Standard Chartered Bank and ING, pledge to provide loan to finance the acquisition of London Sumatra, Asia Pulse reports. Mr. Tjhie told Asia Pulse that the banks will provide a loan of US$20 million-US$25 million each to be repayable in one year until September 2008. The loan will carry an interest rate of one percentage point above SIBOR, he added. Mr. Tjhie told Thomson Financial that he expects the acquisition to be completed by year-end. About Indofood Sukses PT Indofood Sukses Makmur Tbk (Indofood) -- http://www.indofood.co.id/-- is Indonesia's premier processed foods company. Its products, including instant noodles, wheat flour, branded edible oils and fats, baby foods, snack foods, food seasoning, lead domestic market shares. Indofood is currently the largest instant noodles manufacturer and the largest flour miller in the world, with installed capacities of approximately 13 billion packs and 3.6 million tons per annum, respectively. Indofood's products are distributed mainly through its subsidiaries, including Indomarco, independent distributors, as well as some cooperatives, which bring the Company's products to more than 150,000 retail outlets in the country. Total employees as of December 1999 were 42,172. A combination of shrinking profits, escalating costs, losses, competition and a declining rupiah prompted the Company to cut around 2,000 or 4.4% of its workforce and slash 40 products from its range in 2005. In 2005, Indofood's total outstanding debt fell to IDR6.8 trillion from IDR7.9 trillion in 2004. The United States dollar-denominated debts also fell to US$190.6 million in the same period from US$317.4 million in 2004. Indofood has bought back US$166.3 million (IDR1.55 trillion) of its US$280 million (IDR2.61 trillion) Eurobonds due in 2007. The company also plans to redeem all the outstanding balance of the Eurobonds this year. The Troubled Company Reporter-Asia Pacific reported on July 19, 2006, that Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Indofood at the company's request. INDOSAT: Shareholder Accused of Violating Anti-Monopoly Laws ------------------------------------------------------------ Indonesia's anti-monopoly commission said that PT Indosat Tbk's shareholder, Temasek Holdings, has violated the country's anti- monopoly laws through its ownership in two large mobile telecommunication operators, Channel News Asia reports. Temasek's subsidiaries own a 42% stake in Indosat and a 35% stake in Telkomsel. Asia Media says that the two state-owned companies dominate 80% of the GSM cellular phone market in Indonesia. Anti-Monopoly Law Violation and Accusation of Conspiracy The Anti-Monopoly Commission spent three months in investigating Temasek Holdings, and came up with a 109-page detailed document concluding Temasek's violation of the anti-monopoly law, Channel News relates. Channel News cites Mohammad Iqbal, Head of Indonesian Commission for the Supervision of Business Competition, as saying that there is evidence to prove that the process of cross-ownership took place after the divestment of Indosat to Temasek Group that created unhealthy competition. Mr. Iqbal said that initial investigation uncovered evidence of possible violations regarding agreements over prices, Financial Times relates. Asia Media, citing the Jakarta Post, says that according to Arief Poyuono, chairman of the Federation of United State-Owned Enterprises Workers Unions, they are suspicious that Indosat and Telkomsel have been conspiring to fix prices since the two companies' managements are affiliated with Temasek. Mr. Poyuono explained that there had been numerous complaints from consumers about unhealthy business competition and overly high prices, but all of the complaints had been ignored by the two companies. Moreover, the secretary-general of the federation, Harry Rusli, said that consumers were being denied access to inexpensive telephone tariffs because of Temasek's "unfair business practices," Asia Media notes. "The monopoly is also preventing other cellular phone operators from competing in a healthy manner in the telecommunications sector," he added. Indosat spokeswoman Adita Irawati, however, argued that Indosat and Telkomsel were separate business entities, and their cellular phone rates were regulated by the Directorate General for Post and Telecommunications, the Post notes. Indosat has never conspired with Telkomsel in setting prices and there is no cartel in the cellular phone operator business, she added. Temasek Denies Wrongdoing Temasek Holdings has denied the charges of cross-ownership, maintaining that its subsidiaries have their own board of directors who make their own operational decisions, Channel News points out. The report adds that Temasek also denied any involvement in price fixing for mobile phone charges, pointing out that Telkomsel's majority shareholder is the Indonesian Government. Temasek's legal counsel stressed out that all claims against the company are baseless, and that Temasek intends to vigorously defend its legal rights. Verdict Expected in November The Anti-Monopoly Commission's findings have been submitted to a five-member independent council that will deliver a judgment. Channel News notes that, according to Mr. Iqbal, the council has given the findings of the extended investigation to the party concerned so that it can inspect certain documents, give its views and enter its defense. If Temasek is found guilty, the council can impose a fine on the Singapore firm, instruct it to end unfair practices, and pay restitution for any losses caused. Temasek can still appeal to the Indonesian courts in case this happens. The council is expected to deliver its verdict next month, Channel News states. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on the Troubled Company Reporter-Asia Pacific reported on Oct 19, 2007, that Moody's Investors Service has upgraded Indosat Finance Company BV and Indosat International Finance Company BV senior unsecured foreign currency ratings to Ba2 from Ba3. The bonds are irrevocably and unconditionally guaranteed by PT Indosat. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. TUPPERWARE BRANDS: Earns US$6.9 MM in Quarter Ended Sept. 29 ------------------------------------------------------------ Tupperware Brands disclosed Tuesday its third quarter 2007 results. The company reported net income of US$6.9 million on net sales of US$454.7 million for the 13 weeks ended Sept. 29, 2007, compared with net income of US$13.1 million on net sales of US$394.9 million for the 13 weeks ended Sept. 30, 2006. GAAP net income for the 2007 period included the following one- time charges (after tax): -- costs associated with implementing new credit agreement of US$6.2 million -- purchase accounting intangibles and goodwill impairment of US$9.7 million -- acquired intangible asset amortization of US$2.3 million -- re-engineering and impairment charge expenses of US$1.8 million -- gain from land sales of US$3.4 million -- tax benefit ofUS$2.1 million versus US$4.7 million benefit from taxes in 2006 "Another quarter of strong sales and earnings reaffirms that our strategic growth initiatives are making a significant positive impact in the markets" said Rick Goings, chairman and chief executive officer. "Overall our local currency sales increase was 10%, reflecting 20% higher sales in the emerging markets, which accounted for 46% of sales. Sales in our established markets were up slightly, reflecting significant increases by several businesses, but a double-digit decrease in Germany," Goings continued. At Sept. 29, 2007, the company's consolidated balance sheet showed US$1.80 billion in total assets,US$1.33 billion in total liabilities, and US$469.3 million in total shareholders' equity. About Tupperware Headquartered in Orlando, Florida, Tupperware Brands Corporation (NYSE: TUP)-- http://www.tupperware.com/-- is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. * * * As reported in the Troubled Company Reporter on Sept. 19, 2007, Moody's Investors Service assigned a Ba1 rating to Tupperware Brands Corporation proposed senior secured credit facilities, consisting of aUS$200 million revolving credit facility and a $550 million term loan A, both due 2012. Moody's also affirmed the company's Ba2 corporate family rating and Ba3 probability of default rating, and changed the outlook to positive from stable. ========= J A P A N ========= DELPHI CORP: U.S. District Court to Hear ERISA Suit on Nov. 13 -------------------------------------------------------------- A fairness hearing on a US$47,000,000 settlement of a litigation filed against Delphi Corp. over an alleged violation of the Empl