T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, October 31, 2007, Vol. 10, No. 216 Headlines A U S T R A L I A AUSTRALIAN INTEGRATED: Members and Creditors to Meet on Nov. 2 BARNCO PTY: Placed Under Voluntary Liquidation BONEVILLA PTY: Holds Annual General Meeting CHRYSLER LLC: Affirms UAW 2007 National Labor Agreement CHRYSLER LLC: Appoints Douglas Betts as Vice President & CCO DSB INDUSTRIES: Members Pass Resolution to Liquidate Business FRL CONTRACTING: Will Declare Dividend on November 30 JAMES D DYSON: Members Agree on Voluntary Liquidation JAMES HARDIE: Court Allows Ex-Chief to File Limited Defense MARYVALE MEDICAL: Declares Dividend for Unsecured Creditors SHELTECH (WA): Members and Creditors to Meet on November 2 TRANGIE FARM: Members to Receive Wind-Up Report on November 2 URS CORP: Expects 2007 Third Quarter Net Income at US$38.7 Mil. WIMBUSH CORPORATION: Sets Final Meeting for November 2 ZINIFEX LTD: Posts 24% Boost in NPAT for the Year Ending June 30 ZINIFEX LTD: Extends Exploration Alliance with Drake Resources ZINIFEX LTD: Fitch Affirms BB+ IDR After Nyrstar Public Offer C H I N A & H O N G K O N G ASAT HOLDINGS: Regains Compliance w/ Nasdaq Minimum Bid Price BEST FOUNDATION: Requires Creditors to File Claims by Nov. 2 BEST LEADER: Court to Hear Wind-Up Petition on Dec. 19 BOE TECHNOLOGY: Posts CNY421-Million Net Income for 3rd Quarter CARLZEN INVESTMENT: Creditors' Proofs of Debt Due on November 30 CHINA LINK: Pays Dividend to Ordinary Creditors COUNTRY GARDEN: Moody's Assigns First-Time Corp. Rating of Ba1 GLOBAL CROSSING: Extends Voice Over Internet Protocol Service GRAND JOY: Sets Final General Meeting for November 19 GRIFFITHS & ARMOUR: Members to Receive Wind-Up Report on Nov. 20 KIENVER CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 19 LFE INTERNATIONAL: Members Pass Resolution to Wind Up Operations ORIENTAL MERCHANT: Taps Briscoe and Chen as Liquidators SOUTH CHINA: Placed Under Voluntary Liquidation * Moody's Releases Annual Report on Hong Kong I N D I A ANDHRA CEMENTS: Profit Doubles to INR197.7MM in July-Sept. 2007 AGILENT TECH: Prices US$600 Million of Senior Notes Offering BAGALKOT UDYOG: Board Meeting to Consider Results Set Today NAVISTAR INT'L: In Talks to Acquire GM's Medium Truck Business NAVISTAR INT'L: Releases Restated 2003-2005 Financial Data NAVISTAR INTERNATIONAL: S&P Retains Negative Watch on Ratings RAIN CALCINING: Gets S&P's 'B' Corporate Rating, Outlook Stable TATA POWER: Second Qtr. Profit Up 27.24% at INR257.43 Crore I N D O N E S I A BANK MANDIRI: 9-Month Net Profit Ups 165.7% to IDR3.2 Trillion BANK INTERNASIONAL: 9-Month Profit Down 15% to IDR438.5 Billion FREEPORT-MCMORAN: Fitch Ups 7% Convertible Notes Rating to BB+ GARUDA INDONESIA: Posts IDR218-Bil. Profit for First 9 Months GARUDA: Suspension Due to Employee Negligence, Minister Says J A P A N BOSTON SCIENTIFIC: Hires Two Officers in Clinical Sciences Group CABS LTD: S&P Lowers Rating on Class B Floating Rate Note to BB- FIDELITY NAT'L: Spin-Off Cues Fitch to Review BB IDR MITSUBISHI MOTORS: Posts 10.3% Boost in Global Production for H1 MITSUBISHI MOTORS: Reports JPY1.3-Bil. Net Sales in H1 of FY2007 NIS GROUP: R&I Lowers Issuer Rating to BB from BBB- NOVA CORP: In Talks with Three Possible Sponsors TIMKEN COMPANY: Completes US$200 Million Acquisition of Purdy K O R E A ILUSUNG CONSTRUCTION: Signs KRW47.3-Bil Service Contract w/ KEC ILUSUNG CONSTRUCTION: Signs Contract with Korea-Based Company N E W Z E A L A N D DADARDOUST LTD: Court to Hear Wind-Up Petition on Nov. 1 DALMI HOLDINGS: Fixes November 9 as Last Day to File Claims D.E.M TRANSPORT: Appoints Brown and Rodewald as Liquidators FINESSE PROPERTIES: Appoints Rowan Kingstone as Liquidator GALBRAITH MUNRO: Subject to CIR's Wind-Up Petition MADE IN AOTEAROA: Names John Francis Managh as Liquidator MOKOIA ISLAND: Appoints Brown and Rodewald as Liquidators PRISTINE PLUMBING: Commences Liquidation Proceedings TAYLORMADE BUILDING: Taps Brown and Rodewald as Liquidators THE FIREBOX LTD: Court Sets Wind-Up Petition Hearing for Today P H I L I P P I N E S BANGKO SENTRAL: Approves in Principle DBP's US$100-Mil. ODA Loan METROPOLITAN BANK: Increases Tier 2 Offering to PHP8.5 Billion PAL HOLDINGS: SC Releases Firm from Obligations Under 1996 Pact PHILODRILL: Annual Stockholders' Meeting Set for January 16 SAN MIGUEL: Supreme Court Rules Against 20 Guards in Labor Case STA. LUCIA LAND: PSE Lifts Suspension on Trading of Securities STA. LUCIA LAND: Board OKs Additional Public Offering of Shares STA. LUCIA LAND: To Open PHP500-Mil. Credit Facility from RCBC UNION BANK: Nine-Month Profit Jumps 57% Year-on-Year to PHP1.6BB * Daily Trades in Local Bond Market Grows Twice This Year: BSP S I N G A P O R E CANAL EMAS: Sets Members' Final Meeting for November 27 CHEMTURA CORP: Paying Five Cents Per Share Dividend on Nov. 23 MEIKI CO: Members' Final Meeting Set for November 27 READER’S DIGEST: Inks Exclusive Partnership with Williams Lea UNITED TEST: Enters Research Collaboration Agreement with IME T H A I L A N D KRUNG THAI BANK: Unit Wants to Rank Third Among Consumer Lenders - - - - - - - - ================= A U S T R A L I A ================= AUSTRALIAN INTEGRATED: Members and Creditors to Meet on Nov. 2 -------------------------------------------------------------- Australian Integrated Suppliers Pty Ltd will hold a meeting for its members and creditors on November 2, 2007, at 10:00 a.m. At the meeting, Robert Elliott, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Robert Elliott Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Australian Integrated Australian Integrated Suppliers Pty Ltd, which is also tradng as Guven Kebab Factory, is a distributor of meats and meat products. The company is located at Wetherill Park, in New South Wales, Australia. BARNCO PTY: Placed Under Voluntary Liquidation ---------------------------------------------- At an extraordinary general meeting held on September 20, 2007, the members of Barnco Pty Ltd agreed to voluntarily liquidate the company's business. Kimberley Andrew Strickland and Christopher Michael Williamson were appointed as liquidators. The Liquidators can be reached at: Kimberley Andrew Strickland Christopher Michael Williamson SimsPartners Level 12, 40 St George's Terrace Perth, Western Australia 6000 Australia About Barnco Pty Barnco Pty Ltd is a distributor of furniture and fixtures. The company is located at Willetton, in Western Australia, Australia. BONEVILLA PTY: Holds Annual General Meeting ------------------------------------------- On October 11, 2007, the members and creditors of Bonevilla Pty Limited met for their first annual general meeting. At the meeting, the members and creditors received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kenneth Whittingham BDO Kendalls (New South Wales) Level 19, 2 Market St Sydney, New South Wales 2000 Australia About Bonevilla Pty Bonevilla Pty Limited is a distributor of lumber, plywood, millwork and wood panels. The company is located at Brookvale, in New South Wales, Australia. CHRYSLER LLC: Affirms UAW 2007 National Labor Agreement ------------------------------------------------------- Chrysler LLC has confirmed a new Chrysler-UAW 2007 national labor agreement, in response to the UAW's ratification results. Chrysler and the UAW reached a tentative agreement on Oct. 10, after three months of bargaining. "We are pleased that our UAW employees recognize that the new agreement meets the needs of the company and its employees by providing a framework to improve our long-term manufacturing competitiveness," said Tom LaSorda, Vice Chairman and President, Chrysler LLC. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CHRYSLER LLC: Appoints Douglas Betts as Vice President & CCO ------------------------------------------------------------ Chrysler LLC has named 21-year quality assurance veteran Douglas D. Betts Vice President and Chief Customer Officer. This newly created role assumes responsibility for corporate quality and will become a key element in Chrysler's continued effort to become a truly customer-oriented company. Mr. Betts will be guided by "the voice of the customer," and will create the processes, culture, systems and organization to achieve the highest levels of quality in all of the Company's products and customer touch points. Mr. Betts will be based in Auburn Hills, Michigan, and report to Chrysler LLC Vice Chairman and President Jim Press. "Now, the customer will define quality at Chrysler," said Mr. Press. "We are aligning our resources to bring us to world- class benchmark levels in quality and customer satisfaction, and this is an important step." Mr. Press described the CCO -- a first for the auto industry -- as an "advocate for the customer." Mr. Betts, joins Chrysler from Nissan Americas, where he was Senior Vice President - Total Customer Satisfaction and before that, served as Vice President - Manufacturing Quality. He joined Nissan after holding quality assurance positions with Toyota, Michelin Tire Corp. and General Motors. Mr. Betts' appointment is effective immediately. Stephen M. Walukas, formerly Vice President - Corporate Quality, returns to the Procurement and Supply organization in a to-be- announced executive role. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. DSB INDUSTRIES: Members Pass Resolution to Liquidate Business ------------------------------------------------------------- During a general meeting held on September 21, 2007, the members of DSB Industries Pty Limited agreed to voluntarily liquidate the company's business. Frank Lo Pilato was appointed as liquidator. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner ACT 2612 Australia Telephone:(02) 6247 5988 About DSB Industries Located at Deakin, in ACT, Australia, DSB Industries Pty Limited is an investor relation company. FRL CONTRACTING: Will Declare Dividend on November 30 ----------------------------------------------------- FRL Contracting Pty Ltd will declare dividend on November 30, 2007. Creditors who were not able to file their proofs of debt by the October 23 due date will be excluded from the company's dividend distribution. The company's liquidator is: Andrew Birch McGrathNicol Level 1, 5 Mill Street Perth, Western Australia 6000 Australia About FRL Contracting FRl Contracting Pty Ltd is involved with heavy construction. The company is located at Belmont, in Western Australia, Australia. JAMES D DYSON: Members Agree on Voluntary Liquidation ----------------------------------------------------- During a general meeting held on September 25, 2007, the members of James D Dyson Pty Ltd decided to voluntarily liquidate the company's business. Michael Pinn was tapped as liquidator. The Liquidator can be reached at: Michael Pinn Pinn Deavin & Associates Level 5, 3-5 Stapleton Avenue Sutherland, New South Wales 2232 Australia About James D Dyson James D Dyson Pty Ltd is involved with the arrangement of transportation of freight and cargo. The company is located at Mascot, in New South Wales, Australia. JAMES HARDIE: Court Allows Ex-Chief to File Limited Defense ----------------------------------------------------------- James Hardie Industries Ltd.'s former chief executive achieved a court victory that protects him from having to provide potentially self-incriminating evidence in the case brought against him by the Australian Securities & Investments Commission, Ean Higgins writes for The Australian. Mr. Higgins relates that Peter Macdonald, along with former chairwoman Meredith Hellicar, former general counsel Peter Shafron, former financial officer Phillip Morley and six other former directors were alleged by ASIC of issuing misleading statements in 2001 when James Hardie said an independent trust fund it had established with AU$294 million to cover asbestos disease claims would be "fully funded." The trust, writes The Australian, was soon found to be hopelessly underfunded, and after a marathon battle against unions and the New South Wales Government, Hardie, in February, finalized a AU$3 billion deal to cover future victims. Along with this, ASIC applied to the NSW Supreme Court to have the company executives fined and banned from running companies, states The Australian. In addition, ASIC is investigating Mr. Macdonald to determine whether to bring criminal charges against him, which if proved could see him jailed for up to seven years, relates Mr. Higgins. Justice Peter Young had ordered the defendants to file unverified defenses, but Mr. Macdonald, relates The Australian, appealed the decision, seeking limitation on the extent of the defense he would have to file. His lawyers, writes Mr. Higgins, argued that since he might face criminal charges, he should not have to file defenses that could assist ASIC's case. The report states that Justice Keith Mason of the Appeal Court, ruled that while Mr. Macdonald should have to file some defense, it could be restricted. The Australian quotes Justice Mason as saying, "In my opinion, these principles mean that the claimant should not be compelled to include in his defense any information that may have the tendency to expose him directly or indirectly to the penalties being sought by ASIC." About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/-- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. The company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. MARYVALE MEDICAL: Declares Dividend for Unsecured Creditors ----------------------------------------------------------- Maryvale Medical Clinic Pty Limited declared dividend for its unsecured creditors on October 23, 2007. Creditors who were not able to file their proofs of debt by the October 23 due date were excluded from the company's dividend distribution. The company's deed administrator id: Bruce Gleeson c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02) 9251 5222 About Maryvale Medical Maryvale Medical Clinic Pty Limited is a distributor of durable goods. The company is located at Liverpool, in New South Wales, Australia. SHELTECH (WA): Members and Creditors to Meet on November 2 ---------------------------------------------------------- A final meeting will be held for the members and creditors of Sheltech (WA) Pty Ltd on November 2, 2007, at 9:30 a.m. At the meeting, Gary Anderson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Gary Anderson Chartered Accountant 12 Prowse Street West Perth, Western Australia 6005 Australia Telephone:(08) 9486 7822 Facsimile:(08) 9226 4250 About Sheltech (WA) Sheltech (WA) Pty Ltd is involved with electrical work. The company is located at Rockingham, in Western Australia, Australia. TRANGIE FARM: Members to Receive Wind-Up Report on November 2 ------------------------------------------------------------- The members of Trangie Farm Pty Ltd will have their general meeting on November 2, 2007, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: J. L. Balgarnie 43 Victoria Avenue Claremont, Western Australia 6010 Australia About Trangie Farm Trangie Farm Pty Ltd operates nonclassifiable establishments. The company is located at Osborne Park, in Western Australia, Australia. URS CORP: Expects 2007 Third Quarter Net Income at US$38.7 Mil. --------------------------------------------------------------- URS Corporation disclosed preliminary unaudited financial results for its third quarter ended Sept. 28, 2007. URS expects third quarter 2007 revenues to be US$1.302 billion, an increase of 20% compared with revenues of US$1.085 billion for the third quarter of 2006. Net income for the third quarter of 2007 is expected to be US$38.7 million, an increase of 29% from net income of US$29.9 million for the comparable period in 2006. The preliminary results are being disclosed to provide stockholders of URS and Washington Group International with additional financial information regarding URS prior to upcoming stockholder meetings. Washington Group stockholders are scheduled to meet on Oct. 30, 2007 to vote upon the proposed acquisition of Washington Group by URS. A Special Meeting of URS Stockholders also is scheduled to be held Oct. 30, 2007, to vote on the issuance of shares in conjunction with the transaction. In conjunction with the announcement of preliminary third quarter results, the Company issued the following statement: "A key component of the transaction value for Washington Group stockholders is the URS shares they will receive if the acquisition is approved. The Company believes it is important that Washington Group stockholders have this additional financial information before their vote scheduled for Oct. 30, 2007. URS continues to perform very well, and our results for the quarter reflect good growth across each of our four key market sectors, the federal sector, the state and local government sector, the private sector and international." "URS believes that the combination with Washington Group offers a compelling value for Washington Group stockholders, including the potential upside of owning almost one-third of the combined company, which we expect will be better positioned to capture opportunities in high-growth markets." URS will release its full financial results for the third quarter on Nov. 7, 2007, after the market close, and will update its guidance for fiscal 2007 at that time. The preliminary unaudited financial results are estimates and are subject to further review and analysis by the company's management as part of the normal quarterly closing process currently under way. About URS Corporation Headquartered in San Francisco, California, URS Corporation (NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, facilities, environmental, water/wastewater, industrial infrastructure and process, homeland security, installations and logistics, and defense systems. The company operates in more than 20 countries with approximately 29,500 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 21, 2007, Standard & Poor's Ratings Services assigned its 'BB+' bank loan rating and '2' recovery rating to URS Corp.'s proposed US$2.1 billion senior secured credit facilities, indicating expectations of substantial recovery in the event of a payment default. The facilities are rated the same as the corporate credit rating on the company. As reported in the Troubled Company Reporter on Sept. 20, 2007, Moody's Investors Service assigned a provisional rating of (P)Ba1 to the proposed US$2.1 million senior secured credit facility of URS Corporation, which will be used to finance its pending acquisition of Washington Group International Inc. WIMBUSH CORPORATION: Sets Final Meeting for November 2 ------------------------------------------------------ Wimbush Corporation Pty Ltd will hold a final meeting for its members and creditors on November 2, 2007, at 11:00 a.m. At the meeting, Mark Anthony Conlan, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Mark Anthony Conlan RSM Bird Cameron Partners Chartered Accountants 8 St Georges Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9261 9100 Facsimile:(08) 9261 9340 About Wimbush Corporation Wimbush Corporation Pty Ltd, which is also trading as B Wimbush & Associates, provides management consulting services. The company is located at Herdsman, in Western Australia, Australia. ZINIFEX LTD: Posts 24% Boost in NPAT for the Year Ending June 30 ---------------------------------------------------------------- For the third year in a row, Zinifex substantially increased its financial performance, delivering a record net profit after tax attributable to members of AU$1,334.8 million and earnings per share of AU$2.74. This represents a rise in net profit after tax of 24% from the 2006 financial year. Zinifex’s mining business was the major contributor to the profit providing AU$827.5 million while the smelting business was also a significant contributor adding AU$507.3 million. Profitability of all operations increased with Rosebery, Hobart and Budel nearly double, or better, their contributions compared to the year before. For the first time Zinifex’s income statement focuses on the performance of the mining business, recognizing that in future Zinifex’s smelting operations will be part of Nyrstar, an entity formed to merge Zinifex’s zinc smelting and alloying businesses with those of Umicore, a Belgium listed advanced materials company. Nyrstar will be the world’s largest producer of zinc metal. Profit before financing costs and income tax was also a record at AU$1,739 million, 82% higher than the year before. A substantial income tax expense was booked for the period compared with an income tax benefit in the previous financial year reflecting that substantially all of Zinifex’s tax losses have now been recognized. This change in tax position was the primary reason why net profit after tax increased by a smaller 23% when compared with the 82% increase in profit before tax. Revenue for the year was also a record at AU$4,608.6 million with the increase attributable to record zinc and lead prices which more than offset moderately lower production and sales volumes. Zinc prices increased by an average of 74% for the year to US$3,671 per tonne. This increase in prices has been driven by a substantial zinc market deficit over the past three years which has reduced zinc inventories to historically low levels. Lead prices increased markedly when a number of producers encountered difficulties interrupting supply. On average lead prices were 58% higher than the previous year at US$1,689 per tonne. Partially offsetting the increase in metal prices was a weaker US dollar particularly in the second half of the financial year. Production was 5% below that for the 2006 financial year. Longer than normal planned maintenance shutdowns combined with unplanned shutdowns at Century, Port Pirie and Clarksville together with lower lead grades at Century were primarily responsible. In contrast Hobart delivered record zinc production and Budel increased output following the commissioning of an expansion. The ongoing strong performance of the resources sector continued to apply upward pressure on costs. Underlying operating costs excluding exchange rate impacts were up by some 11%, however, specific period expenditures associated with the extended Port Pirie shutdowns, final payout to the departing Chief Executive Officer and revised environmental provisions at Port Pirie increased the headline rate to 15%. Operating cost increases were experienced in all areas of the mining business with employees, services, consumables, freight and energy all costing more. Higher volumes of ore were mined at Century during the year which added AU$17 million to operating costs and higher metal prices flowed through to the royalty payments made to State Governments which increased by 35%. On the smelting side cost increases were in general marginally lower. Higher costs were spread across all areas with the most significant increase incurred in contracting expenses associated with the increased maintenance performed during the year as well as the new asset management program that was implemented. Accelerated implementation of the growth strategy saw exploration and development costs increase by AU$17 million. Depreciation and amortization expenses increased due to higher amortization rates, and higher levels of capital expenditure flowing through to depreciation. The costs of stripping waste from the surface of the Century ore body are capitalized and then amortized as ore is processed through the mill. Over recent years the costs of stripping waste at Century have increased in line with general cost pressures experienced in the resources industry. As a consequence the rates of amortization have been increased to reflect these higher costs. Net cash flow from operating activities increased strongly by more than 83% to a record AU$1,585.9 million largely due to higher metal prices. This was after an increase in working capital of AU$150 million, also largely due to higher metal prices. This cash was used to fund a substantially higher capital program of AU$530 million. The single largest item contributing to the AU$170 million uplift in capital spend from the year before was the accelerated program of stripping at Century. Extended planned maintenance shutdowns at Century and Port Pirie also increased capital costs as did emissions reduction projects initiated as part of Port Pirie’s ten by 10 program. During the year AU$588 million was applied to investments, principally the acquisition of Wolfden Resources. A substantial AU$696 million was returned to shareholders during the year in the form of dividends and completion of the share buyback program. In addition tax of AU$292 milllion was paid on the dividend component. Zinifex still held a healthy AU$346 million in cash in the bank at the end of June 2007 and had a very modest debt position of less than AU$140 million. In accordance with our stated policy of returning surplus cash that cannot be effectively employed within the business to shareholders, the Board has resolved to pay a 70 cents fully franked dividend to shareholders on November 16, 2007. The record date for entitlement to this dividend is November 5, 2007, and the ex-dividend date will be October 30, 2007. Highlights * Record net profit after tax of AU$1,334.8 million, more than 24% than the net profit for the 2006 financial year; * Record cash inflows from operating activities of AU$1,585.9 million, an increase of 83% compared to the previous financial year; * Announced a dividend of 70 cents per share, fully franked, bringing total dividends announced to AU$1.40 per share for the year, a rise of 75 per cent over last financial year; * Dividends of AU$681.6 million paid to shareholders, nearly 10 times the dividend paid during the 2006 financial year; * Record zinc prices and lead prices, an average of 74% and 58% higher respectively than the previous year, were the major drivers of the increased profit; * Total production was approximately 5% below last year due largely to longer than normal planned shutdowns at Century and Port Pirie as well as lower lead grades in Century ore; * Safety performance continued the long term trend of significant improvement with a 22% reduction in the medically referred injury frequency rate on the same time one year ago; * Environmental performance also improved with a reduction in the number of reportable environmental incidents, sustaining the significant improvement achieved in the previous year; * Substantial progress made on Zinifex’s long term strategy including: -- Entering into an agreement to combine Zinifex and Umicore’s respective smelting and alloying businesses to create Nyrstar, the world’s pre-eminent zinc metal producer. Zinifex shareholder approval to discontinue the smelting business was received on July 26, 2007 and Nyrstar is on track to be formed in September 2007; -- Successfully completed the Dugald River pre-feasibility study and elected to proceed with a full feasibility study of a 200,000 tonne per annum zinc mine; -- Acquired Wolfden Resources Inc. for AU$388 million. Wolfden significantly increases Zinifex’s zinc and copper resources and has development and exploration projects in Canada’s Nunavut Territory; -- Increased the Rosebery resource by 65% extending the mine life at Rosebery to beyond 10 years; -- Exploration expanded overseas with projects in Tunisia, Sweden, Mexico and China; -- Increased budget allocation for exploration and development budget to AU$100 million in the 2008 financial year; * Greig Gailey, Zinifex’s Chief Executive Officer since listing, departed Zinifex on June 29, 2007 and made an outstanding contribution during this period. Tony Barnes, formerly Zinifex’s Chief Financial Officer, is acting Chief Executive Officer until a suitable replacement is found. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. ZINIFEX LTD: Extends Exploration Alliance with Drake Resources -------------------------------------------------------------- Zinifex Ltd. and Drake Resources Ltd. have agreed to extend their successful base metal exploration Alliance until December 2008. The Zinifex–Drake Alliance was established to identify high- quality zinc-lead-silver-copper targets within selected regions of Australia, Scandinavia, North America and southern Africa. Drake has a generative team with a unique understanding of target characteristics and wide-ranging knowledge and practical experience in the type terrains where the known deposits occur. Zinifex has the project evaluation, financing and mining skills to progress the projects generated by the Alliance. The Alliance started in September 2006 with an initial budget of AU$640,000 including a cash budget of AU$400,000. With this funding, Drake, as Manager of the Alliance, has successfully generated fourteen projects as Drake-Zinifex exploration joint ventures to date. To facilitate a continuation of this productive arrangement, the parties have approved a new budget of a further AU$1.0 million for the period from September 2007 to 30 June 2008. This new budget is in addition to the initial budget, and is funded by cash and in kind contributions from each company in the same proportions as the initial budget. The two companies have also agreed in principle to extend the term of the Alliance agreement for a further six-month period until the end of December 2008. The program and budget for the period July 2008 to December 2008 is yet to be finalized. The Alliance extension will focus on the following: * Intensifying the search in the regions of current focus: Sweden and Australia; * Extending the search to other regions, including elsewhere in Scandinavia, North America and Southern Africa. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. ZINIFEX LTD: Fitch Affirms BB+ IDR After Nyrstar Public Offer ------------------------------------------------------------- Fitch Ratings affirmed Zinifex Limited's 'BB+' Long-term foreign currency Issuer Default Rating (IDR), following the announcement by the company that it had successfully completed the public offer of shares in Nyrstar. The Outlook is Stable. Nyrstar comprises the former zinc and lead smelting and alloying businesses of Zinifex and Belgium-based Umicore SA/NV (Umicore). The public offer of 86.96% of Nyrstar's shares will result in gross proceeds of EUR1.74 billion (AU$ 2.72 billion) for Zinifex and Umicore, of which Zinifex's share will be approximately EUR1.04bn (AU$1.6 billion). If over-allotment options are fully exercised, Zinifex should receive an additional AU$220 million and cease to be a shareholder in Nyrstar. "The very significant cash injection from the public offer, an ungeared balance sheet and strong cash flows from existing mining assets provide a strong foundation for Zinifex to grow its higher-margin mining business," said Maurice O'Connell, director in Fitch's corporate team based in Sydney. Following the transaction, Zinifex will focus on expanding its mining business which currently consists largely of the Century and Rosebery zinc, lead and silver mines in Australia. Whilst the divestment of Zinifex's smelting assets reduces the company's vertical integration and leaves the business more exposed to the performance of the mining operations, the smelter business has had some operational difficulties in the past, and therefore in Fitch's view, the divestment does not materially increase the company's business risk. The smelter business accounted for AU$507 million, or 38%, of FY2007 normal profit after taxation (NPAT) and the sale of this business will result in lower profits and cash flows in the immediate future. The rating will be reviewed when the company's plans for the use of the proceeds become clearer. Zinifex's future pro-forma credit profile is still viewed as solid and consistent with existing ratings. Its NPAT of approximately AU$800 million, zero net debt, significant cash holdings and a short- to medium-term outlook which remains favorable for zinc prices, mitigate the lack of diversification, and inherent credit risks associated with mining, including mine life and commodity price risk. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. ================================ C H I N A & H O N G K O N G ================================ ASAT HOLDINGS: Regains Compliance w/ Nasdaq Minimum Bid Price ------------------------------------------------------------- ASAT Holdings Limited, a global provider of semiconductor package design, assembly and test services, announced on Oct. 29, 2007, that it received a Nasdaq Staff Letter, dated October 25, advising that it regained compliance with the US$1.00 minimum bid price requirement for continued listing found in Nasdaq Marketplace Rule 4320(e)(2)(E)(ii). On July 30, 2007, Nasdaq notified the company that its American Depositary Shares failed to maintain the minimum bid price of US$1.00 over the previous 30 consecutive business days as required by the Nasdaq Marketplace Rules. Since then, the closing bid price of the company's American Depositary Shares has been at US$1.00 per share or greater for at least 10 consecutive business days. Therefore, the company was informed by Nasdaq that this matter is now closed. ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a global provider of semiconductor package design, assembly and test services. With more than 17 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The Company has operations in the United States, Asia, Hong Kong and Europe. At April 30, 2007, ASAT Holdings Limited's consolidated balance sheet showed US$135.1 million in total assets, US$217.7 million in total liabilities, and US$5.7 million in series A redeemable convertible preferred shares, resulting in US$88.3 million total stockholders' deficit. BEST FOUNDATION: Requires Creditors to File Claims by Nov. 2 ------------------------------------------------------------ Best Foundation Iron & Steel Industrial Limited requires its creditors to file their proofs of debt by November 2, 2007, to be included in the company's dividend distribution. The company's liquidators are: Alan C W Tang Wong Kwok Man Gloucester Tower, 13th Floor The Landmark 15 Queen's Road, Central Hong Kong BEST LEADER: Court to Hear Wind-Up Petition on Dec. 19 ------------------------------------------------------ A petition to have Best Leader Engineering Limited's operations wound up will be heard before the High Court of Hong Kong on December 19, 2007, at 9:30 a.m. The petition was filed by Superich Marine Services Limited on September 21, 2007. Superich Marine's solicitors are: Betty Chan & Co. Tung Ning Building, Room 1703 2 Hillier Street, Hong Kong BOE TECHNOLOGY: Posts CNY421-Million Net Income for 3rd Quarter --------------------------------------------------------------- BOE Technology Group Co. reported net income of CNY420.5 million (US$56 million), or CNY0.14 a share, in the third quarter as demand for computers and TVs that use its screens surged, Bloomberg News reports. The current figure is a turnaround from the CNY883.5-million net loss recorded a year earlier, Bloomberg notes, citing BOE Technology's statement submitted to the Shenzhen stock exchange. According to the company, sales rose to CNY3.24 billion in the third quarter from CNY2.39 billion a year ago. Retail sales rose 17% in September from a year earlier after the Chinese government raised minimum wages and cut tax to spur consumer demand. Bloomberg relates that China's booming economy boosted incomes and fueled surging demand for personal computers, TVs, and other electronics. About BOE Technology Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a manufacturer of display devices and digital products. Based in Beijing, the People's Republic of China, the Company operates seven key divisions: Thin-Film Transistor-Liquid Crystal Display (TFT-LCD); Monitor & Panel Television (TV), offering cathode ray tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma display panel (PDP) TVs; Mobile Display System, providing super twisted nematic-LCD (STN-LCD) and organic light-emitting display (OLED); Special Application Display, supplying vacuum fluorescent display (VFD) and light-emitting display (LED); CRT, producing CRTs together with Toshiba and Panasonic; Precision Electronic Component & Material, and Digital Display Product & Display Application System. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 24, 2006. CARLZEN INVESTMENT: Creditors' Proofs of Debt Due on November 30 ---------------------------------------------------------------- At an extraordinary general meeting held on October 8, 2007, the members of Carlzen Investment & Development Company Limited resolved to voluntarily liquidate the company's business. Creditors must file their proofs of debt by November 30, 2007, to be included in the company's dividend distribution. The company's liquidators are: Wan Yiu Chung, Paul Lin Lai Har, Wendy 1301 Eton Tower 8 Hysan Avenue, Causeway Bay Hong Kong CHINA LINK: Pays Dividend to Ordinary Creditors ----------------------------------------------- China Link Oil Company Limited, which is in liquidation, paid dividend to its ordinary creditors on October 18, 2007. The company paid 0.711% to its ordinary creditors. The company's liquidator is: Kenny King Ching Tam Nan Fung Tower Room 908, 9th Floor 173 Des Voeux Road Central Hong Kong COUNTRY GARDEN: Moody's Assigns First-Time Corp. Rating of Ba1 -------------------------------------------------------------- Moody's Investors Service assigned first-time Ba1 corporate family rating to Country Garden Holdings Company Limited. At the same time, Moody's assigned a provisional (P) Ba1 senior unsecured debt rating to its proposed US dollar bonds (maturing 2012 and 2017). The outlook for the ratings is stable. The bond rating will be removed from its provisional status once Country Garden has successfully completed the bonds issuance, and which is intended to fund capital needs for its existing and new projects. "Country Garden's rating of Ba1 reflects its leading market position and the growth opportunities provided by its business model, which focuses on building integrated townships in suburban China, and its ability to offer affordable products to a growing middle income group," says Peter Choy, a Moody's Vice President and Senior Credit Officer. "The rating further recognizes Country Garden's track record in successfully deploying such a strategy in Guangdong Province in recent years," says Choy, adding, "Another support is its large and low cost land bank, which is spread in a number of locations in China, and its well formed plans to develop that land bank in the next few years." On the other hand, Country Garden's rapid and projected growth could exert stress on its management and operational teams. As an indication of such growth, Moody's notes that it has increased its land bank size by almost three times since April 2007 and it is forecasting sales for the next few years to grow at a rate higher than its average historical compound growth rate for the last 4 years. Additionally, it is expanding rapidly outside Guangdong Province into the second and third tier cities of relatively lower economic activities, and where its ability to replicate its success in Guangdong is at an early stage. Moody is of the view that under the company's rapid growth strategy, its working capital requirement is expected to be significant, and its future operating cash flow will be strained to some extent that it is likely to be negative in some years. "Therefore, while Country Garden has demonstrated the success of its business model in Guangdong, it remains to be seen the applicability of such a model -- in terms of achieving the scale and profitability anticipated -- in other parts of China," says Choy. Mitigating these concerns is the company's raising of equity -- as evidenced by the successful IPO in April 2007 and debt to pre-fund its expansion, its low land cost, its standardized development model and strong organization that have supported the company's expansion in recent years. Its financial metrics are appropriate for its rating category with adjusted debt leverage to average 40-50% in coming years. But cash flow coverage of interest and debt is weak because of low level or negative operating cash flow and is only expected to improve materially from 2010. Until then, Moody's expects the company will use its major cash reserves to fund development expenditure, dividends and interest. The stable rating outlook reflects Moody's expectation that Country Garden is relatively well funded as it proceeds to execute its business plan in China. It has a reasonable buffer, should it prove difficult to grow sales as quickly and profitably as anticipated, provided the company will adjust its development pipeline at the same time. Upward rating pressure is unlikely in the near term as Moody's has concerns over the execution risks of Country Garden's rapid expansion. But if it achieves a track record of sales and profitability in line with expectations and generates significant operating cash flows on a sustainable basis, an upgrade could be considered. Financial metrics Moody's would consider in this respect would be EBITDA/Interest around 10x, Debt/Capitalization of around 35- 40%, and ongoing and positive recurring operating cash flow. On the other hand, downward rating pressure could emerge if Country Garden experiences significant difficulty in executing its business plan, or China's property market shows a major downturn, such that its operating cash flow generation is weaker than anticipated. In such a situation, a downgrade could be considered if EBITDA margin falls below 20%; Debt/Capitalization at or above 50%; and EBITDA/interest declines under 6x on a sustainable basis; and negative operating cash flow beyond 2009 and indicating a need for further funding. Founded in 1997 in China and listed in Hong Kong in April 2007, Country Garden Holdings Company Limited is a leading integrated property developer in China. As of August 2007, it had a sizeable land bank of 51.9 million square meters, and spread over 45 projects in 20 cities in the provinces of Guangdong, Anhui, Hubei, Hunan, Jiangsu and Liaoning, and the two municipalities of Chongqing and Tianjin. GLOBAL CROSSING: Extends Voice Over Internet Protocol Service ------------------------------------------------------------- Global Crossing said in a statement that it has extended its voice over Internet protocol local service to 16 Mexican cities. Business News Americas relates that the service is an inbound local service, which provides "nationwide direct inward dialing functionality through a single" Internet protocol interconnection. According to BNamericas, the service will be available in: -- Mexico City, -- Guadalajara, -- Puebla, -- Leon, and -- Monterrey, among other cities. Global Crossing's voice over Internet protocol is now being offered in 21 nations, BNamericas notes. The firm also extended the service to 400 cities in the US. Global Crossing's network applications service vice president Al DiGabriele commented to BNamericas, "Global Crossing continues to expand the reach of this critical capability into key markets across the world. We'll continue to use our secure, reliable global IP [Internet protocol] network to support multinational customers - and the carriers that serve them -- in need of these essential business applications." Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including China, Bermuda, Argentina, Brazil, and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a US$195 million stockholders' deficit, compared to a US$173 million stockholders' deficit at Dec. 31, 2005. GRAND JOY: Sets Final General Meeting for November 19 ----------------------------------------------------- The members of Grand Joy (HK) Limited will hold their final general meeting on November 19, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lau Hin Chi Hopewell Centre, Suite 5008 183 Queen's Road East Wanchai, Hong Kong GRIFFITHS & ARMOUR: Members to Receive Wind-Up Report on Nov. 20 ---------------------------------------------------------------- A final meeting will be held for the members of Griffiths & Armour (Asia Pacific) Limited on November 20, 2007, at 10:00 a.m., at the 29th Floor of Wing On Centre, 111 Connaught Road Central, Hong Kong. At the meeting, Kong Chi How, Johnson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KIENVER CONSTRUCTION: Creditors' Proofs of Debt Due on Nov. 19 -------------------------------------------------------------- The creditors of Kienver Construction Company Limited are required to file their proofs of debt by November 19, 2007, to be included in the company's dividend distribution. The company's liquidator is: Ng Shung Mo Chinachem Golden Plaza 77 Mody Road Tsimshatsui East Kowloon LFE INTERNATIONAL: Members Pass Resolution to Wind Up Operations ---------------------------------------------------------------- On October 12, 2007, the members of LFE International Limited passed a resolution to liquidate the company's business. Yeung Betty Yuen and Chung Miu Yin Diana were appointed as liquidators. The Liquidators can be reached at: Yeung Betty Yuen Chung Miu Yin Diana Three Pacific Place, Level 28 1 Queen's Road East Hong Kong ORIENTAL MERCHANT: Taps Briscoe and Chen as Liquidators ------------------------------------------------------- Oriental Merchant Limited went into liquidation on October 11, 2007. Stephen Briscoe and Chen, Yung Ngai Kenneth were named as liquidators. The Liquidators can be reached at: Stephen Briscoe Chen, Yung Ngai Kenneth Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong SOUTH CHINA: Placed Under Voluntary Liquidation ----------------------------------------------- On October 11, 2007, a special resolution was passed to liquidate South China Binding Limited's operations. Stephen Briscoe and Chen, Yung Ngai Kenneth were named as liquidators. The Liquidators can be reached at: Stephen Briscoe Chen, Yung Ngai Kenneth Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong * Moody's Releases Annual Report on Hong Kong --------------------------------------------- In its annual report on Hong Kong, Moody's Investors Service says the country's Aa2 government bond ratings and Aa1 foreign currency country ceilings reflect the region's very strong government and external finances. At the same time, the rating agency believes that Hong Kong's status as a Special Administrative Region within A1-rated China and its increasing economic and financial integration with the rest of the country are constraints on the rating. "With almost no debt, the Hong Kong government is running substantial budget surpluses and has built up fiscal reserves equivalent to 20 months of expenditure," said Moody's Vice President Steven Hess, author of the report. He added that this position compared favorably to countries rated even more highly than Hong Kong. "Hong Kong's external position is also strong, with one of the largest net international investment positions of any country or territory and with continuing current account surpluses," said Hess. He said the latest figures on the net international investment position show that it has strengthened quite significantly in the previous few years, standing at 252% of GDP at the end of 2005. The strong performance of China's economy over the last decade, coupled with Chinese government policies that have benefited Hong Kong, has been one of the engines of the SAR's economic growth. Trade and China related financial services have increased their share of the Hong Kong economy during the past several years. Moody's believes, however, that China risk, in the event of a less favorable scenario in the country, is a factor in Hong Kong's ratings. As a result, the ratings of Hong Kong are lower than they might be on a stand alone basis. The rating agency's report, "Hong Kong: 2007 Credit Analysis," is a yearly update to the markets and is not a rating action. ========= I N D I A ========= ANDHRA CEMENTS: Profit Doubles to INR197.7MM in July-Sept. 2007 -------------------------------------------------------------- Andhra Cements Ltd's net profit for the quarter ended Sept. 30, 2007, tripled to INR197.7 million from the INR64.10 million earned in the corresponding quarter last year. Total income more than doubled in the July-Sept. 2007 quarter to INR916.8 million. With operating expenses aggregating INR688.3 million, the cement maker booked an operating profit for the quarter of INR228.5 million. The company also recorded interest charges of INR28.1 million, depreciation of INR2.1 million and INR60,000 in taxes. A copy of Andhra Cements' financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?24a6 Headquartered in Guntur, India, Andhra Cements Limited, manufactures and distributes cement. Andhra is part of the Kolkata-based Duncan Goenka group. The original promoter of Andhra Cements handed over the reins to Goenka in 1994 when the company was under the Board for Industrial and Financial Reconstruction's purview. Andhra Cements had been operating under the sanctioned rehabilitation scheme of the BIFR dated June 16, 1994. The scheme is presently under revision. AGILENT TECH: Prices US$600 Million of Senior Notes Offering ------------------------------------------------------------ Agilent Technologies Inc. disclosed the pricing of its senior notes in an aggregate principal amount of $600 million, in an underwritten, registered public offering. The senior notes will mature in November 2017 and will bear interest at an annual rate of 6.5%. The offering closed on Oct. 29, 2007, subject to customary closing conditions. Agilent intends to use the net proceeds from the offering for general corporate purposes, which may include repurchases of its outstanding shares of common stock, acquisitions, working capital and capital expenditures. Citi Markets & Banking and J.P. Morgan Securities Inc. acted as joint lead book-running managers for the offering. Banc of America Securities LLC, Credit Suisse, Lehman Brothers and Utendahl Capital Markets L.P. acted as co-managers. Copies of the prospectus supplement and the accompanying prospectus relating to the offering can be obtained from: Citigroup Global Markets Inc. Prospectus Department Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 Telephone +1 877 858 5407 and J. P. Morgan Securities Inc. Attn: Investment Grade Syndicate Desk 270 Park Avenue New York, NY 10017 Telephone +1 212 834 4533 About Agilent Technologies Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in Indonesia, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter on Oct. 26, 2007, Moody's Investors Service assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of US$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. BAGALKOT UDYOG: Board Meeting to Consider Results Set Today ----------------------------------------------------------- Bagalkot Udyog Ltd's board of directors will hold a meeting today, Oct. 31, 2007, inter alia, to consider and take on record the company's unaudited financial results for the quarter ended Sept. 30, 2007. Additionally, the board or directors will take note of the Rehabilitation Scheme and the Scheme of Arrangement or Demerger that was approved by the Board for Industrial and Financial Reconstruction last month. Bagalkot Udyog Ltd. manufactures cement, clinker and other by- products. The company incurred heavy losses that led to the erosion of its entire net worth. By order dated June 2, 2000, the Board for Industrial & Financial Reconstruction, New Delhi, had declared the company as a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions), Act 1985. On May 11, 2006, the operations of the company's cement plant at Bagalkot came to a total stop. The company booked net losses of INR59.16 million for the fiscal year ended March 31, 2006, and INR115.88 million in FY 2005. The Troubled Company Reporter–Asia Pacific reported on Oct. 26, 2007, that Andhra Cements has a stockholder's equity deficit of US$630,000. NAVISTAR INT'L: In Talks to Acquire GM's Medium Truck Business -------------------------------------------------------------- Navistar International Corp. is in discussions with General Motors Corp. about a plan for Navistar to acquire GM's medium- duty truck business, including the rights to manufacture GMC and Chevrolet brand trucks. Under this proposal, Navistar would sell a competitive line of Chevrolet and GMC medium trucks and service parts through GM's proprietary dealer network in the United States and Canada. This agreement would leverage Navistar's strengths in commercial trucks and engines, and advance its strategy to build scale and reduce costs. "An agreement with GM could become an important part of our growth strategy as we leverage our core strengths in commercial trucks and engines," Daniel C. Ustian, Navistar chairman, president and chief executive officer, said. "General Motors would entrust Navistar to support two of its most important brands because of the depth of our experience and success in the medium truck business." Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. NAVISTAR INT'L: Releases Restated 2003-2005 Financial Data ---------------------------------------------------------- Navistar International Corp. released summary preliminary and unaudited results for fiscal years ended Oct. 31, 2003, 2004 and 2005, marking progress toward becoming a current filer with the U.S. Securities and Exchange Commission. Navistar's senior management also provided the company's third quarter 2007 operating metrics and reaffirmed its commitment to 2009 growth and pro forma segment margin targets. "We've reached the point in our restatement process where we can review many of our key financial indicators with investors and analysts," Daniel C. Ustian, Navistar chairman, president and chief executive officer, said. "This is a significant milestone toward becoming current in our SEC filings and toward the relisting of our stock on a major exchange. We are committed to thorough and accurate financial reporting for our shareholders and investment community and to guide our business decisions." Mr. Ustian emphasized the company's commitment to its 2009 financial targets: US$15 billion in revenue and US$1.5 billion pro forma segment margins. "Our unwavering focus is on producing great products, improving the competitiveness of our cost structure and generating profitable growth for our shareholders," he said. "Nothing in the restatement effects will hinder us from maintaining that focus and delivering on our targets." The company's pre-tax restatement adjustments total negative US$1.12 billion during the restatement period of 2003 and prior, 2004 and the first three quarters of 2005. In addition, the company recorded US$874 million in income tax adjustments, including a full valuation allowance for deferred tax assets. Included in the US$1.12 billion are warranty reserve increases of US$321 million, representing the largest change to operational results. During an investor and analyst meeting, Mr. Ustian detailed recent warranty performance improvements and committed to report the company's warranty expense progress on a quarterly basis. Navistar Strengthens Financial Control Environment Management has assessed the effectiveness of Navistar's internal controls over financial reporting and identified a number of material weaknesses. This assessment determined a need to establish stronger awareness regarding consistent application of highly ethical standards across all areas of the company, the importance of internal controls over financial reporting and strict adherence to generally accepted accounting principles. To address these issues, the company has developed a broad and aggressive plan to reinforce within its culture the importance of ethics, integrity and working in a manner consistent with the company's seven core values, including accountability and communication. "Our leadership team is committed to strengthening our control environment and reemphasizing the importance of operating within our values and guiding behaviors, which are grounded in simply doing the right thing," Mr. Ustian said. "We are actively engaged in implementing comprehensive remediation efforts to address these control deficiencies." "We are continuing to strengthen our company's financial reporting and internal control environment," Bill Caton, executive vice president and chief financial officer, said. "Navistar's reputation is one of its greatest assets and is the basis upon which we build the trust of our shareholders, our customers, our business partners and our employees. We have taken significant measures to rebuild an effective internal control environment, and we expect to continue to aggressively invest in this area in the coming years." Among actions taken to strengthen its financial processes, the company has: * hired more than 50 additional accounting employees; * strengthened its finance and accounting leadership; * realigned its finance and accounting reporting structure; and * hired a new vice president of internal audit, a new chief accounting officer and a new chief information officer. Additionally, Navistar has enhanced company-wide communication regarding the importance of accurate financial reporting and a robust control environment. In addition to management's own assessment, a thorough investigation has been conducted by an independent law firm. Initiated by an independent committee of Navistar's board of directors, the investigation echoed the findings of management regarding the internal control environment and determined that most of the errors corrected in the restatement were due to lack of proper accounting knowledge, which resulted in the misapplication of GAAP. The independent investigation also identified instances of intentional misconduct that resulted in some of the company's smaller, but in some cases material, restatement adjustments. Most of the individuals who were involved in instances of misconduct are no longer employed by the company. In other instances, the independent committee of the board has implemented appropriate remediation plans. Non-Traditional Business Drives Growth Mr. Ustian also detailed the company's third quarter 2007 operating results in an extremely weak North American truck market. The company expects industry volumes of 316,000 medium and heavy trucks and school buses sold in the U.S. and Canada for its fiscal year ending Oct. 31, 2007, a 30% overall decline from the record 454,500 units shipped in fiscal 2006. Navistar's worldwide shipments of school buses, Class 6-7 medium trucks and Class 8 heavy trucks and non-traditional vehicles for the third quarter 2007 were 23,700 units, down 39.5% from the 39,200 units delivered in the corresponding quarter one year ago. Importantly, Navistar's non-traditional new business is providing a lift to the company's revenues. Expansion market shipments in the third quarter totaled 10,000 units, a gain of 22% over year earlier shipments of 7,900 units. Since May 2007, the company has secured more than US$1.6 billion in contracts with the U.S. Armed Services for military vehicles and parts support. Last week, the U.S. Marine Corp awarded Navistar a contract for an additional 1,000 International(R) MaxxPro(TM) mine-resistant ambush-protected vehicles, bringing Navistar's total MRAP orders to 2,971 since first awarded a contract in May 2007. In just two full months of production, Navistar has delivered 188 MaxxPros to the military (77 in August and 111 in September) and is on track to achieve its production goal of 500 a month in February 2008. About Navistar International Corporation Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. NAVISTAR INTERNATIONAL: S&P Retains Negative Watch on Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. S&P placed the ratings on CreditWatch because of delays in the company's filing of audited financial statements. The CreditWatch update follows a number of developments at Navistar this week, notably: * A strike by the United Auto Workers at nine Navistar plants; * The company's announcement that it is in talks to acquire General Motors Corp.'s (GM; B/Stable/B-3) medium-duty truck business; and * The company's release of preliminary unaudited restated results for fiscal 2003-2005 and operating measures for its fiscal third quarter ended July 31, 2007. While Navistar carries out its restatement process and attempts to address its internal control material weaknesses, Standard & Poor's will continue to monitor the company's liquidity and other developments--including the commercial truck downturn, UAW strike, and potential GM acquisition--and will evaluate their impact on the ratings. "We expect that the ratings will remain on CreditWatch until Navistar is current with all SEC financial reporting requirements," said Standard & Poor's credit analyst Gregg Lemos Stein. "We expect to affirm the ratings once this occurs and if Navistar's prospects are not materially different from expectations. However, we could lower the ratings if new accounting issues come to light that hurt Navistar's liquidity or differ from our expectations, or if financial results deteriorate materially as a result of an extended downturn in the commercial truck market." RAIN CALCINING: Gets S&P's 'B' Corporate Rating, Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services on Oct. 29, 2007, assigned its 'B' corporate credit rating on India-based Rain Calcining Ltd. and its subsidiary, CII Carbon LLC. The outlook is stable. RCL has completed its takeover of Texas-based CII and made it a wholly-owned subsidiary. At the same time, Standard & Poor's assigned its issue and recovery ratings to RCL's US$395 million senior secured bank facility co-borrowed by both RCL and CII. The senior secured facility is rated 'B' (the same as the corporate credit rating), with a recovery rating of '3', indicating that lenders can expect meaningful recovery (50%-70%) in the event of a payment default. Standard & Poor's has also assigned its 'CCC+' rating to the proposed US$235 million senior subordinated notes due 2015 to be co-issued by CII and its subsidiary, CII Carbon Corp. The ratings on RCL and CII incorporate a view of the consolidated enterprise, although this does not mean that CII will be rated at the same level as the parent at all times. The strategic relationship between the parent and the subsidiary will always have a bearing on the rating of each entity, despite the somewhat distinct financing structures that have been established. This view is supported by the strategic importance of CII to RCL. Proceeds from the proposed notes will be used to refinance the outstanding amount from a bridge loan that was put into place upon the closing of the acquisition of CII for US$619 million by RCL in mid-2007. Consolidated adjusted pro forma total debt outstanding at June 30, 2007, was expected to be about US$600 million. The ratings reflect very aggressive financial leverage, limited product diversity, supplier and end-customer concentration, cyclical end markets, integration risk associated with combining RCL and CII, and modest cash flow relative to its debt levels. Nevertheless, the ratings reflect the company's relatively good market position in the calcined petroleum coke industry, established and long-term customer relationships, healthy operating margins, which are expected to improve in the near term, and a somewhat stable earnings base. RCL, part of the India-based Rain group, is a calcined petroleum coke producer with a production capacity of 0.6 million tons per annum and a power generation capacity of 49 MW. In the financial year ended March 31, 2007, RCL generated gross turnover of about INR7.0 billion (US$178 million) and net profit of INR700 million, and had total assets of INR6.6 billion. After the acquisition, RCL became the world's largest CPC producer with a total capacity of about 2.4 million mtpa. RCL will guarantee up to approximately US$150 million, or a third of the amount borrowed by CII. CII is the second-largest CPC producer with approximately 17% of the western hemisphere capacity. Similar to RCL, CII primarily sells its product to the aluminum industry, where CPC is an essential material in the aluminum smelting process, with no economic substitute available. TATA POWER: Second Qtr. Profit Up 27.24% at INR257.43 Crore ----------------------------------------------------------- Tata Power Company Ltd, India's largest private power company, yesterday disclosed its financial results for the quarter ended Sept. 30, 2007. HIGHLIGHTS-H1FY-08: -- During the half year ended Sept. 30, 2007, Tata Power reported profits of INR447.63 crores and revenues of INR2862.04 crores,an increase of 38.09% and 11.44% respectively. During the corresponding period last year, profits and revenues were INR324.17 crores and INR2568.20 crores respectively. Sales volume rose by 7.01% at 7867 MUs against 7352 MUs in H1 FY07. * The gain on sale of Long term Investments for the half year ended Sept. 2007, included in the other income is INR92.10 crores (INR85.13 crores for Q2). The gain on exchange arising out of Exchange differences for the half year is INR46.83 crores (INR8.96 crores for Q2). * The Company's Trombay Thermal Power Station recorded highest ever thermal generation of 5042 MUs and operated at a Plant Load Factor (PLF) of 86.32 %. Previous highest reported was 4802 MUs at PLF of 82.21 % in FY 03. * The Jojobera Thermal Power Station recorded higher generation at 1442 MUs, improved PLF at 76.8%, as compared to 1333 MUs and PLF of 71%. * In consultation with KPTCL, for the first time third party sale of power was executed under open access from this plant. 60 MW of power from Belgaum was brought to Mumbai through TPTCL to meet Mumbai demand. HIGHLIGHTS-Q2 FY 08: * Tata Power reported profits of INR257.43 crores and revenues of INR1350.56 crores, an increase of 27.24% and 12.57% respectively. During the corresponding period last year, profits and revenues were INR202.32 crores and INR1199.79 crores respectively. Sales volume rose by 7.5 % at 3811 MUs against 3545 MUs in Q2 FY06-07. * The revenues from license area were up by 15.91% to INR1172.00 crores as compared to INR1011.12 crores in the corresponding period last year. The unit sales in license area increased by 5.01% to 3076 MUs in Q2 FY07-08 as against 2928 MUs in the corresponding period last year. * Pursuant to the limited revision to AS 15 - Employee Benefits (Revised 2005), the Company has opted to charge the additional liability arising upon the first application of the Standard as an expense over a period of five years. The increased debit to Staff Cost and Other Expenditure on account of application of AS 15, including the amortisation of additional charge on first application is around INR24.62 crores for Q2 (INR28.35 crores for H1). GROWTH PLANS: 4000 MW, Mundra Ultra Mega Power Project: The Ultra Mega Power project at Mundra, Gujarat is progressing on schedule. During the quarter, the Company announced the signing of an EPC contract with Toshiba Corporation for the supply of five 800 MW Steam Turbine Generators for the Mundra project. Toshiba Corporation's scope of work includes - the design, manufacture, test and supply of equipment related to the Steam Turbine Generator packages for the five units of 800 MW each. They will also be associated with the supervision of the commissioning of the turbines. Site preparatory works are in progress. 1050 MW Maithon Power Project: For the 1050 MW Maithon project, a joint venture with DVC, orders for the main equipment have been placed (BTG Pkg on BHEL), other contracts are under finalization. 250 MW Trombay Unit 8: The 250 MW Unit 8 expansion project at Trombay is proceeding as per schedule. Boiler drum erection completed ahead of schedule. Next milestone includes Boiler Hydro Test, Chimney work completion, Boiler Light up, Commencement of TG erection. Wind Farm Projects: 50 MW Khandke Project will be commissioned by Nov 07. Two additional wind projects of 50.4 MW each are been developed in Jamnagar district at Gujarat and Gadag district at Karnataka. Order has been placed on Enercon for setting up these machines. 90 MW Power Project at Haldia: During the year, the Company acquired the 2 X 45 MW (under construction) power plant from Hooghly Met Coke & Power Company Limited, a 98% subsidiary of Tata Steel Limited. The project is scheduled to be commissioned this financial year. Captive Power Projects for Tata Steel: The 120 MW Power House No. 6 at Tata Steel Works, Jamshedpur and 120 MW Unit No. 5 at Jojobera are progressing well. Commenting on the Company's performance, Prasad R. Menon, Managing Director, Tata Power, said: "The quarterly performance reinforces our commitment towards maximizing operational efficiencies and setting industry benchmarks through enhanced performance in our existing business. The Company continues to take further initiatives for additional generation in Maharashtra to meet the future needs in Mumbai and possible neighbouring regions. The Company is now in the implementation phase of several new projects and this augurs well for the future growth. These new projects on completion will lead to a step change in the Company's size of operations and will reflect in increased operating results in due course." About Tata Power Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. The outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. The ratings outlook is negative. ================= I N D O N E S I A ================= BANK MANDIRI: 9-Month Net Profit Ups 165.7% to IDR3.2 Trillion -------------------------------------------------------------- PT Bank Mandiri Tbk's net profit for the first nine months of 2007 rose 165% to IDR3.2 trillion from the IDR1.19 trillion recorded a year ago, various reports say. Antara News, citing Bank Vice President Director Wayan Agus Mertayasa, relates that the bank's net interest income rose 29.5% to IDR9.7 trillion. The net profit was fueled not only by interest income but also by fee-based income, which rose 26.2% to IDR2.6 trillion, Mr. Mertayasa said. Reuters relates that the increase was helped by better net interest margins and higher fee-based income. It also came despite a relatively weak 11.9% growth in loans, compared to around 20% growth at its rivals, the report says. Reuters notes that Bank Mandiri has been increasing its lending to the corporate sector and funding construction of toll roads but has not been able to grow its lending by 20%, in line with the central bank's forecast. According to Antara, the loans channeled by Bank Mandiri in the January-September 2007 period grew by 10% to IDR111.4 trillion from a year earlier. Outstanding loans rose to IDR121.7 trillion from IDR108.8 trillion, while net interest margins improved to 5.7% from 4.6%, Reuters says. Analysts polled by Reuters Estimates expect the bank to book a net profit of IDR4.44 trillion this year, up from IDR2.42 trillion in 2006. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Oct 19, 2007, that Moody's Investors Service has raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. All ratings carry a stable outlook The bank also carries Fitch Ratings: Long- term foreign and local currency Issuer Default ratings at 'BB-', Short-term rating at 'B', National Long-term rating at AA(idn)', Individual at 'D', and Support at '4'. The Outlook for the ratings was revised to Positive from Stable. BANK INTERNASIONAL: 9-Month Profit Down 15% to IDR438.5 Billion --------------------------------------------------------------- PT Bank Internasional Indonesia Tbk's nine-month net profit decreased by 15% to IDR438.5 billion from IDR517.4 billion a year ago, Reuters reports. According to the report, the decrease in the net income was to lower net interest margins and a substantial tax charge. Bank Internasional's net interest income fell 10.5% to IDR1.86 trillion, pushing the net interest margin down to 4.98% from 5.35%. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on October 19, 2007, that Moody's Investors Service has raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and 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, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long term foreign currency IDR at 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)' (AA minus (idn)). FREEPORT-MCMORAN: Fitch Ups 7% Convertible Notes Rating to BB+ -------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating and debt ratings of Freeport-McMoRan Copper & Gold Inc. (FCX) and its subsidiary, Phelps Dodge, as follows: Freeport-McMoRan -- Issuer Default Rating to 'BB+' from 'BB'; -- US$1 billion secured bank revolver to 'BBB-' from 'BB+'; -- Secured term loan A to 'BBB-' from 'BB+'; -- 6.875% secured notes due 2014 to 'BBB-' from 'BB+'; -- Unsecured notes due 2015 and 2017 to 'BB+' from 'BB'; -- 7% convertible notes due 2011 to 'BB+' from 'BB'; and -- Convertible preferred stock to 'BB-' from 'B+'. Phelps Dodge -- 8.75% senior unsecured notes due 2011 to 'BB+' from 'BB'; -- 7.125% senior unsecured debentures due 2027 to 'BB+' from 'BB'; -- 9.50% senior unsecured notes due 2031 to 'BB+' from 'BB'; -- 6.125% senior unsecured notes due 2034 to 'BB+' from 'BB'. Fitch also affirmed this rating on Freeport-McMoRan: -- US$500 million PT Freeport Indonesia/FCX Secured Bank Revolver at 'BBB-'. The Rating Outlook remains Positive. Fitch expects total debt to be US$7.3 billion at year-end given repayment of bank debt through internally generated cash and the proceeds from the sale of its international wire and cable business. Strong metals prices should continue to drive earnings over the next 12 to 18 months resulting in leverage as measured by Total Debt/EBITDA of less than 1 times. Fitch expects free cash flow to be more than sufficient to cover dividends and capital spending over the time period. An unexpected downturn in metals prices, a substantial shortfall in production or significant additional debt financing could trigger a downgrade of the ratings and Rating Outlook. The ratings reflect Freeport-McMoRan's position as the world's second largest copper producer, its diversified operations and strong liquidity as well as the company's exposure to copper prices and its financial leverage. The outlook is for copper producers to continue to benefit from a strong pricing environment over the near term. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. GARUDA INDONESIA: Posts IDR218-Bil. Profit for First 9 Months ------------------------------------------------------------- PT Garuda Indonesia posted a turnaround for the first nine months of 2007, with net profit of IDR218 billion, compared with a net loss of IDR436 billion a year ago, Antara News reports. According to Antara, the increase in the air carrier's profit was the result of the company's programs to restructure its routes, keep down operating costs and make maximum use of planes. Garuda Indonesia President Director Emirsyah Satar told the news agency that he is optimistic the company would be able to achieve the profit target of IDR45 billion for this year. The number of passengers traveling on Garuda planes in the January-September 2007 period rose 9% to 6.1 million from 5.6% in the same period last year, The Jakarta Post notes. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sep. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. GARUDA: Suspension Due to Employee Negligence, Minister Says ------------------------------------------------------------ State Minister for State-Owned Enterprises, Sofyan Djalil, said that the sealing of PT Garuda Indonesia's six airplanes by the Custom & Excise Directorate General of the Finance Department was due to employees negligence, Tempo Interactive reports. As reported by the the Troubled Company Reporter-Asia Pacific on October 26, 2007, that Indonesian control and supervision department at the custom office prohibited six carriers of Garuda Indonesia flying due to failure in meeting custom requirements, causing the airline to cancel four flights and delay seven others. According to the TCR-AP, the six Boeing 737-400s came under inquiry as Garuda reportedly leased them under temporary import scheme whose term already expired. Garuda failed to fulfill its administrative obligation on customs over the operation of the six aircrafts. Secretary of Minister of State Owned Enterprises, Said Didu, said his institution will take firm action against Garuda's board of directors for being careless in fulfilling the customs obligation of the six Boeing airplanes, Antara relates. Mr. Didu said they will ask the board of directors to meet all the regulations, the report adds. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sep. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. ========= J A P A N ========= BOSTON SCIENTIFIC: Hires Two Officers in Clinical Sciences Group ---------------------------------------------------------------- Boston Scientific reported that Keith Dawkins, M.D., and Takahiro Uchida, M.D., will be joining the company's Clinical Sciences organization. Dr. Dawkins will serve as Senior Vice President and Associate Chief Medical Officer, sitting on both the Clinical Leadership team and the company's Operating Committee. He is an internationally known senior interventional cardiologist at Southampton University Hospital in England, and a former President of the British Cardiovascular Society. He trained in medicine at London University (Guy's Hospital), and in cardiology at the Brompton Hospital (London), John Radcliffe Hospital (Oxford), and Stanford University Medical Center. He has served as an advisor to the Department of Health in the United Kingdom, and he has worked closely with a number of regulatory agencies there, including the Medicines and Healthcare Products Regulatory Agency and the National Institute for Clinical Excellence. He will be responsible for leading the medical input process for the company's Interventional Cardiology, Peripheral Intervention and Neurovascular businesses. &nbs