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 Thursday, November 1, 2007, Vol. 10, No. 217 Headlines A U S T R A L I A CHRYSLER LLC: Names John Cataldo VP, Business Development Exec. CHRYSLER LLC: UAW Members Ratify 2007 National Labor Agreement CHRYSLER LLC: UAW's Narrow Approval Cues S&P to Retain Watch COLES GROUP: Grant Samuel Says Wesfarmers Bid is Reasonable GLOBAL CHALLENGER: Creditors Agree on Voluntary Liquidation GRIFFIN COAL: Moody's Reviews Ba2 Ratings for Possible Downgrade HUNTER VALLEY GRAVEL: To Declare Final Dividend on November 26 HUNTER VALLEY STEMMING: Will Declare Dividend on November 26 LIFE THERAPEUTICS: Sells 2 Plasma Collection Centers for US$7.5M LOSS ADJUSTERS: Liquidator Presents Wind-Up Report MASON KENNEDY: Members Receive Wind-Up Report MCDOWELL ENTERPRISES: Court Enters Wind-Up Order MEGA BRANDS: To Report Third Quarter 2007 Results on Nov. 9 NICHOLSON REALTY: Members Resolve to Liquidate Business SCO GROUP: Court OKs US$36-Mil. Sale of Unix to JGD Management SCO GROUP: Court Approves Berger Singerman as Co-Counsel SCO GROUP: Gets Court OK to Hire Pachulski Stang as Co-Counsel SOCIAL CHANGE: Creditors Agree on Voluntary Liquidation SYMBION HEALTH: Healthscope Revised Offer is 'Fair', Expert Says URS CORP: Postpones Special Stockholders Meeting to November 9 C H I N A & H O N G K O N G ASIAN AREA: Annual Meetings Set for November 22 BEST UNITED: Appoints Briscoe and Chen as Liquidators BOMBARDIER INC: Balks at SAS Decision to Ground Q400 Aircrafts BREAN DISTRIBUTORS: Inability to Pay Debts Prompts Wind-Up CHAODA MODERN: Sets Annual Meeting For Nov. 28 DREAM ASIA: Annual Meeting Set for November 6 FOXY FASHION: Members to Hold General Meeting on November 26 GAIN SMART: Requires Creditors to File Claims by Nov. 19 GLOBAL POWER: Sells Braden's Asset to Prestige for US$575,000 HISENSE KELON: June 30 Balance Sheet Upside-Down by HK$738.47MM HISENSE KELON: Unit Enters into Equity Transfer Pact w/ Kaifeng KEYS LIMITED: Members and Creditors to Meet on November 23 MASPON COMPANY: Members to Receive Wind-Up Report on November 19 PETROLEOS DE VENEZUELA: Uses Neptune's Vessel To Drill Gas Wells PETROLEOS DE VENEZUELA: Inks Orinoco Pact with Russia's TNK-BP RIDDLEWOOD COMPANY: Members' Final Meeting Set for November 19 SICHUAN CHANG HONG: Plans to Reconstruct Marketing Network VALIANT PRINTING: Placed Under Voluntary Wind-Up WATERLAND SECURITIES: Fitch Lifts Issuer Default Rating to BBB- I N D I A AGILENT TECHNOLOGIES: Prices US$600 Mln of Senior Notes Offering BAUSCH & LOMB: Moody's to Withdraw All Ba1 Ratings BAUSCH & LOMB: Completes Sale to Warburg Pincus for US$4.5 Bil. BHARTI AIRTEL: Net Income up 73% in Qtr. Ended Sept. 30, 2007 HINDUSTAN ORGANIC: Turns Around with INR47-Mil. Net Profit INDUSTRIAL DEV'T BANK: Poised to Get Back INR5K Crore in NPAs TATA MOTORS: Consolidated Profit Up 6.39% in Qtr. Ended Sept. 30 I N D O N E S I A ALCATEL-LUCENT: Eyes One Million Broadband Subscribers in 2009 BANK NIAGA: Posts 3-Month & 9-Month 2007 Results BANK RAKYAT: Net Income Rises 16.6% in 2007 9-Month Period HILTON HOTELS: Hires Christopher Nassetta as President & CEO INDOFOOD: 2007 9-Month Net Profit Rises 35% to IDR683.3 Billion INDOSAT: Postpones IDR1 Billion Bond Sale Due to Poor Market PERUSAHAAN GAS: To Sign US$367MM Gas Deal with Husky Energy SEMEN GRESIK: Posts 24% Rise in Net Profit for 2007 9-Month Pd. J A P A N DELPHI CORP: Amends Chapter 11 Reorganization Plan ELAN CORP: Posts US$87.4 Million Net Loss in 3rd Quarter FORD MOTOR: UAW Talks Intensifies After Chrysler Ratifies Pact FORD CREDIT: S&P Places 'BB' Rating Under Positive CredtiWatch GAP INC: Issues Statement on Child Labor Allegations HARMAN INT'L: Earns US$36.5 Mln in 1st Quarter Ended Sept. 30 HARMAN INT'L: Names Messrs. Einsmann & Caroll as Board Members IP MOBILE: Files for Bankruptcy with JPY900 Million Debt JAPAN AIRLINES: To Use Shizuoka Airport Starting 2009 METHANEX CORP: Earns US$23.61 Mil. in Third Qtr. Ended Sept. 30 MICRON TECHNOLOGY: Robert Bailey Joins Board of Directors MITSUBISHI MOTORS: Adjusts Consolidated Results for FY2007 SAMSONITE CORP: S&P Withdraws BB- Corporate Credit Rating TIMKEN CO: Emergency Airlift Gets Dragline Back in Production K O R E A COREBRID INC: Signs Agency Agreement with OPTIMA DAEHAN PULP: Decides Issuance of 92nd Convertible Bonds M A L A Y S I A PUTERA CAPITAL: Submits Proposal to Build Cargo Rail Line N E W Z E A L A N D ALFA HOMES: Appoints Parsons and Kenealy as Liquidators COURTHOUSE NUMBER 14: Faces Hugo Boss' Wind-Up Petition GENEVA FINANCE: Admits Trading Act Breach; Refunds Customers KS ELECTRONICS: Creditors' Proofs of Debt Due Today LEHNDORF UTILITY: Court to Hear Wind-Up Petition Today MERCHANT IT: Court to Hear Wind-Up Petition Today S.P. PUBLISHING: Court Appoints Levin and Vance as Liquidators TYLOS ONE: Taps Levin and Vance as Liquidators WHEELS ON WEST: Court to Hear Wind-Up Petition on February 8 WHITE ROSE: Fixes November 9 as Last Day to File Claims WILSON FAMILY: Faces Accident Compensation's Wind-Up Petition P H I L I P P I N E S BANGKO SENTRAL: Expects 2.5%-3% Inflation Rate for October BANGKO SENTRAL: Refuses to Help in Paying Old Central Bank Debts CHIQUITA BRANDS: Says Restructuring May Save Up to US$80MM a Yr. UNITED COCONUT: Foreign Remittance Receipts Rise 14% in Sept. WENDY'S INT'L: Earns US$29.9 Mil. in 3rd Quarter Ended Sept. 30 * Economy May Register 7% Expansion in Third Quarter 2007 * Tax System Restructure May Cue Losses of PHP106BB, DoF Says S I N G A P O R E HANWAY INVESTMENT: Accepting Proofs of Debt Until November 15 HOCEN INTERNATIONAL: Court Enters Wind-Up Order MAJU LINES: Members to Hold Final Meeting on November 28 T H A I L A N D BANK OF AYUDHYA: Phanporn Kongyingyong Quits Post as Director - - - - - - - - ================= A U S T R A L I A ================= CHRYSLER LLC: Names John Cataldo VP, Business Development Exec. --------------------------------------------------------------- Chrysler LLC has named L. John Cataldo Vice President - Business Development and Mergers & Acquisitions. In this newly created position, Mr. Cataldo will be responsible for leading all major business development activities globally, including alliances, partnerships, joint ventures and key multi-region, product- related programs. Mr. Cataldo joins Chrysler after 13 years with General Electric Company as a GE Energy Business General Manager - Strategy, Marketing and Commercial Operations and formerly, Leader - Business Development, GE Energy Services and Manager - GE Corporate Business Development. Mr. Cataldo is a former officer and pilot with the U.S. Air Force. He will be based in Auburn Hills, Michigan, and report to Vice Chairman and President Tom LaSorda. The appointment takes effect immediately. 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: UAW Members Ratify 2007 National Labor Agreement -------------------------------------------------------------- Chrysler LLC confirmed, on Saturday, Oct. 27, 2007, a new Chrysler LLC-United Auto Workers union 2007 national labor agreement, in response to UAW's ratification results. UAW members voted to ratify the new collective bargaining agreement with Chrysler, with 56% votes in favor of the four- year pact among production workers, and 51% in favor among skilled trades workers. About 94% of office and clerical workers voted in favor of the agreement, and 79% of UAW- represented Chrysler engineering workers approved the contract. According to various reports citing sources familiar with the matter, Local 1268, the last plant in Beldivere, Illinois to vote on the contract, turned down the agreement by 55%. However, the contract's headroom of victory before the Belvidere vote was enough for it to be approved. As reported in the Troubled Company Reporter on Oct. 26, 2007 citing the Wall Street Journal, results from four major Chrysler plants in Michigan came in favor of the contract, tilting the ratification scale towards the approval of the pact. Except for a union local in Beldivere, Illinois, about 55% of the total vote count from 26 of 27 union locals has accepted the tentative agreement. As previously reported, Chrysler and the UAW reached a tentative agreement on Oct. 10, after three months of bargaining and following a six-hour nationwide UAW strike against the company. "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," Tom LaSorda, Vice Chairman and President, Chrysler LLC, said. "Our members had to face some tough choices, and we had a solid, democratic debate about this contract," UAW President Ron Gettelfinger said. "Now we’re going to come together as a union -- and now it’s on the company to move ahead, increase their market share and continue to build great cars and trucks here in the U.S." "There’s no question this was a difficult set of negotiations during difficult times for the U.S. auto industry," UAW Vice President General Holiefield, who heads the union’s Chrysler Department, said. "But with the support of our membership and local leadership, we have an agreement that secures jobs and wages and protects health care and pension benefits." The new contract covers approximately 45,000 active workers at Chrysler and more than 55,000 Chrysler retirees and 23,000 surviving spouses. It will expire on Sept. 14, 2011. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * 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: UAW's Narrow Approval Cues S&P to Retain Watch ------------------------------------------------------------ Standard & Poor's Ratings Services said its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC remain on CreditWatch with positive implications, following the United Auto Workers' narrow approval of the new Chrysler-UAW labor contract. The ratings were placed on CreditWatch on Sept. 26, 2007, based on S&P's belief that Chrysler would reach a deal similar to the one General Motors Corp. reached with the UAW on that date. Chrysler and the UAW subsequently reached their own four-year agreement as expected, and the UAW has now approved that contract. "We view the new contract as favorable to Chrysler compared with past agreements," said Standard & Poor's credit analyst Robert Schulz, "and we believe the contract will support the company's turnaround plan in North America." The new contract is reported to contain many of the same features as the GM contract, including a new VEBA trust designed to take responsibility for postretirement health care expenses and a lower-tier wage structure for new hires. The main focus of S&P's analysis in resolving the CreditWatch listing will be the effect of the new contract on Chrysler's liquidity in the near term, as well as prospects for Chrysler's cash flow and liquidity during the next two years. S&P will view the new contract in light of Chrysler's multiyear plan to return its North American operations to profitability, and S&P will weigh the costs and benefits of the new contract, given the company's workforce and retiree demographics. Over the next two years, all three Michigan-based automakers will face a range of challenges unrelated to their new contracts, including slowing U.S. light-vehicle sales and shifts away from what had been their most profitable vehicle segments in recent years. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. COLES GROUP: Grant Samuel Says Wesfarmers Bid is Reasonable ----------------------------------------------------------- Coles Group shareholders have received confirmation that Wesfarmers Ltd.'s offer may now fall within a fair value range after independent expert Grant Samuel and Associates made a review of Wesfarmers' offer following the recent rise in its share price, the Australian Associated Press reports. AAP states that Grant Samuel, in its first report more than one month ago, said the Wesfarmers bid was in the best interests of Coles shareholders, even though it fell well below its valuation of the retail giant. However, in its revised "letter of advise", the independent expert said it was now reasonable to adopt a Wesfarmers share price in the range of AU$42.50 to AU$44.50, relates AAP. The assumption, according to AAP, is based on Wesfarmers' volume weighted average price of AU$43.14 in the 10 trading days up to October 29. On that basis, Grant Samuel calculated Wesfarmers' offer, now in the range of AU$16.03 to AU$16.56 for each Coles share. AAP notes that the revised valuation now puts the Perth-based conglomerate's offer within Grant Samuel's original valuation of Coles of AU$16.21 to AU$18.23 per share, which remains unchanged. AAP quotes Grant Samuel as saying, "The increase in the assessed value of the consideration reinforces Grant Samuel's opinion that the Wesfarmers proposal is in the best interests of Coles Group shareholders. It should be noted that the value of the consideration will change if the Wesfarmers share price changes." In line with this, Grant Samuel puts the Wesfarmers bid at between AU$19.22 billion and AU$19.85 billion, states AAP. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. GLOBAL CHALLENGER: Creditors Agree on Voluntary Liquidation ----------------------------------------------------------- On September 28, 2007, the creditors of Global Challenger Pty Limited had a meeting and agreed to voluntarily liquidate the company's business. David Anthony Hurst and Andrew Hugh Jenner Wily were named as liquidators. The Liquidators can be reached at: David Anthony Hurst Andrew Hugh Jenner Wily c/o Armstrong Wily Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia About Global Challenger Global Challenger Pty Limited operates miscellaneous apparel and accessory stores. The company is located at Mascot, in New South Wales, Australia. GRIFFIN COAL: Moody's Reviews Ba2 Ratings for Possible Downgrade ---------------------------------------------------------------- Moody's Investors Service placed the Ba2 corporate family and Ba2 senior unsecured ratings of The Griffin Coal Mining Company Pty Ltd under review for possible downgrade. "The review for possible downgrade reflects the weakness evident in current year production and earnings -- relative to initial forecast -- following the company's announcement of full-year results for FY07," says Ian Lewis, a Moody's VP/Senior Analyst and lead analyst for the company. "A significant fall in coal delivery against forecast - though Moody's notes an absolute increase year-on-year - and increase in operating costs have meant that earnings have fallen meaningfully thereby translating into considerable downside rating pressure, with the ratio of Adjusted Debt/EBITDA exceeding our guidance level for the rating" adds Lewis. "Furthermore, while completion of the company's Bluewaters 1 and 2 projects is reported to be on target to-date, a delay in the carbonization plant has had an effect on earnings. The review will focus on: 1) status of projects being developed, particularly the carbonization project, 2) Griffin's ability to improve production to previously expected levels, and 3) Moody's assessment of earnings and cash flow in the near- to-medium term in the context of the currently robust cash holdings. Moody's had originally on February 8 changed Griffin's ratings outlook to negative from stable following its decision to upsize a US$400 million bond issue by US$75 million. Moody's said at the time that the additional debt reduced the company's financial flexibility within the rating. The Griffin Coal Mining Company, headquartered in Perth, Australia is involved in coal extraction. It is a wholly owned subsidiary of Devereaux Holdings Pty Ltd, a private company owned in turn by the Stowe family. HUNTER VALLEY GRAVEL: To Declare Final Dividend on November 26 -------------------------------------------------------------- Hunter Valley Gravel Supplies Pty Limited, which is in liquidation, will declare its final dividend on November 26, 2007. Creditors who were not able to file their proofs of debt by the October 29 due date, will be excluded from the company's dividend distribution. The company's liquidator is: Kenneth Whittingham c/o BDO Kendalls (New South Wales) GPO Box 2551 Sydney, New South Wales 2001 Australia Telephone:(02) 9286 5555 About Hunter Valley Hunter Valley Gravel Supplies Pty Ltd is a distributor of brick, stone and related construction materials. The company is located at Denman, in New South Wales, Australia. HUNTER VALLEY STEMMING: Will Declare Dividend on November 26 ------------------------------------------------------------ Hunter Valley Stemming Supplies Pty Limited will declare its dividend on November 26, 2007. Creditors whose proofs of debt were not in by the Oct. 29 due date, will be excluded from the company's dividend distribution. The company's liquidator is: Kenneth Whittingham c/o BDO Kendalls (New South Wales) GPO Box 2551 Sydney, New South Wales 2001 Australia Telephone:(02) 9286 5555 About Hunter Valley Hunter Valley Stemming Supplies Pty Ltd provides business services. The company is located at Denman, in New South Wales, Australia. LIFE THERAPEUTICS: Sells 2 Plasma Collection Centers for US$7.5M ---------------------------------------------------------------- Life Therapeutics (ASX:LFE) has completed the sale of two of its 14 plasma collection centers for gross proceeds of US$7.5 million, which along with a four-month earn-out could net out to US$10 million. This sale is part of the Board's overall strategy to divest all 15 centers including two of the centers which were considered part of the Diagnostics segment. Both the Pensacola, Florida and Mobile, Alabama donor centers were to Haemopharm, Inc., a wholly owned subsidiary of Kedrion S.p.A. Life Therapeutics will manage the centers under a services agreement to ensure a smooth transition. Under the terms of this agreement, Life Therapeutics will bill Haemopharm for the cost of these services. In the event that Life Therapeutics and Kedrion complete the larger transaction announced to the market, the jopint venture entity created for this purpose will have the right to purchase the said two centers for the same consideration. Dr. Jim Brown, chairman of Life Therapeutics, said, "This sale is the beginning of the divestiture of our centers announced earlier this year. This sale does not affect the same of the other Life Sera assets. The board is currently reviewing three bids for these assets as previously announced." "This acquisition," said Dr. Paolo Marcucci, president and CEO of Kedrion, "is part of Kedrion's strategy of further vertical integration. Kedrion has now coverage of 50% of the requirement for the source plasma, and 100% of the hyperimmune plasma. It is also the first step towards completing the larger transaction with LFE announced to the market." Mr. Marcucci also advised that the future transaction with LFE, if approved by the Board and Shareholders, will give Life Therapeutics' shareholders a substantial value creation through the stake in Kedrion. Kedrion is projecting for 2007 an EBITDA 15% ahead of budget, and is planning to make the filing for IPO within the mid 2008. The company advised that the sale of the two centers will not impact the pending sale of the remaining plasma collection business and is part of the complete divestiture announced on Sept. 18, 2007. The Board advises that it has three offers under review and each is being given due consideration in the bets interests of shareholders. The board is continuing its discussions with the various parties, and will announce its decision once the process is completed. About Life Therapeutics Headquartered in New South Wales, Australia, Life Therapeutics Limited -- http://www.life-therapeutics.com/-- is engaged in the collection, management and distribution of plasma-based products, and development, manufacture and sale of electrophoresis, hematology and Gradiflow products. It operates in five segments: Life Sera, which collects specialty plasma, including Anti D and Hepatitis B; Life Diagnostics, which develops, manufactures and distributes diagnostic products into the diagnostic marketplace; Life Gels, which develops, manufactures and distributes pre-cast electrophoresis gels into the laboratory market; Life Bioprocess, which markets the Gradiflow technology in both the commercial and research markets, and Life Shared Services, which conducts corporate functions of the organization. At June 30, 2006, the Life Gels and Life Bioprocess division were classed as discontinued operations. In November 2006, the Company completed the spin out of its Australian assets by transferring these assets to a wholly owned subsidiary, NuSep Ltd. The Troubled Company Reporter-Asia Reporter, in its "Large Companies with Insolvent Balance Sheets" Column on Sept. 21, 2007, listed Life Therapeutics Limited as having total assets of US$59 million and total shareholders' equity deficit of US$38,000. The company, in its preliminary annual financial report for the year ended June 30, 2007, reported a consolidated net loss of US$15,733,000, a decrease from the US$31,459,000 net loss in the year ended June 30, 2006. LOSS ADJUSTERS: Liquidator Presents Wind-Up Report -------------------------------------------------- The members of Loss Adjusters Management Pty Ltd met on Oct. 22, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Warren Emerson Level 8, 15 Blue Street North Sydney Australia About Loss Adjusters Loss Adjusters Management Pty Ltd provides services for insurance agents and brokers. The company is located at St Leonards, New South Wales, Australia. MASON KENNEDY: Members Receive Wind-Up Report --------------------------------------------- The members of Mason Kennedy & Associates Pty Ltd met on Oct. 19, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kevin Munro Munro Lawyers Level 12, 111 Elizabeth Street Sydney Australia About Mason Kennedy Mason Kennedy & Associates Pty Ltd, which is also trading as Waldron Smith Management, provides management consulting services. MCDOWELL ENTERPRISES: Court Enters Wind-Up Order ------------------------------------------------ On July 23, 2007, the Supreme Court of New South Wales entered an order directing the wind up of Mcdowell Enterprises (NSW) Pty Limited's operations. Bruce Gleeson was appointed as liquidator. The Liquidator can be reached at: Bruce Gleeson c/o Jones Partners Chartered Accountants Australia Telephone:(02) 9251 5222 About Mcdowell Enterprises Located at Fairfield, in New South Wales, Australia, Mcdowell Enterprises (NSW) Pty Ltd is an investor relation company. MEGA BRANDS: To Report Third Quarter 2007 Results on Nov. 9 ----------------------------------------------------------- MEGA Brands Inc. will report its financial results for the third quarter ended Sept. 30, 2007, before markets open on Nov. 9, 2007. An analyst conference call will be held at 9:00 a.m. on Nov. 9, 2007, to discuss the results. Participants may listen to the call by dialing 1 (800) 732-9307. MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a distributor of construction toys, games & puzzles, arts & crafts and stationery. The company is headquartered in Montreal, Canada and has offices in Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 1, 2007, Moody's Investors Service downgraded the corporate family rating of MEGA Brands, Inc. to B1 from Ba3 and affirmed the speculative grade liquidity rating of SGL-3. The outlook is stable. This concludes the review for downgrade initiated on Apr. 19, 2007. These ratings were downgraded: MEGA Brands, Inc. -- Corporate Family Rating to B1 from Ba3; -- Probability of Default to B2 from B1; -- US$120 million 5-year revolving credit facility maturing July 2010 to Ba3 (LGD 2, 26%) from Ba2 (LGD 2, 24%); -- US$40 million, 5-year term loan A facility to Ba3 (LGD-2, 26%) from Ba2 (LGD 2, 24%) MEGA Brands Finco -- US$260 million 7-year term loan B facility to Ba3 (LGD 2, 26%) from Ba2 (LGD 2, 24%) NICHOLSON REALTY: Members Resolve to Liquidate Business ------------------------------------------------------- At an extraordinary general meeting held on September 25, 2007, the members of Nicholson Realty Pty Limited resolved to voluntarily liquidate the company's business. Brent Trevor Alex Kijurina of Smith Hancock Chartered Accountants was appointed as liquidator. The Liquidator can be reached at: Brent Trevor Alex Kijurina Smith Hancock Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia About Nicholson Realty Nicholson Realty Pty Limited, which is also trading as Raine And Horne Katoomba, deals with real estate agents and managers. The company is located at Katoomba, in New South Wales, Australia. SCO GROUP: Court OKs US$36-Mil. Sale of Unix to JGD Management -------------------------------------------------------------- The SCO Group Inc. and its debtor-affiliates obtained approval from the U.S. Bankruptcy Court for the District of Delaware to publicly sell their Unix business to JGD Management Corp., dba York Capital Management or to any successful bidder. The Debtors and JGD have sign an asset purchase agreement which provided that apart from the Unix business, the Debtor will sell to JGD for a total consideration price of US$36 million certain of their related claims in litigation, assumed liabilities and the Debtors' cross-license and related agreements pertaining to the Hipcheck product line and Me Inc. The agreement also provide financing to the Debtor, under Sections 363 and 364 of the U.S. Bankruptcy Code. JGD, pursuant to the agreement, will pay the Debtor the total price in cash and non-cash components consisting of US$10 million cash payment, up to US$10 million in the form of a litigation credit facility, up to US$10 million in the form of a 20% interest in JGD's collection of favorable judgment from Linux litigation, and up to US$6 million in the form of a revenue share agreement. In addition, under the agreement, JGD will post and earnest money deposit in the amount of 5% of the purchase price. The Debtors and JGD have agreed to a US$50,000 reimbursement of JGD's purchase fees in connection with the consummation of the deal. If JGD is designated as a stalking horse bidder and is unsuccessful in the bid, the Debtor will pay JGD a US$780,000 break-up fee, plus US$300,000 alternative transaction expense reimbursement. The Debtors' revenues have been declining over the past several years and they do not have enough liquidity to sustain their operations. Hence, the Debtors must move quickly to realize the best price for their assets. The Court has scheduled a hearing on Nov. 6, 2007, at 11:00 a.m. for considering approval of the asset purchase agreement and the bidding procedures. The deadline for filing objections is Nov. 1, at 4:00 p.m. The Debtors have asked the Court for approval of the transactions contemplated by the asset purchase agreement no later than Dec. 7, 2007. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Paul Steven Singerman, Esq., and Arthur Spector, Esq., at Berger Singerman P.A., represent the Debtors. James O'Neill Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, is the Debtors' local counsel. Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. An Official Committee of Unsecured Creditors has yet to be appointed in these cases by the Office of the United States Trustee. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SCO GROUP: Court Approves Berger Singerman as Co-Counsel -------------------------------------------------------- The SCO Group Inc. and SCO Operations Inc. obtained permission from the United States Bankruptcy Court for the District of Delaware to employ Berger Singerman P.A. as their co-counsel, nunc pro tunc to Sept 14, 2007. Berger Singerman will: a) advise the Debtors with respect to its powers and duties as debtors-in-possession and the continued management of their business operations; b) advise the Debtors with respect to their responsibilities in complying with the United States Trustee's Operating Guidelines and Reporting requirements and with the rules of the Court; c) prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the cases; d) protect the interests of the Debtors in all matters pending before the Court; and e) represent the Debtors in negotiations with their creditors and in the preparation of a plan. The firm's professionals will bill at these rates: Professional Hourly Rate ------------ ----------- Paul Steven Singerman, Esq. $475 Arthur J. Spector, Esq. $450 Associate Attorneys $250 - $370 Legal Assistants/Paralegals $75 - $160 The firm disclosed that on Sept. 4, 2007, and Sept. 12, 2007, Berger Singerman received retainers of $50,000 and $375,000, respectively, in connection with Debtors' chapter 11 cases. Arthur J. Spector, Esq., a shareholder of the firm, assures the Court that the firm does not hold any interest adverse to the Debtors and their estate, and that the firm is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. The firm can be reached at: Paul Steven Singerman, Esq. Arthur J. Spector, Esq. Berger Singerman P.A. 350 E. Las Olas Boulevard, Suite 1000 Fort Lauderdale, FL 33301 Tel.: (954) 713-7511 http://www.bergersingerman.com/ Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SCO GROUP: Gets Court OK to Hire Pachulski Stang as Co-Counsel -------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized The SCO Group Inc. and SCO Operations Inc. to employ Pachulski Stang Ziehl & Jones LLP as their bankruptcy co- counsel, nunc pro tunc to Sept 14, 2007. Pachulski Stang will: a) provide legal advise with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their business and management of their property; b) prepare on behalf of the Debtors necessary applications, motions, answers, orders, reports, and other legal papers; c) appear in Court on behalf of the Debtors and in order to protect the interests of the Debtors before the Court; d) prepare and pursue confirmation of a plan and approval of a disclosure statement; and e) perform all other legal services for the Debtors that may be necessary and proper in these proceedings. The firm's professionals and their billing rates per hour are: Professional Rate ------------ ---- Laura Davis Jones, Esq. $750 James E. O'Neill, Esq. $475 Rachel L. Werkheiser, Esq. $375 Lynzy Oberholzer $175 Laura Davis Jones, Esq. an attorney of the firm, assures the Court that the firm does not hold any interest adverse to the Debtors and their estate, and that the firm is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. The firm can be reached at: Laura Davis Jones, Esq. Pachulski Stang Ziehl & Jones LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 Tel.: (302) 652-4100 Fax.: (302) 652-4400 http://www.pszjlaw.com/ Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SOCIAL CHANGE: Creditors Agree on Voluntary Liquidation ------------------------------------------------------- On September 28, 2007, the members of Social Change Online Pty Limited had a meeting and agreed to voluntarily liquidate the company's business. David Anthony Hurst and Andrew Hugh Jenner Wily were appointed as liquidators. The Liquidators can be reached at: David Anthony Hurst Andrew Hugh Jenner Wily Armstrong Wily Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia About Social Change Social Change Online Pty Limited provides custom computer programming services. The company is located at Annandale, in New South Wales, Australia. SYMBION HEALTH: Healthscope Revised Offer is 'Fair', Expert Says ---------------------------------------------------------------- Independent expert Grant Samuel and Associates has given the green light to Healthscope Ltd.'s proposed merger with Symbion Health Ltd., as the deadline for rival bidder Primary Health Care's response nears, Nabila Ahmed writes for The Age. According to Mr. Ahmed, Grant Samuel said that Healthscope's AU$2.65-billion offer to buy Symbion's diagnostics assets is "fair and reasonable" for Healthscope shareholders. The Age further notes that the investment bank said that while Healthscope was paying "full price" for the diagnostic assets, "the value to Healthscope of the diagnostics business exceeds the effective cost of its acquisition." Primary, Symbion's largest shareholder, said it will not be supporting the revised proposal, The Age notes. Under the new proposal, announced this month, Healthscope would buy Symbion's pathology, diagnostic imaging and medical centers businesses, while private equity firms Ironbridge Capital and Archer Capital would take Symbion's consumer and pharmacy services businesses. About Symbion Health Melbourne-based Symbion Health Limited -- http://www.symbionhealth.com/--formerly Mayne Group Limited, provides health products and services. The principal activities of Symbion Health, during the fiscal year ended June 30, 2006, consisted of diagnostic and wellness products and services through its Pathology, Imaging, Medical Centers, Pharmacy Services and Consumer divisions. Pathology owns and operates private pathology practices, providing pathology services to healthcare professionals and their patients. Symbion Medical Centers provides local communities with healthcare and family medicine. Imaging provides imaging services to patients on the eastern seaboard of Australia. Pharmacy Services supplies a line of pharmaceuticals and associated products to pharmacies. Consumer manufactures and markets nutraceuticals (vitamins and mineral supplements). On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). URS CORP: Postpones Special Stockholders Meeting to November 9 -------------------------------------------------------------- URS Corporation has postponed its previously scheduled special meeting of stockholders to approve the issuance of shares in connection with the proposed acquisition by URS of Washington Group International, Inc. to Nov. 9, 2007. URS is postponing its meeting in light of the decision by Washington Group to postpone its special meeting of stockholders. The special meeting of URS stockholders will be held at 10:00 a.m. (Pacific Daylight Time) on November 9 at the offices of Cooley Godward Kronish LLP, located at 101 California Street, 5th Floor in San Francisco, California 94111-5800. Stockholders of record as of the close of business on Sept. 21, 2007, will be entitled to vote at the meeting. Headquartered in San Francisco, California, URS Corporation (NYSE:URS)-- http://www.urscorp.com/-- is an engineering design services firm and a United States federal government contractor for systems engineering and technical assistance and operations and maintenance services. The company's business focuses primarily on providing fee-based professional and technical services in the engineering and construction services and defense markets, although the company performs some limited construction work. It operates through two divisions: the URS Division and the EG&G Division. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services assigned its 'BB+' bank loan rating and '2' recovery rating to URS Corp.'s proposed $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 $2.1 million senior secured credit facility of URS Corporation, which will be used to finance its pending acquisition of Washington Group International Inc. ================================ C H I N A & H O N G K O N G ================================ ASIAN AREA: Annual Meetings Set for November 22 ----------------------------------------------- Asian Area Reinsurance Company Limited will hold an annual meeting for its members and creditors on November 22, 2007, at 9:00 a.m. and 11:30 a.m., respectively, at the 20th Floor of Prince's Building, 10 Chater Road, in Central, Hong Kong. At the meeting, Jan G W Blaauw, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. BEST UNITED: Appoints Briscoe and Chen as Liquidators ----------------------------------------------------- On October 11, 2007, a special resolution was passed appointing Stephen Briscoe and Chen, Yung Ngai Kenneth as the company's liquidators. The Liquidators can be reached at: Stephen Briscoe Chen, Yung Ngai Kenneth Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong BOMBARDIER INC: Balks at SAS Decision to Ground Q400 Aircrafts -------------------------------------------------------------- Bombardier Inc. is disappointed with the Scandinavian Airlines System AB, aka The SAS Group's, decision to permanently discontinue flight operations with the Bombardier Q400 aircraft given that the landing incident is still under investigation by Danish authorities. Following the recent period of events involving aircraft of the Dash 8 Q400 type, SAS's management, following an unscheduled meeting of the Board of Directors held on Oct. 28, 2007, has decided to immediately discontinue the use of this type of aircraft. "Confidence in the Q400 has diminished considerably and our customers are becoming increasingly doubtful about flying in this type of aircraft," Mats Jansson, President and Chief Executive Officer of SAS, said. "Accordingly, with the Board of Directors' approval, I have decided to immediately remove Dash 8 Q400 aircraft from service." While SAS chose to ground its Q400 turboprop fleet following an incident with the main landing gear on Oct. 27, 2007, Bombardier’s assessment of this situation, in consultation with Transport Canada, did not identify a systemic landing gear issue. Based on this, the company advised all Q400 aircraft operators that they should continue with normal Q400 aircraft flight operations. Further, Bombardier and the landing gear manufacturer, Goodrich, have completed a full review of the Q400 turboprop landing gear system and results have confirmed its safe design and operational integrity. Bombardier stands behind the Q400 aircraft. Since entering revenue service in February 2000, the Q400 turboprop has proven itself to be a safe and reliable aircraft with over 150 Q400 aircraft in operation among 22 operators around the world. To date, the fleet of Q400 aircraft has logged over one million flying hours and 1.2 million take-off and landing cycles. SAS Group is in dialog with Bombardier regarding possible solutions regarding the current situation for the Q400 fleet including compensation. Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B) manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. Headquartered in Canada, the company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, Australia, and China. * * * Standard & Poor's Ratings Services revised the outlook on Bombardier Inc. to stable from negative on May 2007. At the same time, the ratings, including the 'BB' long-term corporate credit rating on Bombardier, were affirmed. BREAN DISTRIBUTORS: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------------- At an extraordinary general meeting held on October 5, 2007, the members of Brean Distributors Limited agreed to voluntarily wind up the company's operations due to its inability to pay its debts. Creditors must file their proofs of debt by November 2, 2007, to be included in the company's dividend distribution. The company's liquidator is: Stephen Briscoe Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong CHAODA MODERN: Sets Annual Meeting For Nov. 28 ---------------------------------------------- Chaoda Modern Agriculture (Holdings) Ltd. will be holding its annual general meeting on Nov. 28, 2007. The agenda includes: * the approval of audited financial statements and the reports of directors and auditors for the year ended June 30, 2007; * the approval of the final dividend for the year ended June 30, 2007; * the re-election of retiring directors and to authorize the board of directors to fix the directors' remuneration; * the re-appointment of Grant Thornton as auditors; Headquartered in Wanchai, Hong Kong, Chaoda Modern Agriculture (Holdings) Ltd. -- http://www.chaoda.com/-- through its subsidiaries, is engaged in growing, distribution and sale of crops, breeding and sales of livestock in the People's Republic of China. It is also engaged in investment holding and agency services. The Company's directly held subsidiaries include Timor Enterprise Limited, Insight Decision Limited, Huge Market Investments Limited, Worthy Year Investments Limited and Great Challenge Developments Limited. Some of the Company's indirectly held subsidiaries include Fuzhou Chaoda Modern Agriculture Development Company Limited, Fujian Chaoda Livestock Company Limited and Chaoda Vegetable & Fruits Limited. On June 26, 2007, Moody's Investors Service changed the outlook for Chaoda Modern Agriculture (Holdings) Ltd's Ba2 corporate family rating and its foreign currency debt rating to negative from stable. This is in response to the company's announcement regarding a change of auditors. The TCR-AP also reported that on July 26, 2006, Standard & Poor's Ratings Services said that its rating on Chaoda Modern Agriculture (Holdings) Ltd (BB/Stable/--) would not be affected by a company announcement that it is planning to invest in Hong Kong-listed Innomaxx Biotechnology Group Ltd. DREAM ASIA: Annual Meeting Set for November 6 --------------------------------------------- The members and creditors of Dream Asia Limited will hold their annual meeting on November 6, 2007, at 3:00 p.m. and 3:30 p.m., respectively at Room 1601-02, 16th Floor of One Hysan Avenue, Causeaway Bay, Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FOXY FASHION: Members to Hold General Meeting on November 26 ------------------------------------------------------------ The members of Foxy Fashion Enterprises Limited will have their final general meeting on November 26, 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: Ip Chiu Yin Leighton Centre, Room 1518 77 Leighton Road Causeway Bay Hong Kong GAIN SMART: Requires Creditors to File Claims by Nov. 19 -------------------------------------------------------- The creditors of Gain Smart Industrial Limited are required to file their proofs of debt by November 19, 2007, to be included in the company's dividend distribution. The company went into liquidation on October 18, 2007. The company's liquidator is: Pradines Olivier Camille Simon Fee Tat Commercial Centre, 21st Floor No. 613 Nathan Road, Kowloon Hong Kong GLOBAL POWER: Sells Braden's Asset to Prestige for US$575,000 ------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized Global Power Equipment Group Inc. and its debtor- affiliates to sell certain asset to Prestige Equipment Corporation for US$575,000, under an asset purchase agreement dated Oct. 16, 2007. Under the agreement, the Debtors will sell the boring mill owned by Braden Manufacturing LLC, its auxiliary power equipment segment in Tulsa, Oklahoma. The will also provide an insurance policy of at least US$700,000 to Prestige Equipment for any damage to the Debtors' property during the removal of the equipment. In addition, Prestige Equipment will pay all existing brokerage claims to Tom Lowkes of Fabricating & Production Machinery in Spencer, Massachusetts. At the closing date, Prestige Equipment will immediately pay the Debtors the entire purchase price by wire transfer. Headquartered in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham, Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M. Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq., at The Bayard Firm, represent the Debtors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. At Oct. 31, 2006, Global Power's balance sheet showed total assets of US$177,758,000 and total debts of US$99,017,000 Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. The Official Committee of Equity Security Holders is represented by Howard L. Siegel, Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels LLP. HISENSE KELON: June 30 Balance Sheet Upside-Down by HK$738.47MM --------------------------------------------------------------- Hisense Kelon Electrical Holdings. Co., Ltd., recorded a 4034.91% increase in net losses for the half-year period ended June 30, 2007, to HK$40.34 billion from the HK$28.16-million net loss recorded in the previous corresponding period. The company recorded a 4.77% increase in sales to HK$3.63 billion and a 299.67% increase in other operating income to HK$205.75 million for the half-year to June 30, 2007, making up a total income of HK$3.84 billion. Cost of goods sold and other expenses, however, increased by 46.21% to HK$4.07 billion, raking in an operating loss of HK$1.20 billion for the period in review. As of June 30, 2007, the company had total assets amounting to HK$5.30 billion, and total liabilities of HK$6.04 billion, resulting in a capital deficiency of HK$738.47 million. The company, however, had announced that it expects net profit of fiscal year 2007 to increase by over 300%, compared to that of fiscal year 2006 (CNY24.12 million), Reuters Key Developments reports. Headquartered in Foshan, Guangdong Province, China, and formerly Guangdong Kelon Electrical Holdings Co., Ltd., Hisense Kelon Electrical Hldngs Co., Ltd. -- http://en.kelon.com:8080/indexhome.jsp-- is principally engaged in the manufacture and distribution of refrigerators, freezers, air conditioners and other small household electrical appliances. HISENSE KELON: Unit Enters into Equity Transfer Pact w/ Kaifeng --------------------------------------------------------------- Hisense Kelon Electrical Holdings Co. Ltd. has announced that a wholly owned subsidiary, Jiangxi Kelon Industrial Development Co., Ltd., entered into an equity transfer agreement with Henan Province Kaifeng Economic Technology Development (Group) Company, Reuters Key Developments reports. The equity transfer relates to the acquisition of 70% equity interest in Kaifeng Kelon Air-Conditioner Co. Ltd. by Jiangxi Kelon by Henan Development. Kaifeng Kelon will cease to be a subsidiary of Hisense Kelon, Reuters relates. Hisense Kelon also announced that as part of the debt settlement agreement, it has written off CNY37.36 million of Kaifeng Kelon's debt, while Kaifeng Kelon also wrote-off CNY43.64 million worth of receivables from Hisense Kelon. Kaifeng Kelon is principally engaged in production, sale and research and development of air conditioning products. Headquartered in Foshan, Guangdong Province, China, and formerly Guangdong Kelon Electrical Holdings Co., Ltd., Hisense Kelon Electrical Hldngs Co., Ltd. -- http://en.kelon.com:8080/indexhome.jsp-- is principally engaged in the manufacture and distribution of refrigerators, freezers, air conditioners and other small household electrical appliances. As of June 30, 2007, the company had total assets of HK$5.30 billion and total liabilities of HK$6.04 billion, resulting in a capital deficiency of HK$738.47 million. KEYS LIMITED: Members and Creditors to Meet on November 23 ---------------------------------------------------------- Keys Limited will hold a final meeting for its members and creditors on November 23, 2007, at 12:00 noon and 12:30 p.m., at the 8th Floor of Club Lusitano, 16 Ice House Street, in Central, Hong Kong. At the meeting, Victor Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MASPON COMPANY: Members to Receive Wind-Up Report on November 19 ---------------------------------------------------------------- A final meeting will be held for the members of Maspon Company Limited on November 19, 2007, at 9:00 a.m., on the 23rd Floor of Wheelock House, 20 Pedder Street, Central, Hong Kong. At the meeting, Kevin Chung Ying Hui, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PETROLEOS DE VENEZUELA: Uses Neptune's Vessel To Drill Gas Wells ---------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA said in a statement that it will use Singapore-based Neptune Marine and Drilling's Discoverer marine rig vessel to drill 21 offshore natural gas wells in the next four years. Business News Americas relates that Petroleos de Venezuela will conduct the drilling for its Mariscal Sucre offshore natural gas program. According to BNamericas, Petroleos de Venezuela will invest almost US$785 million in the four-year contract. About US$234 million of the investment will go to the Venezuelan state as a rental tax. The report says that the Neptune Discoverer is working offshore Vietnam. It will leave Singapore in November 2007 and arrive in Venezuela in February 2008. BNamericas notes that Petroleos de Venezuela wanted to work with Brazilian counterpart Petroleo Brasileiro SA on the Mariscal Sucre program. However, Petroleo Brasileiro said in September 2007 that it had not yet agreed an investment plan with the Venezuelan firm. Petroleo Brasileiro had wanted to liquefy the gas and export it to Brazil. According to Petroleos de Venezuela's statement, the Mariscal Sucre plan has changed. The program will now target Venezuela's domestic market. BNamericas states that the program calls for the development of these blocks in Venezuela's Norte de Paria, including: -- Rio Caribe, -- Mejillones, -- Patao, and -- Dragon. The fields could produce about 1.200 billion cubic feet per day of natural gas, BNamericas states, citing Petroleos de Venezuel. The firm would use the gas for domestic obligations. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Inks Orinoco Pact with Russia's TNK-BP -------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA has signed an accord with Russian oil company TNK-BP Management for reserve certification on the Orinoco heavy crude belt. Business News Americas relates that TNK-BP Management will collaborate with Petroleos de Venezuela in in studying and certifying reserves on the Ayacucho 2 block. According to BNamericas, the agreement was among the seven signed between Russian and Venezuelan officials at the CIAN intergovernmental commission. All the energy accords with Russia involved Venezuela's Siembra Petrolera plan of boosting output to 5.8 million barrels per day by 2012, BNamericas notes, citing Venezuelan energy minister and Petroleos de Venezuela head Rafael Ramirez. Venezuela will reach certified reserves of 235 billion barrels in 2009. Minister Ramirez commented to BNamericas, "Russia will play an important role in Venezuela's vision to diversity our markets. They will have a larger presence in our country than they ever had before." Venezuela also signed with Russia an agreement for the purchase of 20,000 tons of tubing to be used for infrastructure within Venezuela's oil sector, Petroleos de Venezuela said in a statement. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. RIDDLEWOOD COMPANY: Members' Final Meeting Set for November 19 -------------------------------------------------------------- A final meeting will be held for the members of Riddlewood Company Limited on November 19, 2007, at 10:00 a.m., at the 23rd Floor of Wheelock House, 20 Pedder Street, Central, Hong Kong. At the meeting, Kevin Chung Ying Hui, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SICHUAN CHANG HONG: Plans to Reconstruct Marketing Network ---------------------------------------------------------- Sichuan Chang Hong Electric Co., Ltd. (SHSE: 600839) plans to create an integrated marketing network across China, which is composed of several marketing platforms respectively in different regions nationwide, SinoCast China Business Daily News reports, citing Gan Xudong, general manager for the company's Shanghai branch. The report says that Changhong plans to integrate the currently independent marketing platforms of its television, air- conditioner and refrigerator businesses into a consolidated marketing network to streamline its marketing. The company will create marketing platforms in different regions, and the platform in Shanghai has already started operation, Mr. Gan added. Changhong also launched its first product experience center, Changhong Digital-Dreams City, in Shanghai on Oct. 27, SinoCast relates. The company plans to open three or four such centers in Shanghai in the future. * * * Based in Mianyang, Sichuan Province, China, Sichuan Chang Hong Electric Co., Ltd. -- http://www.changhong.com/-- is principally engaged in the manufacture and sale of televisions, air conditioners, mobile phones, refrigerators and other household electrical appliances. The company offers its products under 13 categories, including military products, digital televisions, digital display panels, information technology products, air conditioners, digital audio/video products, digital network products, molding products, digital electronic components, environment-friendly power supply systems, electrical equipment, electric engineering products and chemical materials. The company distributes its products in 90 countries/regions, including Russia, the United States, France, and South America. Xinhua Far East China Ratings gave the company a B+ issuer credit rating on February 24, 2006. VALIANT PRINTING: Placed Under Voluntary Wind-Up ------------------------------------------------ On October 11, 2007, a special resolution was passed to voluntarily liquidate the company's business. Stephen Brisco and Chen, Yung Ngai Kenneth were appointed as liquidators. The Liquidators can be reached at: Stephen Brisco Chen, Yung Ngai Kenneth Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong WATERLAND SECURITIES: Fitch Lifts Issuer Default Rating to BBB- --------------------------------------------------------------- Fitch Ratings affirmed the ratings of Waterland Financial Holdings and its subsidiary International Bills Finance Corporation. At the same time, Fitch has upgraded most ratings of WFH's subsidiary Waterland Securities Corporation, in response to stronger support from WHF on the back of WSC's increased strategic and financial importance within the group. The ratings are as follows: WFH: Long-term foreign currency IDR at 'BBB-' (BBB minus), Short-term foreign currency IDR at 'F3', National Long-term rating at 'A(twn)', National Short-term rating at 'F1(twn)', Individual at 'C', Support at '5' and Support Rating Floor at 'NF'. The Outlook remains Stable. IBF: Long-term foreign currency IDR at 'BBB', Short-term foreign currency IDR at 'F3', National Long-term rating at 'A+(twn)', National Short-term rating at 'F1(twn)', Individual at 'C', Support at '4' and Support Rating Floor at 'B+'. The Outlook remains Stable. WSC: Long-term foreign currency IDR upgraded to 'BBB-' (BBB minus) from 'BB+', Short-term foreign currency IDR upgraded to 'F3' from 'B', National Long-term rating upgraded to 'A(twn)' from 'A-(twn)' (A minus(twn)), National Short-term rating upgraded to 'F1(twn)' from 'F2(twn)', Individual affirmed at 'D', and Support upgraded to '2' from '3'. The Outlook remains Stable. WFH's ratings reflect its sound capitalisation, limited leverage and adequate liquidity; its IDRs are mainly offset by its relatively weak profitability. WFH aims to maintain its niche position in the Taiwanese fixed-income, money and equities markets. Given the challenging Taiwanese bills finance market, WFH has attempted to improve its revenue diversity by bolstering WSC's operations and introducing new fixed-income activities following the gradual deregulation of the local financial markets. In Fitch's view, although the new business development is a positive strategic move, the related financial impact will be muted during its early stages of development. Nevertheless, WSC's improved securities operations would help mitigate the negative impact of unfavourable interest rates in Taiwan. WFH maintains adequate liquidity through receiving cash dividends from its subsidiaries and issuing short-term debt. WFH's sum- of-parts capital adequacy ratio (CAR) was 140.1% at end-June 2007, much higher than the minimal regulatory requirement of 100%. WFH's double leverage ratio remained limited at 107.6% at end-June 2007. IBF's IDRs are based on its sound capitalisation, adequate liquidity and good asset quality, and have been offset by IBF's relatively moderate profitability. Annualised pre-tax ROE at IBF decreased from 8.9% in 2006 to 6.3% in H107, but is still above the industry average of 5.1%, reflecting the challenging operating environment in the local fixed-income and money markets. IBF's total problem exposures continued to fall and are sufficiently covered by reserves and good quality underlying collateral in real estate and listed stocks. IBF's sole long- term funding source -- equity -- is sufficient to cover its illiquid assets. Besides, IBF maintains good access to institutional funding. IBF's CAR declined moderately due to dividend payout and capital charges for holding subordinate financial debentures; nevertheless, CAR was 12.1% at end-June 2007, in line with the peer average of 12%-13%. WSC's IDRs primarily reflect its stronger group support. Annualised ROE sharply increased to 9.1% in H107 from 3.6% in 2006. Its improved profitability mainly benefited from the buoyant market turnover and the strong index performance of the Taiwan market index (TAIEX), as well as from better management following the appointment of experienced professionals in 2006. WSC maintains a liquid balance sheet, with current assets/current liability ratio of 138.5% at end-June 2007, in line with the industry average. WSC's capitalisation is good, although its CAR decreased notably in the six months ended June 2007, as a result of increased trading and margin financing positions. WSC's CAR was at a strong 398% at end-June 2007, much higher than the minimal regulatory requirement of 150%. WFH was established as a holding company in March 2002 and comprised of IBF, Concourse Securities Co and Grand Orient Securities Co. In October 2002, these two securities companies and International Bills United Securities merged to become WSC. WFH is the only financial holding company (FHC) in Taiwan whose core business is bills finance; it is the smallest FHC in Taiwan by consolidated assets. IBF has a 19.1% market share by asset size (including guarantees) and runs eight branches in Taiwan. WSC had a 1.6% market share of equity brokerage at end-June 2007, and runs 33 branches in Taiwan. ========= I N D I A ========= AGILENT TECHNOLOGIES: Prices US$600 Mln of Senior Notes Offering ---------------------------------------------------------------- Agilent Technologies Inc. disclosed the pricing of its senior notes in an aggregate principal amount of US$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 Based in Santa Clara, California, Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/-- is a measurement company serving communications, electronics, life sciences and chemical analysis industries. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, 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. BAUSCH & LOMB: Moody's to Withdraw All Ba1 Ratings -------------------------------------------------- Moody's Investors Service has confirmed and will withdraw Bausch & Lomb Incorporated's Ba1 Corporate Family Rating, Ba1 Probability of Default Rating and Ba1 ratings on certain existing senior unsecured notes. The rating outlook was revised to stable and will be withdrawn. The Ba1 rating on US$60.4 million senior unsecured notes due Nov. 15, 2007 remains on review for possible downgrade and is expected to be withdrawn upon the maturity of the notes. These ratings for Bausch & Lomb Incorporated (Oldco) were confirmed and will be withdrawn: -- Ba1 Corporate Family Rating; -- Ba1 Probability of Default Rating; -- Ba1 rating (LGD4/52%) on Senior Unsecured Notes due 2008; -- Ba1 rating (LGD4/52%) on Floating Rate Convertible Notes due 2023; -- Ba1 rating (LGD4/52%) on Medium Term Notes due 2026; -- Ba1 rating (LGD4/52%) on Debentures due 2028; and -- Ba1 rating (LGD4/52%) on a Medium Term Note Program. This Bausch & Lomb Incorporated (Oldco) rating will remain on review for downgrade and will be withdrawn upon maturity: -- Ba1 rating (LGD4/52%) on Senior Unsecured Notes due 2007. Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). BAUSCH & LOMB: Completes Sale to Warburg Pincus for US$4.5 Bil. --------------------------------------------------------------- Affiliates of Warburg Pincus have completed the acquisition of Bausch & Lomb Inc. for a total purchase price of approximately US$4.5 billion, including approximately US$830 million of debt. "With a strong and supportive partner in Warburg Pincus, we are well-positioned to create new opportunities for Bausch & Lomb and advance our leadership in the eye health industry," Ronald L. Zarrella, chairman and CEO of Bausch & Lomb, said. "Our customers will continue to receive high levels of service, product quality and innovation, and our commitment to serving their needs remains steadfast. On behalf of Bausch & Lomb's management and Board of Directors, I want to thank our shareholders and hard-working employees for their support throughout this process." "We're delighted to be partners with Bausch & Lomb, a global leader in vision care, ophthalmic devices and pharmaceuticals," Elizabeth H. Weatherman, a Warburg Pincus Managing Director, said. "We look forward to helping the company build upon its rich heritage and premier brand in ophthalmology." Bausch & Lomb stock will cease to trade on the New York Stock Exchange at market close on October 26 and will be delisted. Under the terms of the agreement, Bausch & Lomb shareholders are entitled to receive US$65.00 in cash for each share of Bausch & Lomb common stock that they hold. Letters of transmittal allowing Bausch & Lomb shareholders of record to deliver their shares to the paying agent in exchange for payment of the merger consideration will be distributed shortly after the closing. Shareholders of record should be in receipt of the letter of transmittal before surrendering their shares. Shareholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash, as such conversions will be handled by the bank or broker. Morgan Stanley acted as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and delivered a fairness opinion to the Special Committee. Wachtell Lipton Rosen & Katz acted as legal counsel to the Special Committee in this transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as financial advisors to Warburg Pincus and arranged the debt financing for the transaction, and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg Pincus. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). BHARTI AIRTEL: Net Income up 73% in Qtr. Ended Sept. 30, 2007 ------------------------------------------------------------- Bharti Airtel Limited yesterday disclosed its audited US GAAP results for its second quarter and half year ended September 30, 2007. It has once again maintained its strong growth momentum. The consolidated total revenues for the quarter ended September 30, 2007 of INR6,337 crore grew by 45% and EBITDA of INR2,710 crore grew by 59% on a year on year basis. The cash profit from operations of INR2,597 crore grew by 58% over last year. The net profit for the quarter ended September 30, 2007 was INR1,614 crore, a growth of 73% over last year. The revenues and net profit for the first half year ended September 30, 2007 was INR12,242 crore and INR3,126 crore, a growth of 49% and 85% over the same period last year respectively. Bharti had 5.1 crore customers, as on September 30, 2007, an increase in the total customer base of 78%, over the corresponding period last year and maintained its leadership position through an improved market share of all India wireless subscribers at 23.4% as on September 30, 2007, up from 21.4% corresponding to the same period of last year. Commenting on the results and performance, Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said, "The quarter has seen telecom growth accelerate further, clearly demonstrating that the Indian telecom market still has a long way to go to achieve its full potential. Bharti Airtel also crossed the 50 million customer mark to enter the league of the world’s top telecom companies. Going forward, we see strong demand for telecom services across all segments and we are well placed to take advantage of these growth opportunities." About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter-Asia Pacific reported on June 28, 2006, that Fitch Ratings affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit both a BB+ rating on Sept. 21, 2005. HINDUSTAN ORGANIC: Turns Around with INR47-Mil. Net Profit ---------------------------------------------------------- Hindustan Organic Chemicals Ltd turned around in the second quarter ended Sept. 30, 2007, with a net profit of INR47 million from the net loss of INR98.9 million in the same quarter in 2006. Total income increased 33% in the July-Sept. 2007 quarter to INR1.58 million, of which INR1.52 million arose from net sales, interest earned or operating income. With increased revenues came rising operating expenditures -- INR1.42 million compared to last year's INR1.14 million. In the second quarter, the company also booked interest charges of INR48.56 million, depreciation of INR66.41 million, taxes of INR1.23 million, and INR950,000 in extraordinary items. The extraordinary items represent prior-period adjustments. A copy of Hindustan Organic's financial results for the quarter ended Sept. 30, 2007, is available for free at the Bombay Stock Exchange at http://ResearchArchives.com/t/s?24ad Hindustan Organic Chemicals Ltd was incorporated on December 12, 1960, as a wholly owned enterprise of the Government of India. It has two manufacturing units: the phenol complex at Cochin and the integrated Nitro Aromatic Complex at Rasayani. The company produces a wide range of products including phenol, acetone, and aniline. Hindustan Organic has continuously paid dividend for over 20 years until 1997. Due to reduced protection from imports, poor market condition and excessive manpower and interest cost, the company had been reporting losses since that year. A financial restructuring package was proposed in 2002 to help the company turn its business around. The package, which has been cleared by the Cabinet Committee on Economic Affairs based on the recommendations of the Board for Reconstruction of Public Sector Enterprises, consists of grants aggregating INR750 million and subscription by way of non-cumulative redeemable preference shares aggregating INR1.75 billion by the Government of India. INDUSTRIAL DEV'T BANK: Poised to Get Back INR5K Crore in NPAs ------------------------------------------------------------- Industrial Development Bank of India is in the process of recovering around INR5,000 crore of bad debts, Namrata Singh writes for The Times of India. IDBI, which transferred around INR9,000 crore in troubled assets to India's Stressed Asset Stabilization Fund in 2004, has already recovered 395 of the 631 cases of Non-Performing Assets, The Times relates. With this, the bank has already got back around INR2,200 crore with the INR2,800 crore is still in the process of being recovered, the news agency says. SASF is an independent special purpose vehicle managed by IDBI employees to resolve the problem loans. "Although IDBI has rid itself of its NPAs by passing it on to SASF, the recovery performance of SASF is critical to IDBI as the faster SASF recovers the money, the earlier IDBI would be able to extinguish the non-interest bearing securities," the Troubled Company Reporter-Asia Pacific reported on Dec. 1, 2006, citing a credit research report by the Standard Chartered Bank. IDBI reportedly built up a large portfolio of NPAs from 2000-01 onwards till 2002-03 due to the bank's exposure to commodity cyclical. In 2002-03 IDBI ended with gross NPAs of 26.1% and net NPAs of 14.2%. To alleviate IDBI's problems, the government stepped in to SASF to acquire IDBI's NPAs in exchange for 20- year non-interest bearing, non-tradable bonds, the newspaper says. IDBI Bank Executive Director Siby Antony told The Times that it will take around five years more for the bank to recover the entire INR9,000 crore. Mr. Antony attributed the the quick recovery of bad loans to economic uptrend and the rise in real estate prices. Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, the financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * As part of the application of Moody's Investors Service's refined joint default analysis and updated bank financial strength rating methodologies, the rating agency, on April 24, 2007, affirmed Industrial Development Bank of India's BFSR at D-. Moody's also maintains the bank's Foreign Currency Deposit Rating at Ba2. TATA MOTORS: Consolidated Profit Up 6.39% in Qtr. Ended Sept. 30 ---------------------------------------------------------------- Tata Motors Limited disclosed yesterday its financial results for the second quarter and half year ended Sept. 30, 2007. Second Quarter Tata Motors reported consolidated revenue (net of excise) at INR8205.23 crore for the quarter ended September 30, 2007, an increase of 6.22% over INR7724.71 crore in the corresponding quarter of 2006-07. The consolidated PAT was INR570.71 crore, compared to INR536.44 crore in the corresponding quarter last year, an increase of 6.39%. The Company's revenues (net of excise) on a stand-alone basis was INR6672.65 crore for the quarter ended September 30, 2007, an increase of 1.33% compared to INR6585.20 crore in the corresponding quarter of 2006-07. Profit Before Tax was INR621.19 crore, an increase of 5.93% over INR586.39 crore in the corresponding quarter last year, while the Net Profit was INR526.84 crore, an increase of 19.27% over INR441.72 crore for the corresponding quarter last year. The quarter continued to witness high input costs, increased competitive activity, and the high interest rate regime affecting retails in the domestic market, in varying degrees between the commercial and passenger vehicles segments. Together they impacted the operating margin of the company (net of foreign exchange gain) in this quarter. The Company has initiated multi-pronged action, including cost reduction initiatives and introduction of new products. Half Year Consolidated revenue (net of excise) in the first half of 2007- 08 at INR15,836.51 crore recorded an increase of 9.56% as against INR14,454.26 crore in the first half last year. The consolidated PAT at INR1067.93 crore compared to INR918.11 crore, recorded a growth of 16.32%. The Company's revenues (net of excise) on a stand-alone basis was INR12729.47 crore in the first half, an increase of 3.20% compared to INR12334.76 crore in the first half last year. Profit Before Tax was INR1213.32 crore, an increase of 11.86% over INR1084.64 crore in the first half last year, while the Net Profit was INR993.60 crore, an increase of 20.65% over INR823.57 crore in the first half last year. During the first half, Tata Motors launched several new vehicles. In passenger vehicles, the company has introduced the Indigo LS, an entry level common rail diesel (DICOR) offering in the sedan range, expanded the long wheel base Indigo XL's range with the Indigo XL Classic, and launched an upgraded range of Tata Spacio, its entry level utility vehicle. The Company also introduced a new range of commercial vehicles for passenger transportation, the Magic and the Winger, which are expected to create new segments. The mini-truck, Ace, has been introduced in Nepal. During the period, the Company improved market share in medium and heavy trucks, but lost market share in the bus segment mainly on account of certain supply chain shortages, which is expected to be made up in the second half. In passenger vehicles there has been a marginal loss of market share due to new entrants in a slowing market and delays in certain of the Company's products introductions, which should see corrections in the next year. The company's audited consolidated financial results for the quarter and half year, ended Sept. 30, 2007, is available for free at: http://ir.tatamotors.com/pdf/2008/Q2FY07-08Consolidated.pdf The company's audited standalone results for the quarter and half year, ended Sept. 30, 2007, is available for free at: http://ir.tatamotors.com/pdf/2008/Q2FY07-08Standalone.pdf About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Eyes One Million Broadband Subscribers in 2009 -------------------------------------------------------------- Mario Norero -- Alcatel-Lucent's area manager for operations in Chile, Peru and Bolivia operations -- told Peruvian news daily Gestion that Peru would have over one million broadband clients by the end of 2009. Business News Americas relates that the Peruvian government said that broadband clients would total over one million at the end of 2010. Mr. Norero told BNamericas the goal would be reached earlier. The broadband sector is enjoying a rapid growth rate and new technologies like WiMax would be launched in Peru in 2008. Mr. Norero commented to BNamericas, "WiMax will not only allow expansion in the use of Internet but a reduction in the cost of the connection for the final user." According to BNamericas, Mr. Norero is positive that broadband subscribers would reach 680,000 in Peru this year. He said the figure would increase by 40% to 700,000 by year-end, compared to the end of 2006. Gestion notes that about 60% of broadband connections are in Lima. Meanwhile, Alcatel-Lucent is negotiating WiMax services with four Peruvian companies. The firm would close at least one deal in 2008, BNamericas relates. ADSL technology would continue representing the highest growth of broadband connections in Peru, despite future deployments of WiMax technology, BNamericas says, citing Peruvian telecoms consultancy DN Consultores analyst Guillermo Bustamante. Cable modem technology use would increase, particularly in the provinces. "There are several cable TV operators studying projects to launch broadband services in many areas of the country," Mr. Bustamanted told BNamericas. Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, China, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on Sept. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. BANK NIAGA: Posts 3-Month & 9-Month 2007 Results ------------------------------------------------ PT Bank Niaga Tbk's net income in the three months to Sept. 30, 2007, increased to IDR185 billion from IDR184 billion a year earlier, as accelerating economic growth boosted loan demand, Bloomberg News reports. According to Bloomberg's data, the bank's net interest income is IDR636 billion, compared to last year's IDR520 billion. Banks in Indonesia benefited from rising loan demand from consumers and small and medium-sized companies after the central bank slashed lending rates, the report explains. Bank Niaga's outstanding loans rose to IDR36.56 trillion at the end of September, compared with IDR31.14 trillion a year ago, Bloomberg adds. Nine-Month Net Income Ups 10% Antara News reports that Bank Niaga's 2007 nine-month unaudited net profit increased 10% to IDR590 billion, compared to the figure recorded for same period last year. Operating profit rose 18% to IDR2.35 trillion on high interest income, the report relates, citing Bank Niaga President Director Hashemi Albakri. The increase in interest income was the result of low interest expenses, high fee base income and gains on foreign exchange transactions, he said. Antara adds that the bank's total assets reached IDR47.32 trillion, while its total liabilities stood at IDR42.29 trillion. Capital adequacy ratio was at 17.0% per Sept. 30, 2007. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * The bank also has the following existing global scale ratings assigned by Moody's Investors Service: -- issuer/foreign currency subordinated debt of Ba3; -- global local currency deposit of Baa3; -- foreign currency long-term/short-term deposit of B2/Not Prime; -- and bank financial strength of D. Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as: Long-term foreign Issuer Default ratings at 'BB-'; Individual at 'C/D'; and Support '4'. The Outlook for the ratings was revised to Positive from Stable. BANK RAKYAT: Net Income Rises 16.6% in 2007 9-Month Period ---------------------------------------------------------- PT Bank Rakyat Indonesia Tbk's net income for the first nine months of the year increased 16.6% to IDR3.62 trillion from IDR3.1 trillion in the same period in 2006, thanks to strong loans, various reports say. Reuters relates that Bank Rakyat said lending grew by about a fifth in the January-September period. Its net interest margin fell to 10.89% taking into account payments into a government deposit insurance scheme, compared to 11.17% last year, the report says. The increase in profit was also supported by an increase in fee- based income, Thomson Financial posts. Thomson Financial relates that the bank's net interest income increased 22% to IDR12.39 trillion, compared to the same period in the prior year, while fee based income grew 18% to IDR1.18 trillion. The bank said its net interest margin narrowed to 11.1% from 11.3% previously, the report says. Meanwhile, its loan to deposit ratio fell to 73.9% from 77.3% a year before, the report adds. About Bank Rakyat The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service has raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. HILTON HOTELS: Hires Christopher Nassetta as President & CEO ------------------------------------------------------------ Hilton Hotels Corporation has appointed Christopher J. Nassetta as its President and Chief Executive Officer. Mr. Nassetta currently leads Host Hotels and Resorts, the largest owner of luxury and upscale hotels in the world. Mr. Nassetta joins Hilton as the company moves into an exciting new phase of growth, both in the U.S. and abroad. The Blackstone Group's real estate and corporate private equity funds completed the acquisition of Hilton on Oct. 24, 2007. Blackstone views Hilton as an important strategic investment and intends to invest in its properties and brands to enhance the Company's growth. As stated at the time of the initial announcement in July, Blackstone has no intention of selling any brands or major assets as a result of the transaction. Jonathan Gray, Senior Managing Director, Blackstone said, "Our goal with Hilton is to build the premier global hospitality company. We are confident that Chris will be a superb addition to the already strong Hilton team. Given his background overseeing the world's largest hotel ownership company, Chris understands the needs of hotel owners and is uniquely qualified to lead Hilton. I've known Chris personally for 15 years and have worked successfully side-by-side with him in the past. He's a man of the absolute highest integrity, who cares deeply about people. He has the energy, enthusiasm and experience to lead Hilton, and it's with great pleasure that we welcome him to the team." Blackstone's strategy includes maintaining strong unit growth in the U.S., where more than 20% of all hotel rooms currently under construction carry a Hilton brand. Blackstone will also invest to accelerate the company's international growth, building on recent agreements to expand the Hilton family of brands outside of the U.S. through a series of strategic partnerships. It was only last year that Hilton merged with Hilton International, a transaction, which created a new set of global opportunities for the company. Additionally, Blackstone intends to incorporate a significant portion of its existing portfolio of luxury hotels and resorts onto the Hilton platform, adding to the luxury offerings available to Hilton customers. Blackstone's holdings include such upscale properties as The Boulders Resort and Spa (Arizona), The El Conquistador Resort (Puerto Rico), and The Boca Raton Resort and Club (Florida). Chris Nassetta commented, "I am excited to join this great company and am looking forward to working with Hilton's franchisees, owners and team members to grow this already impressive franchise. Hilton has a powerful collection of brands and we now have the opportunity to build on the strong foundation that already exists to drive the company's growth, particularly overseas, to create the pre-eminent lodging company in the world. I also look forward to working with Blackstone, who I know from experience will be a terrific strategic partner for Hilton going forward." As President and CEO of Hilton, Mr. Nassetta will oversee Hilton's extensive line of quality brands, including: Hilton, Conrad, Doubletree, Embassy Suites, Hampton, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf=Astoria Collection. Mr. Nassetta intends to work closely with the existing management team, including Thomas Keltner, Chief Executive Officer - Americas and Global Brands, and Ian Carter, Chief Executive Officer - Hilton International. As p