T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, November 2, 2007, Vol. 10, No. 218 Headlines A U S T R A L I A CIRCLECOM LTD: June 30 Balance Sheet Upside-Down by AU$410,000 COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request COEUR D'ALENE: Names Donald Gray as Gen. Manager for Chile Unit CROWN CASTLE: Posts US$67MM Net Loss in Quarter Ended Sept. 30 JAMES HARDIE: Closes U.S. Plant Due to Housing Market Slowdown SCO GROUP: Selects Dorsey & Whitney as Special Corporate Counsel SCO GROUP: Taps Boies Schiller as Special Litigation Counsel SOLAGRAN LTD: Records Third Consecutive Net Loss at AU$3.65MM C H I N A & H O N G K O N G ACXIOM CORP: Board Approves US$75MM Stock Repurchase Program ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21 ACXIOM CORP: Earns US$10.5MM in Quarter Ending September 30 BAIN CLARKSON: Appoints Joint and Several Liquidators BRIGHT SMOOTH: Shareholders Voluntarily Wind-Up Business CDS RETAIL: Final Meeting of Creditors & Members Set on Nov. 30 CENTRAL UNITY: Final Meeting Slated on Nov. 26 CHALLENGE POINT: Members Opt to Wind Up Business CHINA EASTERN AIRLINES: Books 9-Month Net Profit of CNY1.03BB FINE HORSE: Creditors to Meet on Nov. 16 GLOBAL POWER: Court Approves Disclosure Statement GLOBAL POWER: Plan Confirmation Hearing Scheduled on December 20 GTI FINANCIAL: Appoints Timothy Lau as Liquidator HONG GIAP: Final Meeting Set on Nov. 27 KONFULL LTD: Final Meeting Scheduled on Nov. 30 LDI (HONG KONG): Appoints Liquidators LOULAN HOLDINGS: Dec. 31 Balance Sheet Upside-down By CNY30.64MM MEGA SUNNY: Final Meeting Slated on Nov. 27 PACE MICRO: Final Meeting Slated on Nov. 28 PALADIN LIMITED: Deloitte Touche Raises Going Concern Doubt PALADIN LIMITED: Plans to Raise HK198 Million in Open Offer SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007 SILVERDALE INVESTMENT: Final Meeting Set on Nov. 26 SOCIETE GENERALE: Enters Voluntary Wind Up TSUEN TUNG: Final Meeting of Creditors & Members Set for Nov. 30 WOLSTENHOME CHINA: Appoints Liquidators YAN WING: Voluntarily Winds Up Business * Bad Loan Ratio for Chinese Banks Drops to 6.2% I N D I A AES CORP: Seeking Regulators' Approval on 2 Gas Projects BANK OF BARODA: Profit Up 13.47% to INR2.88 Bil. in 2nd Quarter DRESSER-RAND GROUP: Earns US$21.3 Mil. for Quarter to Sept. 30 DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell ITI LTD: Posts INR1.24-Bil. Loss in Quarter Ended September 30 KINETIC ENGINEERING: To Increase Capital to INR63,40,00,000 I N D O N E S I A ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched. ANEKA TAMBANG: Reports IDR3.8-Tril. Nine-Month Net Profit ANEKA TAMBANG: Signs US$2-Mil. Feasibility Study w/ Tsingshan BANK NISP: Nine-Month Net Profit Up 20% to IDR206.3 Billion BANK TABUNGAN: Pefindo Upgrades "idA" Bond Rating to "idA+" CSM CORPORATAMA: Moody's Downgrades Bond Ratings to Ba1.id GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007 MEDIA NUSANTARA: Earns IDR326 Bil. in First Nine Mos. of 2007 PT INCO: Board Approves Proposed US$0.978/Share Interim Dividend TELKOM INDONESIA: 3Q Net Profit Falls- 6.2% to IDR3.19 Trillion TELKOMSEL: Net Profit for First Nine Months of 2007 Rises 16% TELKOMSEL: Extends Agreement w/ Nokia on Convergent Charging J A P A N ALL NIPPON: April-September Net Profit Triples to JPY105.5 Bil. FUJI HEAVY: In Talks to Receive Daihatsu Vehicle Supply NOVA CORP: May Sue Ex-President Over Dubious Deals SAPPORO: To Tie Up with Morgan Stanley on Property Management SUN WAVE: Lowers Consolidated Full-year Forecast for Fiscal 2008 * Japanese Banks Suffer Bigger Subprime Damages Than Thought K O R E A NOVELIS INC: Realm Communications Completes Rebranding NOVELIS INC: Will Invest US$7 Million for Brazilian Plant M A C A U MELCO PBL: Plans to Raise US$592 Mil. by Selling ADS M A L A Y S I A SOLUTIA INC: Receives US$2 Billion Exit Loan Commitment SOLUTIA INC: Court Urges Resolution of Bank of New York Dispute N E W Z E A L A N D A&R WHITCOULLS: Books AU$7.6-Mil. Net Profit After Tax in FY2007 A2 CORP: Enters Into Exclusive Licensing Pact with Lotte Milk P H I L I P P I N E S BANCO DE ORO-EPCI: Central Bank OKs Purchase of AMEX Phil. Unit RIZAL COMMERCIAL: Lists 1,096 New Common Shares in Local Bourse SAN MIGUEL: Lists 4,288 Additional Common Shares in Local Bourse STA. LUCIA LAND: Changes Stock Symbol from “ZIP” to “SLI” S I N G A P O R E LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend V I E T N A M ASIA COMMERCIAL BANK: Moody's Assigns Low-B First-Time Ratings * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= CIRCLECOM LTD: June 30 Balance Sheet Upside-Down by AU$410,000 -------------------------------------------------------------- CircleCom Limited reported a AU$1.29-million net loss for the year ended June 30, 2007, more than doubling the AU$0.62-million net loss the company reported a year before. As of June 30, 2007, the group had total liabilities of AU$1.35 million and total assets of AU$0.94 million, resulting in a capital deficiency of AU$0.41 million. Headquartered in Melbourne, Australia, CircleCom Limited is an investment holding company. Through its subsidiaries, the company operates as a holder of investments in the telecommunications industry in South East Asia. The only operating investments of the Company relate to its 14% investment in PT Circlecom Nuantara, which operates in Indonesia. CircleCom Limited did not earn any revenue during the fiscal year ended June 30, 2006. Its wholly owned subsidiaries include Diamonds Galleria (Asia) Pte Ltd and CircleCom International Limited. COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request -------------------------------------------------------------- Coeur d'Alene Mines Corporation disclosed that a three-judge panel of the United States Court of Appeals for the Ninth Circuit has issued a ruling that denies the Petitions for Rehearing En Banc filed by Coeur Alaska, the State of Alaska and Goldbelt, Inc. as well the limited Petition for Rehearing filed by the Department of Justice, representing the U.S. Forest Service and the U.S. Army Corps of Engineers. The same Ninth Circuit three-judge panel had previously ruled on the legal challenge filed by Southeast Conservation Council, the Sierra Club and Lynn Canal Conservation challenging the Kensington Section 404 Permit issued by the U.S. Army Corps of Engineers. The Federal District Court in Alaska had upheld the permit, and the Plaintiffs appealed that decision to the Ninth Circuit in August 2006. The Ninth Circuit three-judge panel reversed the District Court on May 22, 2007. The Department of Justice, representing the U.S. Forest Service and the U.S. Army Corps of Engineers, as well as Coeur Alaska, the State of Alaska and Goldbelt, a native corporation, all asked the Ninth Circuit Court to reconsider the prior May 22 decision. The order denies the reconsideration by this Court. The Company is continuing its discussions with the Plaintiffs to explore options for the Kensington Mine to begin production as well as reviewing a possible appeal to the Supreme Court of the United States. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. COEUR D'ALENE: Names Donald Gray as Gen. Manager for Chile Unit --------------------------------------------------------------- Coeur d'Alene Mines Corporation has appointed Donald Gray as Vice President and General Manager of Compania Minera Cerro Bayo, Coeur's wholly owned subsidiary that owns and operates the Cerro Bayo Mine in southern Chile. Mr. Gray joins Coeur with more than 27 years of operational and developmental mining experience, most recently as Vice President and General Manager of Minera Hecla Venezolana, in Venezuela. He is a graduate of the University of Idaho in mining engineering and also holds a masters degree in civil engineering from the Massachusetts Institute of Technology. Mr. Gray has also worked for Newmont Mining, Exxon and Climax Molybdenum. In addition to its ongoing silver and gold production, Cerro Bayo has a US$4.8 million exploration program underway in 2007, which already through the first half of the year increased silver mineral reserves by 51% over year-end 2006 levels. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. CROWN CASTLE: Posts US$67MM Net Loss in Quarter Ended Sept. 30 -------------------------------------------------------------- Crown Castle International Corp. reported Tuesday results for the quarter ended Sept. 30, 2007. On Jan. 12, 2007, Global Signal Inc. merged into a subsidiary of Crown Castle. These reported results include the effect of the merger for the third quarter of 2007 and are compared to (i) pre-Merger historical results of Crown Castle for prior fiscal periods and (ii) selected pro forma results for the third quarter of 2006, assuming the merger was completed on Jan. 1, 2006. Net loss was US$67.0 million for the third quarter of 2007, inclusive of (i) a US$57.7 million asset write-down charge and $3.1 million restructuring charge related to the long-term spectrum lease announced in July 2007, (ii) a US$63.4 million increase in depreciation, amortization and accretion expense primarily relating to the merger, (iii)US$4.7 million of merger integration costs, and (iv) an improvement in benefit for income taxes of US$32.5 million, compared to a net loss of US$15.6 million for the same period in 2006. Net loss after deduction of dividends on preferred stock was $72.2 million in the third quarter of 2007, compared to a loss of $20.8 million for the same period last year. Total net revenues increased to US$351.7 million for the third quarter ended Sept. 30, 2007, from net revenues of US$200.9 million in the same period last year. Site rental revenue for the third quarter of 2007 increased US$147.8 million, or 82.6%, to $326.8 million from US$179.0 million for the same period in the prior year. Pro forma site rental revenue growth was 7.3%, comparing reported third quarter 2007 results to pro forma third quarter 2006 results, exclusive of approximately US$1.1 million and US$6.5 million of out of run-rate items in the third quarter of 2007 and the third quarter of 2006, respectively. Site rental gross margin, defined as site rental revenue less site rental cost of operations, increased US$91.2 million, or 73.7%, to US$214.9 million in the third quarter of 2007 from the same period in 2006. Pro forma site rental gross margin growth was 10.0%, comparing reported third quarter 2007 results to pro forma third quarter 2006 results, exclusive of the previously mentioned out of run-rate site rental revenue. Adjusted EBITDA for the third quarter of 2007 increased US$85.5 million, or 77.6%, to US$195.8 million, from the same period in 2006. "We had another solid quarter, exceeding the midpoint of our third quarter outlook for site rental revenue, site rental gross margin, adjusted EBITDA and recurring cash flow," stated John P. Kelly, president and chief executive officer of Crown Castle. "Our new leasing pipeline continues to build. Further, with the AWS spectrum clearing process well underway, our confidence in the growth of new leasing revenue continues to increase. In addition, we made significant progress in the third quarter with the integration of the Global Signal assets and anticipate that we will be substantially complete by the end of the year. Along with the third quarter results, we are announcing our full year 2008 outlook which suggests approximately 25% year-over-year growth in recurring cash flow per share, which is at the high end of our previously stated annual growth goal of 20% to 25%. Our expectation for growth in recurring cash flow per share reinforces our belief that our well-located assets, industry- leading customer service, and efficient capital structure will create short and long-term value for our shareholders." Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed US$10.51 billion in total assets, US$6.78 billion in total liabilities, US$313.6 million in redeemable preferred stock, and US$3.41 billion in total shareholders' equity. Recurring Cash Flow Recurring cash flow, defined as adjusted EBITDA less interest expense and sustaining capital expenditures, increased by US$39.2 million, or 63.8%, from US$61.6 million in the third quarter of 2006 to US$100.8 million for the third quarter of 2007, inclusive of approximately US$18.9 million of additional interest expense from the US$1.15 billion in borrowings in the fourth quarter of 2006 and first quarter of 2007 to reduce potential and actual shares outstanding by 33.7 million shares. Investments and Liquidity During the third quarter of 2007, Crown Castle invested approximately US$66.3 million in capital expenditures. Capital expenditures was comprised of US$5.6 million of sustaining capital expenditures and US$60.7 million of revenue generating capital expenditures, of which US$34.7 million was spent on land purchases, US$10.9 million on existing sites and US$15.1 million on the construction of new sites. About Crown Castle Based in Houston, Crown Castle International Corp. (NYSE: CCI) -- http://www.crowncastle.com/-- engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers. Crown Castle offers significant wireless communications coverage to 91 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and over 1,400 wireless communication sites in the US and Australia, respectively. * * * Crown Castle International Corp. still carries Standard & Poor's 'BB' corporate credit rating, on CreditWatch with negative implications. JAMES HARDIE: Closes U.S. Plant Due to Housing Market Slowdown -------------------------------------------------------------- James Hardie Industries Limited has suspended production at its plant in the United States due to a slowdown in the U.S. housing market, the Sydney Morning Herald reports. The report notes that the closure of the factory in Blandon, Pennsylvania, will result in the loss of 80 jobs. Moreover, SMH says that there is a possibility James Hardie would close two more plants as construction activity continues to fall. According to the Australia Associated Press, James Hardie makes more than 65% of its revenue in the U.S. The AAP relates that James Hardie's (jhx.ASX:Quote,News) shares have tumbled more than 28%, since hitting a high of AU$9.04 on July 9, as problems triggered by the meltdown in the U.S. sub- prime mortgage market played out. Shares in James Hardie lost as much as 4% on Oct. 31. The shares were trading at AU$6.53, down 21 cents or 3.12%, at 12:08 p.m. AEDT on the said date. In addition, James Hardie expects the situation to cause a AU$30 million to AU$35 million hit to its third quarter results, which are due to be delivered on November 19, the AAP reveals. "Although we have continued to partly offset the impact of the US housing downturn by concentrating on market penetration against alternative materials, the further deterioration in market conditions led to today's decision," the AAP quotes James Hardie Chief Executive Officer Louis Gries as saying. SMH recounts that, in August, James Hardie reported a 10% rise in first-quarter net operating profit to US$39.1 million, despite higher material prices and a struggling housing market. It said at the time it was taking market share from other building product companies. However, the AAP relates that James Hardie's decision to phase out production over 90 days at the Blandon site, the least cost efficient of its plants, has been caused by the soft housing market. The plant, which can produce 200 million square feet of materials a year but has been running at reduced operating levels, accounts for around 5% of James Hardie's overall production capacity. The AAP recounts that James Hardie had bought the plant from former competitor Cemplank Inc. in 2001 to meet growing demand for fibre cement. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/-- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. The company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. As reported by Asbestos Litigation on Feb. 16, 2007, the Australian Securities & Investments Commission has sued James Hardie Industries NV, claiming the Company misled investors over the cost of compensating people sickened by asbestos. The ASIC said that Chairman Meredith Hellicar, former Chief Executive Officer Peter MacDonald and eight other officials face bans from running a public company and fines of more than AU$200,000 or US$160,000. The suit centers on a Feb. 16, 2001 press release when the Company said a newly created AUD293 million fund was "sufficient" to compensate victims of asbestos poisoning. A government inquiry later found the fund would have run out of money in three years and the Company was forced to set up a new AU$1.6 billion compensation fund. SCO GROUP: Selects Dorsey & Whitney as Special Corporate Counsel ---------------------------------------------------------------- The SCO Group Inc. and SCO Operations Inc. ask the United States Bankruptcy Court for the District of Delaware for authority to employ Dorsey & Whitney LLP as special corporate and securities counsel, nunc pro tunc to Sept. 14, 2007. Dorsey & Whitney will: a. advise and counsel the Debtors with respect to their responsibilities in complying with the requirements of regulatory authorities and general corporate matters; b. give advice with respect to continued compliance with securities matters, specifically with respect to the Debtors' continued compliance with the Securities Act of 1033 and the Securities and Exchange Act of 1934, including the preparation and filing of quarterly and annual reports required by federal law that will be necessary during the pendency of the cases; c. give advice with respect to general corporate governance, transactional, finance, labor and employment, and other related general outside counsel matters; and d. assist lead bankruptcy counsel as may be needed to protect the interests of the estates in all matters pending before the Court. The Debtors will pay the firm at its standard hourly rate. Professional Designation Rate ------------ ----------- ---- Nolan S. Taylor, Esq. Partner US$440 Devan Padmanabhan, Esq. Partner US$495 Eric Lopez Schnabel, Esq. Partner US$450 Samuel P. Gardner, Esq. Partner US$330 David Marx Associate US$270 In addition, Dorsey had unbilled fees and expenses owed by the Debtors totaling US$53,128 and other expenses already billed totaling US$1,622. Prior to the bankruptcy filing, Dorsey received a US$100,000 retainer, however Dorsey was not able to issue an invoice for its unbilled expenses. The Debtors and Dorsey has requested for authority to apply the unbilled claim against the retainer and the remainder of the retainer against fees approved for payment pursuant to Court orders. The Debtors believe that the employment of Dorsey & Whitney is necessary and in the best interest of the Debtors' estates. The firm can be reached at: Nolan S. Taylor, Esq. Dorsey & Whitney LLP 170 South Main Street, suite 900 Salt Lake, Utah http://www.dorsey.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: Taps Boies Schiller as Special Litigation Counsel ------------------------------------------------------------ The SCO Group Inc. and SCO Operations Inc. ask the United States Bankruptcy Court for the District of Delaware for authority to employ Boies, Schiller & flexner LLP as special litigation counsel, nunc pro tunc to Sept. 14, 2007. Boies Schiller will assist the Debtors in connection with the continuation of the SCO Litigation. The SCO Litigation consists of these pending matters: -- SCO Group v. International Businesses Machines Corp. pending in the U.S. District Court for the District of Utah; -- SCO Group v. Novell Inc. pending in the U.S. District Court for the District of Utah; -- Red Hat Inc. v. SCO Group pending in the U.S. District Court for the District of Delaware; -- SCO Group v. Autozone Inc. pending in the U.S. District Court for the District of Nevada; -- SCO Group v. DaimlerChrysler Corporation pending in the State of Michigan, Circuit Court for the County of Oakland; -- Gray Litigation: Wayne R. Gray v. Novell, SCO Group and X/Open Company Ltd. pending in the U.S. District Court for the Middle District of Florida; and -- SuSE Linux GmbH v. SCO Group pending before the International Court of Arbitration. Specifically, the firm will: a. give advice to the Debtors with respect to the SCO Litigation; b. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the prosecution, defense or appeal of administration of the SCO Litigation; c. represent the Debtors at all trials, hearings or arbitration proceedings with respect to the SCO Litigation; and d. protect the interests of the Debtors with respect to the SCO Litigation. Subject to the Court's approval, the Debtors will pay the firm at its standard hourly rate with respect to the Gray Litigation and 50% of its standard hourly rates with respect to the SuSE Arbitration and continue the terms of their pre-bankruptcy engagement on other SCO Litigation. The Debtors believe that the employment of the firm is necessary and in the best interest of the Debtors' estates. To the best of the Debtors' knowledge, Boies Schiller does not represent or hold any interest adverse to the Debtors or their estates. The firm can be reached at: Stuart H. Singer, Esq. Boies, Schiller & flexner LLP 333 Main St. Armonk, NY 10504-1812 Tel: (914) 749-8200 Fax: (914) 749-8300 http://www.bsfllp.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. SOLAGRAN LTD: Records Third Consecutive Net Loss at AU$3.65MM ------------------------------------------------------------- Solagran Limited reported a net loss of AU$3.65 million for the year ended June 30, 2007, up from the previous year's AU$2.11 million. The company currently has AU$36.81 million in accumulated losses. The company also suffered an AU$2.11 million net loss in fiscal 2004. Headquartered in Melbourne, Australia, Solagran Limited -- http://www.solagran.com/-- is a biotechnology company engaged in the continuing research and commercial development of Bioeffectives, along with the extension of patent protection for the extraction and applications of Bioeffectives. ================================ C H I N A & H O N G K O N G ================================ ACXIOM CORP: Board Approves US$75MM Stock Repurchase Program ------------------------------------------------------------- Acxiom(R) Corporation's board of directors has authorized the repurchase of up to US$75 million of the company's common stock over the next 12 months in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be suspended or discontinued at any time. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21 ------------------------------------------------------------- The board of directors of Acxiom(R) Corporation has scheduled the company's Annual Meeting of Stockholders for Friday, Dec. 21, 2007, at 10 a.m. CST. The meeting will be held at the Acxiom River Market Building, 601 East Third Street in Little Rock, Arkansas. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. ACXIOM CORP: Earns US$10.5MM in Quarter Ending September 30 ----------------------------------------------------------- Acxiom Corporation reported financial results for the second quarter of fiscal 2008 ended Sept. 30, 2007. The company reported a net income for the second quarter of US$10.5 million, compared to net earnings of US$21.7 million in the second quarter of fiscal 2007. Revenue for the three-month period was US$351.0 million, an increase of 0.8% over US$348.3 million for the comparable prior- year period. Income from operations for the three-month period equaled US$20.4 million compared to US$41.9 million for the quarter ended Sept. 30, 2006. For the six-month period ended Sept. 30, 2007, revenue totaled US$689.2 million, an increase of 0.6% over US$685.0 million for the comparable prior-year period. Income from operations for the six-month period was US$24.5 million compared to US$78.2 million for the six months ended Sept. 30, 2006. "We are moving forward as an independent, publicly owned company," Charles D. Morgan, Acxiom's company leader and chairman of the board stated. "Despite the distraction of the recent course of events, the company posted a slight revenue increase for the quarter. In addition, we instituted an expense reduction plan during mid-September and we expect to see the benefit of the plan during the second half of the fiscal year." The company had operating cash flow of US$40.6 million and free cash flow available to equity of negative US$11.3 million. At Sept. 30, 2007, the company's balance sheet showed total assets of US$1.6 billion and total debts of US$1.0 billion, resulting in a US$580.8 million stockholders' equity. Equity on March 31, 2007, was US$521.3 million. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. BAIN CLARKSON: Appoints Joint and Several Liquidators ----------------------------------------------------- Ying Hing Chiu and Chung Miu Yin Diana has been appointed as Bain Clarkson (HK) Limited's joint and several liquidators on Oct. 22, 2007. The company's liquidators may be contacted at: Level 28, Three Pacific Place 1 Queen's Rd. East, Hong Kong BRIGHT SMOOTH: Shareholders Voluntarily Wind-Up Business -------------------------------------------------------- Shareholders of Bright Smooth Development Ltd. have decided to voluntarily wind up the company and appointed Pang Wai Kui as liquidator. The liquidator may be reached at: Suite A, 12.F Ritz Plaza 122 Austin Rd., Tsimshatsui, Kowloon, Hong Kong CDS RETAIL: Final Meeting of Creditors & Members Set on Nov. 30 --------------------------------------------------------------- The final meeting of the members and creditors of CDS Retail Logistics Company Ltd. will be held on November 30, 2007, at 11:00 a.m. The liquidator can be reached at: Victor Chiu Club Lusitano Building, 8th Floor 16 Ice House Street, Central, Hong Kong CENTRAL UNITY: Final Meeting Slated on Nov. 26 ---------------------------------------------- The final general meeting among members of Central Unity International Limited will be held on Nov. 26, 2007, at 10:00 a.m. The company's liquidator, Hung See Mei Elena, will give a report on the company's wind-up proceedings and property disposal. At an extraordinary general meeting held on May 2, 2007, the members of the company agreed to shut down its business. The Liquidator can be reached at: Hung See Mei, Elina Shui On Centre, Room 2411 6 Harbour Road Hong Kong CHALLENGE POINT: Members Opt to Wind Up Business ------------------------------------------------ At an extraordinary general meeting held on Oct. 22, 2007, members of Challenge Point Limited approved the voluntary wind up of the company. Mr. Cheng Alexander Chiu Wang was appointed liquidator. Mr. Cheng may be reached at: Room 810, Argyle Centre 688 Nathan Rd. Kowloon Hong Kong CHINA EASTERN AIRLINES: Books 9-Month Net Profit of CNY1.03BB -------------------------------------------------------------- China Eastern Airlines Corp Ltd (SHA 600115; HK 0670; NYSE CEA), booked a net profit of CNY1.03 billion in the first nine months of 2007, turning around from a loss of CNY843.7 million a year earlier, Trading Markets relates. According to the report, the carrier's stock was sharply higher after it booked the net profit. The stock rose CNY1.34 or by the 10% daily trading limit to CNY14.75. In the third quarter, the company posted operating revenue of CNY12.5 billion, against CNY10.8 billion a year earlier, and a net profit of CNY976.5 million, well up on the year-earlier CNY491.5 million, Trading Markets says. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. FINE HORSE: Creditors to Meet on Nov. 16 ---------------------------------------- The creditors of Fine Horse Co Ltd will convene on Nov. 16, 2007, at the 6th Floor of Sunning Plaza, 10 Hyan Ave., in Causeway Bay, Hong Kong. Alison Wong Lee Fung Ying and Alan CW Tang, joint and several liquidators of the company, may be reached at: Grant Thornton Specialist Services Limited Gloucester Tower, 13th Floor The Landmark, 15 Queen’s Road Central, Hong Kong GLOBAL POWER: Court Approves Disclosure Statement ------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved Global Power Equipment Group Inc.'s Disclosure Statement, authorizing the company to begin soliciting votes from its creditors and shareholders on its amended Chapter 11 Plan of Reorganization. Pursuant to a Plan Support Agreement approved by the Bankruptcy Court, the Plan is supported by both of the statutory committees appointed to represent creditors and stockholders in the chapter 11 cases and by holders the company's senior subordinated notes. As reported in the Troubled Company Reporter on Sept. 14, 2007, Global Power's plan includes a rights offering available to existing equity holders for the issuance of new common stock of the reorganized company backstopped in an amount up to US$90 million by a group of existing equity holders. The timeline approved by the Court establishes Nov. 6, 2007, as the record date for voting on the Plan and participating in the rights offering. "Since entering into the plan settlement outline in August with the committees and the noteholders, the company and representatives of the major constituencies in these cases have worked hard to finalize the various components of the Plan, which the company believes maximizes the recovery of all stakeholders," John Matheson, President and Chief Executive Officer of Global Power, said. "With the Disclosure Statement approved and a confirmation hearing scheduled, we now have a clear timeline for a successful emergence from chapter 11. The company will emerge from chapter 11 with a strong balance sheet and capital structure that will ensure continued excellent service and support for our customers." 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 ofUS$177,758,000 and total debts ofUS$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. GLOBAL POWER: Plan Confirmation Hearing Scheduled on December 20 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set a hearing on Dec 20, 2007, to consider confirmation of the Amended Chapter 11 Plan of Reorganization filed Global Power Equipment Group Inc. 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 ofUS$177,758,000 and total debts ofUS$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. GTI FINANCIAL: Appoints Timothy Lau as Liquidator ------------------------------------------------- GTI Financial Information Limited has appointed Lau Cheuk Man Timothy as its liquidator in a resolution passed Oct. 16, 2007. Mr. Lau can be reached at: Unit 9, 17/F CitiCorp Centre, 18 Whitfield Road Causeway Bay, Hong Kong HONG GIAP: Final Meeting Set on Nov. 27 --------------------------------------- Hong Giap Investment (China) Ltd. will hold its final meeting on Nov. 27, 2007, at 10:00 a.m. The company's liquidator, Ng Kin Yung Tony, will give a report on the company's wind-up proceedings and property disposal. The liquidators can be reached at: Allied Kajima Building, 7th Floor 138 Gloucester Road Hong Kong KONFULL LTD: Final Meeting Scheduled on Nov. 30 ----------------------------------------------- Konfull Ltd. will hold its final general meeting on Nov. 30, 2007, at 10:00 a.m. At the meeting, the company's liquidators, Wong Tak Man Stephen and Wong Poh Weng, will give a report on the company's wind-up proceedings and property disposal. The members of Konfull Limited resolved to voluntarily liquidate the company's business at an extraordinary general meeting held on Sept. 18, 2007. The liquidator can be reached at: Ng Kin Yung, Tony 805 Capitol Centre 5-19 Jardine's Bazaar Causeway Bay Hong Kong LDI (HONG KONG): Appoints Liquidators ------------------------------------- LDI (Honh Kong) Limited has appointed Chiu Wai Hon and Lau Wai Ming as joint and several liquidators of the company. The liquidators can be reached at: Rooms 603-4, 6/F Hang Seng Wanchai Building 200 Hennessy Rd. Wanchai, Hong Kong LOULAN HOLDINGS: Dec. 31 Balance Sheet Upside-down By CNY30.64MM ---------------------------------------------------------------- Loulan Holdings Limited reported a CNY12.82 million net loss for the year ended Dec. 31, 2006, the company said in a belated filing with the Hong Kong Stock Exchange. For the year in review, the group recorded a turnover of approximately CNY7.62 million, much lower than the CNY12.38 million reached in 2005 due to the closure of its wine distribution business. The sales of self-manufactured wine also decreased due to lack of financial resources. As of Dec. 31, 2006, the group had total assets amounting CNY47.72 million, current liabilities of CNY61.25 million, and non-current liabilities of CNY0.80 million, resulting in a capital deficiency of CNY30.64 million. Loulan Holdings Limited and its subsidiaries are principally engaged in the production, sales and distribution of alcoholic drinks, principally wines under the Company's own brand name, Loulan. The Company operates in two main segments: selling of self-manufactured wines and distribution of wine products. Loulan Holdings Limited's subsidiaries include Powerful Kingdom Inc. (wholly owned), Xinjiang Loulan Wine Co., Ltd (90% owned), Crownhead Limited (wholly owned), Vision Spirit Investment Limited (wholly owned) and Shanghai Shen Hong (wholly owned). The Company operates in Hong Kong and Mainland China. MEGA SUNNY: Final Meeting Slated on Nov. 27 ------------------------------------------- A final general meeting among the members of Mega Sunny Limited will be held on Nov. 27, 2007, at 10:00 a.m. The sole shareholder of Mega Sunny Limited passed a resolution to voluntarily wind up the company's operations and appointed Poon Ka Lee, Barry, as liquidator on July 13, 2007. The liquidator can be reached at: Poon Ka Lee, Barry 1607, ING Tower 308 Des Voeux Road, Central Hong Kong PACE MICRO: Final Meeting Slated on Nov. 28 ------------------------------------------- A final general meeting among members of Pace Micro Technology (Asia Pacific) Limited will be held on Nov. 28, 2007, at 3:00 p.m. At the meeting, the company's liquidators, Alan CW Tang and Wong Kwok Man, will give a report on the company's wind-up proceedings and property disposal. To recall, the members of the company agreed to shut down its business during an extraordinary general meeting on May 2, 2007. The Liquidator can be reached at: Grant Thornton Certified Public Accountants 13/F, Gloucester Tower The Landmark 15 Queen's Road, Central Hong Kong PALADIN LIMITED: Deloitte Touche Raises Going Concern Doubt ----------------------------------------------------------- Deloitte Touche Tohmatsu, after auditing Paladin Limited's financial statements for the year ended June 30, 2007, raised material uncertainty regarding the company's and its subsidiaries' ability to continue as a going concern. Deloitte Touche notes that the Group had net liabilities of approximately HK$48,734,000 as at June 30, 2007, and relates that the Group is dependent upon the financial support of its bankers and other lenders. The company recorded a loss for the year ended June 30, 2007 of HK$109,059,000, compared to the HK$39,770,000 loss it reported for the year ended June 30, 2006. As of end-June 2007, the group's consolidated balance sheet showed total assets of HK$1,308,991,000, and total liabilities of HK$1,357,725,000. As of June 30, 2007, the group recorded a capital deficiency of HK$48.73 million. The Group's outstanding liabilities comprise of: (i) secured bank loans of approximately HK$926 million, (ii) other loans and amounts due to directors of subsidiaries of approximately HK$184 million and (iii) other payables of approximately HK$248 million. Annual General Meeting On December 18 The group, in a separate corporate disclosure, announced that its annual general meeting, excluding holders of the convertible redeemable preference shares of the company, will be held on Dec. 18, 2007, at 11:00 a.m. The meeting's agenda include: * the approval of the financial statements and the reports of the directors and auditors for the year ended June 30, 2007; * the re-election of directors; * the fixing of the directors’ remuneration; and * the appointment of Deloitte Touche Tohmatsu as auditors for the ensuing year and to authorise the directors to fix their remuneration. Holders of the company's convertible redeemable preference share will meet on Dec. 18, 2007 at 11:00 a.m. Headquartered in Wanchai, Hong Kong, Paladin Limited -- which was incorporated in Bermuda -- is an investment holding company. The activities of its principal subsidiaries are investment holding, property development and investment, and general trading. The principal activities of the Group are re- development of a property project at Nos. 8, 10 and 12 Peak Road (the Peak Road Project) and trading of textiles. The Peak Road Project located at Nos. 8, 10 and 12 Peak Road, Hong Kong consists of 34 apartment units and a 3-story private house and the gross floor area is approximately 119,000 square feet. The Group commenced the pre-sale of the Peak Road Project in November 2004 and has sold 10 apartment units in previous years. PALADIN LIMITED: Plans to Raise HK198 Million in Open Offer ----------------------------------------------------------- Paladin Limited will make an open offer of 396,203,711 convertible redeemable preference shares, subsequent to the balance sheet date, at the subscription price of HK$0.50 per convertible redeemable preference share starting on November 14, 2007, the company said in a corporate disclosure. The company, in its annual report, said that the approximately HK$198.00 million raised from the open offer will be spent in the development and establishment of a high technology manufacturing facility in Wuhan East Lake High-Technology Development Zone in the next twelve months and paying off its financial obligations. Headquartered in Wanchai, Hong Kong, Paladin Limited -- which was incorporated in Bermuda -- is an investment holding company. The activities of its principal subsidiaries are investment holding, property development and investment, and general trading. Going Concern Doubt Deloitte Touche Tohmatsu, after auditing Paladin Limited's financial statements for the year ended June 30, 2007, raised material uncertainty regarding the company's and its subsidiaries' ability to continue as a going concern. Deloitte Touche notes that the Group had net liabilities of approximately HK$48,734,000 as at June 30, 2007, and relates that the Group is dependent upon the financial support of its bankers and other lenders. SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007 ----------------------------------------------------------- Sanmina-SCI Corporation has revenue of US$2.5 billion, compared to US$2.5 billion in the third quarter ended June 30, 2007 and US$2.7 billion in the fourth quarter ended Sept. 30, 2006. Revenue for the year ended Sept. 29, 2007 was US$10.4 billion, compared to US$11.0 billion in the prior year. Non-GAAP Financial Results for the Quarter and Fiscal Year Net income for the fourth quarter 2007 was US$10.2 million, US$0.02 diluted earnings per share, compared to a net loss of US$22.8 million, a diluted loss per share of US$0.04 for the third quarter ended June 30, 2007, and net loss of US$2.1 million, breakeven diluted earnings per share for the fourth quarter 2006. Net income for fiscal year 2007 was US$22.8 million, US$0.04 diluted earnings per share, compared to US$102.4 million, US$0.19 diluted earnings per share in the prior year. Gross profit was US$134.1 million or 5.4 percent of revenue, a 60 basis point improvement from the prior quarter of US$120.3 million, or 4.8 percent of revenue, and up from US$131.0 million, or 4.8 percent of revenue in the same period a year ago. Operating income for the quarter was US$42.8 million, up from US$29.1 million in the prior quarter and up from US$32.1 million for the same period last year. Fiscal 2007 operating income was US$182.6 million, compared to US$243.7 million in fiscal 2006 (see Non-GAAP Financial Information). GAAP Financial Results for the Quarter and Fiscal Year Fourth quarter GAAP earnings were primarily impacted by a non- cash impairment charge for goodwill of US$1.1 billion. As a result of this charge, the company reported a net loss of US$1.1 billion in the fourth quarter of fiscal 2007, compared to a net loss of US$27.6 million in the prior quarter and a net loss of US$28.1 million for the same period last year. Diluted loss per share for the quarter was US$2.10. Net loss for fiscal year 2007 was US$1.1 billion and diluted loss per share was US$2.15. This charge resulted from the company's annual goodwill impairment analysis in accordance with Statement of Financial Accounting Standards No. 142 (SFAS No. 142). Cash Flow and Balance Sheet Metrics The company continued to manage its cash flow and balance sheet metrics, making improvements throughout fiscal 2007. * Cash flow from operations was US$145 million in fourth quarter 2007, and US$511 million for fiscal 2007 * Cash and cash equivalents were US$933.4 million, up US$441.6 million from Q4'06 * Cash cycle days of 29 days represented a 7 day improvement from Q3'07 * Inventory decreased US$72.7 million, inventory turns improved to 8.9 in Q4'07 "I am pleased with our gross margin improvement, cash flow generation and inventory turns during the fourth quarter. We are confident that we will continue to improve our financial metrics. We are committed to driving our ROIC above our weighted cost of capital as we exit fiscal year 2008," stated Jure Sola, Chairman and Chief Executive Officer. "The basis for Sanmina-SCI's operational excellence strategy in 2008 and beyond is to focus on high-end markets that offer the greatest opportunity for success, invest in leading edge technology, and provide unparalleled end-to- end manufacturing solutions to our customers," concluded Mr. Sola. Personal and Business Computing Division Consistent with previous announcements made by the company concerning its personal and business computing business unit, the company reaffirmed its intentions of separating this business unit from its core operations either by means of a sale or other disposition of the business. This business unit includes the company's personal computing and industry standard server businesses, their related BTO/CTO operations in Mexico and Hungary and their associated logistics activities. The company expect the disposition of this business to occur over the next twelve months. Accordingly, effective with the first fiscal quarter 2008, the company expects to account for this business unit as a discontinued operation in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long- Lived Assets. First Quarter Fiscal 2008 Outlook The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Please refer to the Risk Factors reported in the company's annual and quarterly reports on file with the Securities and Exchange Commission for a description of some of the factors that could influence the company's ability to achieve the projected results. The company provides these guidance with respect to the first fiscal quarter ending Dec. 29, 2007: * Revenue is expected to be in the range of US$2.5 billion to US$2.65 billion * Non-GAAP diluted earnings per share to be between US$0.02 to US$0.04 Non-GAAP Financial Information In the commentary set forth above, we present the following non- GAAP financial measures: gross profit, gross margin, operating income, operating margin, net income and earnings per share. In computing each of these non-GAAP financial measures, we exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), integration costs (consisting of costs associated with the integration of acquired businesses into our operations), impairment charges for goodwill and intangible assets, amortization expense and other infrequent or unusual items, to the extent material or which we consider to be of a non- operational nature in the applicable period. About Sanmina-SCI Headquartered in San Jose, California, Sanmina-SCI Corporation (NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a Electronics Manufacturing Services (EMS) provider focused on delivering complete end-to-end manufacturing solutions to technology companies around the world. Service offerings include product design and engineering, test solutions, manufacturing, logistics and post-manufacturing repair/warranty services. The company has locations in Brazil, China, Ireland, Finland, Malaysia, Mexico and Singapore, among others. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2007, Standard & Poor's Ratings Services has revised its outlook on Sanmina-SCI Corp. to negative from stable, as a result of continued operating weakness and increasing leverage. The corporate credit and senior unsecured ratings are affirmed at 'B+', and the subordinated debt rating is affirmed at 'B-'. SILVERDALE INVESTMENT: Final Meeting Set on Nov. 26 --------------------------------------------------- A final general meeting among members of Silverdale Investment Limited will be held on Nov. 26, 2007, at 10:00 a.m. At the meeting, the company's liquidators, Yu Yu Kin and Cheng Kam Wa, Thomas, will give a report on the company's wind-up proceedings and property disposal. The Liquidators may be reached at Office B, 26/F., United Centre 95 Queensway, Hong Kong SOCIETE GENERALE: Enters Voluntary Wind Up ------------------------------------------ Members of Societe Generale Asia Investment Ltd. has approved the voluntary wind up of the company at an extraordinary general meeting on Oct. 15, 2007. Patrick Cowley and Paul Jeremy Brough, both of KPMG, have been appointed as joint and several liquidators. Mr. Cowley and Mr. Brough may be reached at: KPMG 8th Floor, Prince's Bldg., 10 Chater Rd. Central, Hong Kong TSUEN TUNG: Final Meeting of Creditors & Members Set for Nov. 30 ---------------------------------------------------------------- A final meeting among the members and creditors of Tsuen Tung Film and TV Service Ltd. will be held on November 30, 2007, at 12:00 noon. The company's liquidator is: Victor Chiu Club Lusitano Building, 8th Floor 16 Ice House Street Central, Hong Kong WOLSTENHOME CHINA: Appoints Liquidators --------------------------------------- Li Man Pong and Yu Kam Ming were appointed joint and several liquidators of Wolstenholme China Ltd. The Liquidators may be reached at: Units 3802-04, 38/F Cosco Tower 181 Queen's Road Central Hong Kong YAN WING: Voluntarily Winds Up Business --------------------------------------- Yan Wing Fibre and Accessory Co. Ltd.'s members has approved the voluntary winding up of the company and has appointed Cheung Kwok Sun as liquidator. Mr. Cheung may be reached at: 21/F Fee Tat Commercial Centre No. 613 Nathan Rd. Kowloon, Hong Kong * Bad Loan Ratio for Chinese Banks Drops to 6.2% ------------------------------------------------ The combined bad-loan ratio at China's state-owned banks, joint- stock banks, city and rural lenders, and foreign banks dropped to 6.2% as of Sept. 30, 2007, from 7.1% at the end of 2006, Bloomberg News reports, citing a statement from the China Banking Regulatory Commission. Bloomberg relates that total bad loans amounted to CNY1.25 trillion. Bloomberg says that the reduction was due to improvements in risk management and the implementation of stricter lending rules in China. Bloomberg explains that banks including Industrial & Commercial Bank of China Ltd. have trimmed non-performing loans after improving oversight and as the fastest economic growth in a decade reduced defaults. The report further explains that the Chinese government, after spending almost US$500 billion bailing out banks after decades of state-directed lending went awry, aims to cut the bad-loan ratio to below 5%. The report details that China's five biggest state-owned lenders had CNY1.08 trillion of bad loans by the end of the third quarter, representing 7.8% of total advances, while China Merchants Bank Co., China Citic Bank Co. and 10 other mid-sized national banks had combined non-performing loans of CNY94.4 billion, or 2.4% of the total. Bad loans at city commercial banks dropped 1.1 percentage points to 3.7%, while those at foreign banks dropped 0.3 percentage point to 0.5%, the report continues. ========= I N D I A ========= AES CORP: Seeking Regulators' Approval on 2 Gas Projects -------------------------------------------------------- The Baltimore Sun reports that the AES Corporation is seeking the US Federal Energy Regulatory Commission's authorization for the construction of a liquefied natural gas terminal at the Sparrows Point shipyard and an 88-mile pipeline into Pennsylvania. According to The Sun, the National Association of State Fire Marshals and federal regulators heeded a request from some Turners Station residents to consider the approval for liquefied natural gas projects. The Fire Marshals and regulators will meet in Washington about the approval process. O'Rourke of the National Association of State Fire Marshals told The Sun, "Some folks who, to date, haven't been involved -- who missed those initial hearings -- wanted to learn about the LNG [liquefied natural gas] approval process." The Sun relates that many community leaders and officials have been opposing the project. The terminal would be a potential hazard to nearby homes in Dundalk, especially to those in Turners Station, The Sun says, citing sources. Federal officials had notified AES that the State Highway Administration would not grant the company access to construct its pipeline along the Baltimore Beltway. They asked the firm to present a new route for the pipeline, The Sun states. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. BANK OF BARODA: Profit Up 13.47% to INR2.88 Bil. in 2nd Quarter --------------------------------------------------------------- Bank of Baroda booked a net profit of INR3.27 billion in the quarter ended Sept. 30, 2007, up 13.47% from the INR2.88 billion earned in the corresponding quarter last year. Total income rose 32.95% to INR33.34 billion, most of which is from interest earned on advances that aggregated INR20.52 billion. The bank's expenditures for the July-Sept. 2007 period totaled INR26.97 billion, which include interest expense of INR18.98 billion and operating expenses of INR7.98 billion. A copy of the bank's unaudited financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?24b1 Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * As reported by the Troubled Company Reporter-Asia Pacific on July 11, 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due in 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: US$250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. Fitch said the outlook on all ratings is stable. DRESSER-RAND GROUP: Earns US$21.3 Mil. for Quarter to Sept. 30 -------------------------------------------------------------- Dresser-Rand Group Inc. has reported net income of US$21.3 million, or US$0.25 per diluted share, for the third quarter 2007. This compares to a net income of US$22.9 million, or US$0.27 per diluted share, for the third quarter 2006. Vincent R. Volpe, Jr., President and Chief Executive Officer of Dresser-Rand, said, "Consistent with the information contained in our Oct. 3, 2007 news release, there are two items which affected our third quarter 2007 results. Costs and margin related to deferred sales associated with the work stoppage at our Painted Post facility were approximately US$20 million, which was higher than the originally anticipated range of US$12 to US$18 million. As we continue to hire permanent replacement workers and extend subcontracting, the associated financial impact of the strike will continue to be reduced and we believe will not be of a material nature in 2008." "Additionally, we expected a stronger recovery in aftermarket bookings and shipments than experienced. This shortfall is principally due to a delay attributable to changes in the procurement and budgeting processes of certain national oil company clients. The impact of this shortfall on bookings in the first nine months of 2007, which we believe was one of timing rather than lost market share, was approximately US$43 million compared to the corresponding nine month period in 2006. Excluding the specific national oil companies involved, the rest of the aftermarket bookings have grown from US$531.5 million in 2006 to US$574.4 million in 2007 or 8.1%. We do see signs of recovery with one national oil company with which we are presently negotiating a three year blanket purchase agreement initially valued at approximately US$50 million in aftermarket parts and services. This agreement would essentially pre- approve the operating budget and, thereby, shorten the approval process. We expect this agreement to be signed in the fourth quarter of this year. In light of the above, we believe that the year-to-date aftermarket sales shortfall will be at least partially recovered in the fourth quarter." Market conditions remain strong in both new unit and aftermarket business segments. In the third quarter 2007, total revenues increased 25.5%, bookings increased 2.7% and backlog grew 48.0% over the prior year period. Total revenues for the third quarter 2007 of US$389.3 million increased US$79.0 million or 25.5% compared to US$310.3 million for the third quarter 2006. Total revenues for the nine months ended Sept. 30, 2007, of US$1,144.9 million increased US$119.1 million or 11.6% compared to revenues of US$1,025.8 million for the corresponding period in 2006. Operating income for the third quarter 2007 was US$36.4 million. This compares to operating income of US$48.4 million for the third quarter 2006. Third quarter 2007 operating income decreased from the year ago quarter primarily due to the adverse impact of a work stoppage at the company's Painted Post facility in New York State. The company estimates the work stoppage reduced its operating income for the third quarter 2007 by approximately US$20 million, which includes approximately US$10 million higher costs principally for temporary workers and US$10 million for margin related to deferred sales. Operating income for the nine months ended Sept. 30, 2007, was US$119.4 million. This compares to operating income of US$105.8 million for the corresponding period in 2006. Operating income increased from the year ago nine-month period primarily due to higher sales which was partially offset by the work stoppage at the Painted Post facility. Bookings for the third quarter 2007 were US$496.2 million, which was US$12.9 million or 2.7% higher than the third quarter 2006. Bookings for the nine and twelve months ended Sept. 30, 2007, of US$1,581.0 million and US$2,137.2 million, respectively, were 23.3% and 26.2% higher than the bookings for the corresponding periods ended Sept. 30, 2006. The backlog at the end of September 2007, was US$1,750.8 million or 48.0% higher than the backlog at the end of September 2006 of US$1,183.0 million. New Units Segment New unit revenues for the third quarter 2007 of US$194.0 million compared to US$113.7 for the third quarter 2006. New unit revenues for the nine months ended Sept. 30, 2007, of US$540.6 million compared to US$501.0 million for the corresponding period in 2006. Overall demand for rotating equipment remains strong in all key markets. New unit operating income was US$12.0 million for the third quarter 2007 compared to operating income of US$11.4 million for the third quarter 2006. This segment's operating margin was 6.2% compared to 10.0% for the third quarter 2006. The decrease in this segment's operating results was primarily attributable to the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's third quarter 2007 operating income by approximately US$8 to US$9 million and its operating margin by approximately 300 to 350 basis points. New unit operating income was US$34.0 million for the nine months ended Sept. 30, 2007, compared to operating income of US$24.7 million for the corresponding period in 2006. This segment's operating margin for the nine months ended Sept. 30, 2007, was 6.3% compared to 4.9% for the corresponding nine month period in 2006. The increases from the corresponding periods in 2006 were attributable to higher sales partially offset by the the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's operating margin by approximately 100 to 150 basis points for the nine months ended Sept. 30, 2007. Bookings for the three months ended Sept. 30, 2007, of US$285.1 million were 2.8% higher than bookings for the corresponding period in 2006. New unit bookings included a US$33.5 million order for four reciprocating compressors, two centrifugal compressors, and two steam turbines for Valero's refinery expansion projects. Bookings for the nine and twelve months ended Sept. 30, 2007, of US$973.0 million and US$1,300.4 million, respectively, were 44.2% and 46.4% higher than the bookings for the corresponding periods ended Sept. 30, 2006. The backlog at Sept. 30, 2007, of US$1,456.7 million was 61.8% above the US$900.3 million backlog at Sept. 30, 2006. This increase was due to continuing strong worldwide demand for rotating equipment. Aftermarket Parts and Services Segment Aftermarket parts and services revenues for the third quarter 2007 of US$195.3 million compared to US$196.6 for the third quarter 2006. Aftermarket parts and services revenues for the nine months ended Sept. 30, 2007, of US$604.3 million compared to US$524.8 for the corresponding period in 2006. While the market overall continues to be strong, revenues in 2007 have been affected adversely, but the company believes temporarily, by changes in the procurement process and a delay in budget appropriations for certain of the company's national oil company clients. Aftermarket operating income for the third quarter 2007 of US$43.1 million compared to US$51.9 million for the third quarter 2006. This segment's operating margin for the third quarter of 2007 of approximately 22.1% compared to 26.4% for the third quarter 2006. The decrease in this segment's operating results was principally due to the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's third quarter 2007 operating income by approximately US$11 to 12 million and its operating margin by approximately 400 to 450 basis points. Aftermarket operating income for the nine months ended Sept. 30, 2007, of US$143.2 million compared to US$131.8 million for the corresponding period in 2006. The increase in operating income from the corresponding nine-month period in 2006 was attributable to higher sales for parts and services partially offset by the adverse impact of the work stoppage at the Painted Post facility. This segment's operating margin of approximately 23.7% compared to 25.1% for the corresponding period in 2006. The company estimates the work stoppage reduced this segment's operating margin by approximately 100 to 150 basis points for the nine months ended Sept. 30, 2007. Bookings for the three months ended Sept. 30, 2007, of US$211.1 million were 2.5% above bookings for the corresponding period in 2006 of US$206.0 million. Bookings for the nine and twelve months ended Sept. 30, 2007 of US$608.0 million and US$836.8 million, respectively, compared to bookings of US$607.8 million and US$804.4 million, respectively, for the corresponding periods ended Sept. 30, 2006. Bookings have been affected adversely, but the company believes temporarily, by changes in the procurement process and a delay in budget appropriations for certain of the company's national oil company clients. The backlog at Sept. 30, 2007, of US$294.1 million compared to the backlog of US$282.7 million at Sept. 30, 2006. Liquidity and Capital Resources As of Sept. 30, 2007, cash and cash equivalents totaled US$184.0 million and borrowing availability under the company's US$500 million senior secured credit facility was US$306.6 million, as US$193.4 million was used for outstanding letters of credit. In the first nine months of 2007, cash provided by operating activities was US$187.7 million compared to US$92.1 million for the corresponding period in 2006. The increase of US$95.6 million in net cash provided by operating activities was principally from changes in working capital and improved operating performance. In the first nine months of 2007, capital expenditures totaled US$15.0 million and the company prepaid US$137.1 million of its outstanding indebtedness under its senior secured credit facility. As of Sept. 30, 2007, total debt was US$370.0 million and total debt net of cash and cash equivalents was approximately US$186.0 million. In August 2007, the company amended its senior secured credit facility. The amended credit facility is a five year, US$500 million revolving credit facility. The amendment increased the size of the facility by US$150 million, lowered borrowing costs 50 basis points to LIBOR plus 150 basis points at present leverage and extended the maturity date from Oct. 29, 2009, to Aug. 30, 2012. The amendment also reduced the commitment fee from 37.5 basis points to 30.0 basis points. Painted Post Labor Agreement The labor agreement covering approximately 400 represented employees at the company's Painted Post facility in New York expired Aug. 3, 2007. There was no agreement reached resulting in a continuing work stoppage. The company implemented a multiphase contingency plan that has been designed to allow for uninterrupted service to its clients. The company estimates the work stoppage reduced its operating income for three and nine months ended Sept. 30, 2007, by approximately US$20 million, which includes approximately US$10 million in higher costs, principally for temporary workers, and US$10 million for margin related to deferred sales. While the work stoppage has resulted in higher costs and deferred sales, the company maintains its commitment to the long-term improvement of its operations and believes any short-term adverse impacts to its business are worth incurring for whatever period necessary to meet its long- term objectives. Contingency plan update: 1. Approximately 180 temporary replacement workers have been contracted since the first week of the work stoppage. Temporary workers will be reduced as the company continues recruiting permanent replacement workers and extends subcontracting. 2. The company has begun the process of operating with a permanent workforce in Painted Post, which currently stands at 75 employees. This total includes both recently hired permanent workers and bargaining unit employees who have chosen to return to work. 3. Additionally, another twenty-five applicants have been offered employment and are expected to begin training in early November, bringing the total in-plant permanent workforce to approximately 100. 4. Subcontracting has grown to approximately 35% of Painted Post's labor hours and will continue, replacing the work of approximately 150 people by year-end 2007. 5. Quality products continue to be shipped starting with the second week of the work stoppage. 6. Production capacity will continue to ramp-up due to the above planned actions. Outlook Demand for rotating equipment and aftermarket parts and services continues to be strong but aftermarket bookings and revenues continue to be adversely, but the company believes temporarily, impacted by changes in the procurement process approval cycle and a delay in the budget appropriations for certain of its national oil company clients. The backlog of orders has continued to increase to record levels. At Sept. 30, 2007, 72.4% of the backlog of US$1,750.8 million is scheduled to ship in 2008 and beyond. The company believes that its 2007 operating income will be in the range of US$205 million to US$225 million, including a potential FAS 106 non-cash curtailment gain related to the work stoppage of approximately US$8 million to US$12 million. About Dresser-Rand Group Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF ----------------------------------------------------------- Dresser-Rand Group Inc. has signed an alliance agreement with Repsol YPF. The agreement covers sales of all Dresser-Rand products and services. Dresser-Rand estimates the value of the alliance agreement to be approximately US$100 million for products and services over the next two years. One steam turbine project for the Tarragona (Spain) refinery valued at approximately US$13 million was secured in August 2007. Subsequently, in the month of October, two projects for the Petronor Refinery (Bilbao, Spain) have been awarded with a total value of approximately US$20 million. Dresser-Rand will supply one process reciprocating compressor, one DATUM centrifugal compressor and associated services. "We're appreciative of the confidence that Repsol has placed in Dresser- Rand," said Vincent R. Volpe, Jr., president and Chief Executive Officer of Dresser-Rand. "As a new alliance partner, we look forward to working with Repsol to provide value- adding solutions through lowest life cycle cost for new equipment and minimal emissions. We're also pleased to supply equipment to the planned refinery expansions reflecting the continued strength of this market segment, particularly as it relates to expansion in the European market." Repsol-YPF's decision to enter into an alliance with Dresser- Rand was primarily based on the company's technical capability as well as its proposal to reduce Repsol's total cost of ownership of their assets. Repsol-YPF will be able to realize considerable saving by not utilizing an EPC contractor for the final design stages and procurement (after FEED) based on Dresser-Rand's proprietary Corporate Product Configurator and its Price Book e-tools. About Repsol YPF Repsol YPF, S.A. (IBEX: REP) is an integrated Spanish oil and gas company with operations in 29 countries, the bulk of its assets are located in Spain and Argentina. Repsol S.A. is one of the world's ten largest private oil enterprises, employing over 30,000 people worldwide. Repsol YPF operates five refineries in Spain and four in Latin America and produces chemicals, plastics, and polymers. It sells gas under the brands Campsa, Petronor, and Repsol at more than 6,900 service stations in Europe and Latin America. It is one of Spain's largest sellers of liquefied petroleum gas. About Dresser-Rand Group Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell ----------------------------------------------------------- UBS analysts have upgraded General Motors' shares to "buy" from "sell," Newratings.com reports. According to Newratings.com, the one-year target price for General Motors' shares was increased to US$48 from US$24. The analysts said in a research note that under the United Auto Workers contract, General Motors' Tier 2 employees would earn almost 50% less than the Tier 1 workers, while new core employees would get total compensation in-line with that at Toyota. The analysts told Newratings.com that this year's contract decreased "the number of skilled jobs, which would encourage senior workers to accept buyouts." General Motors would be "transformed" by 2010. The contract accounts for US$3-billion potential cost savings, Newratings.com notes, citing UBS. This year's earnings per share estimate was decreased to US$2.75 from US$4.00, Newratings.com states. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P says the outlook is stable. ITI LTD: Posts INR1.24-Bil. Loss in Quarter Ended September 30 -------------------------------------------------------------- The unaudited financial results of ITI Ltd for the second quarter ended Sept. 30, 2007, showed a net loss of INR1.24 billion, a bit of an improvement from the INR1.46-billion loss booked in the same quarter last year. Total income jumped by 49% to INR3.2 billion with net sales aggregating INR3.21 million. Operating expenses for the quarter under review totaled INR3.83 million, bringing the company an operating loss of INR505.8 million. The company also recorded interest expenses of INR637.7 million, depreciation of INR95.4 million and INR1.2 million in taxes. A copy of ITI Ltd's unaudited financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?24b5 ITI Limited -- http://www.itiltd-india.com/default.htm-- is a telecom company, which manufactures a range of telecom equipment, including switching products; transmission systems, such as satellite communication systems, optical line terminating equipments and digital microwave systems; access products, such as fixed wireless local loop systems and digital local loop carriers; terminal equipment, such as telephones, integrated services digital network products and video conferencing systems; microelectronic products and software; information technology products and telecom products for the defense sector, and other products, including solar power systems and bank mechanizing products. It also provides value- added services, such as shared hub very-small aperture terminal services, and public mobile radio trunked services and turnkey solutions. Its customers include The Department of Telecommunications, defense, railways, oil sector and corporates in India, and certain African and South Asian nations. * * * As reported in the Troubled Company Reporter-Asia Pacific on Apr. 23, 2007, Credit Analysis & Research Ltd. revised the rating assigned to the 'L' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structured Obligation)] from CARE AAA (SO) [Triple A (Structured Obligation))] with Credit Watch. The rating revision took into account the delay in the interest payment of the above said bond issue. The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned final National ratings of 'D(ind)(SO)' to ITI's INR550 million 'J-1' Series long-term bonds. ITI has incurred losses for at least two consecutive years -- INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The company is a sick company as per provisions of India's Sick Industrial Companies Act 1985. KINETIC ENGINEERING: To Increase Capital to INR63,40,00,000 ----------------------------------------------------------- Kinetic Engineering Ltd's members will hold their extraordinary general meeting on Nov. 6, 2007, to consider, among others, the increase in the company's authorized share capital to INR63,40,00,000 from the current INR50,00,00,000. Specifically, Kinetic Engineering proposes to create 8,57,400 optionally convertible cumulative preference shares of INR156 each and 24,560 unclassified shares of INR10 each to increase the company's capital from INR50,00,00,000 divided into: -- 1,93,60,200 shares of INR10 each; -- 1,50,00,000 redeemable non-convertible non-cumulative preference shares of INR10 each; -- 6,50,000 optionally convertible cumulative preference shares of INR156 each; -- 3,20,500 redeemable cumulative preference shares of INR 156 each; and -- 5,00,000 unclassified shares of INR10 each; to INR63,40,00,000 divided into: -- 1,93,60,200 shares of INR10 each; -- 1,50,00,000 redeemable non-convertible non-cumulative preference shares of INR10 each; -- 15,07,400 optionally convertible cumulative preference shares of INR156 each; -- 3,20,500 redeemable cumulative preference shares of INR156 each; and -- 5,24,560 unclassified shares of INR10 The members will also consider approving the: a. allotment, by preferential basis, to Micro Age Instruments Pvt Ltd 8,65,384 optionally convertible cumulative preference shares of INR156 each, fully paid-up, convertible in full into maximum of 8,65,384 fully paid-up equity shares of the face value of INR10 each at a price of INR156 per share; b. company's borrowing from time to time of money that may exceed the aggregate of its paid-up capital and its free reserves provided that the total amount so borrowed will not exceed INR300 crore; and c. the issuance, on preferential basis, to Reliance Capital Ltd of 1,50,00,00 redeemable non-convertible non- cumulative preference shares of INR10 each, fully paid at par, for the redemption of 1,50,00,000 redeemable non- convertible non-cumulative preference shares of INR10 each, fully paid-up, issued earlier by the company to RCL. India-based Kinetic Engineering Ltd. -- http://www.kineticindia.com/-- is an automobile manufacturer, which specializes in two wheelers. The company has sold over 6 million vehicles in India. Kinetic has brought to India technologies, such as four valve engines, electric start on scooters and motorcycles, v-twin engines and upside down (USD) forks. The company offers top-end bikes, such as Comet and Aquila. It has a nationwide network of nearly 450 dealers and over 1,000 service centers. Kinetic exports vehicles to the United States, Canada, Latin America, Europe, Africa, Middle East and South Asia. For the 15 months ended Dec. 30, 2006, the company booked a net loss of INR432.9 million. For the period Apr. 1, 2004, to Sept. 30, 2005, the company incurred a net loss of INR549.6 million. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm --------------------------------------------------------------- Dresdner Kleinwort analyst Per Lindberg has kept his "buy" rating on Alcatel-Lucent's shares, Newratings.com reports. According to Newratings.com, the target price for Alcatel- Lucent's shares was set at EUR8. Mr. Lindberg said in a research note that Alcatel-Lucent sold its 12.3% equity stake in Avanex for EUR33 million to Pirelli. The sale shows Alcatel-Lucent's commitment to building up a cash reserve to fund additional restructuring requirements, Newratings.com states, citing Mr. Lindberg. About Alcatel-Lucent 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. ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched. ------------------------------------------------------------- The long-term, US$277 million agreement announced in November of 2006 between Alcatel-Lucent and the University of Pittsburgh Medical Center is progressing on schedule, as Alcatel-Lucent hits key milestones. UPMC's data center expansion projects are well underway; the optical and IP/MPLS metro backbone will be carrying live applications at the beginning of December; and the North American headquarters project for U.S. Steel Tower has been launched. In addition to moving forward within the scope of the original contract, Alcatel-Lucent, in conjunction with its new value-added reseller Johnson Controls, has been awarded an additional US$11.8 million contract for a voice and data wireless infrastructure project at the new Lawrenceville campus for Children's Hospital of Pittsburgh of UPMC. "A complete transformation of voice, data and video networking on wired, wireless and optical infrastructures is a significant undertaking," commented Mark Gilbert, industry analyst. "A transformation of this type can demonstrate the real impact communications can have in the advancement of health care delivery." In preparation for significant growth, two UPMC data centers have been enlarged by over 3,000 square feet. Alcatel-Lucent is currently working with clinical and data center administrative system managers to design a multiple campus WLAN for mobile users, and with a variety of third party manufacturers to provide patient monitoring, nursing management systems, and other critical applications. The Alcatel-Lucent optical and IP/MPLS metro backbone, on schedule for completion in December, will provide UPMC with a foundation over which health care providers, administrators, vendors and patients can communicate through various means with unparalleled security, speed, and reliability, improving both business efficiency and the quality of patient care. Work began in September on the installation of voice, video, and data infrastructure in the U.S. Steel building in Pittsburgh, PA, which will house the executive headquarters of UPMC. "With UPMC, Alcatel-Lucent is designing, installing, and implementing a communications model that merges state-of-the-art technology with a clear focus on user needs," said Hubert de Pesquidoux, President of Alcatel-Lucent's Enterprise activities. "Beyond physical infrastructure, our companies are building a relationship to develop new technologies and applications that will improve not only the healthcare industry, but patient care as well." "UPMC and Alcatel-Lucent have begun combining world class healthcare and technology expertise to deliver the innovative technologies necessary to create unbound healthcare," added Dan Drawbaugh, Chief Information Officer, UPMC. "Over the next two years, UPMC and Alcatel-Lucent will lead the way in building one of the most advanced communications networks within the healthcare industry underscoring UPMC's mission of enhanced patient care." About University of Pittsburgh Medical Center The University of Pittsburgh Medical Center (UPMC) -- http://www.upmc.com-- is the largest integrated health care enterprise in Pennsylvania and one of the leading nonprofit health systems in the country. It has appeared eight times on the prestigious U.S. News & World Report Honor Roll of "America's Best Hospitals," most recently earning 13th position in 2007. Widely recognized for its innovations in patient care, research, technology and health care management, UPMC has transformed the economic landscape in western Pennsylvania. The region's largest employer, with 45,000 employees and nearly US$7 billion in revenue, UPMC comprises 19 tertiary, specialty and community hospitals, 400 outpatient sites and doctors' offices, retirement and long-term care facilities, an insurance plan, and international ventures. Nearly 5,000 physicians are affiliated with UPMC, including more than 2,300 employed physicians. Since April 2005, UPMC has signed joint development agreements with such industry leaders as IBM, Cerner, Alcatel and dbMotion valued at more than US$175 million. UPMC and its partners aim to commercialize innovative technologies and services that will enhance the safety and efficiency of health care worldwide. About Alcatel-Lucent in Healthcare For healthcare providers and patients, Alcatel-Lucent provides a complete platform that improves the patient's customer experience and the efficiency of the provider's operations by integrating communication throughout the healthcare delivery system. Alcatel-Lucent, ensures the protection of patient data and HIPAA compliance while also improving the speed of notification and routing of critical information. Alcatel- Lucent brings together all of the key infrastructure to create an end-to-end solution that connects contact centers, wireless medical devices, patient information systems and other critical technology. About Alcatel-Lucent 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. ANEKA TAMBANG: Reports IDR3.8-Tril. Nine-Month Net Profit --------------------------------------------------------- PT Aneka Tambang Tbk's unaudited consolidated net profit for the first nine months of 2007 increased 374% to IDR3,831 billion, and Earnings per Share of IDR401.69. This is compared to IDR809 billion, and EPS of IDR84.80 of the the same period last year. The significant increase is mostly due to higher prices of nickel and gold and higher sales volumes of nickel ore and nickel contained in ferronickel. The increase was assisted by a relatively lower increase of Antam's cost of sales. Net Sales Antam's net sales for the nine months to September 30, 2007, increased 143% to IDR8,270 billion from IDR3,401 billion. The largest share of the IDR4,868 billion increase is attributed to nickel ore sales, which accounted for 57%, followed by nickel contained in ferronickel at 35% and gold at 8%. This is a larger increase than the 53% increase of net sales in 2006, attributed substantially all to nickel contained in ferronickel. The increases of Antam's other products of silver, iron sands, precious metals refinery services and other precious metals did not significantly contribute to the increase of net sales and bauxite ore sales decreased slightly. Nickel ore sales increased 241% to IDR3,939 billion due to higher prices and volumes. Nickel ore, substantially all sold as saprolite to ferronickel and stainless steel producers in Europe and North Asia, became the largest revenue earner ahead of nickel contained in ferronickel. The ore is sold in short to medium term contracts and priced in accordance with the international spot price for nickel. Antam produced 5,205,907 wet metric tonnes of saprolite and exported 5,010,268 wmt in the first nine months of 2007. The average price of saprolite increased 53% to US$85.43/wmt. Antam boosted nickel ore sales in 2007 by beginning to export saprolite nickel ore to China for the first time. Antam has traditionally sold saprolite to Japan and in