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 Tuesday, November 6, 2007, Vol. 10, No. 220 Headlines A U S T R A L I A AUTOMOTIVE CARPET: Members and Creditors to Meet on November 12 AVS OPTICS: Liquidator to Give Wind-Up Report on Nov. 9 CHRYSLER LLC: U.S. October 2007 Sales Down by 9 Percent COEUR D'ALENE: Earns US$3.6 Mil. in 3rd Quarter Ended Sept. 30 CRYSTALTEX ARCHITECTURAL: Sets Joint Meeting for Nov. 12 DECORATOR TERRACOTTA: Creditors Resolve to Liquidate Business EMPEROR MINES: FY2007 Balance Sheet Upside-Down by AU$59.56MM F.H. BAILEY: Placed Under Voluntary Liquidation FATKAT NOMINEES: Liquidator to Give Wind-Up Report on Nov. 12 FORMA INTERIORS: Declares Dividend for Ordinary Creditors FOSCON PTY: Sets Final Meeting for November 9 G.P. BURNS: Commences Liquidation Proceedings GENERAL CABLE: Freeport-McMoran Completes Phelps Dodge Biz Sale GENERAL CABLE: Earns US$61.1 Million in 2007 Third Quarter GLOBAL WINE: Deloitte Touche Tohmatsu Raises Going Concern Doubt GLOBAL WINE: Sets Annual General Meeting on Nov. 29 KENDLE INT'L: Earns US$3.8 Million for Third Quarter 2007 NATIONAL MOBILE: Commences Liquidation Proceedings NEWTEC PTY: Sets Joint Meeting for November 12 OPSBEO PTY: Members to Receive Wind-Up Report on Nov. 9 OPSVP PTY: Members to Hold Meeting on November 9 P & R EVENTS: Placed Under Voluntary Liquidation PEABODY ENERGY: UBS Maintains Buy Rating on Firm's Shares SCO GROUP: Seeks Court OK to Hire Mesirow as Financial Advisor PERRETT & ASSOCIATES: Members Resolve to Liquidate Business SCO GROUP: U.S. Trustee Balks at Retention of Mesirow as Advisor SUN CONTROL: Members Agree on Voluntary Liquidation TECH DRY: Members and Creditors to Meet on November 9 TH OPTICAL: Members' Meeting Set for November 9 TOORAK RD: To Declare Dividend on November 16 TRICOM NETWORK: Liquidator to Give Wind-Up Report on Nov. 12 WESTPOINT GROUP: Judge Favors Burnard Against Asset Preservation * ASIC Sets Stricter Debenture Rules C H I N A & H O N G K O N G BAIN CLARKSON: Chiu and Diana Quit as Liquidator BANIN COMPANY: Lawrence Steps Down as Liquidator BENQ CORP: Invests US$20 Million in BenQ Shanghai CENTRAL UNITY: Members to Hold General Meeting on November 26 CITIC SECURITIES: Reaches Strategic Tie-Up with Bear Stearns COMMUNITY HEALTH: Convenes Final Meeting on Nov. 20 EUROPEAN TRANSPORT: Lees Resigns as Liquidator GLOBAL HOME: Liquidators Leave Post KONFULL LIMITED: Members to Hold General Meeting on Nov. 30 PACE MICRO: Members to Receive Wind-Up Report on Nov. 28 STAR DRAGON: Members to Hold Final Meeting on Nov. 27 TOWNSMAN ENTERPRISES: Final Meeting Set on Nov. 28 I N D I A CA INC: Reports US$137-Mil. Net Income in Quarter Ended Sept. 30 DRESSER-RAND: UBS Maintains Neutral Rating on Firm's Shares GENERAL MOTORS: Investing US$73 Mln in Shreveport Assembly Plant GENERAL MOTORS: October 2007 Sales Increased by 3% GMAC LLC: Unit Posts US$1.6 Bil. Net Loss in Third Quarter 2007 GMAC LLC: Moody's Downgrades Senior Unsecured Rating to Ba2 GMAC LLC: Reduced Earnings Prospects Cue S&P to Hold BB+ Rating SINGER INDIA: Incurs INR5.1-Mil. Loss in Qtr. Ended Sept. 30 SOUTHERN IRON: Board Approves Amalgamation Scheme w/ JSW Steel SOUTHERN IRON: CRISIL Reaffirms Default Rating on INR280MM Debt TATA TELESERVICES: Loss Narrows to INR493.1 Mil. in Second Qtr. I N D O N E S I A ALCATEL-LUCENT SA: Forms Regional Units & Management Committee ALCATEL-LUCENT SA: Names Hubert de Pesquidoux as CFO ANIXTER INT'L: Fitch Affirms Issuer Default Rating at BB+ BAKRIE SUMATERA: Plans to Up Stake in Agri Resources to 51% FREEPORT-MCMORAN: Names Richards McMillan as Senior Vice Pres. FREEPORT-MCMORAN: Closes Phelps Dodge Biz Sale for US$735 Mil. J A P A N CREDIA CO: Moody's Lowers JPY1.3 Bil.-Worth of Notes to Ba3 FLOWSERVE CORP: Reports US$63-Mln Net Income in Third Qtr. 2007 ICONIX BRAND: Third Qtr. Net Income Climbs to US$17 Mil. in 2007 JAPAN AIRLINES: MLIT Approves Flight to Taiwan NOVA CORP: 12 Firms Apply to Restore School, Administrators Say NOVA CORP: Ex-President Counters Allegations of Wrongdoing TENNECO INC: Commences US$230MM Tender Offer for 10-1/4% Notes TENNECO INC: Fitch Rates New Senior Unsecured Notes at BB- TENNECO INC: S&P Rates Proposed US$250 Mil. Senior Notes at B+ * Stable Rating Outlook for Japanese Life Insurers, Moody's Says * Regional Bailout Body to be Capitalized At JPY20-30 Billion K O R E A DYNCORP INT'L: Earns US$13.9 Mil. in Second Qtr. Ended Sept. 28 KOREA EXPRESS: To Invite Bidders for Stake Sale This Month REMY WORLDWIDE: Taps Greenberg Traurig as Special Counsel REMY WORLDWIDE: Wants to Hire Ernst & Young as Accountant SEJI CO: Books KRW2.10-Trillion Net Loss in First Half of 2007 SEJI CO: Resets Private Placement of Common Shares to Dec. 17 SEJI CO: Signs Three Separate Contracts Since October M A L A Y S I A MYCOM BHD: Enters Into Joint Venture Agreement w/ Various Firms N E W Z E A L A N D ALFA HOMES: Appoints Parsons and Kenealy as Liquidators CHAPMAN ENTERPRISES: Creditors' Proofs of Debt Due on Jan. 4 COCKAYNE ROAD: Appoints Parsons and Kenealy as Liquidators COLLECTIVE PROPERTIES: Taps R. Simpson as Liquidator COURTHOUSE NUMBER 14: Wind-Up Petition Hearing Set for Nov. 22 EASTERN TECHNOLOGIES: Fixes Nov. 7 as Last Day to File Claims EELES HOLDINGS: Commences Liquidation Proceedings FIRST DATA: Completes Check Forte Acquisition GENEVA FINANCE: Proposed Moratorium Gets Overwhelming Approval GENEVA FINANCE: S&P Raises Long-Term Counterparty Rating to 'CC' HULA HAKA PRODUCTIONS: Creditors Receive Wind-Up Report LIKE MAGIC: Taps Parsons and Kenealy as Liquidators MR COMPUTER: Taps Parsons and Kenealy as Liquidators NU-WAY PRODUCTS: Names John Francis Managh as Liquidator S.P. PUBLISHING: Taps Levin and Vance as Liquidators STONNE LTD: Faces Auckland City's Wind-Up Petition TAWARI STREET: Court to Hear Wind-Up Petition on Nov. 8 TYLOS ONE: Names Levin and Vance as Liquidators VALLEY MAINTENANCE: Fixes Nov. 6 as Last Day to File Claims WHANAU CONTRACTING: Wind-Up Petition Hearing Set for Nov. 21 WHEELS ON WEST: Court to Hear Wind-Up Petition on February 8 WHITE ROSE: Fixes November 9 as Last Day to File Claims WILSON FAMILY: Court Sets Wind-Up Petition Hearing for Nov. 14 P H I L I P P I N E S AFP-RSBS: Former Official Calls Prosecution Appeal Unmeritorious BANGKO SENTRAL: To Offer At Least US$500 Mil. in Bonds to OFWs BANGKO SENTRAL: Manageable Inflation Risks May Cue Rate Cut CENTRAL AZUCARERA: Incurs PHP175-Million Net Loss for FY2007 IPVG CORP: PhilEXIM Approves US$7-Mil. Guarantee to Subsidiary LAFAYETTE MINING: DENR Clears Firm From Charge on Albay Fishkill METROPOLITAN BANK: Assets Rise to PHP665 Billion at September 30 NAT'L POWER: Flying V Group to Bid for Small Generating Assets SAN MIGUEL: To Hold Briefing on September YTD Results on Nov. 8 SAN MIGUEL: SM Investments to Sell Off 339.349-Mil. Shareholding VULCAN IND'L: Sees PHP30MM in Expenses from Gold & Nickel Mining S I N G A P O R E LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend ODYSSEY RE: Third Quarter Net Income Rises to US$114.2 Million S & I PTE: Members to Hold Final Meeting on December 3 SEMITECH ELECTRONICS: Loses SGD1.81 Mil. for 2007 First Half SEMITECH ELECTRONICS: Discloses Update of Sky One Acquisition SINGAPORE HOLT: Creditors' Proofs of Debt Due on Dec. 4 TOWA SINGAPORE: Sets Proofs of Claim Bar Date on Dec. 3 TTS FOOD: Court to Hear Wind-Up Petition on November 16 T H A I L A N D CENTRAL PAPER: Reports Progress of Business Rehabilitation Plan G STEEL: S&P Lowers Long-Term Corporate Rating to 'B-' from 'B+' G STEEL: Unit Enters Into Refinancing Deal for US$120-Mil. Debt ITV PCL: Submits Reasons for Delisting Exemption NATURAL PARK: Awaits Approval to Sell Shares in Five Entities V I E T N A M * Moody's Says Ba3 Bond Ratings Supported by Policy Progress * BOND PRICING: For the Week 05 November to 09 November 2007 - - - - - - - - ================= A U S T R A L I A ================= AUTOMOTIVE CARPET: Members and Creditors to Meet on November 12 --------------------------------------------------------------- A joint meeting will be held for the members and creditors of Automotive Carpet Industries Pty Ltd on November 12, 2007, at 2:30 p.m. At the meeting, Paul Vartelas, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Paul Vartelas B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Automotive Carpet Automotive Carpet Industries Pty Ltd is a distributor of home furnishings. The company is located at Dandenong, in Victoria, Australia. AVS OPTICS: Liquidator to Give Wind-Up Report on Nov. 9 -------------------------------------------------------- AVS Optics Pty Ltd will hold a meeting for its members on November 9, 2007, at 10:30 a.m. At the meeting, J. Zeckendorf and R. Shaw, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. The company's liquidators are: J. Zeckendorf R. Shaw Level 4, 151 Macquarie Street Sydney, New South Wales 2000 Australia About AVS Optics AVS Optics Pty Ltd operates offices and clinics of optometrists. The company is located at Bentleigh, in Victoria, Australia. CHRYSLER LLC: U.S. October 2007 Sales Down by 9 Percent ------------------------------------------------------- Chrysler LLC has reported United States sales for October 2007 of 145,316 units; down 9 percent compared to October 2006 with 159,586 units sold. All sales figures are reported as unadjusted. "Growing concerns about the housing slump are showing up in consumers' expectations about future economic conditions as auto sales for the month of October continue below trend levels," said Darryl Jackson, Vice President - U.S. Sales. "Today's company announcement on product changes reflects our customer- driven philosophy and current market conditions." Chrysler brand car sales were led by Sebring Sedan, which posted sales of 5,015 units, up 86 percent versus 2006 and Sebring Convertible which finished the month with sales of 1,856 units, up 837 percent versus October 2006. Chrysler Town & Country sales rose 26 percent to 12,177 units versus October 2006 with 9,668 units. Jeep(R) brand sales were down 21 percent year-over-year, driven by planned fleet reductions. Jeep Wrangler and Wrangler Unlimited posted sales of 9,354 units, up 8 percent versus October 2006. Dodge brand car sales increased 18 percent over last year aided by steady sales of the Dodge Avenger with 6,268 units delivered. "Given the competitive market, our approach is to provide substantial value to our consumers by offering consumer cash and lease cash on the majority of our 2008 models in November," said Michael Keegan, Vice President - Volume Planning and Sales Operations. "We will also introduce 0% APR for 36 months on 2008 models through the end of the month." About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. COEUR D'ALENE: Earns US$3.6 Mil. in 3rd Quarter Ended Sept. 30 -------------------------------------------------------------- Coeur d'Alene Mines Corporation reported Friday that the company's quarterly net income for the third quarter of 2007 totaled US$3.6 million, compared to net income of US$18.4 million for the third quarter of 2006. Included in the third quarter results for 2007 are expenses of US$2.5 million associated with the cessation of mining activities at the Rochester mine during the third quarter. The company reported quarterly revenue of US$52.9 million compared to US$50.6 million during last year's third quarter. For the first nine months of 2007, revenue was US$155.4 million, compared to US$149.5 million in the year-ago period. Net income during the first nine months of 2007 was US$29.6 million, compared to net income of US$65.3 million for the same period in 2006. Results for the first nine months of 2006 included a gain of US$11.1 million from the sale of Coeur Silver Valley as well as US$2.0 million of income from CSV operations. In terms of production levels, Coeur produced 2.7 million ounces of silver and 20,500 ounces of gold during the third quarter and 8.3 million ounces of silver and 70,500 ounces of gold through the first nine months of the year. Coeur produced 3.3 million ounces of silver and 30,000 ounces of gold during the third quarter of 2006 and 9.4 million ounces of silver and 84,500 ounces of gold during the first nine months of 2006. In commenting on the Company's performance, Dennis E. Wheeler, chairman, president and chief executive officer, said, "During the recent quarter, we made substantial progress on all of the company's strategic initiatives that we believe will result in Coeur becoming the world's undisputed leader in silver. The San Bartolome silver mine in Bolivia, the world's largest pure silver mine under construction, remains on schedule for a February 2008 production start up. "In Australia, both Broken Hill and Endeavor continue to deliver improved results in 2007. Cash costs remain consistently low and we are nearing complete payback of our investments made just 2 years ago. The company expects to continue receiving silver production from Endeavor for at the least the next 15 years and from Broken Hill for the next 7 years," Mr. Wheeler continued. "The Bolnisi Gold NL and Palmarejo Silver and Gold Corporation merger transaction is expected to close in mid-December following the Coeur shareholder vote on Dec. 3, 2007. Construction is progressing at the Palmarejo project under Coeur's management. We believe the Palmarejo project is the largest and highest quality silver-gold project currently under development in the world today. Once Palmarejo is in production in 2009, Coeur expects to produce nearly 29 million ounces of silver--a 142% increase over current levels--at industry-low cash costs below US$1.75 per ounce--a 55% reduction from current levels." Balance Sheet and Capital Investment Highlights The company had US$208.8 million in cash, equivalents and short term investments as of Sept. 30, 2007. Capital expenditures during the third quarter of 2007 totaled US$57.3 million, most of which was spent on the San Bartolome silver project. Mr. Wheeler commented, "Our liquidity position remains very strong, with US$209 million in cash, equivalents and short-term investments. Together with cash flow from operations, we expect to complete the construction of the San Bartolome silver project, the Palmarejo silver and gold project, and the Kensington gold project without the need for additional outside capital." At Sept. 30, 2007, the company's consolidated balance sheet showed US$889.5 million in total assets, US$276.0 million in total liabilities, and US$613.5 million in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?24be About Coeur d'Alene Headquartered in Coeur d' Alene, Idaho, Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is a gold and silver mining company. The company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, and Nevada. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. CRYSTALTEX ARCHITECTURAL: Sets Joint Meeting for Nov. 12 -------------------------------------------------------- A joint meeting will be held for the members and creditors of Crystaltex Architectural Products Pty Ltd on November 12, 2007. At the meeting, Paul Vartelas, the company's liquidator, will give a report on the company's wind-up proceedings and property dispsoal. The Liquidator can be reached at: Paul Vartelas B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Crystaltex Architectural Crystaltex Architectural Products Pty Ltd is a distributor of concrete block and brick. The company is located at Maribyrnong, in Victoria, Australia. DECORATOR TERRACOTTA: Creditors Resolve to Liquidate Business ------------------------------------------------------------- The creditors of Decorator Terracotta Pty Limited met on Sept. 25, 2007, and resolved to voluntarily liquidate the company's business. Sule Arnautovic and Bradd Morelli were appointed as liquidators. The Liquidators can be reached at: Sule Arnautovic Bradd Morelli Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2000 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 About Decorator Terracotta Decorator Terracotta Pty Limited is a distributor of home furnishings. The company is located at Terrey Hills, in New South Wales, Australia. EMPEROR MINES: FY2007 Balance Sheet Upside-Down by AU$59.56MM ------------------------------------------------------------- Emperor Mines Limited reported a consolidated net loss of AU$237.05 million for the year ended June 30, 2007, a 771% rise from its AU$27.22-million net loss for the year ended June 30, 2006. The company suffered a 23.60% decrease in revenues from AU$127.62 million for the year ended June 30, 2006, to this fiscal year's AU$97.51 million. The company also earned a AU$3.23 million in other income, a significant rise from the AU$204,000 other income reported a year ago. The company recorded AU$120.40 million in operating expenses, AU$9.64 million net financing costs, and AU$11.46 million in impairment of non-current assets. Emperor Mines' consolidated balance sheet as of June 30, 2007, showed strained liquidity with total current assets of AU$159.42 million available to pay total current liabilities of AU$203.72 million. As of June 30, 2007, the company has a consolidated total assets of AU$163.49 million and total liabilities of AU$223.05 million, resulting in a capital deficiency of AU$59.56 million. Merger Plans with Intrepid Mines On September 18, 2007, Emperor Mines announced an agreement to merge with Intrepid Mines Limited, where the respective companies have entered into a Merger Implementation Deed under which they have agreed to certain undertakings and arrangements to facilitate the merger. The surviving listed entity, Intrepid Mines Limited, will be a dynamic and well-funded international gold producer, developer and explorer listed on both the Toronto Stock Exchange and the Australian Stock Exchange. The merger will take place by way of a scheme of arrangement, with Emperor shareholders receiving 1 Intrepid share for every 4.25 Emperor shares held. Existing unlisted Emperor employee options will be either canceled for cash or new Intrepid options issued on equivalent terms and conditions. The merger is subject to a number of conditions including Emperor and Intrepid shareholder approval, due diligence enquiries, Emperor maintaining surplus cash of at least AU$54 million prior to the second court hearing and any other regulatory approval, including TSX consent. Emperor has also provided financial accommodation to Intrepid Minerals Corporation, a wholly owned subsidiary of Intrepid, amounting to AU$5 million and holds an option to convert this loan into Intrepid shares. Subject to achieving the above conditions, the transaction is expected to be completed in early January 2008. * * * Based in Sydney, Australia, Emperor Mines Limited -- http://www.emperor.com.au/-- is engaged in the exploration, development and exploitation of gold deposits. F.H. BAILEY: Placed Under Voluntary Liquidation ----------------------------------------------- During a general meeting held on September 21, 2007, the members of F.H. Bailey & Co. Pty. Limited agreed to voluntarily wind up the company's operations. Richard Herbert Judson was named as liquidator. The Liquidator can be reached at: Richard Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About F.H. Bailey F.H. Bailey & Co Pty Limited is a distributor of sheet metalwork. The company is located at Huntingdale, in Victoria, Australia. FATKAT NOMINEES: Liquidator to Give Wind-Up Report on Nov. 12 ------------------------------------------------------------- Fatkat Nominees Pty Ltd will hold a joint meeting on Nov. 12, 2007, at 3:45 p.m. At the meeting, Paul Vartelas, Fatkat's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Paul Vartelas B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Fatkat Nominees Fatkat Nominees Pty Ltd is a distributor of manufacturing industries. The company is located at South Melbourne, in Victoria, Australia. FORMA INTERIORS: Declares Dividend for Ordinary Creditors --------------------------------------------------------- Forma Interiors Pty Limited, which is in liquidation, declared dividend for its ordinary unsecured creditors on October 30, 2007. Creditors who were not able to file their proofs of debt by the Oct. 23 due date were excluded from the company's dividend distribution. The company's liquidator is: Bruce Gleeson c/o Jones Partners Insolvency & Business Recovery Australia Telephone:(02) 9251 5222 About Forma Interiors Forma Interiors Pty Limited is involved with carpentry work. The company is located at Prestons, in New South Wales, Australia. FOSCON PTY: Sets Final Meeting for November 9 --------------------------------------------- A final meeting will be held for the members and creditors of Foscon Pty Ltd on November 9, 2007, at 10:00 a.m. At the meeting, Stan Traianedes, Foscon's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Stan Traianedes McLean Delmo Hall Chadwick Accountants & Business Advisers Level 12, 459 Collins Street Melbourne, Victoria 3000 Australia About Foscon Pty Foscon Pty Ltd operates miscellaneous retail stores. The company is located at Mulgrave, in Victoria, Australia. G.P. BURNS: Commences Liquidation Proceedings --------------------------------------------- During a general meeting on September 21, 2007, the members of G.P. Burns Pty Ltd agreed to voluntarily liquidate the company's business. Richard Herbert Judson was appointed liquidator for the company. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About G. P. Burns G. P. Burns Pty Ltd is an operative builder. The company is located at Paradise Waters, in Queensland, Australia. GENERAL CABLE: Freeport-McMoran Completes Phelps Dodge Biz Sale --------------------------------------------------------------- Freeport-McMoRan Copper & Gold Inc. has completed the sale of its international wire and cable business, operated in the name of Phelps Dodge International Corporation, to General Cable Corporation for US$735 million. FCX expects to use the proceeds estimated to approximate US$620 million, net of taxes and other transaction costs, to repay debt. General Cable acquired 100% of the shares held by FCX and its subsidiaries in the entities comprising the wire and cable business. PDIC operates factories and distribution centers in 19 countries throughout Latin America, Asia and Africa and is engaged in the manufacturing and distribution of engineered products, principally for the global energy sector. FCX expects to record charges of up to approximately US$20 million (US$12 million to net income) for transaction and related costs associated with the disposition. About Freeport-McMoran Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2007, Moody's Investors Service has assigned a rating of B1 to the proposed USUS$400 million senior unsecured convertible notes of General Cable Corporation. As reported in the Troubled Company Reporter on Sept. 19, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on General Cable Corp. S&P said the outlook is stable. GENERAL CABLE: Earns US$61.1 Million in 2007 Third Quarter ---------------------------------------------------------- General Cable Corporation has recorded net income of US$61.1 million for the third quarter of 2007, compared to US$37.0 million in the third quarter of 2006. Net sales for the third quarter of 2007 were US$1.1 billion, an increase of US$194.0 million or 20.6% compared to the third quarter of 2006 on a metal-adjusted basis. Without the impact of acquisitions, revenue growth was approximately 12.1% in the third quarter of 2007 compared to 2006. This growth was principally due to the continuing strength of the company's global electrical infrastructure and electric utility businesses, as well as favorable foreign exchange translation, which together more than offset the impact of declining telecommunications and residential construction demand. Revenues from acquired businesses contributed US$80.3 million in the third quarter. The average price per pound of copper in the third quarter was US$3.48, an increase of US$0.02 from the second quarter of 2007, and a decrease of US$0.06 or 1.7% from the third quarter of 2006. The average price per pound of aluminum in the third quarter was US$1.19, a decrease of US$0.09, or 7% from the second quarter of 2007, and equal to the third quarter of 2006. Third quarter 2007 operating income was US$92.3 million compared to operating income of US$65.8 million in the third quarter of 2006, an increase of US$26.5 million or 40.3%. Operating margin was 8.1% in the third quarter of 2007, an increase of approximately 110 basis points from the operating margin percentage of 7.0% in the third quarter of 2006 on a metal- adjusted basis. This improvement was principally due to better price realization in many of the company's product lines, operating improvements in acquired businesses, cost improvements from LEAN initiatives, and approximately US$2.4 million in LIFO gains from the liquidation of lower cost inventory, all of which more than offset the impact of lower capacity utilization rates for certain construction and telecommunications product lines. Included in the earnings results for the third quarter of 2007 was approximately US$0.08 per share of tax benefits resulting from prior year tax provision true-ups. In addition, the 2007 estimated full year effective tax rate has been reduced to 36% as a result of the increasing relative mix of income generated in lower tax rate countries and the impact of effective tax planning strategies. Market Update In North America, revenues increased 9.7% in the third quarter compared to 2006 on a metal-adjusted basis. This top line improvement is net of nearly a 20% drop in metal-adjusted revenues for telecommunications products sold primarily to telephone operating companies. Without the impact of telecommunications products, North American metal-adjusted revenue grew at 16.1% in the third quarter of 2007 compared to 2006. Operating margin has increased by 190 basis points to 8.7%. With the exception of telecommunications products, all North American businesses reported increased revenues and earnings during the third quarter of 2007 compared to the prior year. The company has continued to benefit from its exposure to a wide range of strong end markets including electric utility, electrical infrastructure, networking, and electronics that are more than offsetting continued telecommunications product declines and the impact of a weak housing market on certain utility cable product families. The company is examining its telecommunications footprint in the context of various demand scenarios. European electric utility and electrical infrastructure markets broadly continue to remain robust with the exception of Spanish construction. Operating earnings in the Company's European business grew by 35% to US$36.8 million in the third quarter of 2007 compared to the prior year. Operating margin was 7.5% in the third quarter, equal to the same period in 2006 on a metal adjusted basis. Revenues were up 35% in the quarter on a metal- adjusted basis. Before the impact of acquired businesses and favorable changes in exchange rates, organic growth was 7.5%, despite approximately a 20% decline in demand for cables used in Spanish residential construction since the end of 2006. The company has initiated growth strategies in other European markets for these low voltage products including the European do-it-yourself markets. "The Company's European operations are showing strong results, particularly from businesses recently acquired. NSW is actively developing products for submarine power and long-haul fiber optic communications markets and Silec's high voltage solid dielectric underground cable systems continue to gain momentum globally. Both businesses are booking projects into the 2009 timeframe. At ECN, we are nearing completion of an important technology transfer, which will allow ECN to manufacture the company's trapezoidal design hardened steel core overhead transmission cable. This cable effectively provides about 75% more capacity compared to a similar sized cable of a traditional design, perfect for the congested rights of way in Europe," Gregory B. Kenny, the company's President and Chief Executive Officer, said. Completion of Acquisition The company has completed the acquisition of PDIC from Freeport- McMoRan Copper & Gold Inc. "This is a transformative transaction for General Cable and one that accelerates our globalization plans by many years. The developing economies that are served by PDIC are continuing to grow much faster than the developed world. During the planning process for the integration of this acquisition, the management teams of both General Cable and PDIC have been encouraged by the level of common business philosophies and the opportunities this transaction presents for more efficient utilization of our combined manufacturing capacity, the ability to enter new markets, and improvements in raw material and equipment costs," Mr. Kenny said. In connection with the acquisition of PDIC, the Company recently completed an offering of US$475 million of 1% Senior Convertible Notes due 2012. Proceeds from this offering were used to partially fund the acquisition of PDIC. Additionally, as part of the funding of the acquisition of PDIC, the Company increased the borrowing capacity of its United States revolving asset backed loan from US$300 million to US$400 million, effective Oct. 31, 2007. This increase will provide additional liquidity to fund future acquisitions and internal growth opportunities. Management Announcements The company has announced several management changes effective Nov. 1, 2007, which will align the company's management structure along geographic lines. The company welcomes Mathias Sandoval to General Cable as Executive Vice President and Chief Executive Officer of our combined operations in Latin America, Sub-Saharan Africa and the Middle East/Asia Pacific. This includes the historical General Cable Asia Pacific and Central and South American businesses of the company, as well as Mexico. Domingo Goenaga has been promoted to Executive Vice President and Chief Executive Officer of General Cable Europe and North Africa and will continue in his current capacity. Gregory Lampert has been promoted to Executive Vice President and Group President of the North American Electrical and Communications Infrastructure Group. This business includes products supporting data, telephone, industrial power, assemblies and electronic applications. J. Michael Andrews has been promoted to Executive Vice President and Group President of the North American Energy Infrastructure and Technology Group. This business includes products supporting energy exploration, production, transmission, and distribution applications. Roddy Macdonald has been promoted to Executive Vice President of Global Sales and Business Development. In addition to leading our North American Sales organization, Mr. Macdonald will work with our business and sales leaders around the globe to align our commercial strategies and ensure that we will present one face to global customers across all regions and businesses. Each of these individuals will report directly to Mr. Kenny. "Over the last decade, the General Cable management team has successfully grown the Company from a U.S. centric business focused on communications and construction cables, to a truly international Company with approximately two-thirds of its projected revenues generated outside of the United States and a product range and geographic diversity second to none," Mr. Kenny said. "I expect these leaders to be relentless in their drive for continuous improvement; have the vision to identify new markets and business opportunities before they become popular; and have the strength and wisdom to profitably navigate the Company into the future through all market conditions. I believe we have one of the most thoughtful and energetic management teams in the business that we can continue to leverage as we expand globally." Preferred Stock Dividend In accordance with the terms of the company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of approximately US$0.72 per share. The dividend is payable on Nov. 24, 2007, to preferred stockholders of record as of the close of business on Oct. 31, 2007. The company expects the quarterly dividend payment to approximate US$0.1 million Fourth Quarter 2007 Outlook The company continues to benefit from strong global demand for many of our products. The North American Electric Reliability Corporation recently suggested that many regions in North America will fall below their target electricity capacity margins within the next two or three years. Additionally, NERC suggested that planned transmission projects are significantly higher than projected a year ago. The Company believes this assessment supports our view of a continuation of a long-term upgrade cycle for the aging transmission grid. However, demand for low voltage utility products in North America will likely continue to be weak as a result of continued new home construction weakness with particular impact on low voltage distribution products. As a result, the company expects growth in the overall utility segment to moderate. The company will be lowering production levels of certain utility products in North America in the fourth quarter in an effort to better align its production and inventory mix with end market demand, which will have the benefit of increasing operating cash flows. While this will result in some short-term inefficiency in certain manufacturing facilities, overall the Company is expected to grow operating earnings by 20% or more in the fourth quarter compared to the prior year before the benefit of PDIC. Revenues for the fourth quarter without PDIC are expected to be approximately US$1.05 billion, an increase of 12% from the fourth quarter of 2006 on a metal adjusted basis. In addition, PDIC will contribute approximately US$220 million of revenues for the balance of the fourth quarter. For the fourth quarter, the Company expects to report earnings per share of approximately US$0.80 to US$0.85, including estimated contributions from the PDIC operations, the related financing impact, and purchase accounting related expenses. "Looking forward, we are increasing our accretion guidance for 2008 related to the acquisition of PDIC from a range of US$0.20 to US$0.30 to a range of US$0.40 to US$0.50 due to the continuing strength of PDIC's end markets," Mr. Kenny concluded. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2007, Moody's Investors Service has assigned a rating of B1 to the proposed USUS$400 million senior unsecured convertible notes of General Cable Corporation. As reported in the Troubled Company Reporter on Sept. 19, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on General Cable Corp. S&P said the outlook is stable. GLOBAL WINE: Deloitte Touche Tohmatsu Raises Going Concern Doubt ---------------------------------------------------------------- Global Wine Ventures Limited reported a net loss of AU$251,178 for the financial year ended June 30, 2007, from a net profit of AU$68,175 a year ago. The group reported decreased revenues of AU$994,874 for the current year, down from AU$1,421,968 a year before. Cost of sales amounted to AU$558,566, giving the group a gross profit of AU$436,308. The group also recorded a AU$991,295 other income. Sales and other expenses, however, also increased, with sales and marketing expenses increasing to AU$342,195 from the previous year's AU$1,289. Corporate expenses also increased to AU$887,536, while other expenses increased to AU$144,814 in the year in review against AU$647,716 and AU$25,564, respectively, a year before. These huge increases offset the decrease in other expenses to result in the group's net loss. Going Concern Doubt ST Harvey at Deloitte Touche Tohmatsu raised material uncertainty which may cast significant doubt about the company's and the group's ability to continue as a going concern, citing the group's net loss and the group's negative operating cashflows of AU$504,893. Based in Kent Town, South Australia, Global Wine Ventures Limited is engaged in manufacturing and sale of wine. On Aug. 22, 2005, the company changed its name from Xanadu Wines Limited to Global Wine Ventures Ltd. GLOBAL WINE: Sets Annual General Meeting on Nov. 29 ---------------------------------------------------- Global Wine Ventures Limited's annual general meeting of shareholders will be held on Nov. 29, 2007. The agenda includes: * the approval of the directors' and auditors' reports for the year ended June 30, 2007; * the re-election of Graham Keys as director of the company, and; * the approval of the remuneration report for the year ended June 30, 2007. Based in Kent Town, South Australia, Global Wine Ventures Limited is engaged in manufacturing and sale of wine. On August 22, 2005, the Company changed its name from Xanadu Wines Limited to Global Wine Ventures Ltd. Going Concern Doubt ST Harvey at Deloitte Touche Tohmatsu raised material uncertainty which may cast significant doubt about the company's and the group's ability to continue as a going concern, citing the group's net loss and the group's negative operating cashflows of AU$504,893. KENDLE INT'L: Earns US$3.8 Million for Third Quarter 2007 --------------------------------------------------------- Kendle International Inc. has reported net service revenues for third quarter 2007 were US$100.1 million, an increase of 33 percent over net service revenues of US$75.2 million for third quarter 2006. Interest expense in the third quarter 2007 was approximately US$3.3 million, primarily related to debt incurred to finance the Charles River acquisition, compared to interest expense of US$2.3 million in third quarter 2006. The company's effective tax rate for the quarter was approximately 25 percent due to the reversal of approximately US$833,000 of tax liabilities as required by FIN 48, "Accounting for Uncertainty in Income Taxes." The liabilities were established as of Jan. 1, 2007, as part of the initial adoption of FIN 48. During third quarter 2007, the time period for assessing tax on these items expired, necessitating the reversal. Income from operations for third quarter 2007 was approximately US$14.2 million, or 14.2 percent of net services revenues. Net income was approximately US$3.8 million in third quarter 2007 compared to US$4.0 million in the third quarter of 2006. Net service revenues by geographic region for the third quarter were 51 percent in North America, 41 percent in Europe, 5 percent in Latin America and 3 percent in the Asia/Pacific region. The top five customers based on net service revenues accounted for 24 percent of net service revenues for third quarter 2007 compared to 30 percent of net service revenues for third quarter 2006. "We are particularly pleased with the strong increase in our operating margin," noted Candace Kendle, PharmD, Chairman and Chief Executive Officer. "We look forward to building on this momentum to deliver improved value for our shareholders." New business awards were a record US$175 million for third quarter 2007, which represents an 18 percent increase over the same quarter last year. Contract cancellations for the quarter were approximately US$7 million. Total business authorizations totaled US$831 million at Sept. 30, 2007, up 10 percent from June 30, 2007, and an all-time company high. Reimbursable out-of-pocket revenues and expenses were US$42.4 million for third quarter 2007 compared to US$21.5 million in the same quarter a year ago. Cash flow from operations for the quarter was a positive US$13.7 million. Cash and marketable securities totaled US$29.1 million, including US$1.2 million of restricted cash. Days sales outstanding in accounts receivable were 40 and capital expenditures for third quarter 2007 totaled US$3.4 million. On July 16, 2007, the company issued US$200.0 million in principal amount of 3.375% Convertible Senior Notes due 2012. The notes pay interest semiannually. Approximately US$174 million of the net proceeds of the Notes offering was used to pay down the company's term loan. Nine-Month Results Net service revenues for the nine months ended Sept. 30, 2007, were US$293.3 million, an increase of 49 percent over net service revenues of US$197.1 million for the nine months ended Sept. 30, 2006. Net income per diluted share of US$0.83 for the nine months ended Sept. 30, 2007, includes a charge for amortization of acquired intangibles related to the August 2006 acquisition of Charles River as well as a charge for the write- off of deferred financing costs related to the company's term debt, which was paid off in the third quarter of 2007. Excluding these items, which are detailed in the Condensed Consolidated Statements of Income, EPS for the nine months ended Sept. 30, 2007, was US$1.14 per diluted share. Interest expense in the nine months ended Sept. 30, 2007, was approximately US$12.0 million, primarily related to debt incurred to finance the Charles River acquisition, compared to interest expense of US$2.4 million in the first nine months of 2006. EPS for the nine months ended Sept. 30, 2006, was US$0.89 per diluted share. Excluding the amortization of acquired intangibles, EPS for the first nine months of 2006 was US$0.92 per diluted share. The company's year-to-date effective tax rate was approximately 32 percent, reflecting the effect of the FIN 48 adjustment in the third quarter. Income from operations for the nine months ended Sept. 30, 2007, was approximately US$37.6 million, or 12.8 percent of net service revenues. Excluding the amortization charge referenced above, proforma income from operations was approximately US$40.7 million, or 13.9 percent of net service revenues. Income from operations for the nine months ended Sept. 30, 2006, was approximately US$21.8 million. Excluding the amortization charge in the nine months ended Sept. 30, 2006, proforma income from operations was US$22.5 million, or 11.4 percent of net service revenues. Net income for the first nine months of 2007 was approximately US$12.3 million compared to net income of US$13.2 million in the first nine months of 2006. Excluding the amortization of acquired intangibles and the write-off of deferred financing costs, net income for the first nine months of 2007 was US$16.9 million, or US$1.14 per diluted share. Excluding the amortization of acquired intangibles in the first nine months of 2006, net income was US$13.6 million, or US$0.92 per diluted share. Net service revenues by geographic region for the nine months ended Sept. 30, 2007, were 50 percent in North America, 42 percent in Europe, 5 percent in Latin America and 3 percent in the Asia/Pacific region. The top five customers based on net service revenues accounted for 25 percent of net service revenues for the first nine months of 2007 compared to 29 percent of net service revenues for the first nine months of 2006. Cash flow from operations for the nine months ended Sept. 30, 2007, was a positive US$38.1 million. Capital expenditures for the nine-month period totaled US$10.8 million. Updated Full-Year 2007 Guidance Kendle also updated full-year 2007 guidance. Net service revenue guidance for the full year 2007 is now projected to be in a range of US$390-US$400 million. Operating margin on both a GAAP and proforma basis remains unchanged from the previous guidance and is expected to be between 12 and 14 percent and 13 and 15 percent, respectively. Kendle now expects GAAP EPS in the range of US$1.25 to US$1.35 and projects proforma EPS to be in the range of US$1.60 to US$1.70. About Kendle Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions - North America, United Kingdom, Asia/Pacific, Africa and Latin America including Brazil and Australia. * * * As of July 3, 2007, the company carried Moody's B1 long-term corporate family rating, B1 bank loan debt, and B2 probability of default rating. Moody's said the outlook is stable. In addition, the company also carried Standard & Poor's B+ long- term foreign and local issuer credits. S&P said the outlook is stable. NATIONAL MOBILE: Commences Liquidation Proceedings -------------------------------------------------- The members and creditors of National Mobile Mechanics Pty Ltd met on September 28, 2007, and agreed to voluntarily liquidate the company's business. Gregory Stuart Andrews was tapped as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About National Mobile National Mobile Mechanics Pty Ltd operates general automotive repair shops. The company is located at Narre Warren, in Victoria, Australia. NEWTEC PTY: Sets Joint Meeting for November 12 ---------------------------------------------- The members and creditors of Newtec Pty Ltd will hold their joint meeting on November 12, 2007, at 2:15 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paul Vartelas B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Newtec Pty Newtec Pty Ltd provides plumbing, heating, and air-conditioning services. The company is located at Thomastown, in Victoria, Australia. OPSBEO PTY: Members to Receive Wind-Up Report on Nov. 9 ------------------------------------------------------- OPSBEO Pty Ltd will hold a meeting for its members on Nov. 9, 2007, at 10:30 a.m. At the meeting, J. Zeckendorf and R. Shaw, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. The company's liquidators are: J. Zeckendorf R. Shaw Level 4, 151 Macquarie Street Sydney, New South Wales 2000 Australia About OPSBEO Pty Opsbeo Pty Ltd operates optical goods stores. The company is loctaed at Maryborough, in Queensland, Australia. OPSVP PTY: Members to Hold Meeting on November 9 ------------------------------------------------- The members of Opsvp Pty will meet on November 9, 2007, at 10:30 a.m., to receive the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidators are: J. Zeckendorf R. Shaw Level 4, 151 Macquarie Street Sydney, New South Wales 2000 Australia About OPSVP Pty Opsvp Pty Ltd, which is also trading as Coles & Garrard Optical Services, is a distributor of ophthalmic goods. The company is located at Melbourne, in Victoria, Australia. P & R EVENTS: Placed Under Voluntary Liquidation ------------------------------------------------ At an extraordinary general meeting held on September 28, 2007, the members of P & R Events Australia Pty Ltd agreed to voluntarily liquidate the company's business. Daniel Bryant was appointed as liquidator. The Liquidator can be reached at: Daniel Bryant PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About P & R Events P & R Events Australia Pty Ltd operates nonclassifiable establishments. The company is located at Pearcedale, in Victoria, Australia. PEABODY ENERGY: UBS Maintains Buy Rating on Firm's Shares --------------------------------------------------------- UBS analysts have kept their "buy" rating on Peabody Energy's shares, Newratings.com reports. Newratings.com relates that the target price for Peabody Energy's shares was decreased to US$57 from US$60. The analysts said in a research note that Peabody Energy completed its spin-off of Patriot Coal. The analysts told Newratings.com that the "prospects for the coal sector" are still bright. The earnings per share estimates for 2007 and 2008 were decreased to US$1.80 from US$1.85 and to US$2.73 from US$3.69, respectively, Newratings.com states. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on March 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. Moody's placed the instrument on review for downgrade. SCO GROUP: Seeks Court OK to Hire Mesirow as Financial Advisor -------------------------------------------------------------- The SCO Group Inc. and SCO Operations Inc. ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Mesirow Financial Consulting LLC as their financial advisor, nunc pro tunc to Sept. 14, 2007. Mesirow will: a. assist in the preparation of or review of reports or filings as required by the Bankruptcy Court or the Office of the United States Trustee, including, but not limited to, schedules of assets and liabilities, statements of financial affairs and monthly operating reports; b. assist in the preparation of or review of the Debtors' financial information, including, but not limited to, analyses of cash receipts and disbursements, financial statement items and proposed transactions for which Bankruptcy Court approval is sought; c. assist with the analysis, tracking and reporting regarding cash collateral and any debtor-in-possession financing arrangements and budgets; d. assist with the implementation of bankruptcy accounting procedures as may be required by the Bankruptcy Code and generally accepted accounting principles; e. advise and assist regarding tax planning issues, including, but not limited to, assistance in estimating net operating loss carryforwards, international, state and local tax issues and the tax considerations of proposed plans of reorganizations; f. assist with identifying and implementing potential cost containment opportunities; g. assist with identifying and implementing asset redeployment opportunities; h. analyze assumption and rejection issues regarding executory contracts and leases; 1. assist in the preparation and review of proposed business plans and the business and financial condition of the Debtors generally; j. assist in evaluating reorganization strategies and alternatives; k. review and critique of the Debtors' financial projections and assumptions; i. prepare enterprise, asset and liquidation valuations; m. assist in preparing documents necessary for confirmation; n. advise and assist to the Debtors in negotiations and meetings with the Creditors' Committee, the bank lenders and other parties-in-interest; o. advise and assist on the tax consequences of proposed plans of reorganization; p. assist with the claims resolution procedures, including, but not limited to, analyses of creditors' claims by type and entity; q. render litigation consulting services and expert witness testimony regarding confirmation issues, avoidance actions or other matters; and r. render other functions as requested by the Debtors or their counsel to assist the Debtors in these Chapter 11 Cases. The Debtors will pay Mesirow according to the firm's customary hourly rates: Designation Hourly Rate ----------- ----------- Sr. Managing Director, US$650 - US$690 Managing Director and Director Sr. Vice-President US$550 - US$620 Vice President US$450 - US$520 Senior Associate US$350 - US$420 Associate US$190 - US$290 Paraprofessional US$150 Mesirow will bill a fixed fee of US$35,000 for the preparation of schedules of assets and liabilities and the statement of financial affairs. All other services, as requested by the Debtors, and agreed to by Mesirow, will be billed at the normal and customary rates listed above less a 10% discount to fees as determined. Prior to the bankruptcy filing, Mesirow received an advance payment retainer of US$35,000 from the Debtors. Of that retainer, US$0 has been applied to fees and expenses incurred prior to the bankruptcy filing. The balance of this retainer will be held by Mesirow and applied against postpetition fees and expenses to the extent allowed by the Court. To the best of the Debtors' knowledge, Mesirow is a "disinterested person" as that term is defined in section 101(14) of the Bankrptcy Code as modified by section 11 07 (b) of the Bankruptcy Code. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Paul Steven Singerman, Esq. and Arthur J. Spector, Esq. at Berger Singerman PA and Laura Davis Jones, Esq. at Pachulski Stang Ziehl & Jones LLP are co-counsels to the Debtors. 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. PERRETT & ASSOCIATES: Members Resolve to Liquidate Business ----------------------------------------------------------- During a general meetng held on September 21, 2007, the members of Perrett & Associates Pty Ltd agreed to voluntarily liquidate the company's business. Richard Judson was appointed as liquidator. The Liquidator can be reached at: Richard Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About Perrett & Associates Perrett & Associates Pty Ltd provides accounting, auditing and bookkeeping services. The company is located at Leongatha, in Victoria, Australia. SCO GROUP: U.S. Trustee Balks at Retention of Mesirow as Advisor ---------------------------------------------------------------- Kelly Beaudin Stapleton, United States Trustee for Region 3 in the chapter 11 cases of The SCO Group Inc. and SCO Operations Inc. asks the U.S. Bankruptcy Court for the District of Delaware to deny the retention of Mesirow Financial Consulting LLC as the Debtors' financial advisor. The U.S. Trustee has listed several grounds for its objections against the Mesirow retention, including the possible non- disinterestedness of the firm. According to the U.S. Trustee, the intent of Mesirow Financial Consulting's affiliated broker, Mesirow Financial Inc., to purchase and sell the Debtors' securities for its own account will disqualify Mesirow Financial Consulting from employment by the Debtors by making the firm a person that is not disinterested. The U.S. Trustee suggests that Mesirow subsidiaries should not agree to hold or trade securities issued by the Debtors for their own account. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Paul Steven Singerman, Esq. and Arthur J. Spector, Esq. at Berger Singerman PA and Laura Davis Jones, Esq. at Pachulski Stang Ziehl & Jones LLP are co-counsels to the Debtors. 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. SUN CONTROL: Members Agree on Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on September 25, 2007, the members of Sun Control Products (Victoria) Pty Ltd agreed to voluntarily liquidate the company's business. David Raj Vasudevan and Andrew Reginald Yeo were tapped as liquidators. The Liquidators can be reached at: David Raj Vasudevan Andrew Reginald Yeo Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia About Sun Control Sun Control Products (Victoria) Pty Ltd is a distributor of roofing, siding and sheetmetal work. The company is located at Nunawading, in Victoria, Australia. TECH DRY: Members and Creditors to Meet on November 9 ----------------------------------------------------- The members and creditors of Tech Dry Solutions Pty Ltd will hold their general meeting on November 9, 2007, at 12:00 noon, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gregory J. Shilton Gregory J Shilton & Co Suite 4/58 Dow Street South Melbourne, Victoria 3205 Australia About Tech-Dry Tech-Dry Solutions Pty Ltd provides business services. The company is located at Frankston, in Victoria, Australia. TH OPTICAL: Members' Meeting Set for November 9 ----------------------------------------------- A meeting will be held for the members of TH Optical Pty Ltd on November 9, 2007, at 10:30 a.m. At the meeting, the members will receive the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: J. Zeckendorf R. Shaw Level 4, 151 Macquarie Street Sydney, New South Wales 2000 Australia About TH Optical TH Optical Pty Ltd, which is also trading as Laubman & Park Optometrists, operates offices and clinics of optometrists. The company is located at Brisbane, in Queensland, Australia. TOORAK RD: To Declare Dividend on November 16 --------------------------------------------- Toorak Rd Properties Pty Ltd will declare dividend on Nov. 16, 2007. Creditors who were not able to file their proofs of debt by the October 26 due date will be excluded from the company's dividend distribution. The company's liquidator is: S. L. Horne Draper Dillon 499 St. Kilda Road Melbourne, Victoria 3004 Australia About Toorak Rd Toorak Rd Properties Pty Ltd operates nonclassifiable establishments. The company is located at Melbourne, in Victoria, Australia. TRICOM NETWORK: Liquidator to Give Wind-Up Report on Nov. 12 ------------------------------------------------------------ A joint meeting will be held for the members and creditors of Tricom Network & Communication Solutions Pty Ltd on November 12, 2007, at 2:45 p.m. At the meeting, Paul Vartelas, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Paul Vartelas B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Tricom Network Tricom Network & Communication Solutions Pty Ltd provides electrical work. The company is located at Abbotsford, in Victoria, Australia. WESTPOINT GROUP: Judge Favors Burnard Against Asset Preservation ---------------------------------------------------------------- Justice Barrett of the Supreme Court of New South Wales delivered his judgment in respect of proceedings brought by the Australian Securities & Investments Commission against Neil Burnard, Palentia Pty. Ltd. (formerly known as Kebbel (NSW) Pty. Ltd.), Jennifer Robins and BDI Pty. Ltd. ASIC had sought to continue asset preservation orders against those parties up to and including February 11, 2008, pending its further investigations. ASIC also asked the Court to make asset disclosure orders against those parties. Neil Austin Burnard, the sole director of Palentia Pty Ltd. reportedly promoted Westpoint schemes to investors. Mr. Burnard, through Palentia, helped raise more than AU$100 million for Westpoint from small investors, mainly in NSW and Queensland, adding that Palentia earned AU$6.5 million in commissions in the process. Justice Barrett indicated that asset preservation orders would be made against Mr. Burnard and Palentia, subject to a proviso as to certain exceptions and qualifications sought by Mr. Burnard and Palentia. The terms of the proviso are to be the subject of further submissions. His Honor indicated that he would make directions for submissions on the precise form of the orders and on the matter of costs in due course. Asset preservation orders in respect of Mr. Burnard and Palentia made initially on August 27, 2007, and continued, including by Justice Barrett on October 4 and 10, 2007, were extended pending the finalization of orders in accordance with the reasons for judgment. Justice Barrett also indicated that asset disclosure orders would be made against Mr. Burnard and Palentia. These orders will require Mr. Burnard and Palentia, except to the extent that a claim of privilege against self-incrimination or exposure to a civil penalty is made, to deliver to ASIC a full and detailed affidavit setting out details of all assets and liabilities. Justice Barrett discharged existing asset preservation orders in respect of Ms. Robins and BDI and also declined to make asset disclosure orders against those parties. Jennifer Robins is Mr. Burnard's wife. BDI is the trustee of several trusts of which members of the Burnard family are beneficiaries. The parties have liberty to apply to the Supreme Court in relation to the orders. ASIC's investigations are continuing. About Westpoint Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. * ASIC Sets Stricter Debenture Rules ------------------------------------ The Australian Securities & Investments Commission released new disclosure requirements for financial products, the Australian Financial Review says. According to the report, the move is aimed at protecting investors from losing in their investments in unsafe financial schemes. The AFR says that the ASIC decreed that issuers in the AU$7-billion unlisted, unrated debenture market must: * have a panel of valuers; * have secure a credible credit rating; and * keep three months' worth of cash on hand. According to the report, the ASIC also banned financial products promoters from using the words "secure," "guaranteed" and "safe". ================================ C H I N A & H O N G K O N G ================================ BAIN CLARKSON: Chiu and Diana Quit as Liquidator ------------------------------------------------ Ying Hing Chiu and Chung Miu, Diana quit as liquidators of Bain Clarkson (Hong Kong) Limited on October 22, 2007. The former Liquidators can be reached at: Ying Hing Chiu Chung Miu, Diana Three Pacific Place, Level 28 1 Queen's Road East Hong Kong BANIN COMPANY: Lawrence Steps Down as Liquidator ------------------------------------------------ David J. Lawrence has resigned as Banin Company Ltd.'s liquidator on Oct. 16, 2007. The Troubled Company Reporter-Asia Pacific previously reported that the company entered liquidation proceedings on Oct. 30, 2006. The former liquidator can be reached at: David J. Lawrence 7/F, Alexandra House 18 Chater Road, Central Hong Kong BENQ CORP: Invests US$20 Million in BenQ Shanghai ------------------------------------------------- Qisda Corp. (2352.TW) said that its unit, BenQ Corp, has invested US$20 million in its mainland subsidiary, BenQ (Shanghai) Co Ltd., Trading Markets relates. The investment is to fund the expansion of BenQ Shanghai's operations involving the production of electronics products, the report says, citing a company filing with the Taiwan Stock Exchange. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. In June 2007 the company announced that it will change its name to Qisda. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. CENTRAL UNITY: Members to Hold General Meeting on November 26 ------------------------------------------------------------- A final general meeting will be held for the members of Central Unity International Limited on November 26, 2007, at 10:00 a.m., at Rooms 2411-12 Shui On Centre, 6-8 Harbour Road, Hong Kong. At the meeting, Hung See Mei, Elina, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CITIC SECURITIES: Reaches Strategic Tie-Up with Bear Stearns ------------------------------------------------------------ China CITIC Securities Co. announced on Friday that it has reached a preliminary strategic collaboration agreement with U.S. investment bank Bear Stearns Co., People's Daily Online reports. China Knowledge, citing Xinhua News, relates that the agreement involves a cross investment of US$1 billion each and a joint venture in Hong Kong to offer a large range of financial services. According to People's Daily, under the program, CITIC Securities will buy the equivalent of a 6% stake in Bear Stearns, and plans to increase the holdings to 9.9% when conditions are ready. Bear Stearns, on the other hand, will hold a 2% stake -- worth US$1 billion -- in CITIC and buy an additional 5% stake in the coming five years, China Knowledge notes. CITIC Securities said last week that its board of directors approved the planned alliance with Bear Stearns, Dow Jones says. The CITIC Securities board, People's Daily adds, has entrusted company executives to map out a detailed cooperation scheme. CITIC and Bear Stearns will cooperate to offer new products and services and plans to align their business in Asia, China Knowledge points out. Each partner will hold 50% of the new joint venture in Hong Kong. The collaboration is still awaiting the approval from both partners' shareholders and the two countries relevant regulators, China Knowledge says. According to the South China Morning Post, shares in CITIC Securities soared nearly 10%, to CNY116.49 per share, when it resumed trading on Friday following the firm's announcement of the tie-up. State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services said that it had removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. COMMUNITY HEALTH: Convenes Final Meeting on Nov. 20 --------------------------------------------------- Community Health Association Limited will hold its final general meeting for members on Nov. 26, 2007. At the meeting, the company's liquidator, Woo Siu Wah, will give a report on the company's wind-up proceedings and property disposal. The Troubled Company Reporter - Asia Pacific reported on Sept. 4 that the shareholders of Community Health Association Limited resolved to liquidate the company's business on Aug. 22. The liquidator can be reached at: Woo Siu Wah Reverlcy Commercial Centre, Room 1018 87 Chatham Road, TST Kowloon EUROPEAN TRANSPORT: Lees Resigns as Liquidator ---------------------------------------------- John Robert Lees has resigned as European Transport System Limited's liquidator. The Troubled Company Reporter-Asia Pacific previously reported that during a general meeting held on July 30, 2007, the members of European Transport System agreed to voluntarily liquidate the company's business. The former liquidator can be reached at: John Robert Lees c/o John Lees & Associates Limited 1904 Hong Kong Club Building 3A Chater Road, Central Hong Kong GLOBAL HOME: Liquidators Leave Post ----------------------------------- Edward Simon Middleton and Jacky Chung Wing Muk have resigned as joint and several liquidators of Global Home Products Hong Kong Trading Company Ltd. The Troubled Company Reporter - Asia Pacific reported that the company's creditors held a general meeting on Oct. 16, 2006, and agreed to voluntarily wind up the company's operations due to its liabilities. The former liquidators can be reached at: Jacky Chung Wing Muk Edward Simon Middleton KPMG 8/F, Prince's Building 10 Chater Road, Central Hong Kong KONFULL LIMITED: Members to Hold General Meeting on Nov. 30 ----------------------------------------------------------- The members of Konfull Limited will hold their general meeting on November 30, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at 805, Capitol Centre, 5-19 Jardine's Bazaar, in Causeway Bay, Hong Kong. PACE MICRO: Members to Receive Wind-Up Report on Nov. 28 -------------------------------------------------------- The members of Pace Micro Technology (Asia Pacific) Limited will hold their final meeting on November 28, 2007, at 3:00 p.m., to receive the liquidators' report on the company's wind-up proceedings and property disposal. The meeting will be held at the 13th Floor of Gloucester Tower, The Landmark, 15 Queen's Road, in Central, Hong Kong. STAR DRAGON: Members to Hold Final Meeting on Nov. 27 ----------------------------------------------------- Star Dragon Properties Limited will hold its final general meeting for members on Nov. 27, 2007, at 10:30 a.m. The company's liquidator, Woo Siu Wah, will give a report on the company's wind-up proceedings and property disposal. The Troubled Company Reporter-Asia Pacific reported that on July 13, 2007, the shareholder of Star Dragon passed a resolution to liquidate the company's business. The Liquidator can be reached at: Poon Ka Lee Barry 1607, ING Tower 308 Des Voeux Road, Central Hong Kong TOWNSMAN ENTERPRISES: Final Meeting Set on Nov. 28 -------------------------------------------------- Townsman Enterprises Ltd. will hold its final meeting for members on Nov. 28, 2007. The company's liquidator, Ho Chiu Lung Michael, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Ho Chiu Lung Michael Room 603, 6th Floor, Alliance Building 130-136 Connaught Road, Central Hong Kong ========= I N D I A ========= CA INC: Reports US$137-Mil. Net Income in Quarter Ended Sept. 30 ---------------------------------------------------------------- CA Inc. disclosed its financial results for its second quarter fiscal year 2008, which ended Sept. 30, 2007. The company had net income of US$137 million for the three months ended Sept. 30, 2007, compared to net income of US$53 million for the same period in 2006. �This marks CA�s fourth consecutive quarter of solid performance. We made another significant advancement toward our goal of transforming CA into one of the world�s leading software providers,� said John Swainson, CA�s president and chief executive officer. �The world�s largest and most sophisticated IT users are coming to us to help them govern, manage and secure their IT infrastructures using CA software.� �We are seeing real excitement from these customers as they see how CA�s products and services can help them manage the cost of IT, improve its efficiency and security, and allow them to ensure that their IT investments are aligned with their business strategy. We will continue to invest in software technology that does this, even as we improve our internal processes and sales and marketing efficiency. All of this gives us confidence that our Enterprise IT Management strategy is right on track, and that we are also on track to meet our financial objectives,� he concluded. Second Quarter Results Total revenue for the second quarter was US$1.067 billion, an increase of 8%, or 5% in constant currency, compared to US$987 million reported in the comparable prior year period. For the first half of fiscal 2008, total revenue was US$2.092 billion, up 8% or 5% in constant currency over the first half of fiscal 2007. Total North American revenue was up 5% in the second quarter while revenue from international operations was up 12%, or 5% on a constant currency basis, compared to the same period last year. Total product and services bookings in the second quarter were US$1.007 billion, an increase of 46% over the US$690 million reported in the comparable prior year period. The increase in bookings was driven primarily by an increase in the number of large contracts, which were renewed in the quarter, as well as an increase in contract length. During the quarter, the Company renewed 16 license agreements greater than US$10 million, totaling US$334 million, compared to 6 such deals, totaling US$113 million, in the prior year period. The weighted average duration of new direct bookings in the second quarter was 3.17 years, compared to 2.98 years in the prior year�s second quarter. For the first half of fiscal 2008, total product and services bookings were US$1.841 billion, up 47% from the US$1.252 billion reported in the first half of fiscal 2007. The company expects total product and services bookings growth for the full fiscal year to be in the low double digits. Total expenses, before interest and income taxes, for the second quarter were US$823 million, a decrease of 9%, or 11% in constant currency, compared to US$907 million in the prior year period. The second quarter was positively affected by a decrease in amortization of capitalized software and lower restructuring expenses from the comparable quarter last year. In the second quarter, GAAP operating income was US$244 million, representing an operating margin of 23%, a 15-percentage point improvement from the prior year period. Total expenses, before interest and income taxes, for the first half were US$1.637 billion, a decrease of 9%, or 11% in constant currency, compared to the US$1.805 billion reported in the first half of fiscal 2007. On a non-GAAP basis, which excludes purchased software and intangibles amortization and restructuring and other costs, the Company reported second quarter operating expenses of US$779 million, up 3% from the US$756 million reported in the prior year period. Excluding the negative impact of currency, operating expenses were flat year-over-year. In the second quarter, non-GAAP operating income was US$288 million, representing a non-GAAP operating margin of 27%, a 4 percentage point improvement from the prior year period. For the first half of fiscal 2008, non-GAAP operating expenses were US$1.548 billion, virtually flat and down 2% in constant currency from the US$1.539 billion reported in the same period in fiscal 2007. The Company recorded GAAP income from continuing operations of US$137 million for the second quarter, or US$0.26 per diluted common share, compared to US$54 million, or US$0.09 per diluted common share, in the prior year period. This improvement is a result of higher revenue and the decrease in amortization of software costs described above. For the first half of 2008, GAAP income from continuing operations was US$266 million, or US$0.49 per diluted common share, up from the US$89 million, or US$0.15 per diluted common share, reported in the same period in fiscal year 2007. The company recorded non-GAAP income from continuing operations of US$173 million for the second quarter, or US$0.32 per diluted common share, compared to US$153 million, or US$0.26 per diluted common share, reported a year earlier. For the first half of 2008, non-GAAP income from continuing operations was US$332 million, up 29% from the first half of fiscal 2007, while non- GAAP earnings per diluted common share were US$0.61 in the first half of fiscal 2008, an increase of US$0.17, or 39%, over the US$0.44 reported in the same period in fiscal 2007. For the second quarter of fiscal year 2008, CA reported cash flow from operations of US$193 million, compared to US$6 million in cash flow from operations in the second quarter of fiscal year 2007. For the first half, CA reported US$180 million in cash flow from operations, an improvement of US$220 million from the first half of fiscal 2007. Capital Structure The balance of cash, cash equivalents and marketable securities at Sept. 30, 2007, was US$1.890 billion. With US$2.578 billion in total debt outstanding, the company has a net debt position of US$688 million. Fiscal Year 2008 Outlook The company updated its fiscal 2008 annual outlook based on current expectations. * The range for total revenue increases to US$4.15 billion to US$4.2 billion from the prior outlook of US$4.05 billion to US$4.1 billion; * The new outlook reaffirms the Company�s original guidance of 3 to 4% growth in constant currency; * The range for GAAP earnings per share from continuing operations increases to US$0.87 to US$0.91 per share from the previous outlook of US$0.75 to US$0.81 per share and includes US$35 million in charges from previously disclosed restructuring plans; * The range for Non-GAAP operating earnings per share increases to US$1.06 to US$1.10 per share compared to the previous outlook of US$0.94 to US$1 per share; and, * The full-year cash flow from operations outlook of US$1.05 billion to US$1.1 billion is reaffirmed. As previously stated, the company expects a total of approximately US$470 million in cash tax payments during the 2008 fiscal year compared to US$296 million in tax payments paid in fiscal year 2007. On a pre-tax basis, the company expects cash flow from operations to be US$1.52 billion to US$1.57 billion for the full year, representing annual growth of 11 to 15% compared to pre-tax cash flow last year. The revenue and earnings per share projections are based on current exchange rates and assume no acquisitions. The company anticipates approximately 514 million shares outstanding at fiscal year-end and a weighted average diluted share count of approximately 542 million shares for the fiscal year. The company also expects a full-year tax rate on non-GAAP net income of approximately 36%. About CA Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. As reported by the Troubled Company Reporter-Asia Pacific on Oct. 19, 2007, CA Inc. recently opened its India Technology Center in Hyderabad, which campus cost US$30 million to build. * * * As reported in the Troubled Company Reporter-Latin America on June 7, 2007, Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York-based CA Inc. S&P revised the outlook to stable from negative. As reported in the Troubled Company Reporter-Latin America on May 31, 2007, Fitch has affirmed these ratings for CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility expiring 2008 at 'BB+'; -- Senior unsecured debt at 'BB+'. DRESSER-RAND: UBS Maintains Neutral Rating on Firm's Shares ----------------------------------------------------------- UBS analysts have kept their "neutral" rating on Dresser-Rand Group Inc's shares, Newratings.com reports. Newratings.com relates that the one-year target price for Dresser-Rand's shares was increased to US$44 from US$43. The analysts said in a research note that Dresser-Rand had strong third quarter 2007 results. Its earnings per share surpassed estimates and consensus. The analysts told Newratings.com that Dresser-Rand�s guidance this year "points towards US$85 million in operating income, in- line with the consensus." According to Newratings.com, UBS said that the earnings per share estimate for next year was increased to indicate lower interest expense and taxes. The earnings per share estimates for 2007 and 2008 were increased to US$1.38 from US$1.25 and to US$2.05 from US$1.95, respectively, Newratings.com states. 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: Investing US$73 Mln in Shreveport Assembly Plant ---------------------------------------------------------------- General Motors confirmed that it will invest US$73 million into its Shreveport, Louisiana truck assembly plant to prepare the plant for production of the all-new HUMMER H3T. "GM�s US$73-million investment in Shreveport is further proof that the community remains an important part of GM�s manufacturing plan," Troy Clarke, GM Group Vice President and GM North America President, said. "The H3T is unique for HUMMER because it is the brand�s first true pickup. Like every HUMMER model, the H3T delivers capabilities unparalleled in the marketplace and will carve out a new niche in the truck market. I�m happy to say that the men and women of Shreveport will be a big part of this new growth." Cal Rapson, UAW vice president and director of the GM Department, also voiced strong support for the project. "This investment is a testament to the members of UAW Local 2166 for their hard work and commitment to build high quality products," Mr. Rapson said. "UAW members at the Shreveport plant are an important part of the team that is bringing this exciting new GM vehicle to the market." Larger than a midsize truck, smaller than a full-size, the H3T delivers attitude, versatility and capability. And more important, with a fully functional truck bed and one of the industry�s broadest range of personalization accessories, the H3T provides a new level of lifestyle functionality to the HUMMER portfolio and will draw new customers into the brand. The H3T is scheduled to arrive in dealerships by third quarter 2008. "I am delighted that GM has once again chosen to increase investments in Louisiana by expanding operations in Shreveport," Governor Blanco said. "Louisiana looks to partner with companies interested in doing business in our state who will not only positively impact the region�s economy with their activity, but will also provide quality jobs with good benefits to our workers. Thank you for helping us move Louisiana forward." In the last several years, GM has invested approximately US$1.5 billion in the Shreveport facility. This investment along with the plant�s annual payroll of US$160 million and annual taxes of US$4.5 million, demonstrates that GM will continue to be an economic force in the local community and state of Louisiana for years to come. Shreveport Assembly has built trucks since 1981, beginning with the Chevy S-10. The plant presently produces the HUMMER H3 and Chevy Colorado and GMC Canyon mid-size pickup trucks. Shreveport Assembly employs approximately 2,100 employees. About General Motors 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 said the outlook is stable. GENERAL MOTORS: October 2007 Sales Increased by 3% -------------------------------------------------- General Motors Corp. dealers in the United States delivered 310,008 vehicles in October, 8,700 more vehicles when compared with year-ago performance, outpacing an industry expected to show a volume decline of about 4%. For the third consecutive month, on an unadjusted basis, total sales increased, with October up 3%. When adjusted for selling days, sales declined 1%. It is anticipated that GM will see its fourth consecutive month with market share above 24%. Since August, market share is up more than 1 point, to 25.1%, compared with the same three month period last year. The month's 229,294 retail deliveries demonstrated solid performance despite continuing industry softness. GM retail sales were led by brisk retail sales of full-size utilities, mid-utility crossovers, the Cadillac CTS, and the Chevrolet Aveo, Cobalt and HHR. The Saturn division showed yet another retail sales increase, up 7%. "Our strong market share performance and our ability to outpace industry trends on volume demonstrates the consumer acceptance of our new products," Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing, said. "Over the past two years, our new products including the Chevrolet Silverado, GMC Sierra, Cadillac CTS, full-size utilities, and mid-crossovers have all gained retail share following launch. Our committed dealer team has really stepped up to the plate, pushing all of GM's brands above the industry average in the recently released J.D. Power Customer Satisfaction Index." Cadillac CTS total sales surged 75%, compared with year-ago performance, due to the strength of the all-new CTS, now in showrooms. GMC Acadia, Saturn OUTLOOK and Buick Enclave together had total sales of more than 12,800 vehicles, pushing a more than 320% increase in GM's mid-crossover segment. Additionally, Cadillac's SRX luxury crossover saw a total sales increase of 37%. Total sales of the fuel-efficient Chevrolet Cobalt and Pontiac G5 were up 81%, Chevrolet Aveo was up 58% and HHR was up 70% compared with last October. Vehicles with retail sales increases, compared with year-ago levels, include: Chevrolet Aveo, Cobalt, Tahoe, Suburban, and HHR; Saturn ION; GMC Yukon and Yukon XL; Cadillac CTS and SRX; Pontiac G5, Grand Prix and Vibe. "Cadillac CTS and Buick Enclave have two of the fastest turn rates in the industry," Mr. LaNeve added. "And while it is still very early, Malibu demand and customer feedback has been sensational. It's products like these that have enabled us to buck recent industry trends."