T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, November 7, 2007, Vol. 10, No. 221 Headlines A U S T R A L I A AURORA GEMSTONE: Will Declare Dividend on Nov. 9 BERNIE KELLY: Supreme Court Enters Wind-Up Order BETCORP LIMITED: Members Agree on Voluntary Liquidation CALLANDER TRANSPORT: Members and Creditors to Meet on Nov. 9 CARAVAN COUNTY: Declares Second Dividend for Unsecured Creditors CENTURY NO. 10: Commences Liquidation Proceedings COLES GROUP: Majority of Proxy Votes Support Wesfarmers Offer COLES: Merger Poses Credit Risks for Wesfarmers, Fitch Says CTS TOWING: Placed Under Voluntary Liquidation EMPEROR MINES: Production Down 5% for Quarter Ended Sept. 30 GALE CORPORATION: Members to Receive Wind-Up Report on Nov. 15 GMAC AUSTRALIA: Moody's Says Stake Sale Helps Liquidity Profile NRG ENERGY: Commences Offer To Purchase US$4.7 Billion of Notes PSIVIDA LTD: Posts AU$15.4MM Boost in Cashflow for Q1 of FY2007 PSIVIDA LTD: Pfizer Inc. Becomes Largest Shareholder PSIVIDA LTD: Dr. Woodthorpe Joins Board of Directors REALOGY CORP: S&P Lowers Corporate Credit Rating from B+ to B WOODLANDS COMMERCIAL: To Declare Dividend on November 30 ZONTA CONSTRUCTION: Sets Joint Meeting for November 12 * AU Infrastructure Unaffected by Market Turmoil, Fitch Says C H I N A & H O N G K O N G ACXIOM CORP: Declares Quarterly Dividend of 6 Cents Per Share BEARINGPOINT INC: Sarah Beardsley to Lead Comm & Media Practices BOMBARDIER INC: Fitch Affirms Low-B Ratings and Revises Outlook BUCYRUS INT'L: Paying US$0.05 Per Share Quarterly Dividend CHELTON FINANCE: Court to Hear BT's Wind-Up Petition on Dec. 19 CHINA EASTERN AIRLINES: Shares Suspended at Firm's Request DATUM NETWORKS: Inability to Pay Debts Prompts Wind-Up DURA DUCT: Creditors' Meeting Set for November 14 EMI GROUP: Terra Firma Leads Strategic Review to Recover Equity EMI GROUP: Terra Firma Eyes Artists' Compensation Overhaul EMI GROUP: Appoints Mike Clasper & Billy Mann to Investor Board FERRO CORP: Initiates Next Step in European Restructuring HANESBRANDS INC: Inks Ten-Year Strategic Deal with Walt Disney KIN LEE: Accepting Proofs of Debt Until Nov. 16 MAN CHEONG: Taps Leung Chi Wing as Liquidator PETROLEOS DE VENEZUELA: Inks Oil Exploration with Sonatrach PETROLEOS DE VENEZUELA: Petrodelta Operational in Few Months PREMIER PRECISION: Creditors' Proofs of Debt Due on Dec. 3 SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007 SHANGHAI REAL ESTATE: Unit Launches IPO to Raise SGD332 Million SHINE FAITH: Members to Receive Wind-Up Report on Dec. 5 SKYCITY UNVERSAL: Creditors and Contributories to Meet on Nov. 9 TACWIN INDUSTRIAL: Court Appoints Wai and Fun as Liquidators WA PEI: Shareholders Resolve to Wind Up Operations * Moody's Issues Annual Report on China * Fitch Upgrades China to 'A+' I N D I A PRIDE INT'L: Earns US$401.5 Million for Quarter Ended Sept. 30 SHREE DIGVIJAY: Second Qtr. Net Profit Down 81% to INR15 Mil. SHYAM TELECOM: Profit Down 36% to INR7.42 Mil. in 2Q FY 2008 SOUTH INDIAN BANK: Fitch Affirms 'D' Individual Rating SPICEJET LTD: Incurs INR377.71 Mil. Loss in Qtr. Ended Sept. 30 VISTEON CORP: Sept. 30 Balance Sheet Upside-Down by US$162 Mln J A P A N DELPHI CORP: Postpones Disclosure Statement Hearing FORD MOTOR: Reaches Tentative National Labor Agreement with UAW FORD MOTOR: UAW Ford National Council Urges Pact Ratification JABIL CIRCUIT: Paying US$0.07 Per Share Dividend on Dec. 3 JAPAN AIRLINES: Incurs JPY34.8-Bil. Net Loss for 2007 First-Half METHANEX CORP: CEO Bruce Aitken to Buy 35,000 Additional Shares SOJITZ CORP: Adjusts Forecasts for Year Ending March 31, 2008 TIMKEN COMPANY: Board Declares US$0.17 Per Share Dividend M A L A Y S I A AMANAH MILLENIA: Voluntary Wind-Up Cues Delisting of Shares LITESPEED EDUCATION: CEO Pok Unfazed by Wind-Up Petition LITESPEED EDUCATION: Incurs MYR1.23-Mil. Net Loss in 1st Qtr. LITESPEED EDUCATION: Enters Into MoU with DGB Education MALAYSIA AIRLINES: Completes Rights Issue of 417,747,955 Shares N E W Z E A L A N D AMRIT GLASS: Court Sets Wind-Up Petition Hearing for Feb. 28 FOUR SEASONS: Fixes Nov. 16 as Last Day to File Claims GENEVA FINANCE: Still Not Free From Receivership Threat HARDHAM FINANCE: Commences Liquidation Proceedings IRON MOUNTAIN: To Acquire Stratify for US$158 Million in Cash KIWI LIQUOR: Taps Fatupaito and McCloy as Liquidators MIKE GADSBY: Creditors' Proofs of Debt Due on Nov. 15 PRENTIS CONSTRUCTION: Fixes Nov. 16 as Last Day to File Claims SENSE RESEARCH: Court to Hear Wind-Up Petition on Feb. 21 TECHNICAL SPECIALISTS: Faces Pertronic's Wind-Up Petition WAIROA DUNES: Court Appoints Fatupaito and McCloy as Liquidators P H I L I P P I N E S BANGKO SENTRAL: Expects US$6.3-Billion BoP Surplus for 2007 BANGKO SENTRAL: Readies Next Wave of Forex Liberalization CHEMTURA CORP: Sells Optical Monomers Business to Acomon AG CHEMTURA CORP: Earns US$2 Million in 2007 Third Quarter GLOBE TELECOM: To Pay PHP50/Share Cash Dividend on December 17 PHIL LONG DISTANCE: 3rd Qtr. Profit Falls 9% to PHP9.51 Billion PRIME ORION: Turns Around with PHP4-Bil. Profit for Fiscal 2007 RIZAL COMM'L: Unit Talks To Settle Disputes with Accounting Firm SAN MIGUEL: Expects to Earn PHP25 Billion from Beer Unit's IPO SECURITY BANK: Posts PHP1.83-Billion 9-Month Net Income WENDY'S INT'L: Banks Propose "Highly Conditional" Financing * Foreign Investors Upbeat on Economic Prospects, BSP Head Says S I N G A P O R E CATERINGX PTE: Creditors Set to Meet on November 9 CHEMTURA CORP: Earns US$2 Million in 2007 Third Quarter CHINA AVIATION: Earns US10.5 Mil. in 3rd Qtr. Ended Sept. 30 FLEXTRONICS: Discloses Change in Solectron's Repurchase Offer HEXION SPECIALTY: Closes German Resins Business Acquisition INTEGRATED TECHNIQUE: Accepting Proofs of Debt Until Nov. 9 UNIFIZE PTE: Creditors' Meeting Set for November 9 UNISON PROJECTS: Liquidators to Presents Wind-Up Report ZHEJIANG HOLDING(S): Court to Hear Wind-Up Petition on Nov. 9 T H A I L A N D ARVINMERITOR INC: Appoints Art Waldowski as VP of Purchasing BLOCKBUSTER INC: Posts US$35 Million Third Quarter Net Loss KRUNG THAI: Offers 6-Month, 3-Month Bill of Exchange * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= AURORA GEMSTONE: Will Declare Dividend on Nov. 9 ------------------------------------------------ Aurora Gemstone Mines Pty Ltd, which is in liquidation, will declare dividend for its unsecured creditors on November 9, 2007. Unsecured creditors who were not able to file their proofs of debt by the Oct. 23 due date will be excluded from the company's dividend distribution. The company's liquidator is: Glenn Michael Shannon SV House 138 Mary Street Brisbane, Queensland 4000 Australia About Aurora Gemstone Aurora Gemstone Mines Pty Ltd is a distributor of miscellaneous nonmetallic minerals. The company is located at Lightning Ridge, in New South Wales, Australia. BERNIE KELLY: Supreme Court Enters Wind-Up Order ------------------------------------------------ On September 24, 2007, the Supreme Court of Australia entered an order directing the wind up of Bernie Kelly Constructions Pty Ltd'd operations. A. S. R. Hewitt was appointed as liquidator. The Liquidator can be reached at: A. S. R. Hewitt Grant Thornton Rialto Towers Level 35, North Tower 525 Collins Street Melbourne, Victoria 3000 Australia About Bernie Kelly Bernie Kelly Constructions Pty Ltd operates nonclassifiable establishments. The company is located at Beaumaris, in Victoria, Australia. BETCORP LIMITED: Members Agree on Voluntary Liquidation ------------------------------------------------------- During a general meeting held on Sept. 28, 2007, the members of Betcorp Limited agreed to voluntarily liquidate the company's business. Simon Cathro and Simon A Wallace-Smith were appointed as liquidators. The Liquidators can be reached at: Simon Cathro Simon A Wallace-Smith Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 About Betcorp Limited Betcorp Limited provides amusement and recreation services. The company is located at Melbourne, in Victoria, Australia. CALLANDER TRANSPORT: Members and Creditors to Meet on Nov. 9 ------------------------------------------------------------ The members and creditors of Callander Transport Co Pty Ltd will meet on November 9, 2007, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise Queensland 4217 Australia Web site: http://www.worrells.net.au About Callander Transport Callander Transport Co Pty Ltd is engaged with trucking business except local. The company is located at Grafton, in New South Wales, Australia. CARAVAN COUNTY: Declares Second Dividend for Unsecured Creditors ---------------------------------------------------------------- Caravan County (Brisbane) Pty Ltd declared second dividend for its unsecured creditors on October 23, 2007 Unsecured creditors who were not able to timely file their proofs of debt were excluded from the company's dividend distribution. The company's deed administrator is: Matthew L. Joiner c/o JCJ Partners Pty Ltd Level 4, 370 Queen Street Brisbane, Queensland 4000 Australia About Caravan County Caravan County (Brisbane) Pty Ltd is a dealer of new and used motor vehicles. The company is located at Eight Mile Plains, in Queensland, Australia. CENTURY NO. 10: Commences Liquidation Proceedings ------------------------------------------------- At the annual general meeting held on September 18, 2007, a special resolution was passed to voluntarily wind up Century No. 10 Pty Ltd's operations. Braden Harris was appointed as liquidator. The Liquidator can be reached at: Braden Harris c/o Dickfos Dunn Chartered Accountants PO Box 1669 Southport, Queensland 4215 Australia About Century No 10 Century No 10 Pty Ltd is involved with real estate investment trusts. The company is located at Surfers Paradise, in Queensland, Australia. COLES GROUP: Majority of Proxy Votes Support Wesfarmers Offer ------------------------------------------------------------- Coles Group Limited shareholders will cast their votes today, November 7, regarding Wesfarmers Ltd.'s AU$20-billion offer for the supermarket chain, Victoria Thieberger of Reuters reports, citing sources. Ms. Thieberger says that, according to the sources, Coles and Wesfarmers are confident of getting the deal approved, based on the latest tally of proxy votes that must be lodged by a Monday morning deadline. Proxy votes, the report explains, are postal votes sent in by shareholders who are unable to attend the meeting. Reuters states that the proxy votes are running strongly in favor of the Wesfarmers takeover. More than 75% of Coles shareholders must vote in favor for Wesfarmers to take control of Australia's second-largest supermarket chain, relates Ms. Thieberger. Of Coles' 350,000 shareholders, about 256,000 own 1,000 shares or less, and another 83,000 own between 1,000 and 5,000 shares, Reuters notes. Vanda Carson of The Sydney Morning Herald says that the Myer family, which holds 47 million shares, or an equivalent 4% of Coles, is supporting Wesfarmers' offer. The Myer family, as stated in the SMH report, is the only large shareholder which has held Coles stock for more than 20 years, meaning it will not have to pay capital gains tax on the sale. Rupert Myer, the grandson of Coles founder Sidney Myer, said in a statement to the media that he has confidence in the Wesfarmers management, relates SMH. SMH quotes Mr. Myer as saying, "If the proposed scheme is approved by Coles shareholders, the Myer Family Company will become a significant shareholder in Wesfarmers. We are confident that under Wesfarmers management, the Coles group of businesses will have the opportunity to reach its full potential for the benefit of all Wesfarmers shareholders - both old and new." SMH adds that if the proposal is approved by 75% of shareholders, the deal will be sealed on November 9, allowing a cash payment to be made on November 23. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and other parts of Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. COLES: Merger Poses Credit Risks for Wesfarmers, Fitch Says ----------------------------------------------------------- Following the release of the independent expert's review of Wesfarmers Limited proposal to acquire Coles Group Limited , Fitch highlighted the key credit issues associated with the proposal such as the underperformance of Coles, the amount and maturity of debt Wesfarmers will take on, as well as regulatory issues. "The acquisition of Coles by Wesfarmers will result in Wesfarmers becoming more dependent on earnings and cash flow from its retail business. While this in isolation is not negative, Wesfarmers does not have the necessary in house supermarket management skills and will therefore need to recruit senior management. Overlaying the difficulties of turning around the underperforming Everyday Needs Businesses (which includes supermarkets, Coles Liquor, Coles Express and Kmart), this could present some significant integration and execution risks for the company," said Vicky Melbourne, director in Fitch's corporate team. If the proposal proceed, the net debt of the Wesfarmers-Coles merged group will be approximately AU$11 billion. Adjusted for the capitalization of operating leases (associated with property rentals) this will increase to nearly AU$20 billion and accordingly, leverage (adjusted net debt/EBITDA) of nearly 6.0x, which is high. Should Wesfarmers "ring fence" its insurance underwriting activities in order to preserve the rating associated with this business, the effective leverage is likely to increase further. "The pace at which debt can be repaid will be impacted by the extensive capital expenditure program that is planned for Coles in order to rejuvenate the business. Meanwhile, the announcement by the Australian Competition and Consumer Commission (ACCC) that it would be opposed to any attempt by Woolworths Limited to acquire the Kmart and Officeworks business units would hinder Wesfarmers plans to sell these businesses," added Melbourne. The Wesfarmers-Coles merged group liquidity will be strong, thanks to a robust operation cash flow, cash balances and good access to credit lines. However, Fitch notes that over 45% of the proposed AU$10bn debt facilities (to fund the cash consideration to Coles shareholders and refinance existing facilities) is short term and therefore presents some liquidity risks. This is compounded by the current volatility in the debt capital markets. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and other parts of Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. CTS TOWING: Placed Under Voluntary Liquidation ---------------------------------------------- During a general meeting held on September 24, 2007, the members of CTS Towing Pty Ltd agreed to voluntarily liquidate the company's business. W. G. Malone was appointed as liquidator. The Liquidator can be reached at: W. G. Malone PO Box 282 Spring Hill, Queensland 4004 Australia Telephone:(07) 3839 8330 Facsimile:(07) 3839 8334 About CTS Towing CTS Towing Pty Ltd provides automotive services, except repair and carwashes. The company is located at Nambour, in Queensland, Australia. EMPEROR MINES: Production Down 5% for Quarter Ended Sept. 30 ------------------------------------------------------------ Emperor Mines Limited released its results for the quarter ended September 30, 2007. Gold production at Tolukuma was down 5%, which comprised of 45,041 tonnes milled (49,516) at a head grade of 7.12g/t (7.54) producing 10,033 ounces of gold (10,561) at a cash cost of US$944/oz (US$807/oz). Production during the quarter was impacted by power supply issues which impacted the ability to maintain operations in the mill and underground. Low river levels reduced hydro generation of power, with diesel generation sets being run at maximum capacity. This resulted in increased power generation costs (price and usage) and increased logistics cost due to supply of additional diesel. Exploration/Development summary The company maintains over 5,000km2 of exploration tenements in PNG, and has recently entered into an Alliance Agreement over a Au-Ag-Cu property in Indonesia. During the quarter exploration in PNG was focused on on-going mine extension activities, and on the regional program the focus was on Mining Wardens hearings for renewals of ELs and on preparation of Annual Reports. In Indonesia, an Alliance Agreement was signed over the Tujuh Bukit Au-Ag-Cu Project in East Java and drilling commenced in September. Highlights The sale of Emperor's 20% interest in the Porgera Joint Venture to Barrick Gold Corporation was completed on August 17, 2007, and subsequently Emperor retired all its debt facilities, leaving the Company debt and hedge free and with free cash in excess of AU$125 million before the capital return. Subsequent to the completion of the capital return (5 cents per share distributed on September 3, 2007), the Company had cash on hand in excess of AU$70 million. The Company signed an Alliance Agreement with a group of Indonesian and Australian investors to explore a large gold- silver-copper project in eastern Java. The Alliance Agreement between Emperor Mines, PT Indo Multi Niaga and IndoAust Mining Limited sets out the framework for entering into a Joint Venture Agreement and undertaking further exploration on a property of approximately 116km2, located in the south eastern area of Java. Emperor announced its intention to divest the Tolukuma gold mine situated in PNG as it does not fit with Emperor's newly developed plans. Accordingly, the Company has initiated a divestment process for the mine and a portfolio of associated exploration tenements. Emperor Mines Chief Executive, Brad Gordon, stated that he believes that the sale of Tolukuma will free up management and other resources to concentrate on implementing the growth strategy outlined in July. The Company has entered into 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 with the surviving listed entity, Intrepid Mines Limited listed on both the Toronto Stock Exchange and the Australian Stock Exchange. Subsequent to end to the quarter, the Company's major shareholder, DRD Gold Limited successfully completed the sale of its stake in Emperor to a range of domestic and international institutions and sophisticated investors. This was following the Company's announcement during the quarter that DRD Gold Limited (78.7%) intends to re-focus its attention on opportunities in South Africa and seek to realize its investment in Emperor in an orderly manner. During October, the Tolukuma mine has been successful in regaining access to all stoping areas. This had been prevented during the year due to decline collapse (Tinebar), flooding and substandard conditions (Gulbadi). Consequently mill head grades have improved significantly to 12.5 g/t month to date. Papua New Guinea The company maintains over 5,000km2 of exploration tenements in PNG. During the quarter the focus of activity was within ML 104 on mine extension exploration and at near mine prospects. Regional exploration was limited to compilation of data, annual report preparation and Mining Wardens hearings. Mine Extension The mine extension exploration program continued to focus the delineation and extensional drilling of the Zine structure, in addition to some drilling on Tinabar and at Fundoot. Holes ZN 097, 098 and 099 have all followed up the high grade intercepts in holes ZN 093 and 094. ZN097 was drilled 50m below ZN094 and intersected the Zine structure at a downhole depth of 368m and returned 1.15m @ 2.0 g/t Au with 88% core loss. The hole was abandoned within mineralization due to drilling difficulties. ZN098 intersected the Zine structure at 1386mrl and hole ZN099 intersected the structure at 1320mrl, both of which are immediately below the Zine bonanza zone. Hole ZN098 returned an encouraging result of 1.69m @ 16.7g/tAu & 26.4g/t Ag. These assays and the geological context are encouraging as they confirm the vertical continuity of the Zine mineralization to be at least about 100m from current workings. However, the mineralization assemblage at depth is different from the known high grade quartz-adularia-sulphides-sericite banding in the higher levels. Underground drilling has been designed to test continuity of gold mineralization to the south on the Zine structure from the Mid Zine zone. Drilling at Fundoot South and on the Kagam Cross veins, in the southern parts of the mine area, have generally returned lower grade intercepts. Near Mine The Near Mine program has focused on the Banana vein area located immediately SW of the mine area. Drilling has returned a best intercept of 0.46 @ 1.97g/tAu & 36.6 g/tAg in hole BN016, but the drill holes have intercepted quartz-sulphide-clay veins with crackle hydrothermal brecciation and some stockwork veining. Hole BN014 intersected a 0.34m wide brecciated quartz vein with pyrite + sericite/kaolinite + minor mixed/dark sulphides and a 2.29m wide footwall stockwork zone consisting of similar mineralization. This intersection (at 1627 mRL) returned an average assay of 2.63m @ 1.17 g/t Au, 27.6 Ag. The presence of sericite/kaolinite and specks of dark sulphides in the vein together with the high silver values are encouraging signs for potential at depth. Creek mapping has commenced and is progressing in the southern parts of the Lock/Dagakuma and 120 Vein Prospects, located approximately 600m east of the Zine structure. No significant structures have been observed to date but rock chips of minor vein material have returned assays up to 3.9g/t Au & 12g/t Ag. Regional Wardens Hearings have been successfully completed over 8 ELs as part of the EL renewal process. Two EL's remain to have the Wardens Hearings completed in December. The Mining Warden was pleased with the hearings and strong local support for ongoing exploration was communicated to the TGM and government representatives. Annual reports for several of the ELs were completed and submitted to the PNG Department of Mines. Work programs have been prepared for Ipi River and Etasi Project areas to continue exploration as soon as the EL's are renewed Indonesia On August 19, 2007 Emperor signed an Alliance Agreement with a group of Indonesian and Australian investors to explore the Tujuh Bukit Au-Ag-Cu project in East Java. Emperor can earn up to a 70% economic interest through funding exploration activities. Drilling commenced at Tumpangpitu Prospect on September 20. The first hole, GTD-07-15 was completed post quarter end at 411m. The hole is located approximately 80m NE of original hole GT-11 (68m @ 1.04g/t Au, 54 ppm Ag & 30m @ 0.22g/tAu, 4ppm Ag). Drilling is being undertaken with 3 x 8 hour shifts. Fourteen drill holes are proposed in the area -- referred to as Zone C -- over 5 NE-SW trending 80m spaced traverses. A similar program will then be undertaken in the vicinity or original hole GT-10 (Area A). An option exists for a second drilling rig to commence later in the year. This rig will have greater depth capacity and be capable of testing some of the deeper porphyry Cu-Au targets. Soil sampling, geological mapping and rock chip sampling are ongoing in the Tumpangpitu and Salakan areas. About Emperor Mines Based in Sydney, Australia, Emperor Mines Limited -- http://www.emperor.com.au/-- is engaged in the exploration, development and exploitation of gold deposits. As of June 30, 2007, the company had 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. GALE CORPORATION: Members to Receive Wind-Up Report on Nov. 15 -------------------------------------------------------------- The members of Gale Corporation Pty Ltd will hold their general meeting on November 15, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Warren White PPB, Level 10 90 Collins Street Melbourne, Victoria 3000 Australia About Gale Corporation Gale Corporation Pty Ltd is a distributor of piece goods and notions. The company is located at Campbellfield, in Victoria, Australia. GMAC AUSTRALIA: Moody's Says Stake Sale Helps Liquidity Profile ---------------------------------------------------------------- Moody's Not Prime short-term rating for GMAC, Australia (Finance) Limited is based on the underlying credit quality of GMAC LLC, its indirect parent which has unconditionally guaranteed payment of any commercial paper notes issued by GMACAF. GMAC is a finance company with sizeable auto finance and residential mortgage finance businesses, as well as a complimentary insurance business and a commercial finance business. In November 2006, GM sold a 51% stake in GMAC to FIM Holdings LLC, an investor group led by private investment firm Cerberus FIM Investors, LLC. The transaction resulted in a de- linkage of GMAC's debt ratings from the ratings of GM, on the basis of a change in control. However, a significant proportion of GMAC's funding needs continue to relate to dealer and retail financing the company provides as a part of its ongoing business relationships with GM, which could impart a continuation of GM- related confidence sensitivity to GMAC's liquidity position. In addition, adverse performance trends in sub-prime mortgage pools and resultant capital market uncertainty for this and other mortgage asset classes has contributed to liquidity challenges for GMAC's residential mortgage unit, Residential Capital LLC ("ResCap," whose liquidity profile Moody's separately assesses). Moody's believes GMAC's committed borrowing facilities, strong cash balances, cash flow from short-duration assets, and expanded access to funding sources such as ABS and whole loan sales provide sound sources of liquidity for the firm's short- term obligations. In Moody's view, the sale of a majority interest in GMAC, together with recent actions undertaken by management, have improved GMAC's liquidity profile. Direct exposures to GM were reduced as part of the sale, concurrently reducing GMAC's associated actual and contingent funding and capital requirements associated with the exposures. Also in connection with the sale, GMAC arranged a US$10 billion asset-based facility with a subsidiary of Citigroup. A US$4 billion tranche of this facility can be used to fund asset types not commonly securitized, such as retail loans with balloon maturities and commercial finance receivables, enhancing GMAC's liquidity with respect to these asset classes. Since the sale closing, GMAC has established funding facilities that replace over half of its SWIFT wholesale receivables funding that would be subject to early amortization if a trigger related to a GM bankruptcy is tripped. In addition, GMAC has executed two SWIFT transactions, valued at approximately US$1.4 billion and US$2 billion that include no GM-related chapter 11 bankruptcy trigger. Though GMAC's liquidity prospects are improved, there remain contingent risks related to GM -- both explicit (GM insolvency would limit GMAC's ability to utilize certain legacy SWIFT wholesale financing structures) and implicit (confidence sensitivity) -- that detract from the firm's overall liquidity position. Moody's continues to monitor GMAC's ability to access competitively priced unsecured funding, as well as market signals, regarding the confidence sensitivity issue. During the past few years, GMAC has expanded its use of securitization and whole loan sales significantly, helping to ease its funding constraints in the unsecured markets. These sources constituted approximately 86% of funding for GMAC's U.S. auto financing operations in the first half of 2007. Moody's comfort level with GMAC's auto finance related securitization and whole loan sale capacity is based on the company's experience in securitizing consumer receivables, retail leases, and wholesale assets, while demonstrating good asset quality. However, for some asset classes, recent securitizations have required structural enhancements to maintain tranching and rating levels, due to heightened GM-related risks. GMAC has increased its securitization platforms to include less liquid assets, such as automotive leases and assets residing in smaller jurisdictions outside of the U.S. Some markets remain reliant on U.S. funding support despite progress in expanding in-market funding programs. ResCap is also a frequent issuer of mortgage-backed securities. Though the overall market for residential mortgage assets is deep and accessible, recent investor demand for sub-prime mortgage ABS, as well as for certain prime non-conforming mortgage ABS, has been negatively impacted by deteriorating asset quality. GMAC would likely support ResCap with a capital injection were the firm to come under significant stress. Should Moody's come to view GMAC as a probable supporter of ResCap to its own potential detriment, GMAC's ratings would likely be equalized with ResCap's ratings. GMAC maintains a committed whole loan sale flow agreement with Bank of America, under which it can sell up to US$55 billion of retail auto loans over a five-year period, and a similar US$20 billion five-year agreement with Bank of Nova Scotia. During the first six months of 2007, GMAC sold about US$6 billion in auto finance receivables through whole-loan sale arrangements, versus US$16 billion for all of 2006. At June 30, 2007, US$42.5 billion in unused capacity remained under GMAC's whole loan flow commitments. GMAC sells to the counterparties of these agreements retail installment contracts that are representative of the spectrum of contracts that it originates, though delinquent loans are not eligible for sale and are therefore retained by GMAC. GMAC's greater use of alternative funding sources in substitution of unsecured debt issuance has led to declines in the firm's unsecured debt balances. During the first half of 2007, GMAC did issue US$4.5 billion of unsecured debt in support of its auto finance activities. The firm's unencumbered assets have had a shorter maturity profile than its unsecured debt; as a result, internally generated cash flow, in combination with asset sales, repayment by subsidiaries of inter-company debt, and securitization, have provided the funds necessary for GMAC to both meet its maturities and fund new originations. Unsecured debt maturities in 2007 are lower than 2006 maturities, reducing this burden on the firm's cash flow. Moody's expects GMAC's funding profile will continue to reflect strong utilization of whole loan sales and securitization and a proportionately lesser reliance upon unsecured debt, even as the firm re-engages the unsecured debt markets. While unsecured debt can provide a firm greater overall financial flexibility, Moody's believes GMAC's more diversified funding strategy is prudent, given the uncertainties related to developments at GM and their potential impact on GMAC's businesses. As of June 30, 2007, GMAC had US$2 billion of commercial paper outstanding, an increase from 2006 year end balances of US$1.5 billion. Near term, Moody's expects CP to continue to be a less consequential component of debt capital, though balances could continue to expand, depending upon investor sentiment regarding GMAC's continuing operating prospects. GMAC renewed its 364-day global bank facilities in June 2007. As of June 30, 2007, GMAC had a total of US$9.5 billion in committed bank credit facilities supporting its auto financing operations, consisting of a US$6.0 billion contractually committed syndicated global credit agreement and US$3.5 billion of contractually committed international bilateral agreements. The syndicated facility includes a US$3 billion five-year facility with a maturity of June 20128, and a US$3 billion 364-day facility with a one-year term-out provision expiring in June 2008. GMAC is in compliance with the leverage covenant included in its bank agreements. At June 30, 2007, GMAC had cash, cash equivalents and certain marketable securities of US$17.5 billion (US$3.7 billion of which resides in ResCap) available as a near- term liquidity cushion. At June 30, 2007, GMAC had access to US$12.0 billion of contractually committed liquidity facilities to support its asset-backed commercial paper (ABCP) program (NCAT). Aggregate ABCP outstanding under this program at June 30, 2007 totaled US$6.5 billion. The majority of GMAC's retail auto finance assets are eligible for securitization under this facility. As of the end of the second quarter of 2007, GMAC also had US$48 billion in other committed secured funding facilities for its auto finance operations, comprised primarily of conduits (US$32 billion), with the balance made up of a variable funding note facility (US$6 billion) and the aforementioned Citi facility (US$10 billion). Availability under these facilities totaled US$17.2 billion at the end of the quarter. Moody's notes that a higher percentage of secured debt issuance (including securitization) as a percentage of total capital, does create the potential over time for structural subordination of unsecured debt holders. While not presently a significant rating concern, Moody's continues to monitor this development, in part by assessing trends in secured debt ratios and asset coverage ratios. NRG ENERGY: Commences Offer To Purchase US$4.7 Billion of Notes --------------------------------------------------------------- NRG Energy Inc., in connection with the previously-announced implementation of a new holding company structure to facilitate its capital allocation plan, has commenced conditional cash offers to purchase any and all of its US$4.7 billion of outstanding senior notes at 101% of the principal amount, plus accrued interest, as required by the indentures for its 7.25% senior notes due 2014, 7.375% senior notes due 2016 and 7.375% senior notes due 2017. In addition to these contractually required offers, NRG announced a concurrent alternative solicitation of consents that will provide each investor with an opportunity to forgo its right to require NRG to make the offers to purchase with respect to its Notes. The cash tender offers are expressly conditioned on the consummation of a merger to implement the holding company structure, as contemplated by the merger agreement dated Nov. 2, 2007, among NRG Energy, Inc. and two newly formed subsidiaries, NRG Holdings, Inc. (Holdco) and NRG Merger Sub, Inc. Upon consummation of the merger, NRG Energy, Inc. will remain the issuer of the Notes and will become a wholly owned subsidiary of Holdco. In the event that the merger is not consummated for any reason, NRG will be under no obligation to consummate the tender offers (although NRG reserves the right to accept tenders and purchase tendered Notes even if the merger is not consummated). The concurrent alternative consent solicitation for each series of Notes is not conditioned on receipt of consents representing a minimum percentage of outstanding Notes of any series. Each holder of Notes that consents to forgo the requirement for the tender offer with respect to its Notes will receive a minimum consent fee of US$1.25 in cash per US$1,000 principal amount of Notes upon consummation of the merger, whether or not any other holders of Notes elect to consent. Furthermore, in the event that holders of a majority in aggregate principal amount of a particular series of Notes consent to forgo the tender offer, consenting holders of Notes of that series will receive upon consummation of the merger a consent fee per US$1,000 principal amount of Notes equal to US$1.25 divided by the percentage of Notes of that series which consented. In the event that a majority of consents for a particular series of Notes are received, NRG will not be obligated to purchase any Notes of that series (although it reserves the right to do so) and will have the option to terminate the tender offer for that series of Notes in its discretion. Notes may either be tendered into a tender offer for a particular series or may be consented, but not both. Notes of any series that are tendered into a tender offer will not be eligible to receive the consent payment, even if consents representing a majority in aggregate principal amount of that series are received, thereby eliminating the requirement for the tender offer with respect to all outstanding Notes of that series. In addition, Notes that are neither tendered nor consented will not be eligible to receive the consent payment under any circumstances. In connection with the transaction, Bank of America has provided NRG Energy, Inc. with a US$4.2 billion senior unsecured debt financing commitment, subject to customary conditions, to fund the tender offers together with a portion of NRG's cash on hand. In addition, as previously disclosed, the Company entered into a new US$1 billion senior credit facility at Holdco on June 8, 2007, as part of NRG's refinancing transaction. NRG intends to fund the Holdco facility upon consummation of the merger and pay the proceeds to NRG Energy, Inc. as an equity contribution. NRG will use the net proceeds for the prepayment of a portion of its existing Term B loan, resulting in a reduction in debt at NRG Energy, Inc. but no change to the Company's consolidated debt levels. Upon completion, the restricted payments capacity under the indentures governing the Notes will increase by an amount equal to the equity contribution. As previously announced, in light of the company's projected earnings and cash flow profile, the company plans to target an annual return of capital to shareholders, consisting of both fixed (dividend) and variable (share repurchase) components, of approximately 3% per annum. The tender offers are being made pursuant to the provisions of the indentures governing the Notes that require NRG to make an offer to repurchase Notes at a price of 101% of the principal amount thereof, plus accrued interest, upon a "Change of Control," as defined therein. The holding company merger, if completed, will constitute a "Change of Control" under the indentures governing the Notes. Conducting the tender offers as described above will fulfill NRG's obligation with respect to the change of the control provisions of the indentures governing the Notes. NRG will not have any obligation to make any other offer as a consequence of implementing the holding company structure pursuant to the merger agreement. However, NRG reserves the right, whether or not the tender offers or the consent solicitations are consummated, to acquire Notes from time to time in the future through open market purchases, privately negotiated purchases, redemptions, tender offers or otherwise, upon such terms and at such prices as NRG in its sole discretion may determine. The tender offers and the consent solicitations will expire at 9:00 a.m., New York City time, on Tuesday, Dec. 4, 2007, unless extended. NRG reserves the right, but is not obligated, to extend the tender offers and the consent solicitations. Tenders may be withdrawn and consents may be revoked at any time prior to expiration. The complete terms of the tender offers and consent solicitations are contained in the Notice of Conditional Offers to Purchase and Concurrent Alternative Consent Solicitations Statement dated Nov. 2, 2007, which is being sent to holders of Notes. Each tender offer or consent solicitation with respect to a series of Notes is independent of the others. Banc of America Securities LLC is the exclusive dealer manager for the tender offers and solicitation agent for the consent solicitations. Questions regarding the tender offers and the consent solicitations can be addressed to Banc of America Securities LLC at (888) 292-0070 or (212) 847-5188. Requests for documents may be directed to MacKenzie Partners, Inc., the information agent, at (800) 322-2885 or (212) 929-5500. About NRG Energy Hearquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE: NRG) -- http://www.nrgenergy.com/-- owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and West regions of the U.S. Its operations include baseload, intermediate, peaking, and cogeneration and thermal energy production facilities. NRG also has ownership interests in generating facilities in Australia, Germany and Brazil. * * * Standard & Poor's Ratings Services rates NRG Energy Inc.'s US$4.7 billion unsecured bonds at 'B'. In addition, Standard & Poor's rates NRG Energy Inc.'s corporate credit rating at 'B+'. S&P said the outlook is stable. PSIVIDA LTD: Posts AU$15.4MM Boost in Cashflow for Q1 of FY2007 --------------------------------------------------------------- pSivida Limited announced the filing of its Quarterly Cash Flow Statement for the quarter ended September 30, 2007. The cash balance at September 30, 2007 was AU$18.5 million (US$16.5 million) an increase of AU$15.4 million (US$13.8 million) from the balance at June 30, 2007. During the quarter, net cash inflows from financing activities were AU$21.3 million (US$18.4 million) from a share placement in July. Net cash used in operating activities was AU$5.3 million (US$4.5 million) and net cash used in investing activities was AU$95,000 (US$80,000). The Company's burn rate, which we define as net cash used in operating activities, was AU$5.3 million, the same as the previous quarter. This compares to an average burn rate of AU$6.3 million per quarter during fiscal 2007. The Company is debt free having repaid all of its convertible notes as of June 30, 2007. In the June Quarterly Cash Flow we reported that Bausch and Lomb will retain 100% of the next US$4.7 million (AU$5.5 million) of Retisert(R) royalties otherwise payable in accordance with a royalty advance agreement the Company entered into with Bausch & Lomb in June 2005. Royalties otherwise payable for the quarter ended September 30, 2007 were US$510,000 (AU$601,000), which represents a 9% decrease from US$559,000 (AU$673,000) for the quarter ended June 30, 2007 and a 3% increase from US$495,000 (AU$654,000) for the quarter ended September 30, 2006. Retisert(R) is the only FDA-approved treatment for posterior uveitis, a chronic eye disease. pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. PSIVIDA LTD: Pfizer Inc. Becomes Largest Shareholder ---------------------------------------------------- Pfizer Inc. increases investment in pSivida Ltd. to AU$13.7 million (US$11.5 million) or approximately 10% of outstanding shares. In July 2007, pSivida raised AU$24.0 million (US$20.6 million) of gross proceeds from share placements including a AU$7.5 million (US$6.5 million) investment by Pfizer Inc. that increased their total investment in the Company to AU$13.7 million (US$11.5 million) or approximately 10% of outstanding shares, making Pfizer the largest shareholder in the Company. Cowen and Company, LLC acted as lead placement agent and JMP Securities acted as co-agent in the July placement. This investment and Pfizer's earlier equity investment of US$5 million were made pursuant to a collaborative research and licensing agreement that provides for a total of up to US$165 million in equity investments and development and sales- related milestones. The Company expects to receive certain research and development funding from Pfizer under the agreement, commencing in January 2008. pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. PSIVIDA LTD: Dr. Woodthorpe Joins Board of Directors ---------------------------------------------------- pSivida Ltd. appoints Dr. Katherine Woodthorpe to the pSivida Board. Dr. Katherine Woodthorpe was appointed as a Non-executive Director of the company, based in Sydney, Australia. Dr. Woodthorpe is currently the Chief Executive of AVCAL, the Australian Private Equity and Venture Capital Association and has more than 25 years experience in the technology and commercialization industry. pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. REALOGY CORP: S&P Lowers Corporate Credit Rating from B+ to B ------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its ratings on Realogy Corp.; the corporate credit rating was lowered to 'B' from 'B+'. The rating outlook is stable. "The downgrade reflects S&P's expectation that the company will experience lower than previously expected cash flow generation and weakening credit measures over the intermediate term resulting from a lengthening downturn in the U.S. residential real estate market," said S&P's credit analyst Emile Courtney. S&P expects Realogy to have about US$6.3 billion in funded debt and US$7.7 billion in lease-adjusted debt, including borrowings related to accounts receivable securitizations, at the end of 2007. While there is nothing stable about current transaction and pricing trends in the U.S. residential real estate market, S&P believes Realogy has available liquidity sources adequate to withstand the current downturn in the cycle. As a result, S&P is unlikely to lower the rating further over the intermediate term. The 'B' rating reflects Realogy's highly leveraged capital structure, thin expected EBITDA coverage of interest expense, and reduced cash flow generating ability as a result of the residential real estate downturn and the close of the US$9 billion LBO of the company by Apollo Management L.P. in April 2007. Headquartered in Parsippany, New Jersey, Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. WOODLANDS COMMERCIAL: To Declare Dividend on November 30 -------------------------------------------------------- Woodlands Commercial Furniture Pty Ltd will declare dividend for its priority creditors on November 30, 2007. Creditors are required to file their proofs of debt by Nov. 9, 2007, to be included in the company's dividend distribution. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone:(03) 9882 6666 Facsimile:(03) 9882 8855 About Woodlands Commercial Woodlands Commercial Furniture Pty Ltd is a distributor of furnitures and fixtures. The company is located at Airport West, in Victoria, Australia. ZONTA CONSTRUCTION: Sets Joint Meeting for November 12 ------------------------------------------------------ Zonta Construction Group Pty Ltd will hold a joint meeting for its members and creditors on November 12, 2007, at 4:15 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 Zonta Construction Zonta Construction Group Pty Ltd is a dealer of lumber and other building materials. The company is located at Campbellfield, in Victoria, Australia. * AU Infrastructure Unaffected by Market Turmoil, Fitch Says ------------------------------------------------------------ The current global financial market turbulence is unlikely to affect existing Fitch ratings of Australian infrastructure project debt. For Australian infrastructure finance in this market, the future cost of capital becomes a more relevant question than its availability. Rising interest rates in Australia are not new, but the steepness of recent rate increases could be problematic for the financing of future projects, especially for greenfield projects with less than robust cash flow generating ability. The Stable outlook on existing Fitch-rated infrastructure project debt also reflects that the projects are actively managed, and they retain financial flexibility, such as in scheduling capital expenditures. Financial stress tests that were used by Fitch when the project debt ratings were assigned, assumed a certain level of refinancing risk, which is inherent to all Australian concession-based infrastructure projects. The current market conditions may signal, however, a return to syndicated commercial bank loans and a move away from the bond markets, which have become less competitive in recent months. Some pressure on debt service coverage could be expected, due to the effect of higher interest rates on the refinancing of bullet debt maturities, and on the renewal of maturing interest rate swap contracts. Nevertheless, Australian commercial bank rate increases may be tempered by continued growth in bank deposits, which fuels that sector's funding capacity. At slightly greater risk are recent levels of equity returns, especially for projects where financial returns from project operations were supplemented with debt regearing exercises. Regearing will become somewhat more problematic in an environment of increasing interest rates, especially since it is often conditioned to preserving the investment-grade rating of outstanding senior secured (first lien) debt. In this higher interest rate environment, future projects will need to have a more robust economic profile and a flexible debt structure to achieve an investment-grade rating. Nevertheless, this will neither be the first nor the last period of interest rate volatility, and many of the existing operating projects were originally financed in tougher interest rate conditions than presently exist. Ironically, the biggest impediment to the sustainable supply of infrastructure projects is not the current turbulent financial markets, but rather how the different levels of government within Australia coordinate project priorities, partnerships and approvals. This will be the subject of Fitch's next special report on Infrastructure Finance in Australia. ================================ C H I N A & H O N G K O N G ================================ ACXIOM CORP: Declares Quarterly Dividend of 6 Cents Per Share ------------------------------------------------------------- The Board of Directors of Acxiom(R) Corporation declared a quarterly cash dividend of 6 cents per share payable on Nov. 26, 2007, to shareholders of record as of the close of business on Nov. 5, 2007. While Acxiom intends to pay regular quarterly dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board at its discretion. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. BEARINGPOINT INC: Sarah Beardsley to Lead Comm & Media Practices ---------------------------------------------------------------- BearingPoint Inc. has appointed Sarah Beardsley to senior vice president and leader of its Communications and Media practices. Ms. Beardsley brings more than 20 years of leadership and management experience from highly competitive telecom and technology companies. Her background includes sales, marketing, business development, customer service, product management and service delivery for mid-sized and large Fortune 500 companies. Most recently, Ms. Beardsley was a senior vice president of VeriSign, where she was responsible for all client-facing activities for Verisign's communications carrier customers, including sales, support, customer care, business development and marketing, as well as the targeting and integration of strategic acquisitions. Prior to joining VeriSign, Ms. Beardsley was president of Savvis Communications' startup enterprise business. Ms. Beardsley's career also includes a variety of general management and marketing positions at AT&T and MCI. During her 16 years at MCI, Ms. Beardsley led the company's carrier segment and oversaw its entrance into competitive local services. "BearingPoint is proud to appoint Sarah as the leader of its Communications and Media practices," said Tom McKelvey, BearingPoint executive vice president. "The communications and media industries are not only in a period of rapid change and growth, but constantly dealing with new technologies changing the marketplace. Sarah's extensive leadership and experience will enable us to continue providing our customers with the solutions they need to stay ahead of the game." Ms. Beardsley graduated summa cum laude with a Bachelor of Science degree from the University of Illinois. In addition, she serves on the Executive Committee of the Board of Directors for non-profit SOS Children's Villages Illinois and as a trustee for Steppenwolf Theatre. About BearingPoint Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations including in Indonesia, Australia, Austria, China, India, Japan, Mexico, Portugal, Singapore and Thailand. The company reported total assets of US$1.9 billion, total liabilities of US$2.1 billion, and total stockholders deficit of US$177.3 million as of Dec. 31, 2006. BOMBARDIER INC: Fitch Affirms Low-B Ratings and Revises Outlook --------------------------------------------------------------- Fitch Ratings affirmed the ratings for Bombardier Inc. and Bombardier Capital Inc., as: Bombardier Inc. -- Issuer Default Rating at 'BB-'; -- Senior unsecured debt at 'BB-'; -- Preferred stock at 'B'. Bombardier Capital Inc. -- IDR at 'BB-'; -- Senior unsecured debt at 'BB-'. The rating outlook has been revised to Positive from stable. The ratings cover outstanding debt and preferred stock totaling about US$5.4 billion as of July 31, 2007. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BBD. The rating outlook revision to positive reflects expectations for continued margin improvement, sales growth, and solid cash generation in the next several quarters. Strong orders in all of BBD's businesses and a large backlog support projections for continued improvement. These factors, combined with some debt maturities in February 2008, could lead to a steady improvement in BBD's credit metrics and to a review of the ratings. Bombardier's operating performance has been better than Fitch's expectations in the past year. Margins have improved at both Bombardier Aerospace and Bombardier Transportation, sales have grown at double digit rates in the first half of fiscal 2008, and cash generation has been much stronger than projected. Strong free cash flow and an increase in regional jet orders have addressed some of Fitch's most significant concerns, while the business jet and transportation markets have remained solid. The company recapitalized in a conservative manner last year, and it now has a solid balance sheet when considering the improvement in most of its businesses during the past year. Factors supporting the ratings include BBD's diversification, leading market positions, the health of the business jet and turboprop markets, cash balances, debt maturity schedule, BT's successful restructuring, and large backlog. Rating concerns include the elevated but improving consolidated gross debt levels compared to EBITDA; relatively low operating margins; business jet market cyclicality; the pension plan deficit; the impact of exchange rate volatility on margins, financial results, and planning; and several RJ concerns, including uncertainty regarding development of new aircraft models and contingent obligations related to past aircraft sales. BBD's eventual decision about its potential entry into the mainline aircraft market could potentially have an impact on its financial and operating profile. Fitch believes the recent performance issues with one operator's Q400 aircraft are not a significant credit concern at this time. As of July 31, 2007 BBD's leverage measures had improved from levels reported over the past several years, largely as a result of stronger operating performance. Gross debt/EBITDA in the latest 12 months ended July 31, 2007 was 4.1x compared to 4.6x at the end of fiscal 2007. The company's consolidated EBITDA margins improved to 7.9% in the LTM period compared to 7.4% in F2007. BA's EBIT margins improved 220bps in the first half of F2008 to 5.5%, and BT's EBIT margins improved 100 bps to 4.3%. Fitch expects modest margin improvement for the rest of the year, and continued margin expansion in F2009. The company had nearly US$3 billion of unrestricted cash balances at the end of the fiscal second quarter, not including US$1.2 billion of restricted cash related to its letter of credit facility. Restricted cash balances are not available for liquidity purposes or for the benefit of unsecured bond holders. Bombardier's unrestricted cash balances are the company's sole source of liquidity because the LOC facility is not available on a revolving credit basis. Free cash flow in the LTM period was US$1.4 billion. The recent cash performance was driven by advance payments related to strong orders, decreases in BC's aircraft portfolio, and low capital expenditures, all of which more than offset discretionary pension contributions and seasonal working capital investment. Fitch expects BBD to generate additional free cash flow in the second half despite higher expected capital expenditures. Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B) manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. Headquartered in Canada, the company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, Australia and China. BUCYRUS INT'L: Paying US$0.05 Per Share Quarterly Dividend ---------------------------------------------------------- The Board of Directors of Bucyrus International, Inc., has declared a quarterly dividend of US$0.05 per share on Bucyrus' Class A common stock. The dividend is payable Dec. 3, 2007, to Bucyrus stockholders of record on Nov. 15, 2007. Bucyrus' Class A common stock is quoted on the NASDAQ Global Select Market under the symbol "BUCY." About Bucyrus International, Inc. Bucyrus International -- http://www.bucyrus.com/-- is a leading manufacturer of electric mining shovels, walking draglines and rotary blasthole drills and provides aftermarket replacement parts and services for these machines. For the 12 months ended Sept. 30, 2006, Bucyrus had sales of US$705 million. Bucyrus is headquartered in South Milwaukee, Wisconsin. DBT has eight facilities around the world and approximately 3,200 employees. The company has operations in Brazil, Chile, China and Europe. * * * As reported in the Troubled Company Reporter-LAtin America on June 7, 2007, Standard & Poor's Ratings Services revised its recovery rating on Bucyrus's credit facilities. The bank loan rating remains 'BB-', however the recovery rating was revised to '3' from '4', indicating S&P's expectation that these lenders would receive meaningful recovery (50%-80%) in a payment default. The paydown of more than US$300 million in the term loan -- to US$500 million from US$825 million from proceeds of a recent equity offering -- was the primary reason for the rating change. The corporate credit rating on Bucyrus is BB-/Positive/-- CHELTON FINANCE: Court to Hear BT's Wind-Up Petition on Dec. 19 --------------------------------------------------------------- A petition to have Chelton Finance Limited's operations wound up will be heard before the High Court of Hong Kong on Dec. 19, 2007, at 9:30 a.m. Billion Top Garment Limited filed the petition on October 10, 2007. Billion Top's solicitors are: So, Lung & Associates Ming An Plaza, Phase 2, 15th Floor 8 Sunning Road, Causeway Bay Hong Kong CHINA EASTERN AIRLINES: Shares Suspended at Firm's Request ---------------------------------------------------------- Shares of China Eastern Airlines Corp. Ltd were suspended from trading in Hong Kong and Shanghai on Nov. 5 upon the company's request pending an announcement, Trading Markets reports, citing Thomson Financial. In a statement filed with the Hong Kong stock exchange, the airline said the announcement is about a proposed stock subscription. Trading Markets notes that, separately, China Eastern told the Shanghai bourse that its A-shares are being suspended from trading ahead of a signing of a formal agreement to sell a stake to Singapore Airlines Ltd and Singapore government investment arm Temasek Holdings. According to Stuff.Co.Nz, China Eastern's brief statement did not give details of when the signing would take place or how long the shares would be suspended. Stuff.Co recounts that the companies announced in September that Singapore Airlines and its parent, Temasek, would pay US$918 million (HKD7.2 billion) for a combined 24% stake in China Eastern. Specifically, Trading Markets says, Singapore Airlines will buy 1.235 billion China Eastern Airlines H-shares for HKD3.80 each, or a total of HKD4.7 billion, giving it a 15.7%, while Temasek will buy 649.4 million H-shares for HKD2.5 billion, for an 8.3% stake. According to Stuff.Co, this would be the first purchase by foreign firms of a major, strategic stake in a top Chinese airline. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. DATUM NETWORKS: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------ At an extraordinary general meeting held on October 18, 2007, the members of Datum Networks Corp. Limited resolved to voluntarily liquidate the company's business due to its inability to pay its debts. Thus, creditors are required to file their proofs of debt by Nov. 30, 2007, to be included in the company's dividend distribution. The company's liquidators are: Stephen Briscoe Chen Yung Ngai, Kenneth Allied Kajima Building, 7th Floor 138 Gloucester Road, Wanchai Hong Kong DURA DUCT: Creditors' Meeting Set for November 14 ------------------------------------------------- The creditors of Dura Duct International Limited will meet on November 14, 2007, at 3:00 p.m., to appoint a liquidator and to consider further matters relevant to the creditors' voluntary wind-up. The meeting will be held at Thornton Room, 3rd Floor of Salisbury Road, Tsimshatsui, in Kowloon, Hong Kong. EMI GROUP: Terra Firma Leads Strategic Review to Recover Equity --------------------------------------------------------------- Terra Firma Capital Partners Ltd. confirmed on Oct. 29, 2007, that it was leading a strategic review on EMI Group Plc, amidst reports that it will cut its interest in the company, The Scotsman reports. According to the report, Terra Firma wants to bring in outside investors to recover some of the equity placed as part of the GBP2.4 billion deal. EMI could face job cuts and a clamp down on costs as its private equity owner pursues to make savings, Scotsman relates. A spokesman for Terra Firma told the Scotsman that the review had been launched and was due to be completed by the end of the year. About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported on Aug. 6, 2007, Moody's Investors Service downgraded EMI Group plc's corporate family and senior debt ratings to B1 (from Ba3). All ratings remain under review for downgrade. In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. EMI GROUP: Terra Firma Eyes Artists' Compensation Overhaul ---------------------------------------------------------- EMI Group Plc owner, Terra Firma Capital Partners Ltd, plans to overhaul EMI executives' pay packages and let go of artists that it believed are not working hard enough, published reports say. In an internal memo to his staff obtained by the Financial Times, Terra Firma CEO Guy Hands also threatened to withdraw artists' lucrative advances if record sales are disappointing. "While many spend huge amounts of time working with their label to promote, perfect and endorse their music, some unfortunately simply focus on negotiating for the maximum advance. . . advances which are often never repaid," Mr. Hands said in his memo. Mr. Hands said that eventually they would get to choose which artists they wish to work with and promote, BBC News relates. According to the Associated Press, Mr. Hands also criticized EMI's compensation and management system of 20 years, which does not encourage the right behaviors or reward the right actions. "What worries me is that the existing structures have been put in over a couple of decades and unpicking them in a way that releases the good in the company is not going to happen overnight," Mr. Hands was quoted by the Associated Press as saying. Terra Firma concluded its GBP2.4 billion cash offer for EMI Group Plc on Aug. 1, 2007. About Terra Firma Terra Firma is a leading European private equity firm, created in 2002 as the independent successor to the Principal Finance Group, a division of Nomura that was created in 1994. Terra Firma focuses on buyouts of large, asset-rich and complex businesses in need of operational and/or strategic change. Since its inception in 1994, Terra Firma has invested over EUR7 billion of equity and has completed transactions with an aggregate transaction value of over EUR30 billion. Terra Firma has offices in London and Frankfurt. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported in the TCR-Europe on Aug. 6, 2007, Moody's Investors Service downgraded EMI Group plc's corporate family and senior debt ratings to B1 (from Ba3). All ratings remain under review for downgrade. In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. EMI GROUP: Appoints Mike Clasper & Billy Mann to Investor Board --------------------------------------------------------------- EMI Group Plc appointed Mike Clasper and Billy Mann to its Investor Board to assist in the transformation of the group. Mr. Clasper and Mr. Mann will provide guidance and advice in all areas of the group. As well as sitting on the Investor Board, Mr. Clasper will advise on and review the development of EMI's manufacturing, logistics and sales operations around the world. Mr. Mann will provide creative input to the group and the Investor Board and advise on artist relations. Mr. Clasper was the Chief Executive of BAA plc, the world�s leading airports group, between 2003 and 2006 and prior to that President of Global Homecare at Procter & Gamble. Mr. Mann is the founder and CEO of Stealth Entertainment, and has worked with many of the leading names in the music industry today, including: Pink, Sting, Joss Stone, Take That, Celine Dion, Martina McBride, Jessica Simpson, Delta Goodrem, Ricky Martin and Art Garfunkel. He has recorded sales of over 60 million records over the past ten years, as well as multiple top 10 singles around the globe, through his various collaborations. Mann has also been a nurturer of various new artists and songwriters including Teddy Geiger, and Esme� Denters. The appointments marked a strengthening of EMI�s Investor Board, which was established in August 2007 following Terra Firma�s successful acquisition of the group. The Investor Board has been given the task of overseeing EMI�s strategic review. Current Board members comprise of Guy Hands, Lord Birt, Chris Roling, Ashley Unwin, Mark Hodgkinson, Riaz Punja and Phil Burns . The Investor Board is currently engaged in looking at all aspects of EMI and its business to determine the best way the group should move forward to capture the opportunities available to it in the rapidly-changing music industry. "I am delighted to welcome Mike and Billy to the Investor Board of EMI. Mike has had extensive experience of running successful businesses across the world and leading innovation in a variety of business sectors. Billy meanwhile will help balance what is a very business and consumer focused investor board by providing creative input. We are looking forward to their contributions," Guy Hands, Chairman of EMI, disclosed. "The recorded music industry today faces some enormous challenges but also tremendous opportunities to build on the central role that music plays in all our lives. With the arrival of Mike and Billy I feel confident we have a team that can work alongside EMI employees and artists to identify and exploit those opportunities and build EMI�s powerful market position over the long-term," Mr. Hands added. "The music industry needs to change and the transformation going on within EMI gives the Group the opportunity to lead that change. I am very pleased to be working with Guy and the team at EMI to take the business forward and will focus particularly on the development of the very best distribution, supply chain and logistic operations around the world to maximize its returns from the vast array of talent and intellectual property it owns," Mr. Clasper expressed. "From the first day, Guy Hands and Terra Firma have been consistent about empowering the creative community and the consumer first and foremost. Instead of approaching artists as if it is a privilege to be signed to a major label, Terra Firma is devoted to reaffirming the fact that for any music company it is a privilege to represent and support artists. With this in mind, I couldn't be more excited to join their innovative efforts," Mr. Mann commented. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported in the TCR-Europe on Aug. 6, 2007, Moody's Investors Service downgraded EMI Group plc's corporate family and senior debt ratings to B1 (from Ba3). All ratings remain under review for downgrade. In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. FERRO CORP: Initiates Next Step in European Restructuring --------------------------------------------------------- Ferro Corporation has initiated the next step in the restructuring of its European manufacturing operations. As a result of the new initiative, the Company will discontinue manufacturing porcelain enamel frit at its facility in Rotterdam, The Netherlands, by the summer of 2008 and will consolidate production at other European sites. Employment at the Rotterdam location will be reduced by 84 positions. Ferro will work closely with customers to ensure a high level of customer support through the transition. The Company expects to record a pre-tax charge in the third quarter ended Sept. 30, 2007, of approximately US$5.9 million for severance benefits related to the action, pursuant to an agreement reached with workers' representatives, and asset impairment and other costs. The charge is expected to reduce diluted earnings per share in the 2007 third quarter by approximately 10 cents. Previously, Ferro had estimated third quarter earnings would be 17 to 22 cents per share. Ferro expects to record future severance costs, accelerated depreciation and other costs related to this manufacturing consolidation of approximately US$17 million through the third quarter of 2008, in addition to the charges announced today. The consolidation of frit manufacturing is part of Ferro's ongoing effort to reduce annual costs in its European manufacturing operations by US$40 million to US$50 million by the end of 2009. About Ferro Corp. Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were US$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's US$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. HANESBRANDS INC: Inks Ten-Year Strategic Deal with Walt Disney -------------------------------------------------------------- Hanesbrands Inc. and The Walt Disney Company have entered into a 10-year strategic alliance that will tap into the marketing and product expertise of two of the world's most trusted and recognized lineups of brands. The alliance includes basic apparel exclusivity for the Hanes and Champion brands, product co-branding, attraction sponsorships and other brand visibility and signage at Walt Disney Parks and Resorts properties. A giant Hanes concert T-shirt - 12 feet wide and 14 feet long - was unfurled at Rock 'n' Roller Coaster Starring Aerosmith at Disney-MGM Studios in Lake Buena Vista, Fla., to commemorate the occasion. During the event, Hanesbrands Chief Executive Officer Richard A. Noll explained that Hanes will be the presenting sponsor of the Rock 'n' Roller Coaster Starring Aerosmith, one of the park's most popular attractions. Hanes will also have a customizable apparel venue in Downtown Disney at Walt Disney World Resort that will enable guests to design and personalize their own custom T-shirts and other items. Champion will also have naming rights for the stadium at Disney's Wide World of Sports Complex, the nation's premier amateur sports venue. In addition to Champion Stadium, there will be brand placement and promotional opportunities throughout the 220-acre complex that attracts more than 1.1 million visitors and 240,000 athletes every year. The alliance also includes in-store promotional and brand building opportunities at ESPN Zone restaurants and stores located in Anaheim, Atlanta, Baltimore, Chicago, Denver, Las Vegas, New York City and Washington, D.C. "This alliance is a key component of our marketing programs to drive long-term growth and is part of our aggressive approach to building and investing behind our Hanes and Champion brands," said Mr. Noll. "Our alliance with Walt Disney Parks & Resorts, truly one of the world's greatest brands, is a perfect fit to maximize the brand strength and equity of both organizations. In addition to becoming key parts of the consumer experience at Walt Disney Parks and Resorts properties worldwide, Hanes and Champion will execute consumer marketing and promotional outreach in the retail apparel marketplace." The partnership gives Hanesbrands apparel lines Hanes and Champion category exclusivity for select apparel at Disneyland Resort in Anaheim, Calif., Walt Disney World Resort and Disney's Wide World of Sports Complex Stadium, both in Lake Buena Vista, Fla., and all eight ESPN Zone stores across the country. "We have had a long-standing relationship with Hanes and Champion products and are proud to now have Hanesbrands as our newest alliance partner," said Meg Crofton, president of Walt Disney World Resort. "Our alliance with Hanesbrands is a natural given they are a leader in apparel and like us, look for strategic, innovative ways to extend their brand into communities throughout the world." Much of the apparel will be co-labeled, including Disneyland Resort by Hanes, Walt Disney World by Hanes, Disney's Wide World of Sports Complex by Champion and ESPN Zone by Champion. Basic apparel, under the terms of the agreement, is defined as T- shirts and tanks and fleece sweatshirts, sweatpants, hoodies and other family fleece, including infant and toddler items. "The Walt Disney Parks and Resorts alliance represents the largest marketing partnership to date for Hanesbrands and for our two largest brands, Hanes and Champion," said Kevin Hall, Hanesbrands executive vice president and chief marketing officer. "Our strategy is to focus on select, large-scale opportunities that leverage the size, strength and growth trends of our brands. We will be able to leverage our alliance with Walt Disney Parks and Resorts to create and develop additional consumer marketing and promotional programs at retail, including back-to-school and holiday programs, family vacation contests and awards, on-package messaging and in-store display. This is a marketing bonanza for Hanes and Champion." Walt Disney Walt Disney Parks and Resorts -- http://www.DisneyParks.com/-- is where dreams come true and magic comes to life. This segment of The Walt Disney Company encompasses 11 theme parks at five of the world's leading family vacation destinations - Disneyland Resort, Walt Disney World Resort, Tokyo Disney Resort, Disneyland Resort Paris and Hong Kong Disneyland. It also includes the Disney Cruise Line; Disney Vacation Club; Adventures by Disney; Disney Regional Entertainment, which operates the ESPN Zone sports dining and entertainment centers; World of Disney stores in New York, Lake Buena Vista, Fla. and Anaheim, Calif.; and Walt Disney Imagineering, which creates and designs all Disney parks, resorts and attractions. Walt Disney Parks and Resorts had approximately US$10 billion in revenues in fiscal 2006. Hanesbrands Inc. Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets innerwear, outerwear and hosiery apparel under consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men's underwear, children's underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries, Including Dominican Republic, El Salvador, Mexico, Puerto Rico, India and China. * * * Standard & Poor's Ratings Services affirmed Hanesbrands Inc.'s B+ corporate family rating on December 2006. KIN LEE: Accepting Proofs of Debt Until Nov. 16 ----------------------------------------------- Lin Lee Ko Construction Company Limited requires its creditors to file their proofs of debt by November 16, 2007, to be included in the company's dividend distribution. The company's liquidators are: Anthony Nedderman Chin Kin Wah China Hong Kong Tower, 11th Floor 8 Hennessy Road Hong Kong MAN CHEONG: Taps Leung Chi Wing as Liquidator --------------------------------------------- The shareholders of Man Cheong Construction Engineering Company Limited met on October 23, 2007, and passed a resolution to voluntarily liquidate the company's business. Leung Chi Wing was appointed as liquidator. The Liquidator can be reached at: Leung Chi Wing Kiu Fu Commercial Building Room B, 4th Floor 30 Lockhart Road Wan Chai Hong Kong PETROLEOS DE VENEZUELA: Inks Oil Exploration with Sonatrach ----------------------------------------------------------- Echoroukonline.com reports that Venezuelan state-run Petroleos de Venezuela SA has signed an accord with its Algerian counterpart Sonatrach to explore and produce crude oil in the two nations. According to Echoroukonline.com, the Venezuelan government entered into seven bilateral accords with Algeria to strengthen cooperation in fields that include: -- energy, -- trade, -- technology, -- agriculture, -- politics, -- industry, -- education, and -- culture. Echoroukonline.com relates that the bilateral agreement also provides for special training courses for 420 Venezuelan technicians in Algeria. Venezuela also signed an agreement with Algeria to promote regular consultations and exchanges of information in certifying products, Echoroukonline.com states. About Sonatrach Sonatrach seeks to stay on track as one of the world's top energy players. Arguably the largest company in all of Africa, state-owned Sonatrach oversees Algeria's oil and gas exploration, production, and marketing activities. In addition to its exploration, refining, and pipeline operations, the company also invests in electrical power and in desalination projects. Sonatrach may soon lose its power as a monopoly. Legislation passed by Algeria's parliament in 2005 allows more foreign players in Algeria's energy sector. Sonatrach also has exploration and production activities in other countries, including Libya, Mali, Niger, and Peru. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Petrodelta Operational in Few Months ------------------------------------------------------------ Petrodelta, Venezuelan state-run oil firm Petroleos de Venezuela SA's newly formed joint venture with Harvest Natural Resources, will be operational over the next few months, Harvest Natural Chief Executive Officer James Edmiston said in a conference call. Business News Americas relates that Venezuela's President Hugo Chavez signed on Oct. 25, 2007, an agreement with Harvest Natural to create Petrodelta. Petroleos de Venezuela has a 60% stake in Petrodelta, while Harvest Natural's 80%-owned Harvest Vinccler owns 40%. Mr. Edmiston commented to BNamericas, "We are implanting the transfer of all administrative and operational activities that were previously managed by Harvest Vinccler during the transition period." Mr. Edmiston told BNamericas that Petrodelta will sign the contract for the sale of hydrocarbons to Petroleos de Venezuela. BNamericas notes that after the contract is signed, Petrodelta will be able to invoice Petroleos de Venezuela for oil and gas output dating back to 2006. Petrodelta will then distribute a dividend to shareholders, which include Harvest Natural. Petrodelta will also invoice Petroleos de Venezuela for oil and gas production on a monthly basis, instead of a quarterly basis. Petroleos de Venezuela will be given two months to pay Petrodelta. Mr. Edmiston told BNamericas Petrodelta's short-term business plan will seek to: -- boost oil and gas output, -- convert possible reserves to proven reserves, -- conduct new exploration, and -- increase "synergies" at all scales of the operation. Petrodelta has two workover rigs and one drilling rig under contract, BNamericas says, citing Mr. Edmiston. According to BNamericas, Petrodelta is bidding for a second drilling rig. It will also start bidding for a third rig next year. The report says that oil output in the fourth quarter 2007 would average 13,500 barrels per day. Mr. Edmiston told BNamericas that Petrodelta wants to return to the company's pre-conversion production of 30,000 barrels per day. Meanwhile, Harvest Harvest is looking for new opportunities in and outside the country. It is keen on acquiring assets where current production remains a fraction of the asset's potential. "We expect further consolidation in the mixed companies to occur in Venezuela and Petrodelta is well positioned to act as a consolidator," Mr. Edmiston commented to BNamericas. About Harvest Natural Harvest Natural Resources, Inc. -- http://www.harvestnr.com/-- is an international oil and gas company that seeks and develops large resources in countries that others may perceive to be challenging. Its producing operations are conducted principally through the company's 80% owned Venezuelan subsidiary, Harvest Vinccler, California, which operates the South Monagas Unit in Venezuela. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PREMIER PRECISION: Creditors' Proofs of Debt Due on Dec. 3 ---------------------------------------------------------- Premier Precision Limited requires its creditors to file their proofs of debt by December 3, 2007, to be included in the company's dividend distribution. The company commenced liquidation proceedings on October 25, 2007. The company's liquidator is: Kazuhiro Tanabe Yip Fat Factory Building Block E, 6th Floor, Phase 2 73-75 Hoi Yuen Road, Kwun Tong Kowloon, Hong Kong SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007 ----------------------------------------------------------- Sanmina-SCI Corporation has revenue of US$2.5 billion, compared to US$2.5 billion in the third quarter ended June 30, 2007 and US$2.7 billion in the fourth quarter ended Sept. 30, 2006. Revenue for the year ended Sept. 29, 2007 was US$10.4 billion, compared to US$11.0 billion in the prior year. Non-GAAP Financial Results for the Quarter and Fiscal Year Net income for the fourth quarter 2007 was US$10.2 million, US$0.02 diluted earnings per share, compared to a net loss of US$22.8 million, a diluted loss per share of US$0.04 for the third quarter ended June 30, 2007, and net loss of US$2.1 million, breakeven diluted earnings per share for the fourth quarter 2006. Net income for fiscal year 2007 was US$22.8 million, US$0.04 diluted earnings per share, compared to US$102.4 million, US$0.19 diluted earnings per share in the prior year. Gross profit was US$134.1 million or 5.4 percent of revenue, a 60 basis point improvement from the prior quarter of US$120.3 million, or 4.8 percent of revenue, and up from US$131.0 million, or 4.8 percent of revenue in the same period a year ago. Operating income for the quarter was US$42.8 million, up from US$29.1 million in the prior quarter and up from US$32.1 million for the same period last year. Fiscal 2007 operating income was US$182.6 million, compared to US$243.7 million in fiscal 2006 (see Non-GAAP Financial Information). GAAP Financial Results for the Quarter and Fiscal Year Fourth quarter GAAP earnings were primarily impacted by a non- cash impairment charge for goodwill of US$1.1 billion. As a result of this charge, the company reported a net loss of US$1.1 billion in the fourth quarter of fiscal 2007, compared to a net loss of US$27.6 million in the prior quarter and a net loss of US$28.1 million for the same period last year. Diluted loss per share for the quarter was US$2.10. Net loss for fiscal year 2007 was US$1.1 billion and diluted loss per share was US$2.15. This charge resulted from the company's annual goodwill impairment analysis in accordance with Statement of Financial Accounting Standards No. 142 (SFAS No. 142). Cash Flow and Balance Sheet Metrics The company continued to manage its cash flow and balance sheet metrics, making improvements throughout fiscal 2007. * Cash flow from operations was US$145 million in fourth quarter 2007, and US$511 million for fiscal 2007 * Cash and cash equivalents were US$933.4 million, up US$441.6 million from Q4'06 * Cash cycle days of 29 days represented a 7 day improvement from Q3'07 * Inventory decreased US$72.7 million, inventory turns improved to 8.9 in Q4'07 "I am pleased with our gross margin improvement, cash flow generation and inventory turns during the fourth quarter. We are confident that we will continue to improve