T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, November 9, 2007, Vol. 10, No. 223 Headlines A U S T R A L I A ADVANCED MARKETING: Wants Until Nov. 30 to Decide on Lone Lease BASIS CAPITAL: Aust-Rim Fund Improves 1.5% in September CHRYSLER LLC: Lenders Selling US$4 Billion Loans at a Discount COLES GROUP: Woolworths is Better Than Wesfarmers, Analysts Say GLENFIDDICH PTY: Members Receive Wind-Up Report HIH INSURANCE: Former Execs May Face Legal Action Over Collapse KENDLE INT'L: Moody's Affirms Corporate Family Rating at B1 LENTIL COMPANY: Undergoes Liquidation Proceedings MESH PTY: Members and Creditors to Meet on November 14 MOTOR INNS: Members to Hold Final Meeting on November 9 NETALERT LIMITED: Commences Liquidation Proceedings PONDS AND PUMPS: Placed Under Voluntary Liquidation REVLON INC: Sept. 30 Balance Sheet Upside-Down by US$1.1 Billion RUSSBOUR PTY: Commences Liquidation Proceedings SCO GROUP: Taps CFO Solutions for Chief Financial Officer Search SCO GROUP: Wants to Employ Tanner LC as Accountants STONELEIGH PROPRIETARY: Placed Under Voluntary Liquidation C H I N A & H O N G K O N G DANA CORP: Supplies Drivetrain Components to Chrysler LLC EASTMAN KODAK: Launches New Manufacturing Plant in Xiamen, China EXPRESS BUILDERS: Sets Annual Meeting for November 15 FERRO CORP: Polymer Products Hikes Plastic Compound Prices FOU WAH: Shareholders Pass Resolution to Liquidate Business GREENTOWN CHINA: Downgraded to 'Hold' by Citigroup HIH HOLDINGS: Accepting Proofs of Debt Until Nov. 30 HONG KONG CONSTRUCTION: Members and Creditors to Meet on Nov. 16 IMPERIAL WORLD: Inability to Pay Debts Prompts Wind-Up JETSWOOL DEVELOPMENT: Members to Hear Wind-Up Report on Dec. 1 SHANGHAI PUDONG: Nine-Month Net Profit Rises 60% to CNY4-Bil. SHENYIIN WANGUO: Taps Wong Che Keung, Leslie as Liquidator TOP GALLANT: Wind-Up Petition Hearing Set for Nov. 28 WELLDLED: Commences Wind-Up Proceedings WONDERYOUTH: Wind-Up Petition Hearing Set for Dec. 12 I N D I A AES CORP: Reports US$103-Mil. Net Income in Qtr. Ended Sept. 30 BALLY TECH: S&P Lifts Corporate Credit & Sr. Debt Ratings to B+ GENERAL MOTORS: Expects US$39 Bil. Non-Cash Charge in 3rd Qtr. ICICI BANK: Cuts Interest Rates on Special Deposit Schemes PANCHMAHAL STEEL: Net Profit Down 38% in Quarter Ended Sept. 30 RPG LIFE: Profit Drops 71% to INR8.9 Mil. in Qtr. Ended Sept. 30 I N D O N E S I A ADARO INDONESIA: Moody's Reviews Ratings for Possible Upgrade ALCATEL-LUCENT: Moody's Pares Corporate Family Rating to 'Ba2' ANEKA TAMBANG: Wants Gov't Contract on Buli Ferro-Nickel Project CA INC: Appoints Marc Stoll as Senior Vice President CA INC: Taps Pat Gnazzo as General Manager for Public Sector Biz COMVERSE TECH: Delays Financial Filing Due to VSOE Evaluation J A P A N FORD MOTOR: UAW Members to Vote on New Labor Pact on Sunday HERBALIFE LTD: Reports US$48-Mln Net Income in 2007 Third Qtr. INT'L RECTIFIER: Promotes Marc Rougee as Exec. VP for Operations MITSUBISHI MOTORS: Thailand Unit Introduces New Service NOVA CORP: Foreign Teachers at a Loss Over Bankruptcy NOVA CORP: G.communication To Buy 30 of 670 Nova Branches SOFTBANK CORP: Posts JPY46.5-Mil. Net Profit for H1 of FY2007 K O R E A ARAMARK CORP: Becomes Commissioning Agent in North Carolina BURGER KING: Names Armando Jacomino as President for LatAm Biz TOWER AUTO: Names New President for International Operations M A L A Y S I A THERMADYNE HOLDINGS: Earns US$1 Million in Qtr. Ended Sept. 30 TIME ENGINEERING: Disposes Another 11.8 Million TdC Shares TIME ENGINEERING: Incurs MYR13.67-Mil. Loss in Second Quarter N E W Z E A L A N D ABLEFIX COMPANY: Subject to CIR's Wind-Up Petition COMTEC COMMUNICATIONS: Taps Damien Grant as Liquidator DYNAMIC EXPANSION: Commences Liquidation Proceedings DYNAMIC GROWTH: Members Agree on Voluntary Liquidation HERCON CONSTRUCTION: Court to Hear Wind-Up Petition on Nov. 19 NORTHFERT LTD: Subject to CIR's Wind-Up Petition SL & H MCCLUSKEY: Wind-Up Petition Hearing Set for Nov. 12 STUART RENATA: Court Sets Wind-Up Petition Hearing for Jan. 31 THOMAS HOLDINGS: Court to Hear Wind-Up Petition on Dec. 10 WAIRARAPA DAIRY: Fixes Dec. 7 as Last Day to File Claims WINDFLOW TECHNOLOGY: Commences Renounceable Rights Issue WOOL EQUITIES: Shareholders Choose Biotech Invesment Focus WOOL EQUITIES: Unit to Develop Bone-Healing Tech w/ AlloSource P H I L I P P I N E S BANCO DE ORO-EPCI: Begins Offering Tier-2 Subordinated Notes BANCO DE ORO-EPCI: Sandiganbayan Goes After Ex-President's Funds CHINA BANKING: Elects Jose T. Sio to Replace Former Director FIL-ESTATE: 3rd Quarter Net Loss Soars 1,060% to PHP1.14 Million GLOBE TELECOM: 4Q Investments to Focus on Wireless Broadband IPVG CORP: Investors' Briefing Set For November 13 MIRANT CORP: Mirant Lovett Posts US$1,130,285 Aug. 2007 Net Loss PHILCOMSAT HOLDINGS: Board Elects Two New Directors SAN MIGUEL: Eyes Listing of 2 Units in Local Bourse Next Year SAN MIGUEL: Sells J. Boag & Son to Australian Firm for AU$325MM VULCAN MINING: Inks Confidentiality Deal Over Isabela Project S I N G A P O R E CN DISPLAYS: Court to Hear Wind-Up Petition Today LAZARD LTD: Sept. 30 Balance Sheet Upside-Down by US$74.5 Mil. LEAR CORP: Earns US$41 Million in Third Quarter Ended Sept. 29 QUANTUM ENERGY: Creditors and Contributories to Meet on Nov. 16 WISEGUYS FILM: Liquidator to Give Wind-Up Report on Nov. 12 S R I L A N K A * Fitch Comments on Sri Lanka Banking System T H A I L A N D ARVINMERITOR INC: Unit Awarded Supply Business by Hyundai Motor FEDERAL-MOGUL: Plan Proponents Incorporate Insurer Settlements TMB BANK: Amends Allocation of Shares for ING Bank & Thai NVDR * Moody's: Ratings Outlook for Asian Electronics Maker Stable * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Wants Until Nov. 30 to Decide on Lone Lease --------------------------------------------------------------- Advanced Marketing Services Inc., Publishers Group Incorporated, and Publishers Group West Incorporated ask the U.S. Bankruptcy Court for the District of Delaware to extend until Nov. 30 the time by which they may assume or reject their sole remaining unexpired lease of a non-residential real property, located in Indianapolis, Indiana, with The Prudential Company of America, as landlord. The Court recently extended the Lease Decision Period with respect to the Indianapolis Lease to Oct. 31, 2007. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors have obtained prior written consent of the lessor of the Indianapolis Lease to the requested November 30 extension. Under Section 365(d)(4)(B)(ii) of the Bankruptcy Code, the Court may grant a subsequent extension "only upon prior written consent of the lessor in each instance." The Debtors seek extension of the Indianapolis Lease Decision Period without prejudice to their right to seek further extensions. The Court will convene a hearing on Nov. 27 at 11:00 a.m., to consider the Debtors' request. Pursuant to Del.Bankr.LR 9006-2, the Debtors' Lease Decision Period with respect to the Indianapolis Lease is automatically extended until the conclusion of that hearing. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia, and employs approximately 1,200 people worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of US$213,384,791 and total debts of US$216,608,357. Publishers Group West disclosed total assets of US$39,699,451 and total debts of US$83,272,493. Publishers Group Inc. disclosed zero assets but US$41,514,348 in liabilities. On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On Sept. 26, 2007, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. The hearing to consider confirmation of the Plan is set on Nov. 15, 2007. (Advanced Marketing Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BASIS CAPITAL: Aust-Rim Fund Improves 1.5% in September ------------------------------------------------------- Basis Capital Fund Management Ltd. reported a "small" improvement in one of its suspended funds, The Australian reports. Basis Capital told investors that its Aust-Rim Diversified Fund increased 1.5% in September, the newspaper says. In September, Basis Capital had said the fund had lost half its value as investments declined in the wake of the tightening of global credit markets. Basis Capital had sought bankruptcy protection for its Basis Yield Fund, which faces losses of more than 80%, the newspaper relates. Basis Capital Funds Management Ltd. manages and advises multi strategy, relative value and arbitrage funds for Australian domestic and international investors. The Troubled Company Reporter-Asia Pacific reported on July 30, 2007, that the Basis Field Fund and Basis Aust-Rim Fund ran into trouble by investing in the unrated, riskiest portions of collaterized debt obligations. These portions also known by bankers as "toxic waste" are first in line for any losses when borrowers fall short on mortgage payments and have hired Blackstone Group LP as an adviser to help avoid a fire of sale of assets. Blackstone will advise the hedge fund firm "to prevent adverse pricing and selling of assets." CHRYSLER LLC: Lenders Selling US$4 Billion Loans at a Discount -------------------------------------------------------------- Aiming to lessen US$171 billion leveraged loan backlog, JPMorgan Chase and Co., Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns & Co. are planning to sell Chrysler LLC's US$4 billion loans at about 97.5 cents on the dollar this week, Pierre Paulden and Bryan Keogh of Bloomberg News reports citing unnamed sources. The banks, sources say, are eager to dispose the US$10 billion loans that they were not able to sell in July and August after Cerberus Capital Management acquired Chrysler from former owner DaimlerChrysler AG. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * As reported in the Troubled Company Reporter on Oct. 31, 2007, Standard & Poor's Ratings Services said its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC remain on CreditWatch with positive implications, following the United Auto Workers' narrow approval of the new Chrysler-UAW labor contract. The ratings were placed on CreditWatch on Sept. 26, 2007, based on S&P's belief that Chrysler would reach a deal similar to the one General Motors Corp. reached with the UAW on that date. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with the closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. COLES GROUP: Woolworths is Better Than Wesfarmers, Analysts Say --------------------------------------------------------------- Analysts expressed that Woolworths Ltd. remains to be their top pick for Coles Group Ltd. after Wesfarmers Ltd.'s AU$19.7-billion takeover offer was accepted by Coles' shareholders, the Australian Associated Press reports. AAP interviewed UBS analyst Michael Peet who opined that Woolworths is likely to outperform Coles in sales growth and should continue to expand margins short to medium term. Mr. Peet, relays AAP, said that the preference for Woolworths was due primarily to the increased market penetration of its Select brand and fresh food, targeted rollback of prices, greater-than-category-average margins for new lines and fewer but deeper specials. According to Mr. Peet, "Wesfarmers needs a more sustainable strategy as Woolworths is the lowest-cost supermarket and more able to complete on price. Woolworths remains our top pick," quotes AAP. A new wave of discounting on key lines might take effect after Wesfarmers gains control of Coles but Mr. Peet, according to AAP, doesn't expect it "to last too long." On November 8, 2007, the Troubled Company Reporter-Asia Pacific reported that 99.25% of votes were cast by Coles shareholders who favored the Wesfarmers takeover, becoming Australia's largest retailer with revenues of AU$44 billion. Under the scheme of arrangement submitted to the Australian Stock Exchange, Coles shareholders will receive (as default consideration) for each company security they hold AU$4.00 cash, 0.14215 Wesfarmers ordinary shares and 0.14215 Wesfarmers price protected shares. 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. GLENFIDDICH PTY: Members Receive Wind-Up Report ----------------------------------------------- The members of Glenfiddich Pty Ltd met on November 2, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Robert Wright Garrotts 62 Paterson Street Launceston Tasmania Australia About Garrotts Pty Located at Seymour, in Victoria, Australia, Garrotts Pty Ltd is an investor relation company. HIH INSURANCE: Former Execs May Face Legal Action Over Collapse --------------------------------------------------------------- HIH Insurance Ltd.'s former director, Rodney Adler, and partners from the defunct accountancy firm Arthur Andersen may be hit with further legal action over the collapse of the insurance firm, Kate McClymont of The Age reports. The NSW Supreme Court, according to The Age, heard that some of the other defendants in a AU$450-million action by HIH liquidator Tony McGrath were contemplating cross-claims against the accountancy firm and FAI companies and directors. Mr. McGrath, states The Age, is suing nine defendants involved over HIH's 1999 takeover of Mr. Adler's FAI Insurance. HIH creditors, through its liquidator, is seeking to recover the AU$295 million HIH purchase price as well as AU$234 million in interest, relates The Age. Mr. Adler, as reported by the Troubled Company Reporter-Asia Pacific on October 17, 2007, was released on parole from the NSW jail. About HIH Insurance HIH Insurance Limited -- http://www.hih.com.au/-- the holding company of the HIH Group, was a publicly listed company in Australia. Prior to its collapse, the HIH Group was known as the second largest general insurer in Australia, and had operations in many other countries. On March 15, 2001, the HIH Group failed, with a deficiency now believed to be between AU$3.6 billion and AU$5.3 billion. Provisional liquidators were appointed to HIH Insurance Limited and many of its subsidiaries. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world. In August 2001, the major Australian companies in the HIH Group were placed into liquidation. On March 29, 2006, meetings of the creditors of the eight companies in the HIH Insurance Group approved the Australian Schemes of Arrangement for those companies. Moreover, separate meetings of creditors of four HIH Insurance Group companies with branches in the United Kingdom approved English Schemes for those companies. HIH's collapse is known to be the nation's biggest corporate failure. KENDLE INT'L: Moody's Affirms Corporate Family Rating at B1 ----------------------------------------------------------- Moody's Investors Service has affirmed the B1 Corporate Family Rating of Kendle International Inc. and withdrawn the B1 rating on the senior secured term loan. Moody's also changed the rating on the senior secured revolving credit facility to Ba1 in accordance with Moody's Loss Given Default Methodology. The rating actions follow the company's full repayment of its term loan primarily with the proceeds from the sale of US$200 million convertible senior unsecured notes. The outlook for the ratings is stable. The B1 Corporate Family Rating is supported by the company's solid cash flow coverage of debt metrics, and overall favorable trends in financial strength and revenue diversity since the August 2006 acquisition of CRL Clinical Services, which was the Phase II-IV business of Charles River Laboratories International Inc. The B1 is also supported by Moody's expectation for future revenue growth, supported by healthy underlying industry demand for contract research services. This is balanced, however, by Kendle's limited scale versus a number of much larger market participants and a highly competitive environment in which contract research organizations compete for business awards, employees and business development opportunities. The ratings are also constrained by Moody's expectation for continued acquisition activity. Approximately US$54 million in rated debt affected. Ratings affirmed: -- Corporate Family Rating, B1 -- Speculative Grade Liquidity Rating, SGL-2 Ratings upgraded: -- Probability of Default Rating, to B1 from B2 -- Senior Secured Revolving Credit Facility due 2011, to Ba1 (LGD1, 4%) from B1 (LGD3, 31%) Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions: North America; Europe; Asia/Pacific, including Australia; Africa; and Latin America, including Brazil. LENTIL COMPANY: Undergoes Liquidation Proceedings ------------------------------------------------- ABB Grain Limited is conducting a rationalisation of non- operating companies which are surplus to its corporate requirements. As a result of the rationalisation strategy, it was resolved to voluntarily liquidate The Lentil Company Pty Ltd's operations. The company's liquidator is: George Divitkos BDO Kendalls (South Australia) 248 Flinders Street Adelaide, South Australia 5000 Australia About The Lentil Company The Lentil Company Pty Ltd, which is alos trading as Tlc Exports, is a distributor of grain and field beans. The company is located at Horsham, in Victoria, Australia. MESH PTY: Members and Creditors to Meet on November 14 ------------------------------------------------------ Mesh Pty Ltd will hold a final meeting for its members and creditors on November 14, 2007, at 11:00 a.m. At the meeting, John Brinkman, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John Brinkman Brinkman & Associates 422 Portrush Road Linden Park, South Australia 5065 Australia Telephone:(08) 8338 4767 About Mesh Pty Mesh Pty Ltd operates investment offices. The company is located at Highbury, in South Australia, Australia. MOTOR INNS: Members to Hold Final Meeting on November 9 ------------------------------------------------------- The members of Motor Inns ty Limited will have their final meeting on November 9, 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: Anthony Phillips Heard Phillips Chartered Accountants Level 2, 45 Grenfell Street Adelaide, South Australia 5000 Australia Telephone:(08) 8212 3433 About Motor Inns Motor Inns Pty Limited operates nonclassifiable establishments. The company is located at Parkside, in South Australia, Australia. NETALERT LIMITED: Commences Liquidation Proceedings --------------------------------------------------- On September 22, 2007, a special resolution was passed to voluntarily liquidate Netalert Limited's operations. Gerard John Mier was appointed as liquidator. The Liquidator can be reached at: Gerard John Mier c/o KPMG 15 Lake Street Cairns, Queensland Australia About Netalert Limited Netalert Limited provides business services. The company is located at Hobart, in Tasmani, Australia. PONDS AND PUMPS: Placed Under Voluntary Liquidation --------------------------------------------------- During a general meeting held on September 20, 2007, the creditors of Ponds and Pumps Australia Pty Ltd agreed to voluntarily liquidate the company's business. Martin Jones was appointed as liquidator. The Liquidator can be reached at: Martin Jones AWS Group Subsidiaries Ferrier Hodgson BankWest Tower, Level 26 108 St Georges Terrace Perth, Western Australia 6000 Australia About Ponds & Pumps Ponds & Pumps Australia Pty Ltd is a distributor of rubber and plastics hose and belting. The company is located at Belmont, in Western Australia, Australia. REVLON INC: Sept. 30 Balance Sheet Upside-Down by US$1.1 Billion ---------------------------------------------------------------- Revlon Inc.'s balance sheet as of Sept. 30, 2007, showed US$882.4 million in total assets and US$2.03 billion in total liabilities, resulting in a total stockholders' deficit of US$1.1 billion. For the three months ended Sept. 30, 2007, the company posted a net loss of US$10.4 million compared to a net loss of US$100.5 million for the same period in 2006. The company's net sales in the third quarter of 2007 increased 11.0% to US$339.7 million, compared to net sales of US$305.9 million in the third quarter of 2006. Excluding the impact of foreign currency fluctuations, net sales in the third quarter increased 8.6% versus year-ago. Third quarter 2006 net sales were reduced by approximately US$15 million from Vital Radiance. Commenting on the company�s market share results, Mr. Kennedy said, "In the third quarter 2007, Revlon color cosmetics market share declined year-over-year, which reflected a decrease in market share by products launched in prior years, offset, in part, by positive performance from new products launched in the second half of 2006 and in 2007. On a sequential basis, since the fourth quarter 2006, the Revlon brand has maintained an approximate 13% dollar share." Mr. Kennedy continued, "In the third quarter 2007, Revlon�s positive performance in the eye category was more than offset by declines in the face, lip and nail categories. Revlon�s positive performance in the eye category was driven by the Limited Edition Eye Collection, Luxurious Color Eyeliner and 3D Extreme Mascara, which were all launched in 2007. In the third quarter 2007, Almay�s positive performance in the face category was offset by declines in the lip and eye categories. Almay�s positive performance in the face category was driven by the recently launched Smart Shade Makeup, and by its new line extensions, Smart Shade Blush and Bronzer. In the third quarter and first nine months of 2007, we continued to competitively support our existing brands worldwide with increased dollar spending versus last year." 2008 New Product Lineup Revlon is focused on building and leveraging its strong brands and believes that consistent development and marketing of innovative new products is a key driver for building brand equity and profitable growth. For 2008, the Company will introduce an extensive new product lineup of Revlon and Almay color cosmetics. These product launches include differentiated and unique offerings for the mass channel, innovations in products and packaging, new technologies, exciting styles and extensions within the Revlon and Almay power franchises. The company intends to continue its strategy of supporting new products with advertising and promotions, at competitive levels, using its talented spokesmodels. Company Strategy In conclusion, Mr. Kennedy said, "We continue to execute our business strategy. (1) Building and leveraging our strong brands -- throughout 2007 we launched several exciting new products in our core brands and are supporting these launches at competitive levels. As noted, we believe we have an exciting and strong 2008 new product lineup; (2) Improving the execution of our strategies and plans, and providing for continued improvement in our organizational capability through enabling and developing our employees -- effective Oct. 1, 2007, we established a U.S. region and appointed Chris Elshaw as General Manager to run this significant part of our business. This organizational change is providing the focus and continued clear accountability to grow the U.S. business profitably. Prior to his new role, Chris successfully grew our business in Europe and Canada for the past five years as Managing Director of our Europe region; (3) Continuing to strengthen our international business -- we continue to strengthen our international business by leveraging our U.S.-based Revlon brand marketing, as well as our strong regional brands. In third quarter and first nine months of 2007, international operating profits and margins continued to improve compared to the same periods last year; (4) Improving our operating profit margins and cash flow -- we are focusing on sales growth and expect continuing, sustainable benefits from our restructuring actions and ongoing cost controls; and (5) Improving our capital structure -- In September 2007, we entered into a US$150 million two-year floating-to-fixed interest rate swap transaction related to indebtedness under our term loan in order to reduce our exposure to interest rate volatility. We plan to refinance the remaining balance of our 8 5/8% senior subordinated notes in the fourth quarter of 2007." About Revlon Inc. Revlon Inc. (NYSE: REV) -- http://www.revloninc.com/-- Revlon is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company's vision is to deliver the promise of beauty through creating and developing the most consumer preferred brands. The company's brands, which are sold worldwide, include Revlon(R), Almay(R), Ultima(R), Charlie(R), Flex(R), and Mitchum(R). The company's Latin American operations are located in Argentina, Australia, Brazil, Chile, Mexico and Venezuela. RUSSBOUR PTY: Commences Liquidation Proceedings ----------------------------------------------- The members of Russbour Pty Ltd met on August 17, 2007, and agreed to voluntarily liquidate the company's business. Robert Colin Parker was tapped as liquidator. The Liquidator can be reached at: Robert Colin Parker Freer Parker & Associates 40 Sturt Street Adelaide, South Australia Australia About Russbour Pty Russbour Pty Ltd, which is also trading as Total Gate & Door Automation, is a distributor of architectural and ornamental metal work. The company is located at Keswick, in South Australia, Australia. SCO GROUP: Taps CFO Solutions for Chief Financial Officer Search ---------------------------------------------------------------- The SCO Group Inc. and its affiliate, SCO Operations Inc., seek authority from the U.S. Bankruptcy Court for the District of Delaware, to employ CFO Solutions LC to provide their company with a chief financial officer, nunc pro tunc to Oct. 1, 2007. CFO Solutions provides consulting services and temporary employees to staff CFO and other key financial positions in companies. CFO Solutions proposes the appointment of Ken Nielsen as the Debtors' chief financial officer. Mr. Nielsen is expected to assist the Debtors in financial and general management matters, including, evaluating and implementing strategic and tactical options through the restructuring process. Specifically, Mr. Nielsen will: (a) develop and implement cash management strategies and reporting protocols; (b) develop and evaluate various restructuring alternatives and negotiate with key creditors and other stakeholders; (c) assist in day-to-day oversight and management of the Debtors' operations; and (d) counsel and assist the Debtors through the marketing and sale process, or other reorganization strategies, including the identification of the highest and best transaction, and to assist with such other matters as may be requested that fall within the firm's expertise and mutually agreeable. The Debtors tells the Court that the firm will charge US$150 per hour. Of the total amount, Mr. Nielsen will receive US$105 through the Debtors' payroll and US$45 will be paid to the firm. The Debtors also relates that they agreed to pay the firm an amount not to exceed 30% of Mr. Nilesen's annual salary, minus all amounts paid to the firm, as of the date of termination as a placement fee, if Mr. Nielsen will be terminated prior to the expiration of the six month term. Furthermore, the Debtors agreed to pay the firm US$40,000 minus 70% of any severance amounts paid to Mr. Nielsen, if the Debtors terminate Mr. Nielsen, without cause, or if Mr. Nielsen is unable to perform the services. If the Court does not approve the hourly payments to the firm under the agreement, the Debtors have agreed to compensate the firm 30% of Mr. Nielsen's annual base salary, as a placement fee for a chief operating officer. To the best of the Debtors' knowledge, the Mr. Nielsen holds no interest adverse to the Debtors' and their estates and is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the Debtors' claims and noticing agent. The U.S. Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SCO GROUP: Wants to Employ Tanner LC as Accountants --------------------------------------------------- The SCO Group Inc. and its affiliate, SCO Operations Inc., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Tanner LC as their accountants, nunc pro tunc to Oct. 2, 2007. Tanner LC will perform an audit of the Debtors' consolidated financial statements for the year ending Oct. 31, 2007, and to assist the Debtors in reviewing their financial statements and other documents necessary for the Securities and Exchange Commission submissions. Kent M. Bowman, an auditor at Tanner LC tells the Court the Debtors agreed to pay an estimated amount of approximately US$196,000. The firm's reviews of the 10-Q's will bill a fixed fee of US$22,500 per 10-Q report. For all other services in connection with the services rendered, the firm will bill at the normal customary rate. To the best of the Debtors' knowledge, the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the Debtors' claims and noticing agent. The U.S. Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. STONELEIGH PROPRIETARY: Placed Under Voluntary Liquidation ---------------------------------------------------------- The members of Stoneleigh Proprietary Limited met on Sept. 27, 2007, and passed a resolution to voluntarily liquidate the company's business. S. W. Vine was appointed as liquidator. The Liquidator can be reached at: S. W. Vine 200 East Terrace Adelaide, South Australia 5000 Australia About Stoneleigh Proprietary Located at Adelaide, in South Australia, Australia, Stoneleigh Proprietary Limited is an investor relation company. ================================ C H I N A & H O N G K O N G ================================ DANA CORP: Supplies Drivetrain Components to Chrysler LLC --------------------------------------------------------- Dana Corporation has begun supplying Spicer(R) drivetrain products -- including front and rear propshafts and front suspension modules -- to Chrysler LLC for the all-new 2008 Jeep(R) Liberty. "Dana has been supplying products for Jeep vehicles since they were first produced and is honored to be selected as an important supplier for 2008 Jeep Liberty," said Michael J. Burns, Dana chairman and Chief Executive Officer. "This vehicle program is another example of how Dana provides innovative solutions designed to exceed our customers' expectations." Dana's Spicer(R) Life Series(R) front and rear propshafts reduce noise, vibration, and harshness levels. The steel front propshaft features staked-and-centered cardan universal joints and is manufactured utilizing a pressure-welding process with shielding gas. The design results in reduced run-out that allows for less rotational variance. The friction-welded aluminum rear propshaft features a splined- tube design, which helps improve crash performance, and includes staked-and- centered cardan universal joints at both ends. These welding technologies ensure precise component orientation, substantially improving initial propshaft balance characteristics. Staked-and-centered universal joints eliminate unwanted looseness and provide a smoother, high-speed dynamic performance. The front suspension modules feature Dana's Spicer(R) axle technology and will be assembled at Dana's Toledo, Ohio facility. The front axle is tested immediately after assembly to ensure the highest quality noise, vibration, and harshness levels are achieved. Dana also supplies Victor Reinz(R) cylinder-head covers for the 3.7-liter engines and Victor Reinz(R) exhaust manifold gaskets for the 2.4-liter world engines. Dana has been supplying drivetrain technologies for Jeep vehicles since the first Willys MA was produced in 1941 and has provided axles and propshafts for the Jeep Liberty since its inception in 2002. About Dana Corporation Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. EASTMAN KODAK: Launches New Manufacturing Plant in Xiamen, China ---------------------------------------------------------------- Eastman Kodak Company has opened the world�s newest printing plate manufacturing facility in Xiamen, China. The state-of- the-art Kodak facility will produce both digital and conventional printing plates for the growing China market and Asia Pacific region. �This is an important occasion for our commercial printing customers in China and around the world. Kodak�s $50 million investment in plate manufacturing in China demonstrates our strong commitment to offset printing and strengthening our position in the Graphic Communications industry,� said Philip J. Faraci, President and Chief Operating Officer, Eastman Kodak Company, during a plant opening ceremony. �The Xiamen plant significantly increases our total manufacturing capacity worldwide, which is critical to our customers as the demand for computer to plate printing solutions continues to grow. It also provides a base of operations to increase our service and support for customers in China and the Asia Pacific.� Approximately 350 people attended the official opening ceremonies, including Faraci and the following Kodak representatives: * Andrew Copley, Chief Operating Officer, Graphic Communications Group and Vice President, Eastman Kodak Company; * Ying Yeh, Chairman and President, North Asia Region and Vice President, Eastman Kodak Company; * Jeff Hayzlett, Chief Business Development Officer and Vice President, Eastman Kodak Company; * Gustavo Oviedo, Managing Director, Asia Pacific Region, and Vice President, GCG; and * John Robinson, General Manager and Vice President, Printing Plate Business, Prepress Solutions, GCG. Among the other attendees representing the Chinese government and printing industry were: * Mr. Yongzhan Yu, former Vice Minister of the General Administration of Press and Publication of the P.R.C, Chairman of the Printing Technology Association of China; * Mr. Xinli Li, Deputy Director of Shanghai Press and Publication Administration; * Mr. Hao Yu, Director of Xiamen Press & Publication Administration; * Mr. Wenxiang Wu, The Honour Chairman of Printing Technology Association of China; and * Mr. Shuangru Zhang, Vice Chairman of Printing Technology Association of China. The new facility is located at Kodak�s research and manufacturing center in Xiamen. Occupying nearly 21,000 square meters, the new plant will produce KODAK ELECTRA EXCEL Thermal Plates. Considered the largest selling digital plate ever, the ELECTRA EXCEL plate is a no preheat thermal plate that delivers excellent versatility and reliability for a wide range of printing applications. In addition to digital plate production, the Kodak Xiamen plant will also meet the strong demand in China for conventional printing plates. �Our Xiamen plant will incorporate Kodak printing plate production expertise from around the world into what we believe is the most advanced plate manufacturing facility anywhere,� said Mr. Robinson. �The team in Xiamen is experienced and highly qualified. Many of our employees come from Kodak�s other operations in Xiamen. They are skilled in the process manufacturing required for high-quality plate production, as well as in Kodak�s quality standards and LEAN manufacturing practices.� Along with the new facility in Xiamen, Kodak is creating a dedicated China Technical Applications Group (TAG) to provide technical support to customers in China and the Asia Pacific. Kodak already has TAG operations serving Europe and the Americas. In addition to the Xiamen plant, there are seven other Kodak plate production facilities around the world, including: Munich, Germany; Osterode, Germany; Leeds, U.K., Sofia, Bulgaria; Gunma, Japan; Windsor, Colo., U.S.; and Columbus, Ga., U.S. Kodak�s leading plate portfolio includes flexographic, sheet-fed and web offset printing solutions for commercial, newspaper, and packaging printers. Kodak invented thermal plates in 1995 with the introduction of the Direct Image Thermal Plate, and since then has led the way in innovative CTP solutions. Kodak�s printing plates are part of a full-solution portfolio, including a broad range of proofing choices and platesetters, as well as the widely accepted KODAK PRINERGY Workflow System. In proofing, Kodak offers digital halftone, inkjet, virtual and analog proofing. In platesetting, customers can select equipment that leads the industry, including KODAK TRENDSETTER and MAGNUS CTP Platesetters, using KODAK SQUARESPOT Imaging Technology to provide exceptionally high-resolution images. In addition, KODAK STACCATO Screening offers high fidelity, continuous tone images that exhibit fine detail and an extended color gamut. �With manufacturing in eight plants on three different continents, Kodak is able to produce plate solutions that are tailored to the regions where are customers are doing business,� Mr. Robinson said. �The Xiamen plant solidifies Kodak�s plate leadership around the world.� About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services has affirmed its 'B+' corporate credit rating on Eastman Kodak Co. and removed the ratings from CreditWatch, where they had been placed with negative implications on Aug. 2, 2006. S&P said the outlook is negative. EXPRESS BUILDERS: Sets Annual Meeting for November 15 ----------------------------------------------------- The members and creditors of The Express Builders Company Limited will hold their annual meetings on November 15, 2007, at 10:30 a.m. and 11:00 a.m., respectively, at the 7th Floor of Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. At the meeting, Stephen Briscoe, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FERRO CORP: Polymer Products Hikes Plastic Compound Prices ---------------------------------------------------------- Ferro Corporation�s Engineered Polymer Products business is increasing the price in North America for all filled and reinforced plastic compounds. Price increases range from US$0.035 to US$0.06 per pound depending on the resin content of the product supplied. The increases are effective with shipments made as of Nov. 15, 2007. Engineered Polymer Products also announced price increases in North America for color concentrates. White & Additive concentrates will increase US$0.05 per pound and Specialty Color & Black concentrates will increase US$0.08 per pound, effective with shipments made as of Nov. 1, 2007. Jim Kolenc, Business Director, Engineered Polymer Products, noted that price increases are necessary due to rising raw material and energy costs. �We have worked diligently in our Filled & Reinforced Plastics and Color Concentrates groups, as well as our Advanced Polymer Alloy group, to control our internal operating and conversion costs in order to ensure favorable pricing for Ferro customers,� said Mr. Kolenc. �This pricing action supports our ability to continue providing high- value products and services to our customers while remaining competitive.� 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. FOU WAH: Shareholders Pass Resolution to Liquidate Business ----------------------------------------------------------- On October 29, 2007, the shareholders of Fou Wah Weaving Mills Limited passed a resolution to have the company's operations wound up. Man Mo Leung and Kenneth Graeme Morrison were named as liquidators. The Liquidators can be reached at: Man Mo Leung Kenneth Graeme Morrison Mazars CPA Limited The Lee Gardens, 34th Floor 33 Hysan Avenue Causeway Bay, Hong Kong GREENTOWN CHINA: Downgraded to 'Hold' by Citigroup -------------------------------------------------- Citigroup has downgraded Greentown China Holdings to "hold" from "buy" due to the developer's acquisition of land at record high prices, XFN-Asia reports. According to Quamnet.com, Citigroup said Greentown's "buy high, sell higher" business model would not only weaken pricing feasibility in the event of a downturn in the market, but would also significantly stretch its financial position. "We are cautious on its over-brave performances in land acquisitions, such as Hangqifa Project, Qianjiang New City, Xinjiangwan City and Tiansheng project, all acquired through public auction with record-high land costs," the report quotes Citigroup as saying. In contrast to the market's view, Citigroup said there will be no earnings surprises for Greentown and only expects mild earnings growth of 7 pct in 2007 and 12 pct for 2008, far lower than the sector average, XFN notes. Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. The TCR-AP also reported that, on October 26, 2006, Standard & Poor's Ratings Services said that it had assigned its 'BB' long- term corporate credit rating to Greentown China Holdings Ltd. The outlook is stable. At the same time, it assigned its 'BB' issue rating to a proposed US$375 million issue of senior unsecured fixed-rate notes. The issue is due 2013 and redeemable after 2010. The proceeds will be used primarily for land acquisitions, development costs, and general corporate purposes. HIH HOLDINGS: Accepting Proofs of Debt Until Nov. 30 ---------------------------------------------------- The creditors of HIH Holdings (Asia) Limited are required to file their proofs of debt by November 30, 2007, to be included in the company's dividend distribution. The company's liquidators are: Jan G W Blaauw Peter A Whalley Prince's Building, 22nd Floor Central, Hong Kong HONG KONG CONSTRUCTION: Members and Creditors to Meet on Nov. 16 ---------------------------------------------------------------- An annual meeting will be held for the members and creditors of Hong Kong Construction (Works) Limited on November 16, 2007, at 10:30 a.m. and 11:00 a.m., respectively, at the 7th Floor of Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. At the meeting, Stephen Briscoe, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. IMPERIAL WORLD: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------ At an extraordinary general meeting held on October 24, 2007, the members of Imperial World Company Limited decided to voluntarily wind up the company's operations due to its inability to pay debts. Creditors who can file their proofs of debt by December 3, 2007, will be included in the company's dividend distribution. The company's liquidators are: Kam Chi Kan Elson Yu Shi Kuen The Centre Mark, Room 801 287-299 Queen's Road Central Hong Kong JETSWOOL DEVELOPMENT: Members to Hear Wind-Up Report on Dec. 1 -------------------------------------------------------------- The members of their Jetswool Development Limited will have their final meeting on December 1, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Unit 1, 8th Floor, 10 Pottinger Street, in Central, Hong Kong. SHANGHAI PUDONG: Nine-Month Net Profit Rises 60% to CNY4-Bil. ------------------------------------------------------------- Shanghai Pudong Development Bank's net profit for the first nine months of 2007 rose 60% to CNY3.92 billion from the figure reported in the same period the previous fiscal year, China Knowledge reports. The Shanghai-listed bank also posted earnings per share of CNY0.9 in the first three quarters, People's Daily Online says. According to China Knowledge, net profit for the third quarter alone rose to CNY1.4 billion. As of Sept. 30, 2007, Shanghai Pudong's total assets reached CNY844.4 billion, up 22.5% over the end of 2006. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carries Moody's Ba1 rating for its long-term bank deposits, NP short-term rating, and a D bank financial strength rating. SHENYIIN WANGUO: Taps Wong Che Keung, Leslie as Liquidator ---------------------------------------------------------- On October 22, a special resolution was passed to voluntarily liquidate Shenyin Wangou Charitable Fund (H.K) Limited's business. Wong Che Keung, Leslie was appointed as liquidator. The Liquidator can be reached at: Wong Che Keung, Leslie Citibank Tower, 28th Floor Citibank Plaza, 3 Garden Road Central, Hong Kong TOP GALLANT: Wind-Up Petition Hearing Set for Nov. 28 ----------------------------------------------------- On September 17, 2007, the Government of the Hong Kong Special Administrative Region filed a petition to have Top Gallant International Limited's operations wound up. The High Court of Hong Kong will hear the petition on Nov. 28, 2007, at 9:30 a.m. The Petitioner's counsel is: Paul Yau Department of Justice High Block, 2nd Floor Queensway Government Offices 66 Queensway, Hong Kong WELLDLED: Commences Wind-Up Proceedings --------------------------------------- At an extraordinary general meeting held on October 26, 2007, the members of Welldled Company Limited agreed to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt by Dec. 31, 2007, to be included in the company's dividend distribution. The company's liquidator is: Ng Kay Lam Kai Wing Commercial Building, Room 1106 222-226 Queen's Road Central Hong Kong WONDERYOUTH: Wind-Up Petition Hearing Set for Dec. 12 ----------------------------------------------------- On September 28, 2007, Hong Kong Parkview Treasury Limited filed a petition to have Wonderyouth Industries Limited's operations wound up. The High Court of Hong Kong will hear the petition on Dec. 12, 2007, at 9:30 a.m. Wonderyouth's solicitor is: Richards Butler Alexandra House, 20th Floor 16-20 Chater Road Central, Hong Kong ========= I N D I A ========= AES CORP: Reports US$103-Mil. Net Income in Qtr. Ended Sept. 30 --------------------------------------------------------------- The AES Corporation reported net income of US$103 million for the three months ended Sept. 30, 2007, compared to a net loss of US$327 million for the same period in 2006. During the quarter, revenues increased by US$524 million or 18% to US$3.5 billion. The increase in revenues reflects higher rates and volumes of approximately US$284 million in Latin America, North America and Europe & Africa, favorable foreign currency translation of approximately US$174 million and contributions from TEG and TEP, two plants in Mexico the company acquired in first quarter 2007, of approximately US$57 million. Gross margin increased by US$14 million or 2% to US$840 million, primarily due to higher prices in North America and contributions from TEG and TEP as well as the impacts of favorable foreign currency translation, a combined impact of approximately US$106 million. These gains were partially offset by the impacts of gas curtailments and lower hydrology at the company's businesses in Argentina and Chile of approximately US$112 million. During the quarter, net cash from operating activities decreased by US$187 million to US$741 million. This decrease was primarily due to the sale of a Venezuelan subsidiary, C.A. LA Electricidad de Caracas, in May 2007. Excluding any contribution from EDC, net cash from operating activities would have decreased by approximately US$19 million. During the quarter, the Company was the winning bidder on two projects totaling 1,762 MW in the Philippines and the Republic of South Africa. Additionally, the company�s Alternative Energy group announced plans to begin construction of a 170 MW expansion of its Buffalo Gap wind farm in Texas. Once completed, the project will increase capacity at Buffalo Gap to 524 MW, making it one of the largest operating wind farms in the United States. �We are pleased with our continued progress toward achieving our growth goals, such as winning two strategically important projects in the Philippines and South Africa. These investments will be platforms for further expansion in these two high growth markets,� said Paul Hanrahan, AES President and CEO. �In October, the market gave us a vote of confidence when our US$500 million offering of unsecured notes generated significant demand and was successfully upsized to US$2 billion. This transaction will help us to achieve more flexibility in our existing capital structure, as we were able to refinance existing debt, and will support our growth program.� Third Quarter 2007 Segment Highlights Latin America Generation revenue increased by US$229 million to US$914 million, primarily due to higher rates in Chile and Argentina of approximately US$150 million and approximately US$32 million in higher intercompany sales at Tiete in Brazil. Gross margin decreased by US$84 million to US$183 million, primarily due to higher costs associated with gas supply curtailments and lower hydrology in Chile and Argentina of approximately US$112 million, partially offset by increased intercompany sales at Tiete. Latin America Utility revenue increased by US$141 million to US$1.3 billion, primarily due to approximately US$135 million in favorable foreign currency translation and approximately US$26 million in increased volumes at Eletropaulo in Brazil, partially offset by decreased rates at Eletropaulo due to the 2007 tariff reset. Gross margin increased by US$71 million to US$259 million, primarily due to approximately US$55 million in favorable foreign currency translation and approximately US$33 million in lower costs in Brazil. North America Generation revenue increased by US$76 million to US$566 million, primarily due to approximately US$57 million in contributions from the newly acquired TEG and TEP businesses in Mexico and approximately US$25 million in higher rates and volumes at Eastern Energy in New York. Gross margin increased by US$47 million to US$196 million, primarily due to the higher rates and volumes as well as lower costs at Eastern Energy, an impact of approximately US$34 million, and contributions from TEG and TEP of approximately US$20 million. North America Utility revenue remained flat at US$274 million. Consistent with revenues, gross margin remained relatively flat with a decrease of US$3 million to US$86 million. Europe & Africa Generation revenue increased by US$20 million to US$216 million, primarily due to increased rates and volumes of approximately US$15 million in Kazakhstan and approximately US$3 million in favorable foreign currency translation. Gross margin decreased by US$3 million, primarily due to decreased sales of excess emission allowances in Hungary. Europe & Africa Utility revenue increased by US$26 million to US$157 million, primarily due to increased rates of approximately US$14 million in Ukraine and approximately US$6 million in favorable foreign currency translation. Gross margin decreased by US$8 million, primarily due to the reversal of approximately US$7 million in VAT tax accrual during third quarter 2006 at SONEL in Cameroon. Asia Generation revenue increased by US$44 million to US$235 million, primarily due to higher dispatch in Pakistan and higher volume in Sri Lanka. Gross margin decreased by US$6 million to US$47 million, primarily due to lower volumes in China. Increased revenue in Pakistan and Sri Lanka had a relatively flat impact on gross margin due to related increases in fuel costs. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. BALLY TECH: S&P Lifts Corporate Credit & Sr. Debt Ratings to B+ --------------------------------------------------------------- Standard & Poor's Ratings Services has raised its corporate credit and senior secured debt ratings on Bally Technologies Inc. to 'B+' from 'B-'. Concurrently, S&P revised the CreditWatch implications to positive from developing. Since the ratings were initially placed on CreditWatch on Sept. 9, 2005, several rating actions have occurred. "Today's upgrade and revision of CreditWatch implications to positive reflect the company's ability to complete filing all outstanding financial reports," said S&P's credit analyst Guido DeAscanis. In addition, based on company announcements, Bally Technologies has experienced positive operating momentum over the past several quarters, and S&P expects this trend to continue over the intermediate term. Bally's is a manufacturer and supplier of casino gaming machines and information systems. S&P anticipates resolving the CreditWatch listing within the next several weeks. This process will cover a discussion with management about Bally's operational and financial strategies, including any material weaknesses related to financial reporting. Should this result in an upgrade, S&P expects that it would be limited to one or two notches. Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Miss. The company's South American operations are located in Argentina. The company also has operations in Macau, China, and India. GENERAL MOTORS: Expects US$39 Bil. Non-Cash Charge in 3rd Qtr. -------------------------------------------------------------- General Motors Corp. disclosed Tuesday that it will record a net non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the U.S., Canada and Germany. In accordance with the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes, GM has evaluated its deferred tax assets quarterly to determine if valuation allowances were required. As previously disclosed in GM's 2006 Form 10-K, GM had determined in prior periods that a valuation allowance was not necessary for its DTAs in the U.S., Canada or Germany based on several factors, including the degree to which the company's three-year historical cumulative losses were attributable to special items or charges, several of which were incurred as a result of actions to improve future profitability; the long duration of its deferred tax assets; and the expectation of continued strong earnings at GMAC Financial Services and improved earnings in GM North America. SFAS No. 109 guidelines require that a valuation allowance should now be established due to more recent events and developments during the 2007 third quarter. A significant negative factor was the company's three-year historical cumulative loss in the third quarter of 2007 in the U.S., Canada and Germany on an adjusted basis. Another significant factor was the ongoing weakness at GMAC Financial Services related to its Residential Capital LLC mortgage business, including substantial U.S. losses incurred in 2007. Finally, the company faces more challenging near-term automotive market conditions in the U.S. and Germany. "The establishment of a valuation allowance does not have any impact on cash, nor does such an allowance preclude us from using our loss carryforwards or other deferred tax assets in the future," said Fritz Henderson, GM vice chairman and chief financial officer. "It's also important to note that the establishment of a valuation allowance does not reflect a change in the company's view of its long-term automotive financial outlook," Henderson added. "GM continues to believe that its new product introductions, combined with the new GM-UAW labor agreement, once fully implemented, will significantly improve GM's competitive position in the U.S. and better position the company to utilize tax benefits in the U.S. and Canada in the future." SFAS No. 109 requires that companies assess whether valuation allowances should be established against their deferred tax assets based on the consideration of all available evidence using a "more likely than not" standard. In making such judgments, significant weight is given to evidence that can be objectively verified. A company's current or previous losses are given more weight than its future outlook, and a recent three-year historical cumulative loss is considered a significant factor that is difficult to overcome. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. ICICI BANK: Cuts Interest Rates on Special Deposit Schemes ---------------------------------------------------------- ICICI Bank Ltd has disclosed reduction of 0.25% to 0.50% on its special deposit schemes and an alignment of interest rates for deposits of greater than one year to 8%. The interest rate on the 390 day deposit will now be 8.5%, and the interest rate on the 590 day deposit scheme is 8.75%. The bank also discontinued the 890 day special deposit scheme. This is effective starting Nov. 12, 2007. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. PANCHMAHAL STEEL: Net Profit Down 38% in Quarter Ended Sept. 30 --------------------------------------------------------------- Panchmahal Steel Ltd reported a net profit of INR55.52 million on the three months ended Sept. 30,2007, down 37.8% from the INR89.19 million the company earned in the same period a year ago. The bottom line dipped even with improved revenues. In the quarter under review, total income rose 6.6% to INR1.02 billion from INR955.67 million in the July-Sept. 2007 quarter. The operating expenses, however, rose more than the increase in revenues -- by 10.8% to INR909.59 million -- hence the operating profit of INR108.81 million, which is 19.2% less than that booked in the corresponding quarter in 2006. The operating profit was further lessened with interest charges of INR18.09 million, depreciation of INR10.09 million and INR25.11 million in taxes. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at the Bombay Stock Exchange http://ResearchArchives.com/t/s?251d Panchmahal's board of directors noted that the company's net worth has become positive at the end of the year. The company said it is approaching Bureau of Industrial and Financial Reconstruction, seeking its exit from the purview of the Sick Industrial Companies (Special Provisions) Act, 1985. Based in Vadodara, India, Panchmahal Steel Limited -- http://www.panchmahalsteel.co.in/ -- stainless steel focused long product manufacturer. The Company's product range includes austenitic, martensitic, ferritic and precipitation hardening grades in various sizes and finishes in the form of billets, wire rod, hot-rolled bars, cold finished bars (bright bars), and wires and forgings. Its wire rod, bars and wires are suitable for a range of applications, including free machining, cold heading and fasteners, ball manufacturing, welding, springs, shafts, heat resisting applications, re-drawing, architectural, building and construction, and various industrial and engineering applications. The Troubled Company Reporter-Asia Pacific reported on Sept. 21, 2007, that Panchmahal Steel has a stockholder's equity deficit of US$330,000. RPG LIFE: Profit Drops 71% to INR8.9 Mil. in Qtr. Ended Sept. 30 ---------------------------------------------------------------- RPG Life Sciences Ltd recorded a sudden slide in its net profit in the quarter ended Sept. 30, 2007. Compared to the same quarter in 2006, the company's bottom line dropped 70.9% to INR8.9 million. The dip in profits came with the higher operating expenses, depreciation and taxes. Expenditures on operations rose 3.2% to INR271.1 million on total income of INR327.2 million, hence the operating profit of INR56.1 million. Depreciation increased 11.3% to INR12.8 million and taxes more than doubled to INR14.1 million. A copy of RPG Life's financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?251e Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. ================= I N D O N E S I A ================= ADARO INDONESIA: Moody's Reviews Ratings for Possible Upgrade ------------------------------------------------------------- Moody's Investors Service has placed PT Adaro Indonesia's Ba3 local currency corporate family and foreign currency bond ratings under review for possible upgrade. "The review has been prompted by a continued improvement in Adaro's financial profile and strong operating performance," says Laura Acres, a Moody's Vice President. "The company has materially strengthened its balance sheet through continued deleveraging and also has a certainty of cash flow driven by its ability to lock in customers for substantial proportions of forward production over the next 3 years," adds Acres, also Moody's lead analyst for the company. The review will focus on: 1) planned initiatives to improve further Adaro's operating efficiency metrics; 2) any resultant capex and funding requirements arising from those initiatives and plans to increase capacity; and 3) ongoing plans for deleveraging the balance sheet. Adaro is Indonesia's largest single site coal producer in the southern hemisphere and one of the world's largest sub- bituminous coal companies. It exports approximately 70% of its products to Southeast Asia, the US and Europe, while the rest is for the domestic market. Adaro is owned 36% by a group of international investors including Goldman Sachs, Citigroup, Farallon Capital, GIC of Singapore and the Kuok Group, remaining shares are held by Indonesian investors including the Edwin Soeryadjaya group (32%) and Theodore Rachmat group (32%). ALCATEL-LUCENT: Moody's Pares Corporate Family Rating to 'Ba2' -------------------------------------------------------------- Moody's Investors Service has downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short term debt of Alcatel-Lucent. The outlook for the ratings is stable. Wolfgang Draack, Senior Vice President and lead analyst for Alcatel-Lucent, summarized: "The rating downgrade reflects the fact that the company's profitability and cash generation has fallen behind Moody's expectations from the time of the merger of Alcatel and Lucent. While Alcatel-Lucent has realized a large part of the scheduled cost savings in 2007, it retained only part of it, so that Alcatel-Lucent's interest coverage was below 0.5-times for the last twelve months to September 2007 and it has consumed around EUR1.3 billion cash, including outflows for restructuring and dividend distributions in the same period. Were this trend to continue, then the company would increasingly absorb its financial flexibility." In its credit opinion of 29 March 2007, Moody's had summarized its criteria for a possible rating downgrade. These included a slow-to-no growth revenue scenario, price pressure to push the EBITA margin below 3%, and a weak cash flow below 30% for the retained cash flow to net debt. With a revenue decline of 7% for the last twelve months compared to 2006 pro-forma data, an EBITA-margin of less than 1% and RCF/net debt estimated below 10% for the same period, these conditions are currently met and will take time to reverse. The stable outlook for the ratings incorporates the expectation that (i) price pressure in the market will somewhat abate and management will focus more on improving gross profit, that (ii) management's restructuring plan will generate and retain substantially more cost savings going forward, that (iii) a trend towards the targeted double-digit operating margins becomes visible in the company's results, and that (iv) a seasonally cash-generative fourth quarter 2007, before restructuring, will reduce cash consumption for this year, with profitability improvements proving sufficient to fund future cash cost of restructuring. The Ba3 CFR reflects: * Alcatel-Lucent's strong customer relationships and the large installed base supporting its market shares * its broad product offering which positions the company well for the convergence of various communication technologies, * the potential for realizing and retaining synergy savings now targeted at above EUR2 billion by management, and * a comfortable liquidity position with a relatively moderately levered capital structure. These credit positives, however, are balanced by (i) the pressure on revenues stemming from generally subdued investment behaviour of the telecom carriers in the developed markets as well as from Alcatel-Lucent's exposure to the slowdown in spending in North America and the developing position of its 3rd generation wireless products, by (ii) the intense price pressure in equipment caused by market share strategies of major competitors, which absorbs much of the company's synergy benefits but may abate near term, and by (iii) challenges to contain cash consumption, given material working capital needs, substantial dividend payouts and more than �800 million cash cost for restructuring yet to come. Moody's last rating action for Alcatel-Lucent introduced on 29 March the Loss Given Default Methodology and raised the ratings for subordinated debt and preferred stock to B1. Issuer: Alcatel-Lucent Downgrades: Corporate Family Rating, Downgraded to Ba3 from Ba2 Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Ba3 from Ba2 Senior Unsecured Medium-Term Note Program, Downgraded to Ba3 from Ba2 Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from Ba2 Issuer: Lucent Technologies Capital Trust I Downgrades: Preferred Stock Preferred Stock, Downgraded to B2 from B1 Issuer: Lucent Technologies, Inc. Downgrades: Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Ba3 from Ba2 Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from Ba2 About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, China, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. ANEKA TAMBANG: Wants Gov't Contract on Buli Ferro-Nickel Project ---------------------------------------------------------------- PT Aneka Tambang asked the Indonesian government to award a contract of work for its US$1 billion ferro-nickel project in Buli, North Maluku, The Jakarta Post reports, citing President Director Dedi Aditya Sumanagara. According to the report, the project, jointly developed with BHP Billiton, currently holds only a mining authority license, which is under the supervision of the local government. As reported by the Troubled Company Reporter-Asia Pacific on Sept. 24, 2007, Aneka Tambang expected to sign a joint venture agreement with BHP Billiton to develop a nickel project in Maluku Island. The TCR-AP said that the two companies had agreed in February to jointly study development of nickel deposits in the areas around Buli in North Maluku. This company move is Antam's strategy of moving into downstream nickel processing, the TCR-AP added. The Post notes that the commitment is to ensure the firm's mining authority in the North Maluku area will not be given to other investors during the process of seeking a CoW. The project is designed to produce 60,000 tons of ferro-nickel, The Post adds. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Oct. 24, 2007, Moody's Investors Service has put on review for possible upgrade the B1 corporate family rating of PT Aneka Tambang (Persero) Tbk. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. CA INC: Appoints Marc Stoll as Senior Vice President ---------------------------------------------------- CA Inc. has named Marc Stoll as its senior vice president and corporate controller, reporting to CA Executive Vice President and Chief Financial Officer Nancy Cooper. In addition, Robert Cirabisi, who has served as corporate controller since July 2005, has been named chief risk officer and interim head of internal audit, reporting to CA Executive Vice President, Global Risk and Compliance, and Chief Compliance Officer Kenneth Handal. "Marc's focus as corporate controller will be on enhancing the corporate financial strategy, planning and analysis, and financial controls for the company worldwide," said Mr. Cooper. "In his new role, Bob will help to further develop CA's enterprise risk program." Mr. Handal said. "Bob will be leveraging more than seven years of experience at CA in both finance and investor relations to help the company identify and manage its most important risks." Mr. Stoll brings more than fourteen years of experience in the technology industry to the position of corporate controller. Since joining CA in 2004, Mr. Stoll has held senior vice president positions in finance and has had responsibilities for financial planning and analysis, treasury, tax, business development and strategic finance. Prior to joining CA, Mr. Stoll was vice president of equity research for the technology sector at Julius Baer Investment Management. Previously, he worked at Compaq Computer Corporation progressing from engineering, to business planning and strategy to the position of finance manager for Compaq's venture group. He also served as a manager of information technology integration at DTE Energy. Mr. Stoll earned a Bachelor of Science degree in electrical engineering, cum laude, from Michigan Technological University and a master of business administration degree from the University of Chicago, Graduate School of Business. He also attended the graduate school of business international exchange program at Hong Kong University of Science and Technology. Mr. Cirabisi joined CA in 2000 in finance before becoming vice president of investor relations in 2002, and senior vice president and chief accounting officer in July 2004. He became corporate controller in July 2005. He also served as interim CFO for three months in 2006. A Certified Public Accountant, Mr. Cirabisi has accumulated more than 13 years of public accounting experience at major U.S. accounting firms. He earned a bachelor's degree in public accounting from Hofstra University. About CA Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on June 7, 2007, Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York-based CA Inc. S&P revised the outlook to stable from negative. As reported in the Troubled Company Reporter-Latin America on May 31, 2007, Fitch has affirmed these ratings for CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility expiring 2008 at 'BB+'; -- Senior unsecured debt at 'BB+'. CA INC: Taps Pat Gnazzo as General Manager for Public Sector Biz ---------------------------------------------------------------- CA Inc. has appointed Pat Gnazzo as its senior vice president and general manager for its U.S. Public Sector business, effective immediately. In this newly created position, Gnazzo heads up all operations for CA's Federal, State and Local business including management, administration, and regulatory matters, as well as government relations. He reports to George Fischer, executive vice president and general manager of Worldwide Sales, and will be located in the Washington D.C. area. "Our public sector business continues to be one of the highest growth areas for CA," said Mr. Fischer. "Working in partnership with Mark Thompson, head of North American Sales, Pat will help us create a best-in-class process to shape and build this very important and growing market segment. He understands government and his expertise in compliance, combined with his deep knowledge of CA solutions, uniquely positions him to design an integrated approach to manage projects and contracts that best address the needs of our government customers." Mr. Gnazzo was previously senior vice president, business practices and chief risk and compliance officer for CA. He joined the company in 2005 to create its compliance, ethics and risk program, as well as oversee its government regulatory compliance, records and information management, business continuity and privacy programs. Prior to CA, Mr. Gnazzo held significant positions at United Technologies Corporation, including chief compliance officer; vice president for contracts and deputy general counsel at Pratt Whitney, a division of UTC; vice president and government liaison, president of United Technologies International; and vice president for government contracts and compliance. Mr. Gnazzo joined UTC in 1981 after serving as the associate general counsel, chief trial attorney, and director of the U.S. Department of the Navy's litigation division. He also has served on the board of directors of the Ethics and Compliance Officers Association, is former chairman of the Defense Industry Initiative's working group, and is a frequent lecturer on ethics and compliance. Mr. Gnazzo is on the Board of the Ethics Research Center, Procurement Round Table and on the Board of Advisors of the National Contract Management Association. CA works with 95 percent of U.S. federal agencies and numerous state and local governments. CA builds the solutions to better manage, govern and secure IT to help manage the cost of government, meet the needs of constituents and serve citizens effectively. About CA Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on June 7, 2007, Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York-based CA Inc. S&P revised the outlook to stable from negative. As reported in the Troubled Company Reporter-Latin America on May 31, 2007, Fitch has affirmed these ratings for CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility expiring 2008 at 'BB+'; -- Senior unsecured debt at 'BB+'. COMVERSE TECH: Delays Financial Filing Due to VSOE Evaluation ------------------------------------------------------------- Comverse Technology Inc. announced that its previously stated expectation to become current in its financial reports by the end of its fiscal year 2007, ending Jan. 31, 2008, is likely to be delayed as a result of an evaluation of its recognition of revenue based on the application of Statement of Position (SOP) 97-2, Software Revenue Recognition, as amended and interpreted, specifically relating to vendor specific objective evidence (VSOE). Any accounting errors identified as a result of this evaluation are only expected to impact the timing of revenue recognized and not to call into question the validity of the underlying transactions or revenue. Consequently, the company believes that its aggregate revenue, inclusive of deferrals, will not be impacted by any restatements caused by this issue. Until the SOP 97-2 evaluation is complete, the company may not be in a position to provide revenue and other income statement information to investors. Andre Dahan, President and Chief Executive Officer, Comverse Technology, Inc., said, "The accounting issues related to the application of VSOE include the evaluation of very complex software revenue recognition standards, and the timing and recognition of maintenance revenue, which we are committed to getting right. This area of review arose in connection with the audit of our fiscal 2006 statements, and is not associated with the investigations led by the Special Committee of our Board of Directors, which are substantially complete. Any restatements resulting from this review is not a reflection on our business, but an indication of our commitment to address any potential accounting issues, correct them, and put them definitively behind us. We remain very optimistic about the strength of our business and its prospects. We are strong financially, hold leadership positions in our major markets, and deliver high value products and solutions to our customers. We remain focused on delivering value to our customers, and committed to our objective to build and deliver a new Framework for Profitable Growth at the company." The SOP 97-2 VSOE related concerns arose in connection with the audit of the company's financial statements for fiscal year 2006 (ended Jan. 31, 2007) by the company's independent registered public accounting firm. Such evaluation is not part of the investigations conducted by the Special Committee of the company's Board of Directors. Included in this evaluation is a determination of VSOE of fair value for the various elements of the company's bundled hardware and software solutions and associated services for earlier years as well. The company cautions that its previously issued financial statements and the revenue and selected consolidated financial items disclosed in its press releases issued on March 22, 2007, June 11, 2007, and Sept. 10, 2007, should no longer be relied upon. The company believes that its aggregate revenue, inclusive of deferrals, will not be impacted by any restatements caused by this issue. It is not presently known if the accounting review will identify additional or different issues that could further impact the company's financial statements or if the impact of these issues would be material. In general, the presence of VSOE permits revenue to be allocated among, and recognized upon the delivery of the contractual arrangement's various elements. Most of the company's sales transactions are generated from complex contractual arrangements with multiple elements requiring significant analysis with respect to the facts surrounding the transactions, and accounting analysis under highly technical accounting rules in order to determine the appropriate period in which to record revenue. When a contract involves multiple elements, such as sales of products that include maintenance, the company has allocated the value of the total purchase to each item within the purchase arrangement based on its determination of VSOE. If the company for accounting purposes is unable to determine the fair value of an undelivered element, as defined by VSOE, revenue for the entire arrangement is deferred until all elements have been delivered. Given the customized nature of the company's products and services, and the complexity of its contracts, VSOE can be difficult to establish. For example, many of the company's large customers receive maintenance as part of a sale that also includes product. The company has historically determined that portion of the sale to be classified and deferred as maintenance revenue based on VSOE. As a result of this evaluation, the company may conclude that insufficient evidence existed to support the company's prior determination that VSOE existed for certain elements of its contracts and would be required to restate its previously reported revenues. Generally, the absence of VSOE will result in the recognition of revenue over longer periods of time. Any determination concerning the absence of VSOE is expected to impact the timing of revenue recognized by the company and not call into question the validity of the underlying transactions or revenue. About Comverse Technology Comverse Technology, Inc. (NASDAQ: CMVT) -- http://www.comverse.com/-- provides software and systems that enable network-based multimedia enhanced communication and billing services. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Comverse has offices all over the world, including Indonesia, Malaysia and the Philippines In Latin America, Comverse has operations in Argentina, Brazil, Mexico and Peru. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services kept its 'BB-' corporate credit and senior unsecured debt ratings on New York-based Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006. ========= J A P A N ========= FORD MOTOR: UAW Members to Vote on New Labor Pact on Sunday ----------------------------------------------------------- United Auto Workers union members at Ford Motor Company plants, including those in Missouri and Louisville, Kentucky, will be voting on a new labor agreement between the carmaker and the union on Nov. 11, 2007, according to various reports. As reported in yesterday's Troubled Company Reporter, Ford and the union reached a tentative agreement on a four-year national labor contract covering approximately 54,000 represented employees in the United States. The UAW Ford National Council -- made up of delegates from more than 55 Ford facilities across the nation -- voted to unanimously recommend ratification of the union's 2007 tentative agreement with Ford. The St. Louis Business Journal relates that voting will conclude on Nov. 12, 2007. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 7, 2007, Standard & Poor's Ratings Services said its 'B' long-term corporate credit rating on Ford Motor Co. and Ford Motor Credit Co. remains on CreditWatch with positive implications, following the agreement between Ford and the United Auto Workers of a new labor contract. HERBALIFE LTD: Reports US$48-Mln Net Income in 2007 Third Qtr. -------------------------------------------------------------- Herbalife Ltd. reported third quarter net sales of US$529.5 million, an increase of 11.1 percent compared to the same period of 2006. This record performance was largely attributable to double-digit growth in several of the company�s top countries, including the U.S. up 20.4 percent, Taiwan up 23.6 percent and China up 89.3 percent, versus the third quarter of 2006. The company�s Chairman and Chief Executive Officer Michael O. Johnson, said, "We are pleased to report our 15th consecutive quarter of double-digit growth and another record quarter for net income. Our strong performance reflects the strength of our independent distributor organization, their confidence in the company, and the foundation we�ve built with our products, business opportunity, brand and image." The company earned US$48 million for the three months ended Sept. 30, 2007, compared to net income of US$26.4 million for the same period in 2006. Excluding the impact of refinancing charges and other items1 in third quarter of 2006, adjusted diluted net income per share was US$0.51, resulting in a US$0.16 improvement in third quarter 2007. The increase in net income was primarily attributable to double-digit net sales growth, expansion in operating profit margins, and a reduction in interest expense during the period. During the third quarter 2007, total supervisors increased 16.6 percent to 418,735 and new supervisors of 52,982 increased 4.7 percent versus the third quarter of 2006. The company�s President�s Team membership increased 11.3 percent to 1,066 members. Financial Performance During the third quarter, the company invested US$9.2 million in capital expenditures, primarily related to enhancements to its management information systems and additional infrastructure investments to improve distributor service levels. On Aug. 23, 2007, the company's Board of Directors approved an increase of US$150 million to its previously authorized share repurchase program of US$300 million raising the total value of company common shares authorized to be repurchased to US$450 million. During the third quarter, the company repurchased 1.7 million shares of its common stock through open market transactions at an average price of US$39.23 for an aggregate cost of US$65.1 million. The company used excess cash along with debt to fund the repurchase. Since this share repurchase program was authorized in April 2007, the company has repurchased 5.2 million shares at an aggregate cost of US$203.9 million. For year to date Sept. 30, 2007, the company reported net sales of US$1,567.7 million an increase of 12.1 percent compared to US$1,398.2 million in the comparable period in 2006. For the year to date Sept. 30, 2007, the company reported net income of US$137.6 million, compared to US$101.5 million in the comparable period for 2006. Excluding the impact of favorable tax settlements in international markets in 2006 and 2007, recapitalization expenses and tax benefits on refinancing transactions in 2006, as well as 2007 expenses related to the company�s realignment for growth initiative1, year to date Sept. 30, 2007 net income increased 29.4 percent to US$141.6 million, compared to US$1.47 per diluted share in the comparable period in 2006. Third Quarter 2007 Business Highlights The company experienced record-breaking attendance at its distributor extravaganza events around the world. Over 10,000 distributors attended the North America regional event in Dallas, Texas. Over 17,000 distributors attended the EMEA regional event in Cologne, Germany. Over 15,000 distributors attended the South East Asia and North Asia regions combined Asia Pacific Extravaganza in Singapore. Over 17,000 distributors attended our Mexico and Central America regional event in Mexico City. These events are important to allow distributors a venue to train and network, and for the company to introduce new products and recognize distributor success. The company continued its support of distributor business methods by sharing best practices globally. "We continue to encourage sharing of distributor best practices as we focus our company resources on supporting the distributors� daily methods of operations," said Greg Probert, the company�s president and chief operating officer. Fourth Quarter 2007 Guidance Based on its current business trends, the company is raising its full year 2007 diluted earnings per share guidance to be in a range of US$2.62 to US$2.64. The company is providing guidance for the fourth quarter of 2007 in the range of US$0.72 to US$0.74 for diluted earnings per share. Additionally, fourth quarter investment in capital expenditures are expected in the range of US$16 million to US$18 million. Full Year 2008 Guidance Based upon current business trends coup