T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, November 14, 2007, Vol. 10, No. 226 Headlines A U S T R A L I A CHRYSLER LLC: Closing Sterling Heights Vehicle Testing Center CONVERGENCY PTY: Commences Liquidation Proceedings CURZON STREET: Members to Receive Wind-Up Report on Nov. 20 FORTESCUE METALS: Moody's Lowers Rating of Finance Unit to B1 HARRY BOURCHIER: Members to Hear Wind-Up Report on Nov. 19 ILLINGA FASHION: Members Resolve to Commence Wind-Up Proceedings IRLMOND PTY: Liquidator to Give Wind-up Report on Nov. 26 LIGHTHOUSE (AUSTRALIA): Members Agree on Voluntary Liquidation MEGA BRANDS: S&P Places B+ Corp. & Bank Loan Ratings on WatchNeg MULLANDULLAWA PTY: Members to Hold Final Meeting on Nov. 19 NEURAGENIX PTY: Will Declare Dividend on Nov. 29 OPP2 PTY: Members Agree to Start Voluntary Wind-Up Proceedings PEABODY ENERGY: Earns US$32.3 Million for Qtr. Ended Sept. 30 PINNACLE INTERIORS: Declares Dividend for Priority Creditors C H I N A & H O N G K O N G APEX MIGHT: Court to Hear Wind-Up Petition on January 2 ASIA FOCUS: Members Appoint Liquidators BEARCOLE LIMITED: Creditors' Proofs of Debt Due on November 23 BEAR COMPANY: Creditors' Proofs of Debt Due on November 23 BENQ CORP: Eyes Business Expansion in the Philippines CHINA SOUTHERN AIRLINES: To Join SkyTeam Alliance CHINA SPORTS: Court to Hear Wind-Up Petition on December 5 COSMOS BANK: Incurs TWD9-Bil. Net Loss for 2007 9-Month Period HI-TECH: James Wardell, Jackson IP Appointed as Liquidators KUEN KEE: Court to Hear Wind-Up Petition on December 19 SCS LIMITED: Court to Hear Wind-Up Petition on December 12 SILICONWARE PRECISION: Third Qtr. Net Income Increases to TWD5BB SILICONWARE PRECISION: Expects More Sales in Fourth Quarter 2007 SILICONWARE PRECISION: Divests Sigurd Microelectronics Shares TACHAN SECURITIES: To Sell Tichung Branch to Ta Chong Securities TIN LOK: Court to Hear Wind-Up Petition on December 5 TUNG HING: Members Agree to Liquidate Business I N D I A BALLY TECH: Fitch Affirms Issuer Default Rating at B- BALLY TECH: Teams Up with Teradata To Provide Business Services ITI LTD: Tejbir Singh Replaces Pritam Singh as Director-Mktng JIK INDUSTRIES: Earns INR308 Mln. in Quarter Ended Sept. 30 I N D O N E S I A ADES WATERS: Discloses Restructuring Plan, To Lay Off Workers ADES WATERS: To Offer 440.2 Million Shares at IDR1,000 Each GARUDA INDONESIA: Fuel Charged Up 30% Amid Oil Price Increase GARUDA : Partners with Virgin Blue for Interline Agreement MATAHARI PUTRA: Moody's Affirms B1 Corporate Family Rating J A P A N CABLE & WIRELESS: Restores Services in Cayman Islands DELPHI CORP: Creditors Say Disclosure Statement is Inadequate DELPHI CORP: Senior Noteholders Balk at Disclosure Statement FORD MOTOR: Reaches Tentative Labor Agreement with UAW FORD MOTOR: S&P Expects to Affirm B Rating Due to Narrower Loss FORD MOTOR: Local Unions Favor Labor Pact, Initial Results Show ICONIX BRAND: Enters Into Five Global License Agreements J-CORE: S&P Affirms Rating on Class E Trust Certificate at BB+ JVC CORP: Moody's Affirms Baa3 Debt Rating with Negative Outlook KOBE STEEL: Posts Net Income of JPY4.5 Billion for H1 of FY2007 NOVA CORP: G.communication to Hire 1,760 Nova Employees SOFTBANK CORP: Ties Up with Disney on Mobile Phones Service * Fitch Publishes Rating Criteria For FILP Bond Issuers * Japan Sees 8.06% More Corporate Bankruptcies in October K O R E A DAEWOO ELECTRONICS: Lays Off About 1,500 Workers SEQUA CORP: Wants to Redeem 2008 Unsecured Notes by December 21 SEQUA CORPORATION: Earns US$18.1MM in Third Qtr. Ended Sept. 30 SEQUA CORP Moody's Rates Proposed Sr. Debt Facility at B1 UAL CORP: Issues 600,000+ Shares to Eligible Claimholders M A L A Y S I A BOUSTEAD HEAVY: ECM Keeps 'Buy' Call on Hopes of More Orders TIME DOTCOM: DiGi Discloses Plans for Broadband Deal N E W Z E A L A N D AUSTRALIAN LAND: Court to Hear Wind-Up Petition on Jan. 31 BATHHOUSE RESTAURANT: Creditors' Proofs of Debt Due on Nov. 16 CLEAR CHANNEL: Earns US$279.7 Mln in 3rd Quarter Ended Sept. 30 CLEAR CHANNEL: Providence Mulls Rescinding US$1.2-Billion Deal COSTA'S RESTAURANT: Creditors' Proofs of Debt Due on November 16 FIDELITYGENETIC LIMITED: Taps Official Assignee as Liquidator HARLOMA LIMITED: Taps Official Assignee as Liquidator N J G HOLDINGS: Appoints Official Assignee as Liquidator NORTHLAND AUTOMOTIVE: Creditors' Proofs of Debt Due on Nov. 30 PROSCENIUM PRODUCTIONS: Appoints Official Assignee as Liquidator SOLUTION DYNAMICS: Net Deficit Down 7% to NZ$568,000 in FY2008 TRUSTPOWER LTD: Earns NZ$63.1 Mil. in Six Months Ended Sept. 30 VTL GROUP: Trading Suspended on Failure to File Annual Results WEIGHT WATCHERS: Reports US$49.5 Million Net Income in 3rd Qtr. P H I L I P P I N E S CHIQUITA BRANDS: Posts US$28-Mln Net Loss in Qtr. Ended Sept. 30 METRO PACIFIC: Turns Around with Nine-Month Profit of PHP235.6MM NAT'L POWER: Reduced Generation Charges in Oct. Cue Lower Rates PSI TECHS: Announces Financial Results for Third Quarter 2007 SAN MIGUEL: S&P Affirms 'BB' Rating After Aussie Dairy Unit Sale WELLEX INDUSTRIES: 3rd Quarter Net Loss Rises 269% to PHP33-Mil. ZEUS HOLDINGS: 3rd Quarter 2007 Net Loss Climbs 2% to PHP23,879 S I N G A P O R E FOO TEE: Court to Hear Wind-Up Petition on Nov. 23 HAPPY MANUFACTURING: Members to Hold Final Meeting on Dec. 6 LINDETEVES: Sept. 30 Balance Sheet Upside-Down by SGD78 Million SPECTRUM BRANDS: Posts US$333 Million Net Loss in Fourth Quarter SCOTTISH RE: S&P Revises Outlook from Developing to Negative T H A I L A N D NFC FERTILIZER: Court to Hear Rehabilitation Petition on Dec. 17 SRITHAI FOOD: Faces SET Delisting on Undermanned Audit Committee TMB BANK: ING to Buy 30% Stake for EUR460-Mil. Recapitalisation * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= CHRYSLER LLC: Closing Sterling Heights Vehicle Testing Center ------------------------------------------------------------- United Auto Workers union employees at a Chrysler LLC testing facility on Metropolitan Parkway in Michigan will be reassigned following the closure of the site, under the recently ratified labor contract between the carmaker and the union, Terry Oparka of C&G News reports. According to Chrysler spokesman Dave Elshoff, the Sterling Heights Vehicle Test Center, which employs twenty employees and is listed as an industrial warehouse, is for sale for US$7 million, C&G News relates. Mr. Elshoff added that other Michigan facilities designated to be shuttered are located in Windsor, in Detroit on Mound and and Van Dyke, and in Plymouth. As reported in the Troubled Company Reporter on Nov. 5, 2007, Chrysler disclosed that it would make volume-related reductions at several of its North American assembly and powertrain plants, and eliminate four products from its line-up. Shifts will be eliminated at five North American assembly plants which, combined with other volume-related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008. Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37%. The Company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume. The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan announced in February. The objectives of the RTP remain the same. "We have to move now to adjust the way our company looks and acts to reflect a smaller market," Tom LaSorda, vice chairman and president of the Chrysler Group, said. "That means a cost base that is right-sized and an appropriate level of plant utilization." About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, 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. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. The outlook is negative. CONVERGENCY PTY: Commences Liquidation Proceedings -------------------------------------------------- During a general meeting held on September 24, 2007, the members of Convergency Pty Ltd agreed to voluntarily liquidate the company's business. Colin McIntosh Nicol and Johan Vorster were appointed as liquidators. The Liquidators can be reached at: Colin McIntosh Nicol Johan Vorster McGrathNicol IBM Centre, Level 8 60 City Road Southbank, Victoria 3006 Australia Telephone:+61 3 9038 3100 Web site: http://www.mcgrathnicol.com About Convergency Pty Convergency Pty Ltd is involved with electrical work. The company is located at Melbourne, in Victoria, Australia. CURZON STREET: Members to Receive Wind-Up Report on Nov. 20 ----------------------------------------------------------- The members of Curzon Street Pty Ltd will hold their general meeting on November 20, 2007, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The Troubled Company Reporter-Asia Pacific previously reported that the members of the company agreed on December 22, 2006, to wind up the company's operations. The company's liquidator is: M. A. Hatherly NorthCorp Accountants, Chartered Accountants Suites 1-3 Bourne House 10-12 Short Street Port Macquarie, New South Wales 2444 Australia About Curzon Street Curzon Street Pty Ltd, which is also trading as Port Macquarie Tiles, is a dealer of lumber and other building materials. FORTESCUE METALS: Moody's Lowers Rating of Finance Unit to B1 ------------------------------------------------------------- Moody's Investors Service has downgraded to B1 from Ba3 the rating of the senior secured debt of FMG Finance Pty. Ltd., the financing arm of the Fortescue Metals Group. The outlook for the rating is stable. This completes the rating review for possible downgrade. "The rating downgrade reflects increased uncertainty surrounding the revised target completion date for Fortescue's iron ore project", says David Howell, a Moody's VP/Senior Analyst. "The project was originally due for completion in February 2008, but that timetable was extended to May 15, 2008 due to a series of events, including cyclones and the inability of FMG to acquire accommodation units for staff at the site," says Dr. Howell. "The B1 rating incorporates continuing challenges associated with completing the project by the revised date. "Past independent engineer reports have expressed concerns regarding the ability of the project to meet the first iron ore on ship (FOOS) date of 15 May", says Dr. Howell. "At the same time, Fortescue is still targeting that date, and Moody's draws some comfort that the AU$500 million equity raising secured by the parent in July is available to complete the project's construction," says Dr. Howell. On the other hand, balanced against these delay scenarios is the fact that each element of the project is at least 65 % complete, with the port the most advanced at 80%, the mine at 74%, and the rail the slowest at 65%. Moody's notes that completion of the project by mid-May within the revised cost estimates could lead to a positive reassessment of the rating. On the other hand, the rating could be pressured if there is a material cost over-run and/or material delay in project completion date beyond May 2008. Fortescue Metals Group, based in Perth, is constructing an iron ore mine, rail and port in Western Australia's Pilbara region. When completed, the project will produce between 45 and 55 million tons or iron ore per annum for export, mainly to China. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. HARRY BOURCHIER: Members to Hear Wind-Up Report on Nov. 19 ---------------------------------------------------------- Harry Bourchier Pty Ltd, which is liquidation, will hold a final meeting for its members on November 19, 2007, at 11:00 a.m. At the meeting, P. J. Cramer, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: P. J. Cramer Green Taylor Partners Chartered Accountants 43-45 Pynsent Street Horsham, Victoria 3400 Australia About Harry Bourchier Harry Bourchier Pty Ltd, which is also trading as Burrongong Property, is a distributor of wheat. The company is located at Corowa, in New South Wales, Australia. ILLINGA FASHION: Members Resolve to Commence Wind-Up Proceedings ---------------------------------------------------------------- At an extraordinary general meeting held on September 27, 2007, the members of Illinga Fashion Group Pty Ltd resolved to voluntarily liquidate the company's business. Nicholas Martin was appointed as liquidator. The Liquidator can be reached at: Nicholas Martin PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Illinga Fashion Illinga Fashion Group Pty Ltd, which is also trading as Illinga Fashion Group, is a distributor of men's and boys' clothing. The company is located at South Yarra, in Victoria, Australia. IRLMOND PTY: Liquidator to Give Wind-up Report on Nov. 26 --------------------------------------------------------- Irlmond Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 26, 2007, at 10:00 a.m. At the meeting, G. M. Rambaldi, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: G. M. Rambaldi Pitcher Partners Level 19, 15 William Street Melbourne Australia About Irlmond Pty Irlmond Pty Ltd, which is also trading as Essendon Mitsubishi, is a dealer of new and used cars. The company is located at Moonee Ponds, in Victoria, Australia. LIGHTHOUSE (AUSTRALIA): Members Agree on Voluntary Liquidation -------------------------------------------------------------- During a general meeting held on September 28, 2007, the members of Lighthouse (Australia) Limited resolved to voluntarily liquidate the company's business. Scott Turner was appointed as liquidator. The Liquidator can be reached at: Scott Turner GPO Box 4366 Sydney, New South Wales 2000 Australia About Lighthouse (Australia) Located at Milsons Point, in New South Wales, Australia, Lighthouse (Australia) Limited is an investor relation company. MEGA BRANDS: S&P Places B+ Corp. & Bank Loan Ratings on WatchNeg ---------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B+' long-term corporate credit and bank loan ratings on Montreal-based MEGA Brands Inc. on CreditWatch with negative implications. The '3' recovery rating on the bank loan is unchanged. The CreditWatch placement reflects S&P's concerns that revenues, earnings, and credit protection measures at MEGA Brands did not meet S&P's expectations for the third quarter ended Sept. 30, 2007, and could remain weaker than expected in the medium term due to challenges the company faces," said S&P's credit analyst Lori Harris. Revenues in third-quarter 2007 declined 9% compared with the same quarter the previous year because of lower Magnetix product sales and production delays in Asia. Reported gross profit (excluding the CAD20 million noncash inventory revaluation charge) dropped 38% for the quarter compared with the same period the previous year due to the reasons cited above as well as manufacturing inefficiencies and the sale of excess inventory at a lower gross margin. For the past two years, the company has been involved in litigation related to its Magnetix product, which resulted in product recalls, product replacement, and product liability settlement expenses. The charges related to the litigation have negatively affected the company's debt levels and credit ratios in a material way. MEGA Brands has chosen to be self-insured for Magnetix products manufactured before May 1, 2006, and for incidents occurring after Dec. 1, 2006, because it viewed the cost of insurance as prohibitive. Management's decision to be self-insured raises uncertainty surrounding the company's potential exposure to liability claims and MEGA Brands' ability to financially support these claims without excessively jeopardizing the business' financial strength. In addition, the company is involved in litigation with the former shareholders of Rose Art Industries Inc., concerning contingent payments related to MEGA Brands' acquisition of the business in 2005. An additional US$51 million in accrued consideration has yet to be paid because MEGA Brands is disputing the claim. Key credit measures have weakened considerably in the past couple of years, including debt to EBITDA of more than 5.0 for the 12 months ended Sept. 30, 2007. MEGA Brands was in compliance with its financial covenants and liquidity remained adequate for the ratings at Sept. 30, 2007. S&P will resolve the CreditWatch listing in the very near term after reviewing Mega Brands' operating, strategic, and financial plans. MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a distributor of construction toys, games & puzzles, arts & crafts and stationery. The company is headquartered in Montreal, Canada and has offices in Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. MULLANDULLAWA PTY: Members to Hold Final Meeting on Nov. 19 ----------------------------------------------------------- A final meeting will be held for the members of Mullandullawa Pty Ltd on November 19, 2007, at 10:30 a.m. At the meeting, B. J. Marchesi, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The company's operations have been placed under voluntary liquidation on November 13, 2006. The Liquidator can be reached at: B. J. Marchesi Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 300 Australia About Mullandullawa Pty Located at South Yarra, in Victoria, Australia, Mullandullawa Pty Ltd is an investor relation company. NEURAGENIX PTY: Will Declare Dividend on Nov. 29 ------------------------------------------------ Neuragenix Pty Ltd, which is in liquidation, will declare dividend on November 29, 2007. Creditors who were not able to file their proofs of debt by the November 7 due date will be excluded from the company's dividend distribution. The company's liquidator is: Rod Slattery c/o PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia About Neuragenix Pty Neuragenix Pty Ltd provides custom computer programming services. The company is located at Melbourne, in Victoria, Australia. OPP2 PTY: Members Agree to Start Voluntary Wind-Up Proceedings -------------------------------------------------------------- During a general meeting held on October 3, 2007, the members of OPP2 Pty Ltd agreed to voluntarily wind up the company's operations. Christopher James Fawcett was appointed as liquidator. About Opp2 Pty Opp2 Pty Ltd is a distributor of farm and garden machineries and equipments. The company is located at Dandenong, in Victoria, Australia. PEABODY ENERGY: Earns US$32.3 Million for Qtr. Ended Sept. 30 ------------------------------------------------------------- Peabody Energy has reported third quarter 2007 earnings of US$0.12 per share on net income of US$32.3 million, compared with US$0.53 per share and US$142.0 million in the same period a year ago. EBITDA for the quarter and nine months was US$210.9 million and US$785.1 million, respectively. Year-to- date pro forma EBITDA from continuing operations increased 8% over the prior year. During the quarter, Peabody made significant progress in reshaping the earnings base by increasing production capacity in Australia, concluding cost and productivity initiatives in the Powder River Basin, expanding global coal trading operations and spinning off Patriot Coal Corporation. "Peabody has outstanding leverage to rising international markets, we have captured higher prices for Powder River Basin and Midwestern coal, expanded global coal trading operations, and stabilized operating costs," said Peabody Chairman and Chief Executive Officer Gregory H. Boyce. "The strategies we put in place will create meaningful additional value from our reshaped asset base, leading marketing practices and global expansion." Third quarter and year-to-date revenues grew to US$1.49 billion and US$4.18 billion, respectively, on higher volumes in all regions and improved pricing in the United States. Peabody achieved record volumes of 68.5 million tons for the quarter and 191.9 million tons through nine months, with higher shipments from nearly all United States operating regions and a near- tripling of Australian volumes. Third quarter revenues per ton grew 12 percent in the U.S., led by a 29 percent rise in premium Powder River Basin sales realizations. EBITDA for the quarter was US$210.9 million, as improved contributions from U.S. mining operations were offset by approximately US$95 million in impacts related to: lower realized prices for metallurgical coal settled for the current year; Australian demurrage and coal chain issues; and changes in exchange rates. These results compare with EBITDA of US$270.7 million in the prior year. "Our operations had a solid performance this quarter, with production running at higher levels in all regions and U.S. margins per ton expanding 24 percent from the prior year," said Chief Financial Officer and Executive Vice President of Corporate Development Richard A. Navarre. "Our new and expanded operations in Australia are benefiting from strong market fundamentals and higher price realizations, putting us on pace to deliver growing contributions in 2008 and beyond." Peabody completed the tax-free spin-off of Patriot Coal on Oct. 31, issuing a dividend of the Eastern U.S. subsidiary to shareholders on a ratio of one share of Patriot Coal (NYSE: PCX) for every 10 shares of Peabody. Patriot is now an independent company. Its historical results for the nine months are included in Peabody's results, except where noted otherwise, but will be reflected in Peabody's year-end financial statements as a discontinued operation. On a pro forma basis, Peabody's revenues and EBITDA from continuing operations increased 12 and 8 percent, respectively, through nine months. "The successful spin-off of Patriot completes a key business strategy that had been evaluated, engineered and executed for more than a year, with multiple benefits for Peabody," said Mr. Boyce. "With this one act, Peabody has improved our operating and geologic risk; enhanced our management and capital focus on large, long-lived surface mines; reduced our legacy liabilities, and further honed our asset base toward the highest-growth, highest-margin markets in the United States and around the world." Net income was US$32.3 million, or US$0.12 per share, compared with year-ago levels of US$142.0 million and US$0.53 per share. Results include higher depreciation, depletion and amortization and increased interest expense following last year's Australia acquisition. Safety and Reclamation Peabody continues to be recognized for its industry-leading practices in the areas of safety and reclamation, receiving numerous awards during the quarter. The company's Farmersburg Mine received the prestigious Sentinels of Safety award for the nation's safest large coal mine and the Lee Ranch Mine was recognized as the Safe Operator of the Year by the New Mexico State Mine Inspector's office. In the areas of sustainability and stewardship, the company was recognized for its ongoing initiatives with five awards from the U.S. Department of the Interior, including the Silver and Bronze Good Neighbor awards. Global Markets "The world's fastest-growing economies are relying on coal, and global coal production is straining to keep pace with rising demand," said Mr. Boyce. "Near term, record seaborne coal demand is benefiting Peabody's Australian and Venezuelan coal sales and enabling exports from our Illinois Basin operations. This combines with growing U.S. coal demand and reduced supply to also favorably impact U.S. Powder River Basin and Colorado markets. Longer term, the world is experiencing a major buildout of new generating plants and steel mills that will drive coal growth even higher." International Markets Global supply-demand fundamentals continue to tighten, and thermal coal prices in all seaborne markets have risen to new records. Published prices for Newcastle, Australia coal recently reached US$80 per tonne, which is nearly US$35 per ton, or 74 percent, higher than a year ago when Peabody completed its major Australia acquisition. Spot prices for metallurgical coal from Australia have also reached new records, just as negotiations for the upcoming fiscal year are beginning. Peabody has 11 to 13 million tons of Australian coal production available for pricing in 2008, more than half of which is metallurgical coal. Peabody has 17 to 20 million tons of Australian coal unpriced for 2009, approximately half of which is metallurgical coal. Australia rail and port congestion improved in the quarter but remain above expectations. Persistent congestion has led port operators to reduce fourth quarter throughput allocations for all shippers. Vessel queues have declined by more than 35% at Dalrymple Bay, to approximately 34 vessels. Vessel queues have been cut nearly in half at Newcastle, and now stand at approximately 38 vessels. As expected, China remains a net importer for 2007 despite high freight rates and record import coal prices. The Indian government is considering raising coal imports due to growing shortages of thermal coal, with one-third of generators below the seven-day level for stockpiles. India's current metallurgical coal import position of 25 million tonnes per year is expected to double by 2012. Russia is expected to reduce metallurgical coal exports near term and retain more thermal coal for domestic generation over the long term. The benchmark API 2 financial market for delivered coal into Europe has soared to US$125 per tonne in recent weeks, implying prices of US$75 per tonne or more at the ports in South America, the U.S. Gulf of Mexico or South Africa. Peabody expects to sell nearly 30 million tons of coal in the seaborne markets in 2007, excluding exports from Patriot Coal, and this is expected to increase in future years. Coal's long-term demand profile continues to improve, as the world's fastest-growing economies continue to develop coal- fueled electricity generating plants. More than 157,000 MW of coal-fueled generation is under construction around the world, representing 550 million tons of annual coal use. U.S. Domestic Markets In the United States, strong late summer and fall electricity generation led to a much greater decline in third quarter stockpiles than the prior year. The U.S. Energy Information Administration now projects year-end 2007 coal inventories of approximately 140 million tons, which is 10 million tons lower than 2006. U.S. exports of both steam and metallurgical coal have increased in 2007 while imports have tapered off. Peabody believes that U.S. coal exports will further expand in the fourth quarter of 2007 and through 2008, while imports are expected to decline. This could further tighten U.S. markets significantly and result in a tripling of U.S. net exports over a two-year period, from 13 million tons in 2006 to 35 to 40 million tons in 2008. Reference Powder River Basin and Central Appalachian coal products have seen published prices for 2009 delivery improve 68 and 40 percent, respectively, over prompt-delivery prices at the beginning of 2007. During the quarter, Peabody priced 17 million tons of U.S. production for 2008 deliveries. Through nine months, the company has committed to 66 million tons of premium Powder River Basin coal for delivery in future years at prices 45 percent above realized 2006 levels. Taking into account the Patriot Coal spin-off, Peabody has 15 to 20 million tons of planned U.S. production remaining unpriced for 2008 and 80 to 90 million tons unpriced for 2009. Longer term, a large number of clean, new coal-fueled generating plants are advancing in the United States, while some others are deferred or cancelled. In the largest new coal-fueled plant buildout in the past several decades, 45 units are new, under construction or in late-stage development in 21 states. This represents 23,900 MW of capacity and approximately 100 million tons of annual coal use. Eleven of these units have begun construction in 2007. Development of clean coal-fueled generation is essential to limit electricity shortages and price increases. Recent data demonstrates that power prices are rising at record pace, and the North American Electric Reliability Council recently warned that electricity demand continues to grow faster than expected supply. Project Updates Peabody made significant progress toward reshaping its global earnings base and operating portfolio to target high-growth markets and ongoing productivity improvements. Major International Projects * Ramping up of new mines in Australia allowed Peabody to increase Australia sales by 24 percent from the second quarter of 2007, and nearly triple prior-year sales. The company has recently started operations at the high-quality thermal export North Wambo Underground Mine. * Peabody is the second-largest shareholder in the Newcastle Coal Infrastructure Group (NCIG), which is in the early stages of development for a dedicated port facility. The port would provide Peabody with additional dedicated throughput of more than 5 million tons per year in the first phase over existing Newcastle entitlements. Final determination to proceed with construction is expected to occur in the first half of 2008. Major U.S. Projects * A new in-pit conveyor system, equipment redeployment and other upgrades at Powder River Basin operations lowered energy costs and improved throughput. Construction continues on a new coal blending and loadout facility at North Antelope Rochelle to optimize quality premiums and improve storage capacity. * Preliminary site development for the El Segundo Mine in New Mexico was completed in the third quarter, and construction for the coal handling structures began in October. El Segundo remains on track to begin production in the second half of 2008 to serve long-term contracts with Southwestern U.S. power generators. * The Prairie State Energy Campus equity partners have completed financial closing and given Bechtel Power Corporation notice to proceed to full-scale construction for the planned 1,600 MW supercritical power plant. The project is fully subscribed by equity partners. Peabody will retain a 5 percent ownership position in the plant, the first unit of which is expected to begin generation in 2011. * Peabody and ConocoPhillips have selected Kentucky as the state to pursue development of a major commercial-scale coal-to-gas facility. The companies are conducting a feasibility study for a mine-mouth gasification project using ConocoPhillips proprietary E-GAS(TM) technology. The facility would annually produce 50 to 70 billion cubic feet of pipeline-quality natural gas, representing more than 1.5 trillion cubic feet of gas over a 30-year project life. Outlook Peabody is maintaining full-year 2007 targets, excluding discontinued operations related to the Patriot Coal spin-off. Year 2007 produced volumes from continuing operations are targeted to be 215 to 220 million tons with sales of 235 to 245 million tons. Full-year EBITDA from continuing operations is now targeted to be US$900 million to US$1,000 million with earnings per share of US$1.50 to US$1.75. Peabody's end-of-year results will report Patriot Coal as a discontinued operation. Peabody's full-year targets from continuing operations exclude results related to Patriot Coal, and a one-time after-tax charge related to the spin-off that is currently estimated to be approximately US$150 million. About Peabody Energy Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia and Venezuela. * * * As reported in the Troubled Company Reporter on Mar. 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. Moody's placed the instrument on review for downgrade. PINNACLE INTERIORS: Declares Dividend for Priority Creditors ------------------------------------------------------------ Pinnacle Interiors Pty Ltd, which is in liquidation, declared dividend for its priority creditors on October 31, 2007. Creditors who were not able to file their proofs of debt by the October 30 due date were excluded from the company's dividend distribution. The company's liquidator is: Kenneth J. Stout Grosvenor Chambers Level 3, 1 Collins Street Melbourne, Victoria 3000 Australia Telephone:(03) 9665 0455 Facsimile:(03) 9665 0427 About Pinnacle Interiors Pinnacle Interiors Pty Ltd, which is also trading as Ward & Sons, is involved with carpentry work. The company is located at Oakleigh South, in Victoria, Australia. ================================ C H I N A & H O N G K O N G ================================ APEX MIGHT: Court to Hear Wind-Up Petition on January 2 ------------------------------------------------------- The High Court of Hong Kong will hear a petition to have Apex Might Enterprises Limited's operations wound up on January 2, 2007, at 9:30 a.m. The petition was filed on October 15, 2007, by the incorporated owners of Bright View Court. The petitioners' solicitor can be reached at: Raymund T.L. Tse&Co. Units C & D, 21st Floor World Tower Trust 50 Stanley Street, Central Hong Kong ASIA FOCUS: Members Appoint Liquidators --------------------------------------- The members of Asia Focus International Holdings Limited, on October 12, 2007, appointed Lai Kar Yan and Derek E. Haughey as the company's liquidators. The Liquidators can be reached at: Messrs. Lai Kar Yan Derek E. Haughey Deloitte Touche Tomatsu 35th Floor One Pacific Place 88 Queensway, Hong Kong BEARCOLE LIMITED: Creditors' Proofs of Debt Due on November 23 -------------------------------------------------------------- The creditors of Bearcole Limited, which is in liquidation, are required to file proofs of debt by November 23, 2007, in order to be included in the company's dividend and distribution. The company's liquidator is: Stephen Briscoe 7th Floor, Allied Kajima Building 138 Gloucester Road, Hong Kong BEAR COMPANY: Creditors' Proofs of Debt Due on November 23 --------------------------------------------------------- The creditors of Bear Company (Hong Kong) Limited, which is in liquidation, are required to file proofs of debt by November 23, 2007, in order to be included in the company's dividend distribution. The company's liquidator is: Stephen Briscoe 7th Floor, Allied Kajima Building 138 Gloucester Road, Hong Kong BENQ CORP: Eyes Business Expansion in the Philippines ----------------------------------------------------- BenQ Corp. plans to expand its business in the Philippines, hoping to carve out a niche market first in LCD projectors and monitors, the Philippine Daily Inquirer reports. According to Lawrence Casiraya of the Inquirer, BenQ introduced in a media gathering last week its manager for the Philippines, Steve Lin, who assumed his post in June. In an interview with the paper, Mr. Lin said that the company has been focused on growing its LCD projector and monitor business since entering the market two years ago. "Based on market figures, we're now the No. 4 vendor in LCD projectors," Mr. Lin said, behind other vendors like InFocus and Toshiba. "This has also been our company's thrust in the region. We're trailing Epson right now in the LCD monitor market in Asia Pacific," Mr. Lin added. The report recounts that BenQ had earlier introduced laptops and digital cameras which, according to Mr. Lin, will be officially distributed sometime in 2008. At present, the Inquirer notes, BenQ has two local distributors and plans to appoint more to carry other products. Moreover, Mr. Lin said that once revenues hit more than PHP1 million a month, probably by the second quarter in 2008, the company will set up a local office. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. In June 2007 the company announced that it will change its name to Qisda. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. CHINA SOUTHERN AIRLINES: To Join SkyTeam Alliance ------------------------------------------------- China Southern Airlines Company Limited (SHSE: 600029: SEHK: 1055) will join SkyTeam Alliance on November 15, 2007, TradingMarkets.com relates. According to the report, SkyTeam is one of the three international aviation alliances. TradingMarkets recounts that China Southern signed a letter of intent regarding a membership with SkyTeam in 2004 and, on June 28, 2006, signed a Global Airline Alliance Adherence Agreement with SkyTeam, in preparation for the entry. The airline signed agreements with members of the alliance by the end of October 2007. SkyTeam has 10 members, including Air France, Delta Air Lines and Korean Air, with total fleet of over 2,000 aircrafts, the report explains. Around 15,000 flights are launched per day to 728 destinations in 149 countries and territories. The report says that after joining in the aviation alliance, China Southern Airlines can share codes with other members and expand its route network with low cost and higher passenger load factor. China Southern will carry out a series of activities in favor of passengers on the day of its entry into the alliance. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. CHINA SPORTS: Court to Hear Wind-Up Petition on December 5 ---------------------------------------------------------- The High Court of Hong Kong will hear on December 5, 2007, at 9:30 a.m. a petition seeking to have China Sports and Entertainment Limited's operations wound up. The petition was filed by Fung Hing Lun William on September 24, 2007. COSMOS BANK: Incurs TWD9-Bil. Net Loss for 2007 9-Month Period -------------------------------------------------------------- Cosmos Bank Taiwan reported a net loss TWD8.98 billion for the first nine months of 2007, 62.67% higher than the TWD5.52-billion net loss reported for the first nine months of 2006. The loss marks another one of the bank's consecutive losses after mounting bad debts, which pushed it into the red starting in the first quarter of 2006. The bank's net interest income totaled TWD6.22 billion for the nine months ended Sept. 30, 2007. Headquartered in Taipei, Taiwan, Cosmos Bank, Taiwan -- http://www.cosmosbank.com.tw/-- provides financial services for individuals and small and medium-sized enterprises in Taiwan. The Troubled Company Reporter-Asia Pacific reported on Sept. 4, 2007, that Cosmos Bank inked a memorandum of understanding with SAC Private Capital Group LLC and General Electric Co., wherein SAC Capital and GE will pay a combined US$900 million for a majority stake in the bank. The report adds that Susan Chang, spokesperson of the Financial Supervisory Commission, said that Cosmos will sell the stake at TWD2.00 (US$0.06) per share, representing a 63% discount from its August 31-close trading price of TWD5.47. HI-TECH: James Wardell, Jackson IP Appointed as Liquidators ----------------------------------------------------------- The members of Hi-Tech Wealth Group Limited, on August 9, 2007, appointed James Wardell and Jackson IP as the company's liquidators. The Liquidators can be reached at: James Wardell Jackson IP Horwarth Corporate Advisory Services Limited 1601-1602 6th Floor Causeway Bay, Hong Kong KUEN KEE: Court to Hear Wind-Up Petition on December 19 ------------------------------------------------------- The High Court of Hong Kong will hear on December 19, 2007, at 9:30 a.m. a petition to have Kuen Kee Kwok Wing Stevedore Limited's operations wound up. The petition was filed on October 10, 2007, by the Director of Legal Aid of the Legal Aid Department, Steve F. Wong. SCS LIMITED: Court to Hear Wind-Up Petition on December 12 ---------------------------------------------------------- The High-Court of Hong Kong will hear on December 12, 2007, at 9:30 a.m., a petition to have SCS (Asia Pacific) Limited's operations wound up. The petition was filed by Ng Pok Chung on September 28, 2007. SILICONWARE PRECISION: Third Qtr. Net Income Increases to TWD5BB ---------------------------------------------------------------- Siliconware Precision Industries Co., Ltd., announced that its sales revenues for the third quarter 2007 was TWD17,909 million, representing 17.6% sequential growth quarter-on-quarter and 22.6% growth compared to the same period of year 2006. SPIL reported a net income of TWD5,057 million in 3Q 2007, compared with a net income of TWD3,830 million in 2Q 2007 and a net income of TWD3,136 million in 3Q 2006. SPIL reported its sales revenues for the nine-month period ended Sept 30, 2007, were TWD46,893 million, up 12.5% compared to the same period of year 2006. For the nine-month period ended Sept 30, 2007, net income was TWD12,720 million, compared with a net income of TWD9,452 million for the same period of year 2006. Diluted earnings per ordinary share for the nine-month period ended Sept 30, 2007 was TWD4.20, or diluted earnings per ADS of US$0.64. Unconsolidated 3Q 2007 Financial Results -- Net revenue was TWD17,909 million, in which TWD16,329 million was from assembly business and TWD1,580 million was from testing business. -- Cost of goods sold was TWD12,225 million, and gross profit was TWD5,684 million, representing a gross margin of 31.7%. -- Operating expenses were TWD795 million, including selling expenses of TWD208 million, administrative expenses of TWD271 million, and R & D expenses of TWD316 million. -- Operating profit was TWD4,889 million, representing an operating margin of 27.3%. -- Net income was TWD5,057 million. -- Diluted earnings per ordinary share for this quarter was TWD1.66, or diluted earnings per ADS of US$0.25. Total weighted average outstanding ordinary shares-diluted for 3Q 2007 were 3,039 million shares. Capital Expenditure -- Capital expenditure in 3Q 2007 totaled TWD4,122 million, in which TWD3,269 million were spent on assembly equipment, and TWD853 million were spent on testing equipment. -- The depreciation expenses in 3Q 2007 were TWD1,881 million, in which TWD1,275 million were from assembly business and TWD606 million were from testing business. Assembly Operation -- Substrate products revenues accounted for 49% of total revenues, remaining flat from previous quarter; wafer bumping and FCBGA accounted for 11%, remaining flat from previous quarter; lead frame products revenues accounted for 29%, remaining flat from previous quarter. Testing service generated 9% of total revenues in 3Q 2007. Siliconware Precision Industries Ltd. -- at http://www.spil.com.tw-- is a leading provider of comprehensive semiconductor assembly and test services. The company's long-term foreign and local issuer credit carries Standard and Poors' BB+ rating since Dec. 5, 2006. SILICONWARE PRECISION: Expects More Sales in Fourth Quarter 2007 ---------------------------------------------------------------- Siliconware Precision Industries Co. Ltd. expects its fourth- quarter sales to grow 2%-5% from the previous quarter after it reported a 61% rise in third-quarter profits, Reuters reports. Siliconware Precision also expects its operating profit margin to be at 25%-27% in the fourth quarter, Reuters relates, citing Siliconware Chairman Bough Lin. Mr. Lin said that the company expected average selling prices to drop slightly in the fourth quarter from the third, and that it would cut its capex to TWD10 billion next year from this year's TWD10.4 billion, the report says. Siliconware Precision Industries Ltd. -- at http://www.spil.com.tw-- is a leading provider of comprehensive semiconductor assembly and test services. The company's long-term foreign and local issuer credit carries Standard and Poors' BB+ rating since Dec. 5, 2006. SILICONWARE PRECISION: Divests Sigurd Microelectronics Shares ------------------------------------------------------------- Siliconware Precision Industries Co. Ltd will sell 13,505,000 shares of Sigurd Microelectronics Corporation, at a price of TWD22.49 per share, Reuters Key Developments reports. No further details were provided by the report. Siliconware Precision Industries Ltd. -- http://www.spil.com.tw -- is a leading provider of comprehensive semiconductor assembly and test services. The company's long-term foreign and local issuer credit carries Standard and Poors' BB+ rating since Dec. 5, 2006. TACHAN SECURITIES: To Sell Tichung Branch to Ta Chong Securities ---------------------------------------------------------------- Tachan Securities Co. Ltd. will sell its Taichung branch to Ta Chong Securities Co Ltd., Reuters Key Developments reports. No further detail regarding the sale was provided. Tachan Securities Co., Ltd. -- http://www.tachan.com.tw/-- is a Taiwan-based company engaged in the security brokerage and self- proprietary business. The Troubled Company Reporter-Asia Pacific reported on May 22, 2007, that Fitch Ratings affirmed its long-term issuer default rating for Tachan Securities Co. Ltd. at BB, and its short-term foreign currency rating at B. TIN LOK: Court to Hear Wind-Up Petition on December 5 ----------------------------------------------------- The High-Court of Hong Kong will hear on December 5, 2007, at 9:30 a.m., a petition to have Tin Lok Transportation (HK) Limited's operation wound up. Chiu Tzs Ho filed the petition on September 24, 2007. TUNG HING: Members Agree to Liquidate Business ---------------------------------------------- At an extraordinary general meeting held on October 23, 2007, the members of Tung Hing Instruments Company Limited resolved to voluntarily liquidate the company's business. The members appointed Chung Kit Ling Elaine as liquidator. The Liquidator can be reached at: Chung Kit Ling Elaine 3201-02, 32nd Floor, Alexandra House 16-20 Chater Road, Central Hon Kong ========= I N D I A ========= BALLY TECH: Fitch Affirms Issuer Default Rating at B- ----------------------------------------------------- Fitch Ratings has upgraded Bally Technologies' secured bank debt rating and affirmed Bally's Issuer Default Rating as: -- Secured bank credit facility upgraded to 'B/RR3' from 'B-/RR4'; -- Issuer Default Rating affirmed at 'B-'. The secured credit facility comprises a term loan with US$308 million outstanding and a US$75 million revolver, which was undrawn as of June 30, 2007. Fitch has revised the Rating Outlook on Bally Technologies to Stable from Negative. The Rating Outlook revision reflects Bally's significant progress in terms of its operating performance and its financial restatements. If those trends were to continue over the next couple quarters, Fitch anticipates that additional positive rating actions could occur. The rating actions are based on Bally's significantly improved product pipeline and solid acceptance of the Alpha platform over the past two years, which is generating meaningful improvement in its financial performance. On Nov. 1, Bally announced its fiscal 4Q'07 and fiscal year 2007 (period ending June 30) results and reiterated its expectations for fiscal year 2008, which were initially given on Aug. 21, 2007. Driven by the improved product platform, Bally generated 26% revenue growth to US$682 million in fiscal year 2007 and expects 21-22% growth in fiscal year 2008 to more than US$830 million. Reported adjusted EBITDA increased to US$138.5 million in fiscal year 2007 from US$49.6 million in fiscal year 2006. Bally's leverage ratio according to its credit facility as of June 30, 2007, was 2.17 versus a maximum allowable of 3.75, which declines to 3.50 as of Sept. 30, 2007. Bally's credit profile has improved dramatically fueled by the improving operating profile. As of June 30, 2007, Bally had roughly US$37 million in debt maturities through fiscal year 2009, unrestricted cash balances of US$40.8 million (up from US$12.4 million as of Dec 31, 2007), an untapped US$75 million credit revolver, and a somewhat flexible capex budget. Tempering the financial improvement is the fact that Bally has been under investigation by the Securities and Exchange Commission since 2005 and has been untimely with its SEC filings. In its most recent audited financial statements Bally continues to note material weaknesses in internal controls over financial reporting, with revenue recognition and inventory valuation among the most significant items. While these items continue to be concerns that weigh on Bally's credit ratings, Fitch notes that Bally has made significant strides over the past 12 months with its restatements and becoming current on its filings. Bally has been restating its financial results and filed its fiscal 4Q07 10Q and fiscal 2007 10K on Nov. 2, 2007, and has now filed three 10Ks and six 10Qs within the last 12 months. However, Bally expects to miss the Nov. 9, 2007 deadline to file its fiscal 1Q08 10Q. An additional concern centers around how Bally will fare when the industry enters a new technology-driven upturn in the next 12-24 months with the onset of server-based gaming, which could benefit Bally as well as the other major players including IGT, WMS, and Aristocrat. While competition has increased since the peak of the last cycle, IGT is likely to remain the dominant player, in Fitch's view, because it has the most financial resources, the broadest product pipeline, and the largest sales/marketing team. Fitch believes Bally's improved financial position and operational turnaround should help it to compete in the next cycle, but maintenance of Bally's recent market share gains could become more challenging. The Recovery Ratings and notching reflect Fitch's recovery expectations under a distressed scenario. Bally's Recovery Ratings reflect Fitch's expectation that the enterprise value of the company, and hence recovery rates for its creditors, will be maximized in a restructuring scenario (going concern), rather than a liquidation given Bally's limited tangible asset base. An 'RR3' recovery rating reflects Fitch's belief that 51-70% recovery, including the assumption of a fully drawn revolver, is possible under a distress scenario. 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, Mississippi. The company's South American operations are located in Argentina. The company also has operations in Macau, China, and India. BALLY TECH: Teams Up with Teradata To Provide Business Services --------------------------------------------------------------- Bally Technologies Inc. and Teradata Corporation will work together to provide solutions based on the new Bally Business Intelligence solution integrated with the Teradata(R) Warehouse. With Bally's expertise in casino systems and slot networks, along with Teradata's enterprise data warehouse leadership, mutual customers will benefit from optimized slot operations, better analysis and management of customer relationships and more robust marketing strategies. They will also gain new insight into the overall profitability of the business. Some mutual customers include Harrah's Entertainment, Mohegan Tribal Gaming Authority, Silverton Casino and Spotlight 29 Casino. Bally Technologies needed a technology partner that could provide deeper customer understanding to leverage its enterprise data visualization. In addition, Bally needed to enhance reporting capabilities and performance analytics on a platform that could support their growing user requirements for more sophisticated analytics. Enterprise Data Warehouses produced by Teradata analyze business operations to drive smarter, faster decisions by providing a complete view of the business and the agility to create a sustainable competitive advantage. Teradata provides integrated, optimized and extensible technology for a single application-neutral repository of a company's current and historical data, forming the framework of the business intelligence architecture. Bally Technologies chose to partner with Teradata to better serve its customers by providing them information in a centralized environment. This data can then be analyzed and presented to the business users as a series of static- or active-data visualizations that show how the business is performing. These visualizations allow decision-makers to make accurate business assessments and adjustments to positively affect customer entertainment experiences and operational results. "The Bally BI strategy is to bring our customers the best technology solutions, and Teradata brings to our portfolio a world-class pedigree in data warehousing and CRM applications," said Bruce Rowe, senior vice president of strategy and business development for Bally Technologies. "Both Bally Technology and Teradata recognize the importance of leveraging detailed data to drive customer understanding, satisfaction and a process of continuous business improvement. The Teradata and Bally Business Intelligence Solution provides the power of advanced visual space analytics to the casino management team, enabling them to operationalize their data warehouse," said Dave Porter, director of hospitality and gaming for Teradata. Teradata and Bally Technologies will be exhibiting and demonstrating the integrated solution at the Global Gaming Expo show in Las Vegas from Nov. 13 through Nov. 15 in booth numbers 522 and 524 respectively. About Teradata Teradata Corporation (NYSE:TDC) -- http://www.teradata.com/ -- is the world's largest company solely focused on raising intelligence through data warehousing and enterprise analytics. Teradata is in more than 60 countries. About Bally Technologies 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, Mississippi. The company's South American operations are located in Argentina. The company also has operations in Macau, China, and India. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 7, 2007, 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. ITI LTD: Tejbir Singh Replaces Pritam Singh as Director-Mktng ------------------------------------------------------------- ITI Ltd's Pritam Singh is relieved from his Director- Marketing post effective Oct. 31, 2007, on the superannuation of his term. To replace him, the government of India appointed Tejbir Singh , who assumed office on Nov. 1, 2007. ITI Limited -- http://www.itiltd-india.com/default.htm-- is a telecom company, which manufactures a range of telecom equipment, including switching products; transmission systems, such as satellite communication systems, optical line terminating equipments and digital microwave systems; access products, such as fixed wireless local loop systems and digital local loop carriers; terminal equipment, such as telephones, integrated services digital network products and video conferencing systems; microelectronic products and software; information technology products and telecom products for the defense sector, and other products, including solar power systems and bank mechanizing products. It also provides value- added services, such as shared hub very-small aperture terminal services, and public mobile radio trunked services and turnkey solutions. Its customers include The Department of Telecommunications, defense, railways, oil sector and corporates in India, and certain African and South Asian nations. * * * As reported in the Troubled Company Reporter-Asia Pacific on Apr. 23, 2007, Credit Analysis & Research Ltd. revised the rating assigned to the 'L' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structured Obligation)] from CARE AAA (SO) [Triple A (Structured Obligation))] with Credit Watch. The rating revision took into account the delay in the interest payment of the above said bond issue. The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned final National ratings of 'D(ind)(SO)' to ITI's INR550 million 'J-1' Series long-term bonds. ITI has incurred losses for at least two consecutive years -- INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The company is a sick company as per provisions of India's Sick Industrial Companies Act 1985. JIK INDUSTRIES: Earns INR308 Mln. in Quarter Ended Sept. 30 ----------------------------------------------------------- JIK Industries Ltd turned around in the quarter ended Sept. 30, 2007, with a net profit of INR307.75 million after incurring consecutive quarterly losses since the January to March quarter. In July-Sept. 2006, the company also booked a loss of INR18.06 million. As reported by the Troubled Company Reporter-Asia Pacific on Oct. 4, the company has completed a one-time settlement and exited from Corporate Debt Restructuring. Pursuant to the CDR package, the company is entitled to a debt waiver and reduction of loan interest rate to 9%. Compared to the same period in 2006, the company's interest charges in the three months ending Sept. 30, 2007, went down 94% to INR780,000. Total income jumped to INR1.14 million from INR70,000. Operating expenses, however, more than doubled from INR2.08 million to INR4.47 million, bringing the latest quarter's operating loss to INR3.33 million. Despite the operating loss, the bottom line turned positive with the extraordinary items of INR313.59 million. A copy of JIK Industries' financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2546 Headquartered in Mumbai, India, JIK Industries Limited -- http://www.jikindustriesltd.com/-- manufactures handmade non-lead crystalware segment and is the only organized player in the country. JIK's products also include crystal glassware such as, glass tumblers, bowls, stemware, showpieces, and vases, manufactured at Balkum, Thane, Maharashtra. The company collapsed following accidents at its chemical waste recycling plant and at its crystal-making unit. The company, which had diversified interests -- crystal making, money changing and chemical waste recycling -- was forced to exit the money changing business after its net worth was eroded, and pursuant to the Reserve Bank of India stipulations. * * * This concludes the TCR-AP's coverage of JIK Industries until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. ================= I N D O N E S I A ================= ADES WATERS: Discloses Restructuring Plan, To Lay Off Workers ------------------------------------------------------------- PT AdeS Waters Indonesia Tbk plans to lay off employees and close facilities and sales offices pursuant to a restructuring plan, Reuters Investing Keys reports. According to the report, the company has has been suffering losses for the past few years due to increasing cost of production. On Oct. 29, 2007, the company disclose a restructuring plan that proposes to: -- close three production facilities in Pandeglang, Sengon and Benda; -- shut down six sales offices in Bandung, Sunter, Lenteng Agung, Karawang, Bogor and Rungkut; and -- lay off about 1,050 workers. Reuters Keys adds that Ades Waters will shift the distribution of water product produced in the three facilities to third-party distributors. Headquartered in Jakarta, Indonesia, PT Ades Waters Indonesia Tbk is a water bottling and distribution company. Ades Waters' balance sheet as of November 9, 2007, showed total assets of US$21.35 million and total liabilities of US$30.28 million, resulting to a shareholder's deficit of US$8.93 billion. ADES WATERS: To Offer 440.2 Million Shares at IDR1,000 Each ----------------------------------------------------------- PT AdeS Waters Indonesia Tbk will offer 440,280,000 shares at the price of IDR1,000 each, Reuters Investing Keys reports. According to the report, the shares will be sold through a rights issue in the ratio of 294 new shares to 100 existing shares to raise a total amount of IDR440,280,000,000. The subscription and payment period, the report says, will be from December 7 to 13, 2007, for shareholders of record on December 5, 2007. Headquartered in Jakarta, Indonesia, PT Ades Waters Indonesia Tbk is a water bottling and distribution company. Ades Waters' balance sheet as of November 9, 2007, showed total assets of US$21.35 million and total liabilities of US$30.28 million, resulting to a shareholder's deficit of US$8.93 billion. GARUDA INDONESIA: Fuel Charged Up 30% Amid Oil Price Increase ------------------------------------------------------------- PT Garuda Indonesia increased fuel surcharge by up to 30% due to the rise of global oil prices, People Daily Online reports. Purnomo Yusgiantoro, minister of energy and mineral resources, told China Economic that the average Indonesian crude oil price already hit US$72/barrel, far above the projected US$60/barrel in the state budget. People Daily says that the surcharge will increase to IDR100,000 per passenger on domestic flights from the current IDR70,000, and to between US$70 and US$80 dollars from previously US$60 on international flights. Garuda President Director Emirsyah Satar, People Online relates, said the imposing of fare hikes took effect on Nov. 1. The increase was inevitable because fuel accounted for some 50% of total costs in the industry, he added. China Economic notes Mr. Yusgiantoro as saying that the government allocates subsidies for transport fuel products but allows market pricing for high-octane fuel products, fuel for industrial uses and for export sales. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sep. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. GARUDA : Partners with Virgin Blue for Interline Agreement ---------------------------------------------------------- PT Garuda Indonesia partnered with Virgin Blue for interline agreement, BTN News reports. This new arrangement between the two companies, the report relates, will make the flight for Australian travelers to Indonesia easier by utilizing a range of through-fares to Bali. The interline agreement, which will start November 24, will let passengers travel from any destination on the Virgin Blue Australian network to connect with Garuda Indonesia flights departing Darwin, Perth, Sydney and Melbourne to Denpasar and Jakarta and return, the report notes. Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sep. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. MATAHARI PUTRA: Moody's Affirms B1 Corporate Family Rating ---------------------------------------------------------- PT Moody's Indonesia has assigned an A1.id national scale rating to PT Matahari Putra Prima Tbk. At the same time, Moody's Investor Service has affirmed Matahari's B1 corporate family rating, and the B1 senior unsecured rating on its guaranteed US$150 million bonds due 2009. The outlook for the ratings is stable. "The B1/A1.id ratings recognize the company's leading position and long operating track record in the department store segment in Indonesia," says Renee Lam, a Moody's Vice President, adding, "The favorable economic and industry outlook partially mitigates the potential threat from competition arising from low entry barriers. "The ratings also incorporate the execution risks associated with Matahari's plan to expand its store network," says Lam, also Moody's lead analyst for the company. "Furthermore, the operating history of its hypermarket business is short, and the company has yet to establish a stable track record for its multi-format hyper- and super-market businesses." Matahari's debt service ratios are in line with its similarly- rated global retail peers. Adjusted debt/EBITDA is expected to stay around 5-5.5x and adjusted operating cash flow/total debt at 10-15% for the medium term. Nonetheless, its free cash flow metrics are thin for the rating category, given its aggressive capex program to expand its store network, though Moody's notes the highly discretionary nature of Matahari's capex. The stable outlook reflects Moody's expectation that Matahari will successfully execute its expansion plan and strengthen its market share. It also captures the favourable outlook for Indonesia's economy and retail market in the near-to-medium term. The ratings may be upgraded if adjusted debt/EBITDA falls below 4.5-5x and adjusted EBIT/interest strengthens beyond 3x on a sustained basis. Such outcomes could be a result of 1) an improvement in operating margins as a result of higher operating efficiency and better cost controls; and/or 2) positive free cash flow generation with the surplus being applied for de- leveraging. For any upgrade, the company also needs to demonstrate stable and profitable track records for its multi- format hyper- and super-market businesses. The ratings may undergo a downgrade if adjusted debt/EBITDA rises above 5.5-6x, while adjusted EBIT/interest weakens below 1.25x on a sustained basis. Such an outcome could be a result of 1) a weakening of profit margins due to rising competition or inadequate cost controls; 2) further debt-funded expansions beyond its original plan; and/or 3) material depreciations in the Rupiah which increase the company's debt-servicing obligations. Matahari is one of the largest retailers in Indonesia with multiple retail formats. It operates department stores, hypermarkets, supermarkets and family entertainment outlets in over fifty cities in Indonesia. The Lippo group controls over 60% of Matahari's equity interest. ========= J A P A N ========= CABLE & WIRELESS: Restores Services in Cayman Islands ----------------------------------------------------- Cable & Wireless has restored landline and ADSL Services to clients in the Cayman Islands, Cayman Net News reports. Cayman Net relates that a contractor carrying out road work on Nov. 6, 2007, accidentally cut Cable & Wireless' fiber cable system, resulting to the loss of landline and ADSL services to customers east of the Lions Center and in some areas of George Town. Cayman Brac subscribers lost landline service, with mobile, data and international services unaffected. According to Cayman Net, Cable & Wireless immediately responded and many subscribers were reconnected within an hour. "A temporary fix" was made to guarantee that "clients were reconnected and all services were fully restored within three hours of the outage." Traffic had to be diverted through Old Prospect Road to accommodate the work along Shamrock Road. Repair and restoration work was completed by Wednesday last week. Cable & Wireless (Cayman Islands) Network Services Vice President Albert Anderson told Cayman Net, "All contractors are encouraged to contact Cable & Wireless before they dig so we can point out and mark where our cables are located. This will ensure that we do not have a reoccurrence of this type of incident." Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, Japan, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% DELPHI CORP: Creditors Say Disclosure Statement is Inadequate ------------------------------------------------------------- The Official Committee of Unsecured Creditors asks the U.S. Bankruptcy Court for the Southern District of New York to deny approval of the Disclosure Statement explaining Delphi Corporation and its debtor-affiliates' Joint Chapter 11 Plan of Reorganization. As reported in the Troubled Company Reporter earlier this week, the Court agreed to continue until Nov. 29 the hearing to consider the adequacy of the Disclosure Statement at the request of the Debtors and the Official Committee of Equity Security Holders. The Committee argues that the Disclosure Statement fails to provide adequate information concerning matters that are important to the Debtors' creditors in their evaluation of whether to vote for or against the Plan. The Plan, as currently drafted, ceases the accrual of postpetition interest to General Unsecured Claims other than TOPrS Claims on Dec. 31, 2007, even though it will not have been confirmed by that date, Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York, points out. The EPCA Amendment, Mr. Rosenberg notes, requires the Debtors to issue additional Direct Subscription Shares to the Appaloosa Plan Investors without the Investors' payment of any additional consideration. The issuance of the additional shares will materially reduce the conversion price of the preferred shares and dilute the value of the common stock to be distributed to holders of General Unsecured Claims, he contends. The Creditors Committee and the Debtors are continuing to discuss potential resolutions, Mr. Rosenberg relates. He informs the Court that absent acceptable resolution, the Creditors Committee will not support the Plan. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DELPHI CORP: Senior Noteholders Balk at Disclosure Statement ------------------------------------------------------------ Eight holders of Senior Notes in Delphi Corp. asks the United States Bankruptcy Court for the Southern District of New York to disapprove the Disclosure Statement explaining the Debtors' Joint Chapter 11 Plan of Reorganization. The eight Senior Noteholders are: * Caspian Capital Advisors, LLC, * Castlerigg Master Investments Ltd., * Davidson Kempner Capital Management LLC, * Elliott Associates, L.P., * Gradient Partners, L.P., * Sailfish Capital Partners, LLC, * Whitebox Advisors, LLC, and * Wilmington Trust Company, as indenture trustee. As reported in the Troubled Company Reporter earlier this week, the Court agreed to continue until Nov. 29 the hearing to consider the adequacy of the Disclosure Statement at the request of the Debtors and the Official Committee of Equity Security Holders. The Senior Noteholders contend that the Court should not approve the Disclosure Statement and allow the Debtors to solicit acceptances of the Plan because the Plan contains a patently nonconfirmable classification scheme The Senior Noteholders, among other things, complain that the Plan: -- groups dissimilar claims in the same class in violation of Section 1122(a) of the Bankruptcy Code; and -- provides different treatment to claims classified together within a single class in violation of Section 1123(a)(4) of the Bankruptcy Code. Class 1C of the Plan contains the claims of the Senior Noteholders and holders of the subordinated TOPrS Claims, Allan S. Brilliant, Esq., at Goodwin Procter LLP, in New York, notes, on behalf of Caspian, et al. Mr. Brilliant points out that TOPrS claimholders, although classified in the same class with the Senior Noteholders and other General Unsecured Creditors, do not receive the same distribution as the other Claims in Class 1C. The Plan is also unconfirmable because it does not enforce the subordination agreement between the Senior Notes and TOPrS Claims thereby violating Section 510(a) of the Bankruptcy Code, Mr. Brilliant asserts. The Disclosure Statement, Mr. Brilliant contends, does not contain adequate information on many critical issues as required by Section 1125(a) of the Bankruptcy Code regarding a number of topics, including: (a) the value of the distributions that will be made to creditors; (b) the valuation of the New Common Stock; (c) the likelihood of the Debtors obtaining exit financing and the consequences if the Debtors do not obtain exit financing before the hearing to consider confirmation of the Plan or the Effective Date of the Plan; (d) the factors required for the Debtors' substantive consolidation and the effect it has on various creditor groups; (e) the costs, benefits and effects of the settlement of the GM Claim; (f) the releases provided to non-Debtor parties under the Plan; and (g) the impact, on the recoveries paid to General Unsecured Creditors, of the Debtors' attempts to provide a recovery to otherwise subordinated creditors under the MDL Settlements. The Senior Noteholders therefore ask the Court to disapprove the Disclosure Statement. Wilmington Trust also asks the Court to direct the Debtors to reclassify the Senior Notes and the TOPrS Claims in different classes. The Disclosure Statement must clearly and concisely inform the holders of the Senior Debt of the actual value of their recovery under the Plan, Edward M. Fox, Esq., at Kirkpatrick & Lockhart Preston Gates Ellis LLP, in New York, maintains, on Wilmington Trust's behalf. "Valuation euphemisms such as 'negotiated plan value' or 'deemed value' are not acceptable. Rather, the Debtors must indicate the value of recoveries on a fully diluted basis based on the range of value estimated by the Debtors investment banker and financial advisor, Rothschild [Inc.], with particular emphasis on its mid-point valuation," Mr. Fox asserts. The Debtors should also explain why substantive consolidation of their assets and liabilities is necessary and appropriate while consolidation of the 42 Debtors is not, he adds. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). FORD MOTOR: Reaches Tentative Labor Agreement with UAW ------------------------------------------------------ Ford Motor Co. and the United Auto Workers union have reached a tentative agreement on a four-year national labor contract covering approximately 54,000 represented employees in the United States. "I'd like to take this opportunity to thank UAW President Ron Gettelfinger, UAW Vice President Bob King and the entire UAW national bargaining committee for all of their hard work and professionalism over the past several months," said Joe Laymon, group vice president, Human Resources and Labor Affairs of Ford Motor Company. "I would also like to thank the Ford bargaining team for its skill and dedication during this complex and challenging set of negotiations." The agreement is subject to ratification by UAW members. It includes a memorandum of understanding to establish an independent retiree health care trust. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities and Exchange Commission. Mr. Laymond added "Though we will not discuss the specifics of the tentative agreement until after it becomes final, we believe it is fair to our employees and retirees, and paves the way for Ford to increase its competitiveness in the United States". About Ford Motor 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 on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. FORD MOTOR: S&P Expects to Affirm B Rating Due to Narrower Loss --------------------------------------------------------------- Standard & Poor's Ratings Services' 'B' long-term corporate credit rating on Ford Motor Co. and Ford Motor Credit Co. remains on CreditWatch with positive implications following Ford's report of a narrower third-quarter loss compared to that of a year ago. S&P currently expects to resolve the CreditWatch around mid-November. The most likely outcome is an affirmation of the 'B' rating, with an outlook to be determined. The ratings were placed on CreditWatch Sept. 26, 2007, based on S&P's belief that Ford would achieve a deal similar to the tentative new labor contract General Motors Corp. (GM; B/Stable/B-3) reached with its main labor union, the United Auto Workers (UAW), which addresses onerous retiree health care obligations that S&P views as debt-like in nature. As expected, Ford and the UAW subsequently reached their own four-year agreement, and the UAW membership will vote on that contract soon. S&P views the new contract as favorable to Ford compared with past agreements, and S&P believes the contract will support the company's turnaround plan in North America. Still, S&P remains concerned about the economic outlook for 2008, even as the company is making progress on its turnaround plan. Much of the labor contract's health care savings will not begin to accrue to Ford until 2010, and this is a key factor in S&P's review. Ford's third-quarter earnings demonstrated improvement over 2006 earnings, although Ford Motor Credit Co.'s profit declined. Ford's consolidated third-quarter loss from continuing operations, excluding special items, was US$24 million, compared with a loss of US$850 million in 2006. The pretax automotive loss in the third-quarter was US$362 million, a sharp improvement from the pretax loss of US$1.9 billion during the quarter in 2006, driven by higher net pricing, lower costs, and improved volume and mix. These factors more than offset higher interest expense and unfavorable foreign exchange rates. In the key North American operation, Ford reported a pretax loss of US$1 billion compared with a loss of US$2.1 billion in 2006. The same factors accounted for the decline in the loss. For now, Ford remains in a net cash position at the parent, with automotive cash (including cash, equivalents, loaned securities, and short-term VEBA assets) of US$35.6 billion at Sept. 30, 2007, an increase of US$1.7 billion from year-end 2006 due to asset sales that more than offset ongoing cash use from operations. 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. FORD MOTOR: Local Unions Favor Labor Pact, Initial Results Show --------------------------------------------------------------- Initial results from United Auto Workers union locals in Illinois, and Michigan, who voted on Friday, and locals from Kentucky and Missouri who voted Sunday, revealed a vast support for a new four-year labor contract between Ford Motor Company and the UAW, various papers report naming local union presidents as sources. Papers say that 75% of 900 UAW members of Local 588, a Chicago stamping plant in Illinois, voted yes to the new labor agreement. Meanwhile, 82% of the 1,200 union members of Local 898, Ford's Rawsonville plant in Ypsilanti Township, in Michigan, voted for the new labor deal. UAW Local 862 President Rocky Comito told The Courier-Journal that 80% production workers and 75% of skilled trade workers of the Louisville Assembly Plant in Kentucky supported the new labor deal. Results at UAW Local 249, a plant in Claycomo, Missouri that manufactures the Escape, Mercury Mariner and Mazda Tribute SUVs, showed great support for the contract at a 69%-31% margin, the Kansas City Business Journal relates. Sarah A. Webster of the Detroit Free Press disclosed an overwhelming 91% reception for the new labor agreement from members of an axle plant in Sterling Heights, Michigan. Ms. Webster added that Emanuela Henderson, the recording secretary with UAW Local 900 in Wayne, Michigan, told the paper that "a minimum of 90%" of its workers voted in favor of the contract. The local represents more than 5,000 workers at Michigan Truck Plant and Wayne Stamping and Assembly. Voting results from Local 600 in Dearborn, Michigan, and Local 2000 in Ohio are not yet available. As reported in the Troubled Company Reporter on Nov. 6, 2007, Ford and the UAW 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. According to AP, Ford's shares dropped 3.3% closing at $8.20 on Friday, the same day union leaders say workers in Michigan and Illinois approved a new contract. 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 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. Ford's UAW workers are expected to vote on ratification of the contract in the coming days, and S&P expect the required approval level to be obtained. The ratings were placed on CreditWatch on Sept. 26, 2007, based on S&P's belief that Ford would reach a deal similar to the one General Motors Corp. reached with the UAW on that date. Ford's 'B-3' short- term rating was not on CreditWatch. ICONIX BRAND: Enters Into Five Global License Agreements -------------------------------------------------------- Iconix Brand Group, Inc. has entered into four separate license agreements for its London Fog(R), Rampage(R), Op(R), Joe Boxer(R) and Danskin(R) brands and is expanding its license agreement for Mossimo(R) in Australia. The company has entered into an agreement with New Foundations, a Beijing, China-based real estate development and retail company granting them a master license for London Fog for all of Mainland China. New Foundations will hold an exclusive multi- year license agreement to manufacture and distribute London Fog apparel, accessories and lifestyle products in China and plans to open a network of over 100 London Fog stores and shop-in- shops across China including a handful of larger flagship stores in Beijing and Shanghai over the next five years. Iconix will work with New Foundations to develop the marketing strategy for the China market. The second agreement is with Mint Apparel for a long-term master license agreement for Op apparel, accessories and lifestyle products in Europe. Mint Apparel will distribute the brand through specialty stores, surf shops and department stores in Europe. The company has also entered into an exclusive long-term license with The Style Company to open stand alone retail stores for Rampage, Op and Joe Boxer in the Middle East. The Style Company plans on rolling out a total of 35 retail stores over the next five years across the region including fourteen Op, fourteen Joe Boxer and seven Rampage shops. Additionally, the company has entered into a license agreement with Grupo Zipora to manufacture and distribute Danskin in Mexico. Danskin will be distributed in Mexico through a dual brand strategy similar to the brand structure in the U.S., with Danskin product distributed to specialty stores and department stores and Danskin Now distributed exclusively through WalMart Mexico. Lastly, the company has also expanded the Mossimo Australia license with Port Melbourne-based Pacific Brands Limited. Pacific Brands plans to open ten free-standing Mossimo stores throughout Australia in the next few years. Neil Cole, Chairman and Chief Executive Officer of Iconix, stated, "Iconix is committed to exporting our portfolio of brands around the world and these new agreements represent an exciting step forward in this initiative. Each of our new licensees will be dedicating significant resources to expanding the Iconix's stable of brands worldwide and we look forward to working with each one of them. China is the fastest growing market in the world and we are excited to announce our first license agreement in that market with such a powerful partner as New Foundations. New Foundations' position in the Chinese Real Estate market will enable them to quickly develop a retail network for our brand across China." About Iconix Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON) - http://www.iconixbrand.com/-- owns fashion brands to retail distribution from the luxury market. The company licenses its brands to retailers and manufacturers worldwide. The group has international licensees in Mexico, Japan and the United Kingdom. * * * As reported in the Troubled Company Reporter on June 20, 2007, Standard & Poor's Ratings Services revised its ratings outlook on Iconix Brand Group Inc. to negative. At the same time, Standard & Poor's assigned its 'B-' debt rating to Iconix's then proposed US$250 million convertible senior subordinated notes due 2012. As reported in the Troubled Company Reporter on June 18, 2007, Moody's Investors Service affirmed Iconix Brand Group Inc.'s corporate family rating at B1 and assigned a B3 rating to the company's then proposed US$250 million convertible senior subordinated note offering. J-CORE: S&P Affirms Rating on Class E Trust Certificate at BB+ -------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on two tranches of J-CORE FL1 Trust Certificate's JPY16.6 billion trust certificates, issued December 2006. The rating on class B was raised to 'AA+' from 'AA', and the rating on class C was raised to 'AA-' from 'A'. At the same time, Standard & Poor's affirmed its ratings on the remaining tranches, classes A, D, E, and X, due April 2012. According to the most recent reports obtained from the servicer and trust bank, a portion of the trust certificates principal was redeemed following the sale in June 2007 of one of the four underlying properties backing the trust certificates, and the subsequent prepayment of non-recourse loans corresponding to about 18% of the trust certificates' initial issuance amount. Moreover, one other underlying property backing a non-recourse loan corresponding to about 31% of the trust certificates' initial issuance amount was sold in September 2007, leading to the prepayment of the non-recourse loan and the redemption of an equivalent amount of trust certificates. Accordingly, a cumulative sum of about 49% of the principal on the trust certificates has been redeemed. The upgrades reflect a decrease in the LTV ratio of the trust certificates and an increase in the subordination rate (and therefore credit support) for the notes, given that the transaction features a modified pro-rata redemption structure under which the amount initially established for each class corresponding to the loans is used to redeem principal on the trust certificates. The upgrades also reflect the generally satisfactory performance of the remaining loans and underlying properties. This is a multi-borrower CMBS transaction. The trust certificates are ultimately secured by three loans extended to Tokkin trustees that each own one specified bond backed by real estate trust beneficial interests, and by one additional non- recourse loan backed by Tokkin beneficial interests and real estate trust beneficial interests. Deutsche Securities Inc., Tokyo branch, serves as the arranger of this transaction, and ORIX Asset Management & Loan Services Corp. is the servicer. Ratings Raised: JPY16.6 billion floating-rate trust certificates due April 2012 Class To From Initial Amount Current Amount Coupon B AA+ AA JPY2.0 bil. JPY1.21200 bil. Floating Rate C AA- A JPY1.6 bil. JPY0.8656 bil. Floating Rate Ratings Affirmed: Class Rating Initial Amount Current Amount Coupon Type A &nb