T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, November 16, 2007, Vol. 10, No. 228 Headlines A U S T R A L I A AKOONA PTY: Declares First Dividend for Creditors CARDNO LTD: Raises AU$42 Million in Placement of Ordinary Shares CFM PRODUCTIONS: Members & Creditors to Meet Today CHRYSLER LLC: To Donate US$150,000 to NextEnergy's Fuel Testings CONSTELLATION BRANDS: Buys Fortune Brands' Wine Biz for US$885MM CONSTELLATION BRANDS: Fitch Affirms Post-Fortune Buyout Ratings COOLINE PACIFIC: To Declare Dividend on November 30 FIRST AUSTRALIANS: Members and Creditors to Meet on Nov. 16 FIT FOR BUSINESS: Mendoza Berger Raises Going Concern Doubt JETROCK PTY: Members and Creditors Agree to Wind Up Firm L & C TAMLIN: Members to Hold Meeting on November 30 NIGHTSWAN PTY: Final Meeting Slated for Today OPEN TEXT: S&P Affirms BB- Corp. Credit Rating w/ Stable Outlook SEANET PTY: Placed Under Voluntary Liquidation TOSCALA PTY: Members to Receive Wind-Up Report on Nov. 21 XTREME INFORMATION: Liquidator Gives Wind-Up Report ZINIFEX LTD: Appoints Andrew Michelmore as CEO and Managing Dir. * ASIC Disqualifies Six Directors for Roles in Failed Firms C H I N A & H O N G K O N G ALERIS INT'L: Reports US$3.5 Million Net Income in Third Quarter CITIC SOUTH: Proofs of Debt Due on December 7 DANA CORP: Wants to Settle Asbestos Claims for US$2 Million EXPRESS FOOD: Proofs of Claim Bar Date Fixed on Dec. 15 FORTUNE REALTY: Members and Creditors to Meet on December 11 GREAT YIELD: Proofs of Claim Deadline is February 15 HAINAN AIRLINES: Takes Delivery of First A330 Order PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million PACCO TECH: October Sales Up 190.34% Year-on-Year PETROLEOS DE VENEZUELA: Hires 5,000 Ex-Private Firm Employees PETROLEOS DE VENEZUELA: Will Use Cameron's Subsea Equipment PLENTY POWER: Fixes Proofs of Debt Bar Date for December 10 PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency PROTOP TECH: October 2007 Sales Falls 99.89% RITEK CORP: Posts TWD78.4-Mil. Profit in First Nine Months RITEK CORP: Sales Hit TWD16 Billion in October 2007 RITEK: Partners with Toshiba to Launch HD DVD Disks in Japan SING TSU: Proofs of Debt Due on November 29 SUNNY SPREAD: Liquidator Quits Post I N D I A GENERAL MOTORS: To Make Labor Payments to Delphi Through 2015 GENERAL MOTORS: Signs 2007 UAW-GM National Labor Contract GLOBAL BROADCAST: Loss Widens to INR267MM in Qtr. Ended Sept. 30 GLOBAL BROADCAST: Completes Viacom Joint Venture HINDUSTAN COPPER: Net Income Down 45% in Qtr. Ended Sept. 30 HMT LTD: Books INR32.4-Mil. Net Loss in Qtr. Ended Sept. 30 QUEBECOR WORLD: Moody's Junks New US$400 Mln Sr. Unsecured Notes QUEBECOR WORLD: S&P Rates US$400 Mil. Proposed Notes at B SUN MICROSYSTEMS: Enters into Definitive Pact Acquiring Vaau I N D O N E S I A BANK MANDIRI: Unit to Deploy Entrust's Security Software Package BANK MANDIRI: Extends IDR604 Billion Loan to Petrokimia Gresik BERAU COAL: Plans to Increase 2008 Coal Output GEOKINETICS INC: Posts US$1.5 Million Net Loss in Third Quarter J A P A N DELPHI CORP: Wants to Enter Into US$6.8 Billion Exit Financing FIDELITY NATIONAL: Completes US$5.3B Buy of Ceridian Corporation FORD MOTOR: Defers Volvo Sale; Intends to Improve Performance FORD MOTOR: Anticipates Jaguar & Land Rover Sale Talks in 2008 FORD MOTOR: Primary Stakeholder in Auto Fuel Cell Cooperation NIS GROUP: JCR Continues Credit Monitor on Senior Debt Rating NISSIN SERVICER: Continues Credit Monitor On Senior Debt Rating YAMATO LIFE: R&I Upgrades Claims Paying Ability to BB-op * Japan's Language School Revenue Down in Sept. Record K O R E A DURA AUTOMOTIVE: Asks Firm to Detail Purchase of Clients' Bonds HANAROTELECOM: Names SK Telecom as Preferred Bidder HANAROTELECOM: Moody's Reviews Ba2 Ratings for Possible Upgrade LG TELECOM: Partners With Yahoo Korea to Develop New Service NOVELIS INC: Reports US$13-Mln Net Income in 2007 Second Quarter N E W Z E A L A N D AMAZON PUBLICATIONS: Faces Image Centre's Wind-Up Petition BAD IDEA: Faces South Pacific's Wind-Up Petition CARTLEDGE WOOL: Taps Michael Gerard Schimanski as Liquidator FLAVELL DECORATORS: Wind-Up Petition Hearing Set for Dec. 6 K&G JOE CONTRACTORS: Subject to CIR's Wind-Up Petition MARGRAN NEW ZEALAND: Wind-Up Petition Hearing Set for Feb. 8 NGATA CONTRACTORS: Court to Hear Wind-Up Petition on Dec. 13 ROMANO'S (2005): Fixes Jan. 16, 2008, as Last Day to File Claims UNDERGROUND CONSTRUCTION: Taps Shephard & Dunphy as Liquidators WELLINGTON EGG: Fixes November 30 as Last Day to File Claims P H I L I P P I N E S GLOBE TELECOM: Fitch Affirms Ratings on Declaration of Dividends JG SUMMIT: 3rd Quarter Net Income Slides 8.08% to PHP1.688 Bil. METROPOLITAN BANK: 3rd Quarter Profit Falls 5.56% to PHP1.7 Bil. PRYCE CORP: Turns Around with 3rd Quarter Profit of PHP131 Mil. RIZAL COMM'L: BSP OKs Election of Director, Sr. Vice Presidents S I N G A P O R E BTE HOLDINGS: Requires Creditors to File Claims by Dec. 7 FREESCALE SEMICONDUCTOR: Fitch Puts Issuer Default Rating at B+ KIM HUAT: Court to Hear Wind-Up Petition on Nov. 23 LAZARD LTD: Bruce Bilger to Lead Global Energy T H A I L A N D ABICO HOLDINGS: Requests Exemption from Submitting 3Q Financials ITV PCL: High Court Affirms Jeerapat's Appointment as Arbitrator TOTAL ACCESS: AIS to Seek Settlement of Charges Dispute v. TOT TRUE MOVE: AIS to Request TOT to Settle Access Charge Dispute * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= AKOONA PTY: Declares First Dividend for Creditors ------------------------------------------------- Akoona Pty Ltd, which is in liquidation, declared its first dividend on November 9, 2007. Creditors who were not able to file their proofs of debt by the November 8 due date were excluded from the company's dividend distribution. The company's liquidator is: Peter Geroff c/o Ferrier Hodgson (Queensland) Level 7, 145 Eagle Street Brisbane, Queensland 4000 Australia About Akoona Pty Located at Brisbane, in Queensland, Australia, Akoona Pty Ltd is an investor relation company. CARDNO LTD: Raises AU$42 Million in Placement of Ordinary Shares ---------------------------------------------------------------- Cardno Limited announced the successful placement of ordinary shares to raise AU$42 million. The placement to institutions and sophisticated investors was undertaken by way of a bookbuild and will result in the issue of 6 million shares at AU$7.00 per share. This increases total shares on issue to 64.214 million. The AU$7.00 price represents a discount of 7.6% to the 5-day VWAP prior to the placement. The shares are expected to be allotted and listed on the Australian Stock Exchange on November 21, 2007. Andrew Buckley, Managing Director, commented that the raising was heavily oversubscribed, and that he was pleased to welcome a number of new institutions as shareholders in Cardno. Mr. Buckley also noted that the placement was strongly supported by existing shareholders. The placement was arranged and managed by ABN AMRO Morgans. Share Purchase Plan Cardno has also decided to offer shareholders the opportunity to purchase additional shares by undertaking a Share Purchase Plan. The record date to determine the right to participate in the SPP is November 23, 2007. The SPP will be an offer to eligible shareholders to purchase up to 714 shares at a maximum price of AU$7.00 per share. Cardno currently has around 4,300 shareholders. Shareholders with registered addresses in Australia or New Zealand will be entitled to subscribe for up to the maximum value of AU$5,000 per shareholder (the maximum permitted). Application of Funds The proceeds of the placement and the Share Purchase Plan will be used to strengthen Cardno's capacity and flexibility to pursue its acquisition and growth strategy and to reduce debt. About Cardno Ltd. Headquartered in Queensland, Australia, Cardno Limited -- http://www.cardno.com.au/-- is an integrated professional services provider in the physical and social infrastructure sectors. The Company's services include civil engineering consultancy, management and environmental services, as well as project management of international development assistance programs. Its physical infrastructure capabilities include building and property; coastal, ocean and marine; environment and water; urban development; transport, and water and wastewater management. Its social infrastructure services include solutions in education, governance, healthcare, environmental and natural resource management, and post-conflict restoration. During the fiscal year ended June 30, 2006, it acquired EOP Holdings Pty Ltd, Agrisystems Limited, Barton Enterprises Pty Ltd and its subsidiaries. In April 2006, the Company acquired the professional services firm, Forbes Rigby, and in September 2006, it acquired Stanwill Consulting Engineers. The Troubled Company Reporter-Asia Pacific's November 13, 2007 Distressed Bonds column listed Cardno Limited's bond with a 9.000% coupon, a June 30, 2008 maturity date, and a trading price of AU$7.50. CFM PRODUCTIONS: Members & Creditors to Meet Today -------------------------------------------------- A final meeting will be held for the members and creditors of CFM Productions Pty Ltd today, November 16, 2007, at 2:30 p.m. At the meeting, D. Mclay, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: D. Mclay PO Box 1595 Booragoon, Western Australia 6954 Australia Telephone:(08) 9330 4658 Facsimile:(08) 9330 9028 About CFM Productions Cfm Productions Pty Ltd is involved with motion picture and video production. The company is located at West Perth, in Western Australia, Australia. CHRYSLER LLC: To Donate US$150,000 to NextEnergy's Fuel Testings ---------------------------------------------------------------- The Chrysler Foundation has announced plans to donate US$150,000 to NextEnergy, Inc., in support of the organization's alternative fuel testing program. NextEnergy, based in Detroit, was founded to encourage alternative energy technologies that positively contribute to economic competitiveness, energy security, and the environment. "This grant is an extension of Chrysler's commitment to being a good neighbour in all the places where we build and sell our vehicles," said Chrysler LLC's Senior Vice President -- External Affairs and Public Policy, Frank Fountain. "It's a priority for Chrysler to increase the use of alternative fuels by investing in research into biodiesel technology and helping to develop industry standards for biodiesel fuel." The alternative fuel-testing platform allows fuels to be tested for their stability and efficiency before trying them out in vehicles or other power generators. The fuel-testing platform can also be used to advance the development of hydrogen and natural gas as alternative fuels. "Chrysler's commitment to creating new fuelling options has helped move automotive applications for alternative energies to a new level," said NextEnergy's Chief Executive Officer, Jim Croce. "With The Chrysler Foundation's grant, we have been able to complete a testing platform that helps check out the viability of new bio and synthetic fuels as they progress from concept to use in vehicles and power generators." Chrysler LLC is also a partner in two additional projects now underway at NextEnergy, the National Biodiesel Energy Lab and a biofuels infrastructure program through the U.S. Department of Labor & Economic Growth. The National Biodiesel Energy Lab is developing standards for biodiesel use in vehicles. A national standard is necessary to allow OEM's to warranty their vehicles for use with B5 to B20 fuels. The lab is also working to develop the next generation of biodiesel fuels and involves research along the fuel's whole life, from agricultural seed research all the way to vehicle testing in the field. The Department of Labor & Economic Growth project is an initiative to expand biofuel infrastructure throughout the country. As a partner with NextEnergy, Chrysler is providing cost-sharing support to assist in expanding the number of biofuel pumps throughout Michigan. NextEnergy NextEnergy -- visit http://www.nextenergy.org-- is a non-profit corporation, located in Detroit's TechTown, and was founded to enable the commercialization of energy technologies that positively contribute to economic competitiveness, energy security, and the environment. The Chrysler Foundation Now in its 54th year, The Chrysler Foundation is the primary source of charitable grants made by Chrysler. The Foundation annually supports hundreds of charitable organizations with an emphasis on community growth and enrichment, education, arts and culture, public policy, youth development and disaster relief programs throughout the United States and, increasingly, the world. The Foundation's Good Neighbour, Good Citizen(R) programs make a positive, lasting investment in local communities where our employees, customers and neighbours live. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * As reported in the Troubled Company Reporter on 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. S&P said the outlook is negative. CONSTELLATION BRANDS: Buys Fortune Brands' Wine Biz for US$885MM ---------------------------------------------------------------- Constellation Brands Inc. and Fortune Brands Inc. have entered into an agreement under which Constellation will acquire Fortune's United States wine business for US$885 million, subject to post-closing adjustments. The transaction is expected to close by Dec. 31, 2007. The business to be acquired includes some of California's most highly regarded wineries. The portfolio represents approximately 2.6 million cases. Brands being acquired include Clos du Bois, a super-premium wine, Geyser Peak and Wild Horse, a top luxury wine brand. More than 1,500 acres of vineyards in Napa, Sonoma and Carneros, California, are included in the purchase, in addition to five California wineries. "This portfolio is an excellent fit and furthers our strategy of exceeding consumer expectations and expanding our presence in the growing high-end segments of the wine market," said Constellation Brands' president and chief executive officer, Rob Sands. "We are delighted about the prospect of adding these wineries and brands to our existing portfolio, which will enhance our growing position in the U.S. premium wine business. As an example, Clos du Bois, a two million case brand, has a history of strong consumer brand equity, growth and profitability. We also look forward to working with the people who have been responsible for the tremendous success of these wines." The company estimates that on a comparable basis this acquisition will be slightly accretive to diluted earnings per share for fiscal 2009 and modestly dilutive for fiscal 2008, assuming the transaction closes by Dec. 31, 2007. A plan for the integration of this acquisition into Constellation will be finalized after the close of the transaction, and the company will determine the best way to effectively assimilate the brands and facilities. The transaction will be financed with debt and is subject to customary and routine regulatory approvals and other closing conditions. About Fortune Brands, Inc. Headquartered in Deerfield, Illinois, Fortune Brands, Inc. -- http://www.fortunebrands.com-- (NYSE: FO), through its subsidiaries, engages in the manufacture, production, and sale of home and hardware products, spirits and wine, and golf products. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE: STZ, ASX: CBR) -- http://www.cbrands.com/-- is an international producer and marketer of beverage alcohol in the wine, spirits and imported beer categories, with significant market presence in the U.S., Canada, U.K., Chile, Australia and New Zealand. The company has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. CONSTELLATION BRANDS: Fitch Affirms Post-Fortune Buyout Ratings --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Constellation Brands Inc. following the company's announcement that it had entered into a definitive agreement to acquire Fortune Brands, Inc.'s United States wine business for US$885 million. Fitch has affirmed the following ratings: -- Issuer Default Rating 'BB-'; -- Bank credit facility 'BB-'; -- Senior unsecured notes to 'BB-'; -- Senior subordinated notes 'B+'. The Rating Outlook is Negative. Fitch's ratings apply to Constellation Brands' US$3.9 billion credit facilities, US$1.9 billion of senior unsecured debt, and US$250 million of senior subordinated notes. The affirmation reflects the addition of market leading premium and super premium wines to Constellation's already solid position in the U. S. market and around the world. The company maintains leading market shares in most of the major wine markets around the globe and a diversified alcoholic beverage portfolio and has an excellent track record of integrating acquisitions. The company has restructured acquired operations to enhance productivity and has sold non-essential assets, which has provided some proceeds to reduce debt. Of concern is Constellation's willingness to operate at higher leverage levels and its appetite for acquisitions. Over the intermediate term, it is likely that the company will continue to make acquisitions that may result in financial and operational stress. The company's debt levels are expected to be meaningfully higher at the end of fiscal 2008 (ending Feb. 29, 2008). Leverage has grown as a result of successive debt financed acquisitions and stock repurchases, including an accelerated share repurchase transaction in May 2007. As a result, interest expense has increased and coverage measures have weakened considerably over the past couple of years. As of Aug. 31, 2007, pro forma for the acquisition of Fortune Brands' wine business, debt/EBITDA would be approaching 6.0 times, while EBITDA/interest would be slightly above 2.5. Nonetheless, the strong fit of Fortune's wine brands, the high growth rates for the super-premium category and some reduction in debt in the near term are expected to improve these numbers in the short-term. Ongoing difficulties in United Kingdom and Australian operations and a reduction in U.S. distributor inventory levels, which have affected cash flow, are also expected to abate in calendar 2008. Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE: STZ, ASX: CBR) -- http://www.cbrands.com/-- is an international producer and marketer of beverage alcohol in the wine, spirits and imported beer categories, with significant market presence in the U.S., Canada, U.K., Chile, Australia and New Zealand. The company has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. COOLINE PACIFIC: To Declare Dividend on November 30 --------------------------------------------------- Cooline Pacific Pty Ltd will declare dividend on November 30, 2007. Creditors who were not able to file their proofs of debt by the October 30 due date will be excluded from the company's dividend distribution. The company's deed administrator is: Morgan Lane Worrells Solvency & Forensic Accountants 8th Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4300 Facsimile:(07) 3225 4311 Web site: http://www.worrells.net.au About Cooline Pacific Cooline Pacific Pty Ltd is a distributor of electrical appliances, television and radio sets. The company is located at Rocklea, in Queensland, Australia. FIRST AUSTRALIANS: Members and Creditors to Meet on Nov. 16 ----------------------------------------------------------- The members and creditors of First Australians Business Ltd will have their final meeting on November 16, 2007, at 9:00 a.m., to hear the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Bradley Hellen Ann Fordyce Pilot Partners Chartered Accountants Level 5, 175 Eagle Street Brisbane, Queensland 4000 Australia About First Australians First Australians Business Ltd provides business services. The company is located at Mulgrave, in Victoria, Australia. FIT FOR BUSINESS: Mendoza Berger Raises Going Concern Doubt ----------------------------------------------------------- Fit For Business International, Inc., booked a net income of AU$658,556 for the financial year ended June 30, 2007, a turnaround from the AU$1,302,467 net loss recored for the year ended June 30, 2006. The group reported AU$12,079 in revenues for the current year, up from the AU$9,622 a year ago. Cost of sales dipped to a total of AU$3,323 as compared to last year's AU$6,381. Gross profit for the fiscal year amounted to AU$8,756. The group also recorded a AU$1,209,949 other income. As of June 30, 2007, the company's balance sheet showed strained liquidity, with AU$5,124 in total current assets available to pay AU$1,654,113 in total current liabilities coming due within the next 12 months. The company's balance sheet as of end-June 2007 also showed total assets of AU$1,208,787 and total liabilities of AU$1,961,002, resulting in total shareholders' deficit of AU$752,215. Going Concern Doubt After auditing the company's financial statements for the year ended June 30, 2007, Mendoza Berger & Company, LLP, expressed substantial doubt on the comany's ability to continue as a going concern, citing the company's recurring operating losses and accumulated deficit. Fit For Business International, Inc. (FFBI)-- http://www.fitforbusiness.com.au-- is a development-stage company. The Company provides products and services for corporate wellness programs, which address business productivity, stress and absenteeism issues; living well programs directed primarily, but not exclusively, to individuals over 45 years of age, and nutritional supplements manufactured and supplied by Herbalife Ltd. (Herbalife). It has derived revenues principally from the sale of services related to wellness programs, and the sale of nutritional products, literature and training materials. The Company has also entered into a license agreement for Australia and New Zealand, which entitles the licensee to provide a distribution network for the Company, use its logo and software, and market and promote its products and services. JETROCK PTY: Members and Creditors Agree to Wind Up Firm -------------------------------------------------------- The members and creditors of Jetrock Pty Ltd met on Nov. 14, 2007, and agreed to voluntarily liquidate the company's business. Simon Read was appointed as liquidator. The Liquidator can be reached at: Simon Read McGrathNicol Level 1, 5 Mill Street Perth, Western Australia 6000 Australia Telephone:+61 8 6363 7600 Web site: http://www.mcgrathnicol.com About Jetrock Pty Jetrock Pty Ltd is a distributor of durable goods. The company is located at Halls Head, in Western Australia, Australia. L & C TAMLIN: Members to Hold Meeting on November 30 ---------------------------------------------------- A final meeting will be held for the members of L & C Tamlin Pty Ltd on November 30, 2007, at 10:00 a.m. At the meeting, William John Martin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The company's liquidator is: William John Martin Morley Commercial Centre, Suite 15 222 Walter Road Morley, Western Australia 6062 Australia About L & C Tamlin L & C Tamlin Pty Ltd provides business services. The company is located at Kalgoorlie, in Western Australia, Australia. NIGHTSWAN PTY: Final Meeting Slated for Today --------------------------------------------- The members and creditors of Nightswan Pty Ltd will hold their final meeting today, November 16, 2007, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervyn J. Kitay WHK Horwath Level 6, 256 St Georges Terrace Perth, Western Australia 6000 Australia About Nightswan Pty Located at Duncraig, in Western Australia, Australia, Nightswan Pty Ltd is an investor relation company. OPEN TEXT: S&P Affirms BB- Corp. Credit Rating w/ Stable Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Open Text Corp. to stable from negative. At the same time, S&P affirmed the ratings, including the 'BB-' long-term corporate credit rating, on the company. At Sept. 30, 2007, Open Text had US$341 million of debt outstanding. "The outlook revision reflects the combination of a largely successful integration of Hummingbird Ltd. (acquired Oct. 2, 2006), improved outlook for growth in software license revenues, and a substantial improvement in adjusted debt leverage and corresponding credit measures from reducing debt in recent quarters," said S&P's credit analyst Madhav Hari. "The pace of any upward ratings revision, however, remains constrained by the company's financial policy, in particular, its acquisitive growth strategy and need to continue improving the scale and scope of its product offerings given a rapidly consolidating enterprise software industry," Mr. Hari added. The ratings on Open Text are also constrained by the highly competitive and consolidating technology marketplace in which it operates, characterized by larger, more-integrated providers, and an aggressive financial policy that includes an acquisitive growth strategy. These factors are partially offset by the company's sizable market position within a niche segment of the broader software industry, its solid scale given a large installed source of customers, good customer and geographic diversity, a large base of recurring revenues, and a history of generating healthy free operating cash flow. The stable outlook reflects a healthy demand for Enterprise Content Management software, improved scale, traction with key channel partners such as SAP, and the successful launch of the integrated DMX portfolio, which should help generate low double-digit revenue growth. Nevertheless, debt leverage and corresponding credit measures might not improve significantly from current levels as the company uses discretionary cash flow to fund acquisitions or share buybacks. S&P could revise the outlook to positive or raise the ratings on better-than-expected revenue growth and sustainable credit metrics, which in part could be determined by the company adopting a conservative financial policy. Should Open Text's operating performance weaken materially, or if it loses significant market share, resulting in a deterioration of profitability and credit metrics, S&P could downgrade the company or revise the outlook to negative. Enterprise Content Management software and support services -- an estimated US$2.25 billion addressable market -- help large businesses capture, store, and manage unstructured corporate data. In the medium term, the ECM market's key revenue drivers are e-mail archiving and records management. Although the ECM software market has higher growth potential (at low double digits) than the overall software and IT sector, growth could remain volatile as evidenced in recent years. Headquartered in Waterloo, Ontario, Open Text Corp. (NASDAQ: OTEX, TSX: OTC) -- http://www.opentext.com/-- provides Enterprise Content Management solutions that bring together people, processes and information in global organizations. The company supports approximately 20 million seats across 13,000 deployments in 114 countries and 12 languages worldwide. It has field offices in Australia, Japan, Mexico and Singapore. SEANET PTY: Placed Under Voluntary Liquidation ---------------------------------------------- During a general meeting held on August 3, 2007, the members of Seanet Pty Ltd resolved to voluntarily liquidate the company's business. Angela Ann Gaffney was appointed as liquidator. The Liquidator can be reached at: Angela Ann Gaffney c/o RSM Bird Cameron 4th Floor, 8 St George's Terrace Perth, Western Australia 6000 Australia About Seanet Pty Seanet Pty Ltd operates groceries stores. The company is located at Hillarys, in Western Australia, Australia. TOSCALA PTY: Members to Receive Wind-Up Report on Nov. 21 --------------------------------------------------------- The members of Toscala Pty Ltd will hold a meeting on Nov. 21, 2007, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervyn J. Kitay WHK Horwath Level 6, 256 St Georges Terrace Perth, Western Australia 6000 Australia About Toscala Pty Toscala Pty Ltd, which is also trading as Cadsul, provides engineering services. The company is located at Victoria Park, in Western Australia, Australia. XTREME INFORMATION: Liquidator Gives Wind-Up Report --------------------------------------------------- Xtreme Information Technologies Pty Ltd held a final meeting for its members and creditors on November 8, 2007. At the meeting, Kim David Holbrook, the company's liquidator, gave a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Kim David Holbrook Holbrook & Associates Level 2, 19 Pier Street GPO Box M925 Perth, Western Australia 6001 Australia About Xtreme Information Xtreme Information Technologies Pty Ltd operates computer and software stores. The company is located at Myaree, in Western Australia, Australia. ZINIFEX LTD: Appoints Andrew Michelmore as CEO and Managing Dir. ---------------------------------------------------------------- Zinifex Ltd. appointed Andrew Michelmore as its chief executive officer and managing director. Mr. Michelmore commences immediately with the implementation of the board's growth strategy and the familiarization of the company and its people. He will assume full-time operational responsibility from February 1, 2008. Mr. Michelmore will join Zinifex after two years as CEO of Russian energy and aluminum company EN+ Group. Prior to that he was CEO of leading Australian resources company WMC Resources Limited for more than two years, during which time the company's market capitalization almost doubled. In his 12-year career at WMC Resources Limited Andrew was responsible for significant improvement in operational reliability across all divisions of the Company. "The Board believes Andrew's vast experience in the global resources business makes him the ideal person to carry forward Zinifex's strategy to grow our mining business," Zinifex's Chairman, Peter Mansell commented. "Andrew is an outstanding resources executive and CEO with an international reputation. Whilst Andrew assumes fulltime operational duties from February 1, he will be involved immediately in all strategic matters and will be taking time to familiarize himself with our business." In accepting the role, Mr. Michelmore said, "Zinifex has excellent mining assets. It has a strong position in the zinc market, which along with all resources is experiencing a once in a generation period of exceptional growth. "I'm excited about the opportunities to continue to build Zinifex into a mining company of international standing. I am united with the Board that, in implementing Zinifex's growth strategy, we will continue to increase shareholder value." Since listing in 2004 Zinifex has delivered excellent returns to its shareholders and recently it completed a transformation from an integrated mining and smelting business to a focused mining company. The sale of the smelting business provides Zinifex with a substantial pool of funds which can be applied to grow the mining business. Summary of the key terms and conditions of the appointment of Andrew Michelmore as Chief Executive Officer of Zinifex Limited Role Chief Executive Officer and Managing Director Commencement Date and Term Immediately, with full-time operational duties from February 1, 2008. Ongoing, subject to 12 months notice by either party. Zinifex may terminate without notice in the event of serious misconduct. Remuneration Package Base salary: AU$1.9 million with annual reviews commencing July 1, 2009. Short term incentive: An annual opportunity of up to a maximum of 100% of base salary subject to achieving agreed targets in accordance with Zinifex's short term incentive plan. Long term incentive: An annual opportunity to receive an allocation of zero priced Zinifex shares up to a maximum value of 160% of base salary with a 3-year vesting period and subject to Zinifex achieving total shareholder return ranking targets as outlined under Zinifex's long term incentive plan. Other: In consideration for a 6 month restraint of trade, AU$1 million of Zinifex shares will be allocated in 3 parcels vesting equally on each of the first 3 anniversaries of commencement of employment. Payments on termination: In the event the CEO's employment is terminated without cause (including in circumstances where a fundamental change occurs resulting in the CEO terminating the employment), lump sum separation payment equivalent to one year's base salary plus STI and LTI vesting (at the Board's discretion) and accrued statutory entitlements. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. * ASIC Disqualifies Six Directors for Roles in Failed Firms ----------------------------------------------------------- Australian Securities & Investments Commission has disqualified six directors in October from managing corporations following their involvement in failed companies. 1. Dominique Field ASIC has disqualified payment systems developer, Dominique Field, of Baulkham Hills, New South Wales, from managing corporations for the maximum period of five years. Ms. Field's disqualification follows an ASIC investigation into her role in six failed companies, Think Global Systems Pty. Ltd., Cabepay Pty. Ltd., Mobepay Pty. Ltd., Think Systems Pty. Ltd., Australian Corporate Traders Pty. Ltd. and Nationwide Cards Pty. Ltd. ASIC's investigation found that Ms. Field failed to ensure that the companies maintained proper books and records, failed to assist the liquidators, and allowed an undischarged bankrupt to be involved in the management of a number of the companies. ASIC also found that Ms. Field used her position as a director of Nationwide Cards Pty. Ltd. to obtain an advantage for herself by transferring assets of Nationwide Cards Pty. Ltd. to another company of which she was a director. 2. Suzanne Evelyn Cameron ASIC has disqualified property developer, Suzanne Evelyn Cameron, of Cremorne, New South Wales, from managing corporations for the maximum period of five years. Ms. Cameron's disqualification follows an ASIC investigation into her role in seven failed companies, Berry Street Investments Pty. Ltd., PDE Investments No. 3 Pty. Ltd., PDE Investments No. 5 Pty. Ltd., PDE Investments No. 9 Pty. Ltd., Property Development Enterprises No. 3 Pty. Ltd., Manly Apartment Leasing Pty. Ltd. and Manly Waterfront Developments Pty. Ltd. ASIC's investigation found all companies failed owing substantial amounts to the Australian Taxation Office and that Ms. Cameron failed to assist the liquidators of each company and failed to ensure that all companies maintained proper books and records. ASIC also found that Ms. Cameron allowed Berry Street Investments Pty. Ltd. to lodge with the ATO false Business Activity Statements resulting in the payment GST refunds to which it was not entitled. 3. Christopher Owen Ruck ASIC has disqualified fitness centre operator, Mr. Christopher Owen Ruck, of Kalgoorlie, Western Australia, from managing corporations for four years. The disqualification of Mr. Ruck follows an ASIC investigation into his role in the failed companies ACN 097 400 738 Pty. Ltd. (formerly Inspired Life Pty. Ltd.) and Osborne Park Gym Pty. Ltd. ASIC's investigation found that the companies failed owing statutory debts to the ATO and significant amounts to unsecured creditors. In relation to Inspired Life Pty. Ltd., Mr. Ruck failed to lodge Business Activity Statements and income tax returns since the company commenced trading and allowed the company to trade while insolvent. ASIC also found that Mr. Ruck breached his duties as a director of Inspired Life Pty. Ltd. in that, following the sale of the business, he allowed certain creditors to be paid where he had provided a personal guarantee but failed to ensure other creditors, including the ATO, were paid. 4. Andrew Careri ASIC has disqualified builder, Andrew Careri, of Varsity Lakes, Queensland, from managing corporations for four years. Mr. Careri's disqualification follows an ASIC investigation into his role in two failed companies, Deluxe Homes (VIC) Pty. Ltd. and Lianna Homes Pty. Ltd. ASIC's investigation found that Mr. Careri failed to ensure that both companies maintained proper books and records and that he allowed Deluxe Homes (VIC) Pty. Ltd. to trade while insolvent. 5. Niel William English ASIC has disqualified earthmoving contractor, Niel William English, of Riverstone, New South Wales, from managing corporations for three years. Mr. English's disqualification follows an ASIC investigation into his role in two failed companies, Rocks Civil Contracting Pty. Ltd. and Rocks Excavations and Plant Hire Pty. Ltd. ASIC's investigation found that Mr. English allowed funds intended for Rocks Civil Contracting Pty. Ltd. to be diverted to another person after the liquidator had been appointed. Mr. English's control over the company's funds had been suspended upon the appointment of the liquidator and this diversion of funds was to the detriment of the company and its creditors. ASIC also found that Mr. English allowed Rocks Excavations and Plant Hire Pty. Ltd. to trade while they were insolvent. 6. Garry Helmut Zaska ASIC has disqualified property developer, Garry Helmut Zaska, of Dora Creek, New South Wales, from managing corporations for three years. Mr. Zaska's disqualification follows an ASIC investigation into his role in two failed companies, Pridecorp Pty. Ltd. and LS Zaska & Sons Pty. Ltd. ASIC's investigation found that both companies failed owing substantial amounts to the ATO and that Mr. Zaska failed to ensure that both companies maintained proper books and records. ASIC also found that Mr. Zaska failed to provide a report as to affairs to the liquidator of Pridecorp Pty. Ltd. The above disqualified persons have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision. Assetless Administration Fund These latest disqualifications bring the total to 25 for the 07/08 financial year and reflect the agency's commitment to addressing phoenix activity and removing directors who fail to fulfill their responsibilities to creditors. Phoenix activity is typically associated with directors who transfer the assets of an indebted company into a new company of which they are also directors. The director then places the initial company into administration or liquidation with no assets to pay creditors, meanwhile continuing the business using the new company structure. ASIC's ability to tackle phoenix activity was enhanced by the introduction of the Assetless Administration Fund in October 2005 which allows ASIC to fund preliminary investigations by liquidators into the failure of companies with few or no assets. "The Assetless Administration Fund has enabled liquidators to be funded to properly investigate the affairs of assetless companies and then report to ASIC. Such reports have in turn lead to ASIC taking action to disqualify directors who fail to act in the best interests of their companies and whose actions are considered detrimental to the employees and creditors of those companies," said ASIC's Executive Director of Consumer Protection, Greg Tanzer. ================================ C H I N A & H O N G K O N G ================================ ALERIS INT'L: Reports US$3.5 Million Net Income in Third Quarter ---------------------------------------------------------------- Aleris International, Inc., has reported results for the third quarter ended Sept. 30, 2007. Summary -- Revenues for third quarter 2007 were US$1.7 billion, compared with US$1.4 billion in third quarter 2006, a 19% increase, driven primarily by the 2006 acquisition of the downstream aluminum business of Corus Group plc (Corus Aluminum) and the 2007 acquisitions of Wabash Alloys L.L.C. and EKCO Products. -- EBITDA, excluding special items, for third quarter 2007 was US$127.5 million compared with US$123.0 million for the comparable period last year. -- The company generated free cash flow of US$102.4 million in the third quarter 2007 compared with US$87.1 million in the comparable period of 2006 and US$277.5 million in the first nine months of 2007 compared with US$163.6 million in the prior year-to-date period. -- Progress continued on the company's strategic growth initiatives as the acquisitions of Wabash Alloys and Alumox Holding AS were completed in September 2007. -- Productivity and synergy savings of US$32.0 million were achieved in the third quarter 2007 and total US$88 million year-to-date. -- Year-to-date, revenues were US$4.9 billion compared with US$3.3 billion last year, while EBITDA, excluding special items, increased 15% to US$349.8 million from US$304.1 million. -- Pro forma EBITDA, excluding special items, and including the acquisitions of Wabash Alloys and EKCO Products as if they had occurred on Oct. 1, 2006 and synergies as permitted by the company's Term Loan Agreement, for the last 12 months (Pro Forma Adjusted EBITDA) was US$527.8 million. Net debt was US$2.8 billion at quarter end. Net debt to Pro Forma Adjusted EBITDA, was 5.2. Pro Forma Adjusted EBITDA does not include approximately US$19.0 million of expected synergies as the Term Loan Agreement limits expected synergies to US$40.0 million. -- European industrial activity remains strong while demand from the North American building & construction and transportation end-uses is expected to remain soft for the rest of 2007. Third Quarter 2007 Operating Results Aleris reported third quarter 2007 revenues of US$1.7 billion, segment income of US$54.3 million, and net income of US$3.5 million. These results include losses from special items consisting of US$21.6 million of unrealized losses on derivative financial instruments, US$14.2 million for the impact of recording previously acquired assets at fair value, US$2.3 million of restructuring and other charges, US$2.3 million of sponsor management fees, and US$1.1 million of stock-based compensation expense. During the third quarter of 2007, Aleris also recorded the preliminary results of an independent appraisal of the tangible and intangible long-lived assets required as a result of TPG's acquisition of Aleris in December 2006. Based on those preliminary results, the company recorded amortization expense of approximately US$28.2 million in the third quarter of 2007 within selling, general and administrative expense. Additionally, third quarter 2007 income taxes included a US$31.6 million one-time benefit resulting from a decrease in the German statutory rate for corporate income and trade taxes. For the third quarter of 2006, Aleris reported revenues of US$1.4 billion, segment income of US$76.8 million, and a net loss of US$24.2 million. These results included a US$53.7 million loss on the early extinguishment of debt, US$30.9 million for the impact of recording previously acquired assets at fair value, US$24.3 million of unrealized losses on derivative financial instruments, US$2.6 million of restructuring and other charges, and US$2.6 million of stock- based compensation expense partially offset by US$9.8 million of gains on derivative financial instruments used to hedge a portion of the purchase price paid for Corus Aluminum. EBITDA, excluding special items, totaled US$127.5 million in the third quarter of 2007 compared with US$123.0 million in the same period last year. Results were driven primarily by the acquired operations of Corus Aluminum, which were included in the consolidated results for only two months of the 2006 third quarter, and ongoing company-wide productivity initiatives, partially offset by lower sales volumes in the company's North American rolled products and zinc businesses. Free cash flow for the third quarter of 2007 was US$102.4 million compared to US$87.1 million in the third quarter of 2006 as a result of the company's continuous focus on working capital management. Commenting on Aleris's third quarter results, Steven J. Demetriou, Chairman and Chief Executive Officer, said, "We are pleased with the performance of the controllable elements of our business, driven by the step- change productivity improvements across all areas of the Company. This was essential in partially offsetting the significant volume reductions in our North American rolled products and zinc businesses, primarily associated with the construction and transportation end-uses. "Our various integration activities are yielding strong results. We are on track to achieve the US$65 million of acquisition synergies associated with the Corus Aluminum acquisition, which is more than double the original estimate. Also, since completing the Wabash acquisition two months ago, we have begun executing several initiatives, including plant closures and back office integration. Estimated annual synergies from the Wabash acquisition are expected to be US$30 million over 12 to 18 months. In addition, we are achieving significant company-wide productivity benefits associated with Six Sigma, Rapid Transformation, metal recovery, and energy efficiency programs." Year-to-date 2007 Operating Results Aleris reported revenues of US$4.9 billion, segment income of US$140.0 million, and a net loss of US$14.7 million in the first nine months of 2007. The results were significantly impacted by unfavorable special items including US$100.4 million for the impact of recording previously acquired assets at fair value, US$11.2 million of restructuring and other charges, US$6.9 million of sponsor management fees, and US$2.9 million of stock-based compensation expense, partially offset by unrealized gains of US$26.0 million on derivative financial instruments. In addition, the 2007 results include amortization expense of US$34.8 million, an increase of US$32.9 million over the comparable period of 2006. In the first nine months of 2006, Aleris reported revenues of US$3.3 billion, segment income of US$254.2 million, and net income of US$59.4 million. The 2006 results included a US$53.7 million loss on the early extinguishment of debt, US$32.5 million for the impact of recording previously acquired assets at fair value, US$7.1 million for unrealized losses on derivative financial instruments, US$7.1 million of stock-based compensation expense, and US$2.3 million of restructuring and other charges, partially offset by US$9.8 million of gains on derivative financial instruments used to hedge a portion of the purchase price paid to acquire Corus Aluminum. EBITDA, excluding special items, of US$349.8 million for the first nine months of 2007 represents a 15% increase compared with US$304.1 million for the first nine months of 2006. The increase was primarily driven by the Corus Aluminum acquisition and company-wide productivity and synergy initiatives, partially offset by lower sales volumes at the North American rolled products and zinc businesses. Free cash flow for the first nine months of 2007 was US$277.5 million compared with US$163.6 million for the first nine months of 2006 and benefited from the company's focus on reducing working capital. Global Rolled and Extruded Products Global Rolled and Extruded Products shipments totaled 596 million pounds in the third quarter of 2007. This compares with shipments of 505 million pounds for the third quarter of 2006, with the increase driven by the Corus Aluminum and EKCO Products acquisitions. Excluding these acquisitions, shipments were down approximately 9% compared with the 2006 third quarter, due to continued weakness in North America. Shipments for the former Corus Aluminum were 319 million pounds for the third quarter of 2007 compared with shipments of 216 million pounds in August and September of 2006 and continued to benefit from strong economic growth in aerospace and automotive applications. The former EKCO Products business, acquired during the second quarter, contributed a net 15 million pounds to the total shipments in the third quarter. Global Rolled and Extruded Products segment income was US$41.7 million in the third quarter of 2007, compared with segment income of US$40.4 million in the prior-year period. Excluding the impact of US$13.3 million of purchase accounting adjustments which are recorded at the segment level, segment income in the third quarter of 2007 was US$55.0 million, compared with US$71.3 million in the prior-year third quarter, after adjusting for US$30.9 million of purchase accounting adjustments in 2006. The Corus Aluminum acquisition and productivity initiatives improved segment income, but were more than offset by reduced volumes in the U.S. and approximately US$16.4 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets. Material margins, on a pro forma basis including the Corus Aluminum and EKCO Products acquisitions, of US$0.64 per pound in the third quarter of 2007 increased from US$0.61 per pound in the third quarter of 2006 due to more favourable metal price lag. Cash conversion costs of US$0.40 per pound increased from US$0.39 per pound in the third quarter of 2006 as underlying productivity improvements were more than offset by the unfavorable impact of the stronger euro and lower volumes. Global Rolled and Extruded Products shipments totaled 1.7 billion pounds in the first nine months of 2007 compared with 1.1 billion pounds in the first nine months of 2006. The increase was primarily driven by the Corus Aluminum acquisition, which contributed 967 million pounds in 2007 and 216 million pounds in 2006. Excluding the Corus Aluminum and EKCO Products acquisitions, shipments decreased 15% in the first nine months of 2007 compared with the first nine months of 2006. The segment's income was US$80.0 million and US$135.2 million in the first nine months of 2007 and 2006, respectively. However, year-to-date 2007 and 2006 segment income includes US$85.4 million and US$32.5 million of unfavorable purchase accounting adjustments, respectively. After adjusting for purchase accounting, year-to-date segment income for 2007 would be US$165.4 million compared with segment income of US$167.7 million in the first nine months of 2006. The decrease reflects the lower volumes in North America as well as US$21.7 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets, partially offset by the incremental segment income generated by the acquired operations of Corus Aluminum and benefits from productivity improvements. Year-to-date pro forma material margins improved to US$0.64 per pound in 2007 from US$0.62 per pound in 2006, while cash conversion costs increased by US$0.02 per pound in 2007 to US$0.39 per pound as the stronger euro and reduced volumes more than offset productivity improvements. Global Recycling Global Recycling shipments of 821 million pounds in the third quarter of 2007 were up 6% compared with the 776 million pounds shipped in the year- earlier quarter. The increase was driven by the acquired operations of Wabash Alloys, which contributed 42 million pounds since their acquisition. Excluding the acquired operations of Wabash Alloys, shipments in the third quarter of 2007 were consistent with those of the prior year quarter as increased European demand was offset by reduced demand in the North American specification alloy business. Segment income was US$9.0 million in the third quarter of 2007 compared with US$22.2 million in the third quarter of 2006. The decrease in segment income was driven by lower scrap spreads in North America and US$6.9 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets, partially offset by volume increases, primarily in Europe, and productivity improvements overall. The acquired operations of Wabash Alloys incurred a segment loss of US$0.6 million, including US$1.4 million of purchase accounting adjustments related to acquired inventories. For the first nine months of 2007, shipments increased to 2.4 billion pounds from 2.3 billion pounds in 2006, primarily driven by a 65 million pound increase in Europe and the acquisition of Wabash Alloys. Segment income for the first nine months of 2007 was US$49.9 million compared with US$69.8 million for the year- earlier period. Excluding purchase accounting adjustments of US$3.8 million, segment income of US$53.7 million was US$16.1 million less than the prior year's first nine months, driven by less favourable scrap spreads in the specification alloy business and US$6.9 million of incremental amortization expense. Global Zinc Global Zinc reported third quarter 2007 volume of 87 million pounds, a decrease of 12% from 99 million pounds in the third quarter of 2006. Segment income of US$3.6 million for the third quarter of 2007 compared with US$14.2 million of segment income for the third quarter of 2006. The decrease in segment income from the prior-year period was due to lower volume caused by lower demand by tire and rubber customers, lower margins from trading activities, higher material costs and approximately US$4.0 million of incremental amortization expense. Year-to-date shipments for the segment totalled 264 million pounds in 2007 compared with 315 million pounds in 2006. Year- to-date segment income of US$10.1 million in 2007 compared with US$49.2 million in the prior-year period. The decrease in segment income was driven primarily by a purchase accounting adjustment of US$11.2 million, lower volume, less favourable scrap spreads, an unfavourable metal price lag resulting from the first quarter 2007 liquidation of inventory acquired at historically high fourth quarter 2006 prices, and US$4.0 million of incremental amortization expense. Corporate Expense Corporate expense primarily includes corporate general and administrative expense (G&A), other income/expense, certain realized gains and losses on derivative financial instruments resulting from the centralization of the risk management functions, and interest expense. In addition, in order to simplify the understanding of ongoing segment operations, corporate expense includes all restructuring and other charges as well as non-cash adjustments associated with mark-to-market accounting for derivative financial instruments. In the third quarter of 2007, Aleris' results included US$21.6 million of unrealized losses on derivative financial instruments, US$2.3 million of sponsor management fees, US$2.3 million of restructuring and other charges, and US$1.1 million of charges for non-cash stock-based compensation. Corporate G&A increased to US$20.5 million in the third quarter of 2007 from US$18.9 million in the same period of 2006 as the addition of sponsor management fees and increased operating costs at the company's European headquarters were only partially offset by lower incentive and stock-based compensation expense. Year-to-date Corporate G&A increased by US$5.5 million for the same reasons. Interest expense for the third quarter of 2007 increased to US$58.3 million from US$26.6 million in the third quarter of 2006 due to higher borrowings associated with the refinancing to fund the acquisition of Corus Aluminum in August 2006, the refinancing to fund TPG's acquisition of Aleris in December 2006, and the additional indebtedness incurred to fund the acquisition of Wabash Alloys in September 2007. For the first nine months of 2007, interest expense increased to US$168.8 million from US$54.3 million in the same period of 2006. For the nine months ended Sept. 30, 2007, the company's effective tax (benefit) rate was (78.4)% compared with 36.8% in the comparable period of 2006. The 2007 effective rate benefited from the new tax rules in Germany and the financing structure in Europe. Cash taxes are expected to total approximately US$25.0 million for 2007. Capital expenditures were US$43.3 million for the third quarter of 2007, compared with US$27.7 million for the previous year's third quarter. Year-to- date capital expenditures were US$135.5 million compared with US$53.5 million in the first nine months of 2006. The increase is primarily attributable to the Corus Aluminum acquisition which accounted for US$98.3 million of capital expenditures in the first nine months of 2007. About Aleris Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico, China and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent US$105 million 9% senior notes due 2014, which are an add-on to the company's existing US$600 million 9% senior notes due 2014. CITIC SOUTH: Proofs of Debt Due on December 7 --------------------------------------------- The creditors of Citic South China (Group) Hong Kong Co. Limited are required to file their proofs of debt by December 7, 2007, to be included in the company's dividend and distribution. The company commenced liquidation proceedings on October 29, 2007. The Liquidators can be reached at: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower The Landmark 15 Queen's Road Cantral, Hong Kong DANA CORP: Wants to Settle Asbestos Claims for US$2 Million ----------------------------------------------------------- Dana Corp. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Southern District of New York to enter into settlement agreements with the Asbestos Personal Injury Claimants. Asbestos Litigation The Debtors have been named as defendants in a number of lawsuits related to the Debtors' sale of certain automotive gaskets containing asbestos in an encapsulated form and the alleged exposure of people to asbestos as a consequence of contact with these gaskets, Corinne Ball, Esq., at Jones Day, in New York, tells the Court. According to the available data as of June 30, 2007, there were approximately 150,000 pending asbestos-related personal injury claims against the Debtors, Ms. Ball elaborates. Ms. Ball points out that Dana has demonstrated in various proceedings that their gaskets could be and were used without releasing hazardous volumes of asbestos fibers. The Debtors have also defended Asbestos Personal Injury Claims successfully on the ground that exposure to chrysotile asbestos, the type of fiber incorporated into the gaskets, is generally insufficient to cause mesothelioma, an asbestos-related illness, Ms. Ball continues. According to Ms. Ball, the magnitude of asbestos litigation has declined since the wave of asbestos-related bankruptcies in 2000-2003, hence, the Debtors anticipate that, for the foreseeable future, both the number of claims that the amount that the Debtors will spend to defend and resolve cases will generally remain at low levels. Settlement Agreement The Debtors have continued to entertain and negotiate potential settlements withs several counsel for the Asbestos Personal Injury Claimants. As a result of these negotiations, Ms. Ball asserts, the Debtors have determined that it is in the best interests of the their estates to enter into the settlement agreements. Under the settlement agreements, the Debtors are: (a) resolving certain Asbestos Personal Injury Claims that had been filed as lawsuits through March 2, 2006; and (b) providing a mechanism for addressing future cases that may be brought by the Tort Attorneys. The settlement agreements, among other things, require the Asbestos Personal Injury Claimants to provide medical documentation of their illnesses, and evidence of their exposure to asbestos-containing products manufactures, sold, or distributed by Dana, according to Ms. Ball. She adds that the claimants must also submit release to qualify for payment of their asbestos personal injury claims. Ms. Ball tells the Court that the Debtors' estimate on account of the settlements would be approximately US$2,000,000. The Debtors say that payments will be partially reimbursed by their insurers. "Dana believes that the amounts to be paid to the Asbestos Personal Injury Claimants under the Settlement Agreements are reasonable and wholly consistent with, or better than, the terms and conditions among the range of settlements reached by Dana prior to the [P]etition [D]ate for similar claims of individuals represented by Tort Attorneys and other attorneys," Ms. Ball says. Ms. Ball asserts that the Debtors' entry into the Settlement Agreements would result to the dismissal of 7,500 Asbestos Personal Injury Claims filed against the Debtors. With respect to the claimants who decline the terms contained in the settlement agreements, the Tort Attorneys have agreed not to schedule cases for trial against the Debtors, and agreed not to any oppose any motions filed on the Debtors' behalf for the period of two years. The resolutions reached in the Settlement Agreements represent a reasonable and expedient way for Dana to resolve approximately 7,500 Asbestos Personal Injury Claims without the need to continue active litigation of these claims in state court and incur the related expenses, Ms. Ball relates. She notes that in the five years prior to the Petition Date, Dana has spent approximately $15,300,000 for asbestos defense and indemnity, net of insurance recoveries. If the Asbestos Personal Injury Claimants' claims are not resolved consensually, Dana, she says, will continue to incur the cost of defense, and expend other resources in connection with, the active litigation of these claims. The Debtors have obtained the Court's permission to file the Settlement agreements under seal. About Dana Corporation Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). EXPRESS FOOD: Proofs of Claim Bar Date Fixed on Dec. 15 ------------------------------------------------------- The creditors of Express Food & Beverages Limited are required to file proofs of debt against the company by December 15, 2007, to be included in the company's dividend and distribution. The company commenced liquidation proceedings on October 29, 2007. The Liquidators can be reached at: Chow Sheung Bing Keung Sai Tung 7th Floor, San Toi Building 139 Connaught Road Central, Hong Kong FORTUNE REALTY: Members and Creditors to Meet on December 11 ------------------------------------------------------------ The members and creditors of Fortune Realty Company Limited will hold their final meeting on December 11, 2007, at 2:30 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Room 1639, 16th Floor, One Grand Tower, 639 Nathan Road, in Kowloon, Hong Kong. GREAT YIELD: Proofs of Claim Deadline is February 15 ---------------------------------------------------- The creditors of Great Yield Technologies Limited are required to file proofs of debt by February 15, 2007, to be included in the company's dividend and distribution. The company commenced liquidation proceedings on October 29, 2007. The company's liquidator is: Fong Fu Yin Albert Premier Services Hong Kong Limited Room 618, Hollywood Plaza 610 Nathan Road Mongkok, Hong Kong HAINAN AIRLINES: Takes Delivery of First A330 Order --------------------------------------------------- Hainan Airlines has taken delivery of its first A330 on lease from CIT Aerospace. The aircraft, a A330-200, powered by Rolls Royce Trent 700 engines was handed over to the HNA Chairman, Mr. CHEN Feng in a ceremony held in Toulouse. The aircraft will seat 222 passengers in a two-class configuration. The Student Operated Press The HNA Group, the fourth largest aviation group in China, comprises Hainan Airlines, Xinhua Airlines, Changan Airlines, Shanxi Airlines and is now setting up its Grand China Air. The group currently operates 12 A319s and has 98 Airbus aircraft on order. �Today is a remarkable day in the continuous, fast and healthy development of our airline and marks an important step for our future success. This new aircraft in service will allow us to expand services to major business and leisure destinations across China and to offer new routes, benefiting from the aircraft's unique operational costs savings while providing our passengers with an optimal travel comfort� said Mr. CHEN Feng, Chairman of HNA Group. �We are delighted that Airbus is a part of HNA Group's rapid growth and are proud of their choice for the A330-200 to further extend their success. This reflects again the advantages that the A330 offers in terms of route efficiency and passenger comfort in addition to the commonality with the A320 Family aircraft already in service within the group. All of us at Airbus wish Hainan Airlines and HNA Group a very bright future,� said Fabrice Bregier, Airbus Chief Operating Officer. Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. Xinhua Far East China Ratings gave the company a CC issuer credit rating on October 31, 2005. PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million --------------------------------------------------------------- Pacco Tech Co. Ltd. reported a net loss of TWD3.8 million for the half-year period ending June 30, 2007. As of June 30, 2007, the company had total assets of TWD282.3 million and total liabilities of TWD617.5 million, resulting in a capital deficiency of TWD335.2 million. The company also reported a net loss of TWD7.6 million for the nine months to Sept. 30, 2007, significantly lower than the net loss of TWD31.1 million reported for the nine months ending Sept. 30, 2006. Pacco Tech Co. Ltd. -- http://www.paccogroup.com/-- is a Taiwan-based company engaged in the manufacture and sale of electronic products, as well as construction business. PACCO TECH: October Sales Up 190.34% Year-on-Year ------------------------------------------------- Pacco Tech Co. Ltd.'s sales in October 2007 rose 190.34% to TWD1,623,000, Bloomberg News reports. Sales in Oct. 2006 totaled TWD559,000. The company's year-to-date sales amounted to TWD3.40 million, a 97.46% decline year-on-year. Pacco Tech's sales in September 2007 also rose 651.85% year-on- year to TWD1,624,000, while it fell 99.97% to TWD2,000 in August. Pacco Tech Co. Ltd. -- http://www.paccogroup.com/-- is a Taiwan-based company engaged in the manufacture and sale of electronic products, as well as construction business. The company has annual net losses of TWD12.0 million, TWD265.3 million, TWD147.7 million, TWD391.6 million, TWD100.0 million for the years ending Dec. 31, 2002, through 2006. As of June 30, 2007, the company had total assets of TWD282.3 million and total liabilities of TWD617.5 million, resulting in a capital deficiency of TWD335.2 million. PETROLEOS DE VENEZUELA: Hires 5,000 Ex-Private Firm Employees ------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA has employed about 5,000 workers laid off by private companies private firms Petroleos de Venezuela absorbed, Business News Americas reports. According to BNamericas, the workers are assigned in these state-run joint ventures: -- Petrocedeno, -- Petroanzoategui, -- Petropiar, and -- Petromongas. The joint venture workforce represent over 60% of the former private company workers. Some are still studying Petroleos de Venezuela's salary proposals, while others already rejected the offers, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Will Use Cameron's Subsea Equipment ----------------------------------------------------------- Venezuelan state-owned oil firm Petroleos de Venezuela SA said in a statement that it has awarded US oil services company Cameron a contract to provide subsea equipment to be used in the Mariscal Sucre offshore natural gas project. Business News Americas relates that once the Neptune Discoverer well rig vessel starts work on the blocks, the subsea valves known as Christmas trees will be deployed. According to Petroleos de Venezuela's statement, investment in Cameron's contract will total US$187 million, of which almost 44% will be allocated to social projects and taxes. The contract includes training for local workers. BNamericas notes that Petroleos de Venezuela will discuss with Cameronthe possible creation of a joint venture firm that would allow Venezuela to develop technology. Under the Mariscal Sucre offshore gas project plan, four non- associated natural gas blocks off the Gulf of Paria in eastern Venezuela will be developed. Petroleos de Venezuela wants to eventually produce some 1.2 billion cubic feet per day of natural gas from the area, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PLENTY POWER: Fixes Proofs of Debt Bar Date for December 10 ----------------------------------------------------------- The creditors of Plenty Power Company Limited are required to file their proofs of debt by December 10, 2007, to be included in the company's dividend and distribution. The company's liquidator is: Leung Kwok On Room 402, 4th Floor Highgrade Building 117 Chatman Road, TST Kowloon, Hong Kong PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency --------------------------------------------------------------- Protop Technology Co. Ltd. reported a net loss of TWD58.60 million for the half-year ending June 30, 2007, an improvement against the TWD1.54-billion net loss for the half- year ending June 30, 2006. It is, however, a disappointment compared to the net profit of TWD41.80 million recorded for the first quarter of 2007. The company posted sales of TWD141.40 million for the half-year in review, while costs of goods sold and other operating expenses amounted to TWD75.40 million and TWD197.7 million, respectively, giving the company an operating loss of TWD131.7 million. The company also had a TWD42.20 million interest expense. As of June 30, 2007, the company had total assets of TWD1.05 billion and total liabilities of TWD1.66 billion, resulting in a capital deficiency of TWD603.55 million. Taiwan-based Protop Technology Co. Ltd. -- http://www.protop.com.tw/-- is engaged in the manufacture and distribution of home video electronics and portable video electronics. Its products are applied to consumer electronics. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. PROTOP TECH: October 2007 Sales Falls 99.89% -------------------------------------------- Protop Technology Co. Ltd.'s sales in October 2007 fell 99.89% to TWD17,000 from TWD15,135,000 a year before, according to data obtained from Bloomberg News. Year-to-date sales totaled TWD141.56 million, a 90.40% drop from the January-October 2006 sales of TWD1.47 billion. Sales in September 2007 and August 2007 also fell 99.96% year- on-year to TWD17,000 and 99.99% year-on-year to TWD17,000, respectively. Taiwan-based Protop Technology Co. Ltd. -- http://www.protop.com.tw/-- is engaged in the manufacture and distribution of home video electronics and portable video electronics. Its products are applied to consumer electronics. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. As of June 30, 2007, the company had total assets of TWD1.05 billion and total liabilities of TWD1.66 billion, resulting in a capital deficiency of TWD603.55 million. RITEK CORP: Posts TWD78.4-Mil. Profit in First Nine Months ---------------------------------------------------------- Ritek Corp. posted a net income of TWD78.4 million for the first nine months of 2007, a turnaround against the TWD2.99-billion net loss it posted for the first nine months of 2006. The company boasted net sales of TWD15.02 billion, which translated to an operating income of TWD639.10 million, as cost of goods sold and other operating expenses amounted to TWD13.28 billion and TWD1.10 billion, respectively. As of Sept. 30, 2007, the company had total assets of TWD59.51 billion and total liabilities of TWD19.71 billion, resulting in total shareholders' equity of TWD39.80 billion. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004, through 2006. RITEK CORP: Sales Hit TWD16 Billion in October 2007 --------------------------------------------------- Ritek Corp.'s sales in October 2007 fell 41.56% to TWD1.30 billion from TWD2.23 billion in October 2006, according to data obtained from Bloomberg News. The company's year-to-date sales amounted to TWD16.37 billion, down 19.69% from the TWD20.33 billion sales posted for the January-October 2006 period. The company's sales in September and August 2007 were TWD1.55 billion and TWD1.62 billion, respectively. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004, through 2006. RITEK: Partners with Toshiba to Launch HD DVD Disks in Japan ------------------------------------------------------------ Ritek Corp. will launch HD DVD-R and HD DVD-RW discs under its own brand Ridata, while Toshiba will launch its new HD DVD recorder in a joint sales promotion in the Japan market, Ritek says in a press release. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004, through 2006. SING TSU: Proofs of Debt Due on November 29 ------------------------------------------- The creditors of Sing Tsu Fang (H.K.) Company Limited are required to their file proofs of debt by November 29, 2007, to be included in the company's dividend and distribution. The Liquidator can be reached at: Lui Sui Wor Room 1303, Kowloon Building, 555 Nathan Road MOngkok, Kowloon SUNNY SPREAD: Liquidator Quits Post ------------------------------------- On October 31, 2007, Chui Ming Chung Joe stepped down as liquidator for Sunny Spread Development Limited. The former liquidator can be reached at: Chui Ming Chung Joe Room 1228, 12th Floor One Great Tower 639 Nathan Road Kowloon, Hong Kong ========= I N D I A ========= GENERAL MOTORS: To Make Labor Payments to Delphi Through 2015 ------------------------------------------------------------- General Motors Corp. said in its third quarter 2007 financial report filed with the U.S. Securities and Exchange Commission that it expects to make its annual payments to Delphi Corp. for labor costs through 2015, and said the payments could extend for up to five more years. Michigan-based General Motors said it will pay US$300,000,000 to US$400,000,000 a year for labor costs, as part of the settlements reached with Delphi and its labor union United Automobile, Aerospace & Agricultural Implement Workers of America. Pursuant to the settlements, which was contemporaneously filed with Delphi's Joint Plan of Reorganization on September 6, 2007 before the U.S. Bankruptcy Court for the Southern District of New York, General Motors agreed to reimburse a certain portion of Delphi's U.S. hourly labor costs incurred to produce systems, components, and parts for GM from October 1, 2006 through September 14, 2015. General Motors and the bankrupt auto-parts supplier also agreed to resolve all outstanding issues and claims against each other. Delphi agreed to withdraw a prior request to terminate its supply agreements with GM. Delphi, GM's former parts-making unit, also agreed to issue a US$1,500,000,000 note in favor of GM, in exchange for its assumption of Delphi's pension obligations, and pay US$2,700,000,000 cash to GM on the effective date of the Plan. Due to difficulties in obtaining commitment for a proposed US$7,100,000,000 exit financing contemplated in the Plan, Delphi, however, has reduced the amount of cash to available for use as "currency" to be paid to creditors and interest holders. GM has consented to an amendment, providing that GM would receive US$1,500,000,000 in a combination of at least US$750,000,000 in cash and a second lien note for the remaining amount and US$1,200,000,000 in junior convertible preferred stock of Delphi, instead of US$2,700,000,000 in cash. Delphi is scheduled to seek the Bankruptcy Court's approval of the disclosure statement explaining the terms of the Plan at a November 29, 2007 hearing, which has already delayed for almost two months. Delphi has to obtain approval of the disclosure statement before it could begin soliciting votes from creditors and equity holders on the Plan. Delphi expects to emerge from bankruptcy in the first quarter of 2008. 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. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. (Delphi Bankruptcy News, Issue No. 96; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GENERAL MOTORS: Signs 2007 UAW-GM National Labor Contract --------------------------------------------------------- General Motors Chairman and CEO Rick Wagoner, United Auto Workers President Ron Gettelfinger and their respective senior leadership teams, signed the 2007 UAW-GM national labor contract at a special ceremony held Monday at the UAW-GM Center for Human Resources in Detroit, Michigan. The new contract is effective for the next four years. As reported in the Troubled Company Reporter on Oct. 11, 2007, GM confirmed that its UAW-represented employees have ratified the GM-UAW 2007 national labor agreement. The Troubled Company Reporter disclosed that GM and the UAW reached a tentative agreement on Sept. 26, 2007, after more than two months of bargaining. The new four-year agreement covers approximately 74,000 hourly employees located in more than 80 U.S. facilities. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. Moody's ratings of GMAC LLC (Ba2 senior unsecured/Negative outlook) and of Residential Capital LLC (Ba3 senior unsecured/Negative outlook) are unaffected by the action. GLOBAL BROADCAST: Loss Widens to INR267MM in Qtr. Ended Sept. 30 ---------------------------------------------------------------- Global Broadcast News Limited booked a net loss of INR63.6 million on revenues of INR267.86 million in the second quarter ended Sept. 30, 2007. The bottom line for the latest quarter under review is the worst for GBN since the Jan.-March 2007 period when it was already required to publish its results after it listed in the stock exchange in February. The company booked a net loss of INR35.05 million in the three months ended June 30, 2007, and a profit of INR27.84 in the quarter ended March 31, 2007. For the current quarter under review, the company incurred operating expenditures aggregating INR287.99 million, bringing the company an operating loss of INR20.13 million. GBN booked interest charges of INR27.51 million, depreciation of INR13.91 million and INR2.05 million in taxes. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2568 Headquartered in New Delhi, Global Broadcast News Limited -- http://www.ibnlive.com/-- owns and operates a 24-hour English language news and current affairs channel called CNN-IBN. CNN- IBN was launched in December 2005. The Company has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce, inter alia, the CNN name and principal logo. It also has news services agreement with Turner for production and broadcasting services. It is also part of the TV 18 group, which owns and operates some business channels and Internet portals. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Global Broadcast has a stockholder's equity deficit of US$30.6 million. GLOBAL BROADCAST: Completes Viacom Joint Venture ------------------------------------------------ Global Broadcast News Ltd has completed the formalities on the joint venture with Viacom in India. Transaction Structure As approved by Foreign Investment Promotion Board, BK Holding Mauritius Ltd, a wholly owned TV18 subsidiary, is currently infusing US$50.50 million into Viacom18. Additionally, Global Broadcast News, has acquired warrants, convertible into equity shares of Viacom 18 upon the infusion of US$40 million over the next three years. Since GBN is intended to be Network18's equity shareholder in Viacom18, it has entered into an Option agreement valid for a period of 12 months, pursuant to which GBN would have the option to acquire the entire shareholding of BK Holding Mauritius from TVI8's subsidiary. Upon GBN exercising its option to convert the above warrants and on exercising its right under the option agreement, GBN's shareholding (including indirect holding) in Viacom 18 would aggregate to 50%. In that regard, Viacom and Network18 (through its group company Global Broadcast News, GBN) on Nov. 7, 2007, disclosed the completion of formalities leading to the formation of their 50:50 joint venture in India -- Viacom 18 Media Pvt Ltd. The companies announced their plans for the joint venture in May 2007. Viacom18 will include television, film and digital media content across numerous brands as well as consumer products to build India's leading multi-platform entertainment powerhouse. Viacom18 will be managed by a six-member Board with equal representation by Viacom and Network18. Viacom18 will launch a new Hindi-language general entertainment channel in India early next year. The service will consist of original, locally produced programming, acquisitions and content from MTV Networks. The joint venture will operate the successful local networks, MTV, VH1 and Nickelodeon India, of MTV Networks, a unit of Viacom. In the future, Viacom18 will also launch a suite of niche channels from the MTV Networks portfolio, as well as new brands. Digital media content across all the television brands will be developed and distributed to Indian consumers. The joint venture will also syndicate MTVN programming and newly produced content. Studio18, the Motion Pictures division of Network18, is also an integral part of Viacom18 and it will continue to produce, acquire and distribute Hindi-language films. Robert Bakish, President MTV Networks International and Chairman of the Board of Viacom18 Media Pvt Ltd, commented, "This joint venture reinforces our long-term commitment to the Indian market. We look forward to expanding our presence in India with our new partners and are dedicated to providing local audiences with high quality entertainment that is reflective of their culture and the world around them across every screen and for every demographic." Commenting on the partnership, Raghav Bahl, Managing Director - Network18, said, "This is a momentous day that marks the foray of Network18 into the multi-platform entertainment space in India. Viacom's inherent creativity and Network18's operational excellence make a potent combination that places Viacom18 in an enviable position in the Indian entertainment space, to entertain India's burgeoning film and television audiences." About GBN Headquartered in New Delhi, Global Broadcast News Limited -- http://www.ibnlive.com/-- owns and operates a 24-hour English language news and current affairs channel called CNN-IBN. CNN- IBN was launched in December 2005. The Company has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce, inter alia, the CNN name and principal logo. It also has news services agreement with Turner for production and broadcasting services. It is also part of the TV 18 group, which owns and operates some business channels and Internet portals. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Global Broadcast has a stockholder's equity deficit of US$30.6 million. HINDUSTAN COPPER: Net Income Down 45% in Qtr. Ended Sept. 30 ------------------------------------------------------------ Hindustan Copper Ltd's net profit went down 45% to INR518.9 million in the three months ended Sept. 30, 2007, from the INR936.74 million earned in the same period in 2006. Net income slid even with increased revenues because expenses incurred for operations soared more than the growth in earnings. Total revenues jumped 32% to INR4.04 billion while operating expenses zoomed by 69% to INR3.38 billion, bringing the company an operating profit of INR664.24 million in the July-Sept. 2007 quarter (INR1.06 billion in July-Sept. 2006). The copper manufacturer also booked interest charges of INR79.14 million, depreciation of INR49.76 million and INR16.44 million in taxes. A copy of Hindustan Copper's financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2566 Based in Kolkata, India, Hindustan Copper Limited -- http://www.hindustancopper.com/-- is an undertaking of the Government of India. The company is the sole fully integrated copper manufacturer in India. On November 18, 2005, CRISIL Ratings upgraded its outstanding rating on the non-convertible bond program of Hindustan Copper Limited to 'C' from 'D'. Since July 2004, Hindustan Copper has met its interest obligations on the rated instrument on time. The upward revision in the rating is in line with CRISIL's policy of revising ratings, post-default only after monitoring timely debt servicing for a year. Hindustan Copper, however, continues to default on its interest obligations relating to its unrated debt. HMT LTD: Books INR32.4-Mil. Net Loss in Qtr. Ended Sept. 30 ----------------------------------------------------------- HMT Ltd incurred a net loss of INR32.4 million in the second quarter ended Sept. 30, 2007, compared to the INR880.9-million profit earned in the same period in 2006. The change from positive to negative bottom line was mainly brought about by the absence of extraordinary item that the company booked in the July-Sept. 2006, representing gain on sale of land. Operating revenues declined by 8% to INR680.5 million while expenditures went down by 5% to INR713.5 million, brining the company an operating loss of INR33 million. The company earned interest revenues of INR16.6 million while incurring depreciation charges of INR9 million and taxes of INR600,000. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?2560 HMT Limited -- http://www.hmtindia.com/-- is a public sector engineering conglomerate. The company retains the Tractor's Business, which develops tractors ranging from 25 horsepower to 75 horsepower. It has an installed capacity of 18,000 tractors for manufacturing and assembly operations. The company has three tractor manufacturing units in India located at Pinjore in Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh. The subsidiaries of the company include HMT Machine Tools Limited, HMT Watches Limited, HMT Chinar Watches Limited, HMT (International) Limited, HMT Bearings Limited and Praga Tools Limited. The principal segments include Machine tools, Watches, Tractors, Bearings and Exports. The company has a Joint Venture with SUDMO HMT Process Engineers (India) Limited, Bangalore. Credit Analysis and Research Limited downgraded HMT's long-term bond issue of INR310 crore to CARE BB(SO) on Feb. 18, 2005. At the same time, the company's medium term bond issue of INR40.40 crore was likewise downgraded to CARE BB(SO). Instruments rated 'Double B' are considered to be speculative, with inadequate protection for interest and principal payments. QUEBECOR WORLD: Moody's Junks New US$400 Mln Sr. Unsecured Notes ---------------------------------------------------------------- Moody's Investors Service rated Quebecor World Inc.'s new US$400 million senior unsecured note issue Caa1. At the same time, ratings for approximately US$1.6 billion of existing senior unsecured notes for QWI and its wholly-owned subsidiary companies, Quebecor World Capital Corporation and Quebecor World Capital ULC, were downgraded to Caa1 from B3. In addition, QWI's corporate family rating was affirmed at B3, the ratings outlook for all instruments was revised to stable from negative, and QWI's speculative grade liquidity rating was upgraded to SGL-3 from SGL-4. The actions reflect the combined impact of two significant ongoing transactions, the first of which is partial divestiture of QWI's European operations. This will remove a cash flow drag and management distraction while converting the operation into a small amount of cash and a semi- liquid residual investment. Secondly, a CDN$250 million common share issue together with proceeds from the new senior unsecured note issue and a concurrent US$100 million convertible