T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, November 20, 2007, Vol. 10, No. 230 Headlines A U S T R A L I A COLES GROUP: Wesfarmers in Search for Senior Retails Manager JAMES HARDIE: Posts 32% Second Quarter Profit Drop for FY2007 ONE.TEL: Court Grants Liquidator More Time to Decide on Lawsuit WESTPOINT GROUP: ASIC Bans Former Adviser for 7 Years C H I N A & H O N G K O N G ALLIED PACIFIC: Members to Receive Wind-up Report on December 11 ASIAN OPTOMETRIST: Liquidator to Give Wind-up Report on Dec. 16 AU OPTRONICS: Buys LCD Production Equipment for TWD1.53 Billion AU OPTRONICS: To Build 8th Generation Plant AU OPTRONICS: Introduces New Display Technologies AU OPTRONICS: Books TWD22.57-Billion Net Income for 3rd Quarter AU OPTRONICS: October 2007 Revenues Hit TWD53.12 Billion AUDIO MAGNETICS: Members' Final Meeting Set for December 3 DEGUSSA PACIFIC: Commences Liquidation Proceedings DEUTERON DEVELOPING: Commences Liquidation Proceedings DONGXIN ELECTRICAL: Insolvent by CNY8.2 Million at June 30 DRESSEL INVESTMENT: Court to Hear Wind-Up Petition on Dec. 12 EASTERN SOURCES: Court to Hear Wind-Up Petition on Dec. 19 EVERLIGHT ELECTRONICS: Earns TWD1.44 Bil. for First Nine Months EVERLIGHT ELECTRONICS: September 2007 Sales Up By 37% EVERLIGHT ELECTRONICS: Increases Investment in Subsidiary EVERLIGHT ELECTRONICS: To Issue TWD3 Billion in Bonds FLANNEL (ASIA): Members to Meet on December 14 FOREFRONT INTERNATIONAL: Liquidators Resign from Post GOLDTRON M.G.: Members and Creditors to Meet Today GUANGDONG HUALONG: June 30 Debts Exceed Assets by CNY418 Mln HEBEI BAOSHUO: June 30 Balance Sheet Upside-Down By CNY1.71 Bil. HEBEI BAOSHUO: Announces Status of Frozen Shares HONG KONG LIMITED: Court to Hear Wind-Up Petition on Dec. 19 HUATONGTIANXIANG GROUP: Insolvent by CNY411.78 Mil. at Sept. 30 HUATONGTIANXIANG GROUP: Communications Bank Sues for Arrears HUATONGTIANXIANG GROUP: Court Freezes 29 Million Shares HUNAN GENUINE: Sept. 30 Balance Sheet Upside-Down by CNY816.68MM HUNAN GENUINE: Appoints Li Qing as New Chief Financial Officer HUNAN GENUINE: Court Orders Payment of CNY12.8MM to China Citic HUNAN GENUINE: Unit Becomes Party to Loan Dispute Lawsuit KEGO TECHNOLOGY: Liquidators Quit Post KEPO TIME: Liquidators Quit Post LOK SHIPPING: Members to Hear Wind-up Report on December 12 MOLESWORTH INVESTMENTS: Members to Meet on December 14 NG CHAN: Court to Hear Wind-Up Petition on Dec. 19 OAKTREE INVESTMENT: Members to Meet Today PROSPER TRADING: Members to Hold Final Meeting on December 3 QUANTA COMPUTER: Sales Hit TWD74.39 Billion in October 2007 QUANTA: Posts TWD12.88-Bil. Net Income for First Nine Months QUANTA COMPUTER: Gets License for Soleus Platform QUANTA COMPUTER: Wins Smart Phone Contracts From First Int'l SAVE ON FOOD: Court to Hear Wind-Up Petition on Dec. 12 TAI TUNG: Court to Hear Wind-Up Petition on Dec. 12 TRION CHINA: Creditors' Proofs of Debt Due on December 10 TRION INTERNATIONAL: Creditors' Proofs of Debt Due on Dec. 10 WILSON DRAYAGE: Commences Liquidation Proceedings WING HENG: Commences Liquidation Proceedings I N D I A AES CORP: Cash Tender Offer for US$1.24 Bil. Sr. Notes Expires AFFILIATED COMPUTER: Extends E-ZPass New Hampshire Toll Contract AGILENT TECH: Board Okays US$2-Billion Share-Repurchase Program AGILENT TECH: Earns US$180 Million in 4th Quarter Ended Oct. 31 ARTSON ENGINEERING: Profit at INR6 Mil. in Qtr. Ended Sept. 30 CABLE & WIRELESS: Unveils Management Changes at Int'l. Business CABLE & WIRELESS: Earns GBP134 Mln in Six Months Ended Sept. 30 CANARA BANK: Gov't Appoints G. S. Vedi as Executive Director DEV'T CREDIT BANK: Fitch Gives 'D/E' Individual Rating ESSAR OIL: Board Okays US$6-Bil. Vadinar Refinery Expansion QUEBECOR WORLD: Considers Refinancing to Retire Some Loans UTSTARCOM INC: Incurs US$55 Million Net Loss in Third Quarter I N D O N E S I A GARUDA INDONESIA: Taps Airline Marketing NZ as Gen. Sales Agent GARUDA INDONESIA: Further Increases Perth-Bali Services PT INCO: 100 Employees Remain on Strike at Sorowako Mine H.M. SAMPOERNA: Sees Slow Market Share Growth Due to Competition SUMBER SEGARA: S&P Assigns 'B-' Corporate Credit Rating J A P A N JAPAN AIRLINES: To Increase Int'l Fuel Surcharge for 1st Quarter NOVA CORP: G.communication Opens Second School SANYO ELECTRIC: To Invest JPY210 Bil. in Two Profitable Units SANYO ELECTRIC: Lead in Microwave Cues BAIC to Order Recall K O R E A HYNIX SEMICON: 3Q Consolidated Revenue Up 24% to KRW2.44 Tril. HYNIX SEMICON: Creditors Plans to Sell Convertible Bonds MAGNA SEMICON: Files Registration Statement for Proposed IPO M A L A Y S I A ARK RESOURCES: Provides Update on Restructuring Scheme FOREMOST HOLDINGS: To Hold General Meeting on Nov. 26 MBF HOLDINGS: Hong Kong Units Placed in Liquidation OCI BERHAD: Wind-Up Petition Hearing Slated for Dec. 4 PUTERA CAPITAL: To Hold Annual General Meeting on Nov. 28 N E W Z E A L A N D CLEAR CHANNEL: Providence Mulls Rescinding US$1.2-Billion Deal P H I L I P P I N E S GEOGRACE RESOURCES: Inks Management Services Deal with HK Firms GEOGRACE RESOURCES: Moves Annual Stockholders Meeting to Jan. 18 LAFAYETTE MINING: Rapu-Rapu Residents Seek to Shut Down Project METRO PACIFIC: Lists Additional 567,100 Common Shares in PSE PHILCOMSAT HOLDINGS: Parent Calls for Responsible Gov't Nominees RIZAL COMM'L: Lists Additional 167 Common Shares in Local Bourse * Nat'l. Government Reports PHP106.809-Billion Tax Gap for 2006 S I N G A P O R E LIMITED BRANDS: October 2007 Sales Drop 6% to US$644.7 Million PACIFIC CENTURY: Posts SGD7.76MM Net Loss in Qtr. Ended Sept. 30 SEE HUP SENG: Posts SGD3.6MM Net Profit in Qtr. Ended Sept. 30 T H A I L A N D G-STEEL: Expects Annual Revenues to Climb to THB100 Bil. in 2007 LIVE INC: Posts Annual Net Loss of PHP372.032-Mil. For 2006 LIVE INC: First Quarter Loss Drops 17% to THB60.904 Million LIVE INC: Second Quarter Loss Drops 81% to THB63.691 Million PICNIC CORP: Third Quarter Net Loss Drops 64% to THB90.394 Mil. WYNCOAST IND'L: 3rd Quarter Net Loss Climbs 152% to THB38.6 Mil. * BOND PRICING: For the Week 19 November to 23 November 2007 - - - - - - - - ================= A U S T R A L I A ================= COLES GROUP: Wesfarmers in Search for Senior Retails Manager ------------------------------------------------------------ Coles Group Ltd.'s procurer, Wesfarmers Ltd., is on the hunt for world-class, highly experienced senior retail managers to run its newly acquired supermarket chain, Rebecca LeMay writes for The Courier-Mail. According to Ms. LeMay, Wesfarmers managing director Richard Goyder disclosed during the company's annual general meeting that aside from looking for an experienced senior retail manager for Coles, new acquisitions have been successfully bedded down in the insurance division and tipped further bolt-on acquisitions. Wesfarmers Chairman Trevor Eastwood also expressed told shareholders that the group might need to hire another director after Wesfarmers got the nod from the meeting to lift its remuneration pool for non-executive directors to AU$3 million, The Courier-Mail relates. Mr. Eastwood added that the company said this brought it into line with the levels of pay for directors at other companies of its size, states the report. The Courier-Mail adds that more than 14 new Bunnings stores, which is part of Wesfarmers' home improvement division, would be rolled out in Australia and New Zealand next year. Bunnings accounted for 40% of Wesfarmers group earnings in the 2006 financial year, conveys Ms. LeMay. About Coles Group Coles Group Limited, formerly known as Coles Myer Ltd. -- http://www.colesgroup.com.au/Home/-- operates predominantly in the retail industry and is comprised of five business segments: Food, Liquor and Fuel, which includes retail of grocery, liquor and fuel products; Kmart, which is engaged in the retail of apparel and general merchandise; Officeworks, which retails office supplies; Target, which retails apparel and general merchandise, and Property and Unallocated, which is engaged in the management of the Company's property portfolio and unallocated or corporate functions. During the fiscal year ended July 30, 2006, Coles Group Limited opened seven new Kmart stores. In June 2006, Coles Group Limited completed the acquisition of the Hedley Hotel Group. In December 2006, the Company acquired Queensland-based Talbot Hotel Group. The Company operates in Australia, New Zealand and Asia. Moody's Investor Service gave a 'Ba1' rating on the company's preference stock. JAMES HARDIE: Posts 32% Second Quarter Profit Drop for FY2007 ------------------------------------------------------------- James Hardie announced a US$46.5 million net operating profit, excluding asbestos, for the quarter ended September 30, 2007, a decrease of 32% compared to the same period last year. For the quarter, net operating profit including asbestos was US$19.1 million compared to a net operating profit of US$21.1 million for the same quarter last year. For the half year, net operating profit excluding asbestos decreased 12% to US$115.1 million from US$131.0 million. Including asbestos, net operating profit increased 3% to US$58.2 million. Operating Performance Second quarter net sales decreased 5% to US%390.1 million, gross profit was down 11% to US$138.8 million and EBIT excluding asbestos decreased 15% to US$74.7 million. EBIT including asbestos increased 9% from US$41.0 million to US$44.7 million. For the half year, net sales decreased 1% to US$814.5 million, gross profit was down 2% to US$305.7 million and EBIT excluding asbestos decreased 2% to US%180.4 million. EBIT including asbestos increased 9% from US$109.9 million to US$119.7 million. Housing construction activity in our major markets continued to weaken during the quarter, with new construction in the United Stated, our largest market, significantly below the level of activity in the same quarter last year. Our USA Fibre Cement business again partly offset the impact of the weaker market through market share gains and a higher average net sales price. Net sales fell 9% for the quarter and 5% for the half year. EBIT was down 14% to US$84.3 million and 1% to US$198.7 million for the quarter and half year respectively, due to lower volumes and higher costs in the second quarter. Despite weaker market condition in Australia, Asia Pacific Fibre Cement net sales were up 19% for the quarter due to increased demand for fibre cement, a higher average net sales price and the strength of the Australian dollar against the US dollar. Asia Pacific Fibre Cement EBIT increased 8% to US$12.4 million for the quarter and 14% to US$24.8 million for the half year due to improved operating performance in the Australia and New Zealand Fibre Cement businesses and favorable currency movements. Diluted earnings per share for the quarter fell to US$4.1 cents per share from US$4.5 cents in the same period last year and increased by 2% from US$12.1 cents to US$12.4 cents for the half year. Diluted earnings per share excluding asbestos decreased by 32% from US$14.7 cents to US$10.0 cents for the quarter and decreased by 12% from US$28.1 cents to US$24.6 cents for the half year. Commentary James Hardie's CEO, Louis Gries said: "Our major businesses experienced a further deterioration in market conditions during the second quarter, but they continued to perform well and helped produce a solid half year operating result with EBIT down only 2%, excluding asbestos. "Sales in our USA Fibre Cement business were again affected by the down-turn in US housing activity, but it continued to take market share from alternative materials and outperform the broader market. "The outlook for North America is for further weakness in new housing activity at least through the remainder of this fiscal year. We recently announced the suspension of operations at our Blandon, Pennsylvania, facility and we believe that this, together with our earlier business reset, position us well to address the weaker market conditions. "Our Asia Pacific Fibre Cement business performed very well in the first half, also outperforming the broader market and growing both sales and EBIT. Its range of differentiated products is helping to grow demand for fibre cement in Australia and New Zealand," Mr. Gries said. Dividend The company announced an interim dividend of US$12 cents a share. The dividend was declared in US currency and will be paid on December 18, 2007, with a record date of December 4, 2007. The Australian currency equivalent of the dividend to be paid to CUFS holders will be announced to the ASX on that date. ADR holders will receive their dividend in US currency. Share Purchase Program On August 15, 2007, the company announced a share repurchase program of up to 10% of the company's issued capital, approximately 46.8 million shares. The company has repurchased approximately 7.5 million shares of common stock having an aggregate cost of AU$54.0 million (US$47.1 million) as of September 2007. During the period between October 1, 2007 and October 12, 2007, the company repurchased approximately 4.2 million shares of common stock having an aggregate cost of AU$30.8 million (US$27.1 million). The company plans to repurchase shares periodically, depending on market conditions. USA Fibre Cement Second quarter net sales were down 9% compared to the same quarter last year, to US$308.0 million. Sales volume decreased 11% to 511.7 million square feet, and the average net sales prices was higher at US$602 per thousand square feet. For the half year, net sales were down 5% compared to the same period last year, to US$654.1 million. Sales volume decreased 8% to 1,085.1 million square feet, and the average net sales prices was higher at US$603 per thousand square feet. The residential construction market weakened further during the quarter due to high inventory levels of new houses for sales and affordability issues associated with higher interest rates and tightened lending standards in the mortgage market. Repair and remodelling activity was slightly weaker compared to the same quarter last year. Geographically, the Western Division continued to perform well, but sales were down for all divisions against the same quarter last year. Market penetration against alternative materials and a higher average net sales price again helped partly offset the impact of the weaker market. There was moderate sales growth in our ColorPlus(R) collection of products, XLD(R) trim and Hardiebacker(TM) 500 underlayment, but sales of other higher- priced, differentiated products decreased compared to the same period last year. Sales in our interior products category were slightly lower compared to the same quarter last year. EBIT for the quarter was 14% lower at US$84.3 million, primarily due to lower volume and higher manufacturing costs, partly offset by lower SG&A spending compared to the same quarter last year. The EBIT margin was 27.4%. For the half year, EBIT was 1% lower at US$198.7 million and the EBIT margin was 30.4%. Asia Pacific Fibre Cement Net sales increased 19% to US$76.1 million for the quarter. In Australian dollars, net sales increased 7% due to a 4% increase in sales volumes and a 3% increase in the average Australian dollar net sales price. For the half year net sales increased 20% to US$147.3 million. In Australian dollars, net sales increased 7% due to a 5% increase in sales volumes and a 2% increase in the average Australian dollar net sales price. Residential construction activity was slightly weaker in Australia, flat in New Zealand and stronger in the Philippines compared to the same quarter last year. In Australia, the business continued to grow demand for fibre cement and increase market share through increased sales of its Scyon(TM) product range. In New Zealand, continuing strong growth in sales of Linea(TM) weatherboards helped the business increase market share. In the Philippines, net sales increased due to mainly to higher domestic prices and an increased proportion of export sales in the sales mix. EBIT was 8% higher for the quarter at US$12.4 million and 14% higher at US$24.8 million for the half year due to the improved sales performance together with the increase in the Australian dollar against the US dollar. The EBIT margin was 16.4% for the quarter and 16.8% for the half year. USA Hardie Pipe Net sales for the quarter and half year decreased compared to the same periods last year due to the impact of weaker residential and non-residential construction activity in Florida, partly offset by an increase in the average net sales price. The business is continuing to focus on growing sales in its core markets and expanding into other strategic markets. A small negative EBIT was recorded for the quarter and half year. Europe Fibre Cement Sales continued to grow steadily during the quarter. EBIT losses for the quarter and half year were materially reduced compared to the same periods last year. ASIC Proceedings In February 2007, the Australian Securities and Investments Commission (ASIC) commenced civil proceedings against JHI NV, a former subsidiary and ten former officers and directors of the James Hardie group. The civil proceedings concern alleged contraventions of certain provisions of the Corporation Law and/or the Corporations Act connected with the affairs of the company and certain subsidiaries during the period February 2001 to June 2003. The company has considered the impact of the ASIC proceedings upon its current financial statements and believes that these proceedings will have no material impact. However, there remains considerable uncertainty surrounding the likely outcome of the ASIC proceedings in the longer term and there is a possibility that the related costs to the company could become material. At this stage it is not possible to determine the amount of any such liability. Cash Flow Operating cash flow for the half year ended September 30, 2007 increased from a utilization of US$22.3 million to cash provided of US$231.0 million. The increase was driven primarily by the payment of the initial ATO deposit during the six months ended September 30, 2006 totaling US$141.4 million, compared to a US$3.7 million payment in the current half year. In addition, the increase was driven by an increased focus on working capital management throughout the half year. Capital expenditures for the purchase of property, plant and equipment decreased from US$61.4 million to US$24.2 million. Outlook In North America, the outlook for residential construction activity is for some further weakness through to at least the end of this fiscal year. There is still a large backlog of new houses for sale and indicators of future activity such as housing permits and builder confidence all suggest that a recovery is not likely in the near-term. Further adjustments are being made to the US business with the suspension of operations at our Blandon, Pennsylvania plant and this, together with the earlier business reset in late 2006 and early 2007, are expected to keep the company well-positioned for dealing with the weaker market conditions. The business is now being set on the basis that new housing starts will be at an annual rate of 1.1 million, down from the earlier assumption of 1.3 million starts. The business is continuing to focus on increasing primary demand for fibre cement and growing its market share in both the exterior and interior product categories to help reduce the impact of weaker housing construction activity. Cost pressures, particularly from higher input material costs are expected to remain in the second half of this fiscal year. In our Asia Pacific business, some further weakening in market conditions is expected in Australia and New Zealand over the short-term, but conditions in the Philippines are expected to remain healthy. The business in continuing to focus on market initiatives around its differentiated product range to grow primary demand. Further manufacturing efficiencies and cost savings are expected. Non-differentiated products are expected to remain subject to strong competitive pressures. We note the range of analysts' forecasts for operation profit from continuing operations, excluding asbestos and the Blandon, Pennsylvania plant impairment cost, for the year ended March 31, 2008 of between US$181 million and US$207 million. The company is comfortable with the bottom end of this range, but notes there is still a significant amount of uncertainty over the outlook for US housing activity. Changes to the Amended FFA liability to reflect changes in foreign exchange rates or updates to the actuarial estimate may have a material impact on the company's consolidated financial statements. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. The company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. As reported by Asbestos Litigation on Feb. 16, 2007, the Australian Securities & Investments Commission has sued James Hardie Industries NV, claiming the Company misled investors over the cost of compensating people sickened by asbestos. The ASIC said that Chairman Meredith Hellicar, former Chief Executive Officer Peter MacDonald and eight other officials face bans from running a public company and fines of more than AU$200,000 or US$160,000. The suit centers on a Feb. 16, 2001 press release when the Company said a newly created AUD293 million fund was "sufficient" to compensate victims of asbestos poisoning. A government inquiry later found the fund would have run out of money in three years and the Company was forced to set up a new AU$1.6 billion compensation fund. ONE.TEL: Court Grants Liquidator More Time to Decide on Lawsuit --------------------------------------------------------------- The New South Wales Supreme Court has granted One.Tel's special purpose liquidator, Paul Weston, until May 2008 to decide whether to proceed with damages suit against Publishing & Broadcasting Ltd., News Ltd., and other potential defendants, The Sydney Morning Herald reports. Justice Reg Barrett also entered a similar order for One.Tel's managing director, Jodee Rich. SMH's Elisabeth Sexton writes that PBL lawyers wanted to intervene in the hearing. PBL's barrister, Andrew Bell, SC, claims that "real questions of potential abuse and unfairness arise" from the possibility that Mr. Rich, a private litigant, was "coat-tailing or free-riding on the extraordinary powers of a court-appointed special purpose liquidator." However, Judge Barrett ruled yesterday that PBL could not become involved until Mr. Weston served his claims on the defendants, saying that the court rules explicitly gave PBL the right to challenge the extension of time "after the event," relates SMH. Both Mr. Weston and Mr. Rich filed statements of claim in May, which without the judge's extension would have lapsed later this month if not served, adds SMH. SMH further notes that Mr. Weston and Mr. Rich seek compensation for a decision to abandon a AU$132-million rights issue, made on the same day One.Tel went into administration in May 2001. The Australian reports that Mr. Weston further added that "a number of litigation funders" had expressed interest in bankrolling any action he might decide to pursue against PBL, News and some of their executives, including James Packer and Lachlan Murdoch. The court, however, said that this was unlikely to be made until February next year. PBL and News Ltd., publisher of The Australian, are both large shareholders in One.Tel, notes SMH. About One.Tel One.Tel Limited is an Australian based telecommunications company, belonging to One.Tel Group. One.Tel Ltd. was established in 1995 soon after the deregulation of the Australian telecommunications industry, most of which are currently under external administration by court appointed liquidators. One.tel is currently in liquidation due to financial problems. Ferrier Hodgson was appointed as voluntary administrator on May 29, 2001. The administrator's report stated that the company was insolvent as of March 2001. Accordingly, the administrator terminated approximately 3,000 employees in June that same year. Steve Sherman and Peter Walker of Ferrier Hodgson were then named liquidators on July 24, 2001. The Liquidators can be reached at: Steve Sherman Peter Walker Joint Liquidators Ferrier Hodgson Level 17 2 Market Street Sydney, NSW Australia 2000 WESTPOINT GROUP: ASIC Bans Former Adviser for 7 Years ----------------------------------------------------- The Australian Securites & Investments Commission has banned Philip Gerard Wade, of Jandakot in Western Australia, from providing financial services for seven years. Mr. Wade provided financial planning services through Brighton Hall Securities Pty. Ltd. (Brighton Hall) between September 24, 2001, and September 12, 2003. During this time, he was a proper authority holder and then an authorized representative of Brighton Hall. Mr. Wade provided advice to clients from across the Perth metropolitan area. An ASIC investigation found that in 2001 and 2002, Mr. Wade: * failed to provide appropriate advice about Westpoint products to his clients, and * engaged in conduct that was misleading and deceptive, or likely to mislead and deceive, with respect to the Westpoint products. Mr. Wade has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC's decision. Eleven banning briefs in relation to advisers who advised on Westpoint products are currently under consideration. About Westpoint Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty. Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================ C H I N A & H O N G K O N G ================================ ALLIED PACIFIC: Members to Receive Wind-up Report on December 11 ---------------------------------------------------------------- The members of Allied Pacific International Limited will hold their final meeting on December 11, 2007, at 10:00 a.m. to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the 5th Floor of Dah Sing Life Building, 99-105 Des Voeux Road, in Central, Hong Kong. The company's liquidator is Ko Chi Keung. ASIAN OPTOMETRIST: Liquidator to Give Wind-up Report on Dec. 16 --------------------------------------------------------------- The members of Asian Optometrist Limited will hold their final meeting on December 16, 2007, at 10:30 a.m. to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Flat D, 6th Floor, Block 20, in Tai Po, N.T. AU OPTRONICS: Buys LCD Production Equipment for TWD1.53 Billion --------------------------------------------------------------- AU Optronics Corp. has purchased liquid crystal display production equipment for TWD1,528,784,000 from other companies, including Hitachi Plant Technologies, Ltd., Reuters Key Developments reports. Reuters did not provide further details about the acquisition. Taiwan-based AU Optronics Corp. -- http://www.auo.com/auoDEV/?ls=tc-- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Au Optronics' long-term local and foreign currency issuer default carries Fitch Ratings' BB rating. AU OPTRONICS: To Build 8th Generation Plant ------------------------------------------- AU Optronics Corp. plans to build its 8th generation factory, which the company expects to start mass production in 2010, Reuters Key Developments reports, citing Dow Jones Chinese Financial Wire. Reuters adds that the company expects to complete its plans for the construction of the factory by the end of this year. The new factory will help the company meet demand for flat-panel televisions measuring 50 inches or more, Reuters relates. Taiwan-based AU Optronics Corp. -- http://www.auo.com/auoDEV/?ls=tc-- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Au Optronics' long-term local and foreign currency issuer default carries Fitch Ratings' BB rating. AU OPTRONICS: Introduces New Display Technologies ------------------------------------------------- AU Optronics Corp. unveiled technologies for mobile device applications, including two kinds of in-cell multi-touch panel technologies and 1.9-inch mobile device panel of 0.69mm, Reuters Key Developments reports. Reuters says that the newly introduced small- and medium-sized display technologies once again demonstrate the company's aggressive approach towards strengthening self-developed innovations and increasing its value-added products. Taiwan-based AU Optronics Corp. -- http://www.auo.com/auoDEV/?ls=tc-- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Au Optronics' long-term local and foreign currency issuer default carries Fitch Ratings' BB rating. AU OPTRONICS: Books TWD22.57-Billion Net Income for 3rd Quarter --------------------------------------------------------------- AU Optronics Corp. released unaudited results for the third quarter of 2007. All financial information was unaudited and was prepared by the company in accordance with generally accepted accounting principles in Taiwan. For the third quarter ended Sept. 30, 2007, AUO's consolidated revenue totaled TWD137.96 billion, consolidated net income TWD22.57 billion, attributable to equity holders of the parent company TWD22.53 billion and basic EPS TWD2.89 per common share. For the first nine months of 2007, AUO's consolidated revenues totaled TWD324.00 billion, consolidated net income after tax TWD23.38 billion, attributable to equity holders of the parent company TWD23.41 billion and basic EPS TWD3.00 per common share. In terms of 3Q2007 panel shipments, large-sized panel increased by 14.3% to 22.26 million from 2Q2007, while shipments of small- and medium-sized panel amounted to 40.70 million with a 26.3% QoQ increase, both once again set record high for the company's single-quarter unit shipment. Mr. Max Cheng, Vice President and Chief Financial Officer of AUO, stated, �We are extremely pleased with the record high operating results that we have reached today. The 3Q2007 consolidated after-tax net income of TWD22.5 billion was 1.5 times more than the previous record high of TWD14.3 billion in 2Q2004. In addition to the strong demand from end-user markets, and stable even gradually increased panel ASP, the contributions of post-QDI merger synergy with the result of the whole is greater than the sum of the parts boosted the 3Q2007 gross margin to 23% from 11.4% sequentially, while the operating margin lifted to 18.7% from the earlier quarter of 6.5%. Through over one year of several post-M&A integration initiatives, such as R&D platform resource integration, better supply chain management practice, optimization of complementary production line strategy in different generation fabrications, and implement of more competitive product mix, AUO successfully reduced the 3Q2007 inventory turnover to 38 days from 43 days sequentially, and further demonstrated its outstanding execution to accomplished the extremely difficult QDI merger case as well as its effective integration initiatives to maximize business performance. � Taiwan-based AU Optronics Corp. -- http://www.auo.com/auoDEV/?ls=tc-- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Au Optronics' long-term local and foreign currency issuer default carries Fitch Ratings' BB rating. AU OPTRONICS: October 2007 Revenues Hit TWD53.12 Billion -------------------------------------------------------- AU Optronics Corp.'s October 2007 revenue with preliminary consolidated revenue of TWD53.12 billion and unconsolidated revenue of TWD53.06 billion, both slightly dropped 1.1% sequentially from the previous month, the company said in a 6-K filing with the United States Securities and Exchange Commission. On a year-over-year comparison, consolidated and unconsolidated September 2007 revenues still increased significantly by 59.7% and 59.5% respectively. The company adds that in supporting the upcoming seasonal demand, AUO's current loading rate remains to be full. In the meanwhile, AUO shifted most of the shipments to be transited by air from September resulted in the decrease of goods-in-transit and lower inventory turnover days. With a much higher base generated in September, the shipment of large-sized panels for October experienced a slight 3.4% sequential decline and amounted to 7.9 million. Shipments of small-and-medium-sized panels set a new record of 15.5 million units, presented a 9.4% sequential increase. The company's filing includes the following sales report (in TWD, millions): Net Sales Consolidated Unconsolidated ---------------- ---------------- October 2007 53,121 53,062 September 2007 53,729 53,672 M-o-M Growth (1.1%) (1.1%) October 2006 33,270 33,273 Y-o-Y Growth 59.7% 59.5% Jan. to Oct. 2007 377,810 377,534 Jan. to Oct. 2006 231,731 231,700 Y-o-Y Growth 63.0% 62.9% Taiwan-based AU Optronics Corp. -- http://www.auo.com/auoDEV/?ls=tc-- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Au Optronics' long-term local and foreign currency issuer default carries Fitch Ratings' BB rating. AUDIO MAGNETICS: Members' Final Meeting Set for December 3 ---------------------------------------------------------- The members of Audio Magnetics (HK) Limited will hold their final meeting on December 3, 2007, at 11:00 a.m. to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the 31st Floor of The Center, 99 Queen's Road, in Central, Hong Kong. DEGUSSA PACIFIC: Commences Liquidation Proceedings -------------------------------------------------- Degussa Pacific Limited commenced liquidation proceedings on October 26, 2007. The company's liquidators is: Natalia K M Seng Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong DEUTERON DEVELOPING: Commences Liquidation Proceedings ------------------------------------------------------ Deuteron Developing Company Limited commenced liquidation proceedings on October 23, 2007. The company's liquidators is: Lin Chao Chein No. 20, 59 Alley Chung Tai Street Feng Shan City, Kaohsiung Taiwan DONGXIN ELECTRICAL: Insolvent by CNY8.2 Million at June 30 ------------------------------------------------------- Dongxin Electrical Carbon Co., Ltd., reported a net income of CNY14.5 million for the first half of 2007, a turnaround from the CNY16.0-million net loss recorded for the first half of 2006. The company reported a 23.9% decline in sales to CNY17.5 million, which translates to a CNY7.6 million operating loss. The company, however, reported a net one-off gain of CNY22.1 million for the first half of 2007. As of June 30, 2007, the company had total assets of CNY260.0 million and total liabilities of CNY268.2 million, resulting in a capital deficiency of CNY8.2 million. The company expects to report a net profit for the full year 2007, Reuters Key Developments reports. Headquartered in Zigong, Sichuan Province, China, Dongxin Electrical Carbon Co., Ltd. -- http://www.dt691.com/-- is engaged in the manufacture and distribution of non-metallic mineral products. The company's products include electrical carbon products, mechanical seals and metallurgy powder products. DRESSEL INVESTMENT: Court to Hear Wind-Up Petition on Dec. 12 ------------------------------------------------------------- The High-Court of Hong Kong will hear a petition to have Dressel Investment Limited's operation wound up on December 12, 2007, at 9:30 a.m. The petition was filed by Elly Norindah Poerwanto On October 3, 2007. EASTERN BROADCASTING: Revenues Reach TWD3.92 Billion in October --------------------------------------------------------------- Eastern Broadcasting Co., Ltd.'s revenues in October 2007 fell 10.58% year-on-year to TWD393.62 million from TWD440.18 million, according to data obtained from Bloomberg News. Year-to-date revenues totaled TWD3.92 billion, down 25.22% year- on-year, while revenues in September 2007 fell 23.59% year-on- year to TWD385.10 million. Based in Taiwan, Eastern Broadcasting Co., Ltd. -- http://www.ettv.com.tw/ettv2003/01/engindex.htm-- is engaged in the planning, production, publishing and sale of satellite broadcasting and television programs. The company also operates cable television channels. The Troubled Company Reporter-Asia Pacific reported on Jan. 12, 2007, that Fitch Ratings gave Eastern Broadcasting long-term foreign and local currency issuer default ratings of BB. EASTERN SOURCES: Court to Hear Wind-Up Petition on Dec. 19 ---------------------------------------------------------- On October 8, 2007, Fung Ping Por filed a petition to have Eastern Sources (Brothers) Plastic Products Company Limited's operations wound up. The petition will be heard before the High-Court of Hong Kong on December 19, 2007, at 9:30 a.m. EVERLIGHT ELECTRONICS: Earns TWD1.44 Bil. for First Nine Months --------------------------------------------------------------- Everlight Electronics Co. Ltd. posted a net income of TWD1.44 billion for the nine-month period ended Sept. 30, 2007, slightly better than the net income of TWD1.34 billion posted for the previous corresponding period. The company reported sales of TWD7.03 billion, while cost of goods sold and other operating expenses amounted to TWD5.77 billion, giving the company an operating income of TWD1.25 billion. As of Sept. 30, 2007, the company had total assets of TWD14.19 billion, total liabilities of TWD5.25 billion, and total shareholders' equity of TWD8.94 billion. Headquartered in Taipei, Taiwan, Everlight Electronics Co., ltd. -- http://www.everlight.com/cht/index.asp-- is engaged in the manufacture of light emitting diode devices. The company distributes its products mainly in Asia, Europe and the Americas. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Standard & Poor's Ratings Services assigned its BB long-term corporate credit rating to Everlight Electronics. The outlook is stable. EVERLIGHT ELECTRONICS: September 2007 Sales Up By 37% ----------------------------------------------------- Everlight Electronics Co., Ltd.'s sales in September 2007 rose 37.18% year-on-year to TWD991.46 million from TWD722.77 million, the company said on its Web site. Year-to-date sales totaled TWD7.03 billion, a 20.55% improvement year-on-year. The company's Web site provides the following monthly sales report: Month Sales (TWD in '000s) ----- -------------------- January 633,468 February 601,369 March 730,457 April 708,743 May 761,686 June 800,318 July 869,553 August 931,011 September 991,462 Headquartered in Taipei, Taiwan, Everlight Electronics Co., Ltd. -- http://www.everlight.com/cht/index.asp-- is engaged in the manufacture of light emitting diode devices. The company distributes its products mainly in Asia, Europe and the Americas. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Standard & Poor's Ratings Services assigned its BB long-term corporate credit rating to Everlight Electronics. The outlook is stable. EVERLIGHT ELECTRONICS: Increases Investment in Subsidiary --------------------------------------------------------- Everlight Electronics Co Ltd. will invest TWD311,250,000 in its wholly owned investment subsidiary in Mainland China, Reuters Key Developments reports. Reuters, however, provided no further details. Headquartered in Taipei, Taiwan, Everlight Electronics Co., ltd. -- http://www.everlight.com/cht/index.asp-- is engaged in the manufacture of light emitting diode devices. The company distributes its products mainly in Asia, Europe and the Americas. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Standard & Poor's Ratings Services assigned its BB long-term corporate credit rating to Everlight Electronics. The outlook is stable. EVERLIGHT ELECTRONICS: To Issue TWD3 Billion in Bonds ----------------------------------------------------- Everlight Electronics Co. Ltd. will issue TWD3 billion in unsecured convertible corporate bonds with a par value of TWD0.1 million per bond, due in five years, Reuters Key Developments reports. Reuters adds that the issue price is the same as the par value. The coupon rate is 0%. The net proceeds will be used to construct building and purchase mechanical equipments. Headquartered in Taipei, Taiwan, Everlight Electronics Co., ltd. -- http://www.everlight.com/cht/index.asp-- is engaged in the manufacture of light emitting diode devices. The company distributes its products mainly in Asia, Europe and the Americas. The Troubled Company Reporter-Asia Pacific reported on Aug. 15, 2007, that Standard & Poor's Ratings Services assigned its BB long-term corporate credit rating to Everlight Electronics. The outlook is stable. FLANNEL (ASIA): Members to Meet on December 14 ---------------------------------------------- The members of Flannel (Asia) Limited will have their final meeting on December 14, 2007, at 3:00 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 1601-02, 16th Floor of One Hysan Avenue, in Causeway Bay, Hong Kong. The company's liquidator is James Wardell. FOREFRONT INTERNATIONAL: Liquidators Resign from Post ----------------------------------------------------- On October 18, 2007, Kelvin Edward Flynn and Cosimo Borelli stepped down as liquidators for Forefront International Limited. The members of the company proposed to appoint David Giles Maund and Gaspar Fernando to replace the former liquidators. GOLDTRON M.G.: Members and Creditors to Meet Today -------------------------------------------------- The creditors of Goldtron M.G. Engineering Company Limited will hold their final meeting on November 20, 2007, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Room 704, 7th Floor of The Boy's and Girl's Clubs Association of Hong Kong, No. 3 Lockhart Road, in Wanchai, Hong Kong. GUANGDONG HUALONG: June 30 Debts Exceed Assets by CNY418 Mln ------------------------------------------------------------ Guangdong Hualong Groups Limited Company reported a net loss of CNY19.0 million for the half-year ended June 30, 2007, a 75.4% improvement against the CNY77.4-million net loss reported for the half-year ended June 30, 2006. The company reported a 90.2% drop in sale to CNY0.4 million for the half-year to June 30, 2007, while operating expenses amounted to CNY6.0 million, giving the company an operating loss of CNY5.6 million, a 68.6% improvement year-on-year. As of June 30, 2007, the company had total assets of CNY69.1 million and total liabilities of CNY487.3 million, resulting in a capital deficiency of CNY418.2 million. Headquartered in Chengdu, Sichuan Province, China, Guangdong Hualong Groups Limited Company is engaged in sea breeding, sea fishing and repair of fishing boats. The company is also engaged in providing Internet network services. HEBEI BAOSHUO: June 30 Balance Sheet Upside-Down By CNY1.71 Bil. ---------------------------------------------------------------- Hebei Baoshuo Co., Ltd., reported a net loss of CNY153.20 million for the first half of 2007, an increase against the CNY122.70-million net loss recorded a year earlier. The company had sales of CNY718.00 million, which translated to an operating income of CNY10.50 million after operating expenses of CNY707.50 million. As of June 30, 2007, the company had total assets of CNY2.28 billion and total liabilities of CNY3.99 billion, resulting in a capital deficiency of CNY1.71 billion. Net Loss Outlook Reuters Key Developments reports that the company expects to report another loss for fiscal year 2007, after the CNY1.66-billion net loss recorded for fiscal year 2006. According to Reuters, the company blames the problems in working capital revolving as the reasons for this estimated outlook. Headquartered in Baoding, Hebei Province, the People's Republic of China, Hebei Baoshuo Co., Ltd. -- http://www.baoshuo.com.cn/ -- is engaged in the manufacture and sale of plastic products and chemical products. The company offers thin polyethylene film, polyvinyl chloride pipes, PVC profiles, PVC resin, caustic soda, plastic-iron windows and doors, packaging film, chlor- alkali products, xylitol and furfuryl alcohol. HEBEI BAOSHUO: Announces Status of Frozen Shares ------------------------------------------------ Hebei Baoshuo Co., Ltd., said that its 24,020,610 shares, held by its controlling shareholder, have been continuously frozen, Reuters Key Developments reports. The shares were frozen on Oct. 10, 2007, and will remain so until April 9, 2008. Reuters also reports in a separate entry that 150,683,512 shares, owned by Hebei Baoshuo Group, have been unfrozen on Oct. 22, 2007. Headquartered in Baoding, Hebei Province, the People's Republic of China, Hebei Baoshuo Co., Ltd. -- http://www.baoshuo.com.cn/ -- is engaged in the manufacture and sale of plastic products and chemical products. The company offers thin polyethylene film, polyvinyl chloride pipes, PVC profiles, PVC resin, caustic soda, plastic-iron windows and doors, packaging film, chlor- alkali products, xylitol and furfuryl alcohol. As of June 30, 2007, the company had total assets of CNY2.28 billion and total liabilities of CNY3.99 billion, resulting in a capital deficiency of CNY1.71 billion. HONG KONG LIMITED: Court to Hear Wind-Up Petition on Dec. 19 ------------------------------------------------------------ On October 10, 2007, Hui Tao Shing filed a petition to have Save On Food Limited's operations wound up. The petition will be heard before the High-Court of Hong Kong on December 12, 2007, at 9:30 a.m. HUATONGTIANXIANG GROUP: Insolvent by CNY411.78 Mil. at Sept. 30 --------------------------------------------------------------- HuaTongTianXiang Group Co., Ltd., reported a net loss of CNY44.79 million for the quarter ended Sept. 30, 2007. Sales for the period amounted to CNY7.16 million while cost of goods sold and other operating expenses amounted to CNY10.86 million, giving the company an operating loss of CNY2.70 million. As of Sept. 30, 2007, the company had total assets of CNY436.56 million and total liabilities of CNY839.03 million, resulting in a capital deficiency of CNY411.78 million. Headquartered in Tianjin, the People's Republic of China, HuaTongTianXiang Group Co., Ltd., is engaged in breeding, agriculture, trading and real estate businesses. HUATONGTIANXIANG GROUP: Communications Bank Sues for Arrears ------------------------------------------------------------ The Fuzhou Jiaotong Road Sub-branch of Communications Bank of China has filed a lawsuit against HuaTongTianXiang Group Co., Ltd., and another company with the Intermediate People's Court of Fujian Province, regarding the arrears of a prepayment of CNY12,062,407, Reuters Key Developments reports. Reuters adds that the lawsuit is scheduled for trial on Dec. 12, 2007. Headquartered in Tianjin, the People's Republic of China, HuaTongTianXiang Group Co., Ltd. is engaged in breeding, agriculture, trading and real estate businesses. The company had annual losses of CNY30.5 million, CNY298.0 million and CNY393.3 million for the years ended Dec. 31, 2004, 2005, and 2006. As of Sept. 30, 2007, the company had total assets of CNY436.56 million and total liabilities of CNY839.03 million, resulting in a capital deficiency of CNY411.78 million. HUATONGTIANXIANG GROUP: Court Freezes 29 Million Shares ------------------------------------------------------- HuaTongTianXiang Group Co., Ltd.'s 29,207,000 shares have been frozen by the Shanghai No.1 Intermediate People's Court, Reuters Key Developments reports. Reuters notes that the freeze period is from Oct. 22, 2007, to April 21, 2008. The shares are currently held by the company's second largest shareholder. Headquartered in Tianjin, the People's Republic of China, HuaTongTianXiang Group Co., Ltd. is engaged in breeding, agriculture, trading and real estate businesses. The company had annual losses of CNY30.5 million, CNY298.0 million and CNY393.3 million for the years ended Dec. 31, 2004, 2005, and 2006. As of Sept. 30, 2007, the company had total assets of CNY436.56 million and total liabilities of CNY839.03 million, resulting in a capital deficiency of CNY411.78 million. HUNAN GENUINE: Sept. 30 Balance Sheet Upside-Down by CNY816.68MM ---------------------------------------------------------------- Hunan Genuine Material Group Co., Ltd., posted a net loss of CNY14.35 million for the quarter ended Sept. 30, 2007. The company incurred a CNY15.67-million net loss in the quarter ended June 30, 2007. Sales for the period in review amounted to CNY118.99 million, while operating expenses totaled CNY123.86 million, resulting in an operating loss of CNY4.87 million. As of Sept. 30, 2007, the company had total assets of CNY434.75 million and total liabilities of CNY1.25 billion, resulting in a capital deficiency of CNY816.68 million. Headquartered in Changsha, Hunan Province, China, Hunan Genuine Material Group Co., Ltd., is primarily engaged in the production of aluminum sections, polyvinyl chloride products, artificial leather and plastic products. It also supplies biological products. HUNAN GENUINE: Appoints Li Qing as New Chief Financial Officer -------------------------------------------------------------- Hunan Genuine Material Group Co., Ltd. appointed Li Qing as its new chief financial officer, replacing Gu Shu'an, Reuters Key Developments reports. Headquartered in Changsha, Hunan Province, China, Hunan Genuine Material Group Co., Ltd. is primarily engaged in the production of aluminum sections, polyvinyl chloride products, artificial leather and plastic products. It also supplies biological products. As of Sept. 30, 2007, the company had total assets of CNY434.75 million and total liabilities of CNY1.25 billion, resulting in a capital deficiency of CNY816.68 million. HUNAN GENUINE: Court Orders Payment of CNY12.8MM to China Citic --------------------------------------------------------------- Hunan Genuine Material Group Co., Ltd.'s unit, Hunan Dongting Aquaculture Co., Ltd., has received a verdict from the High People's Court of Hunan Province, regarding Hunan Dongting Aquaculture's liabilities guarantee for Hunan Genuine New Material Group Co., Ltd., from Changsha Branch of China Citic Bank, Reuters Key Developments reports. Reuters says that according to the judgment, Hunan Genuine New Material Group should pay back CNY12,800,000 to the bank and the suit will be discontinued. Headquartered in Changsha, Hunan Province, China, Hunan Genuine Material Group Co., Ltd. is primarily engaged in the production of aluminum sections, polyvinyl chloride products, artificial leather and plastic products. It also supplies biological products. As of Sept. 30, 2007, the company had total assets of CNY434.75 million and total liabilities of CNY1.25 billion, resulting in a capital deficiency of CNY816.68 million. HUNAN GENUINE: Unit Becomes Party to Loan Dispute Lawsuit --------------------------------------------------------- Hunan Genuine Material Group Co., Ltd.'s Changsha-based subsidiary is a party in a loan dispute lawsuit filed by Yueyang City Commercial Bank, Reuters Key Developments reports. Hunan Genuine's subsidiary was included because it acted as guarantor of the loan. Also included as defendants to the bank's lawsuit are a Yueyang-based aluminum company and a Hunan- based aluminum company. The bank has demanded the return of the principal arrears amounting to CNY24.92 million and CNY4.32 million in interest by the Yueyang-based aluminum company. Headquartered in Changsha, Hunan Province, China, Hunan Genuine Material Group Co., Ltd. is primarily engaged in the production of aluminum sections, polyvinyl chloride products, artificial leather and plastic products. It also supplies biological products. As of Sept. 30, 2007, the company had total assets of CNY434.75 million and total liabilities of CNY1.25 billion, resulting in a capital deficiency of CNY816.68 million. KEGO TECHNOLOGY: Liquidators Quit Post -------------------------------------- On October 30, 2007, Jacky Chung Wing Muk and Gabriel Chi Kok Tam stepped down as liquidators for Kego International Limited, which is undergoing voluntary wind-up. The company commenced voluntary liquidation on May 9, 2006. KEPO TIME: Liquidators Quit Post ------------------------------- On October 30, 2007, Jacky Chung Wing Muk and Gabriel Chi Kok Tam stepped down as liquidators for Kepo Time Limited. The company is currently undergoing a voluntary wind-up of its operations. LOK SHIPPING: Members to Hear Wind-up Report on December 12 ----------------------------------------------------------- The members of Lok Shipping Limited will hold their final meeting on December 12, 2007, at 10:30 a.m. to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at 905 Silvercord, Tower 2, 30 Canton Road, Tsimshatsui, in Kowloon, Hong Kong. The company's liquidators are Ricky P.O. Chong and Cordelia Tang. The Liquidators can be reached at: Ricky P.O. Chong Cordelia Tang 905 Silvercord, Tower 2, 30 Canton Road Tsimshatsui, Kowloon Hong Kong MOLESWORTH INVESTMENTS: Members to Meet on December 14 ------------------------------------------------------ The members of Molesworth Investment Limited will hold their final meeting on December 14, 2007, at 5:35 p.m. During the meeting, the company's liquidators, Natalia K.M. Seng and Susan Y.H. Lo, will give a report on the company's wind-up proceedings and property disposal. The meeting will be held at Level 28, Three Pacific Place, 1 Queen's Road, Hong Kong. The Liquidators can be reached at: Natalia K M Seng Susan Y H LO Level 28, Three Pacific Place 1 Queen's Road East Hong Kong NG CHAN: Court to Hear Wind-Up Petition on Dec. 19 -------------------------------------------------- On October 8, 2007, Hop Chung Scaffolding filed a petition to have Ng Chan Constuction Limited's operations wound up. The petition will be heard before the High-Court of Hong Kong on December 19, 2007, at 9:30 a.m. OAKTREE INVESTMENT: Members to Meet Today ----------------------------------------- The members of Oaktree Investment Limited, which is in liquidation, will hold their final meeting today, November 20, 2007, at 11:30 a.m. The company's liquidator will give a report on the company's wind-up proceedings and property disposal during the meeting. The meeting will be held at the 14th Floor of the Hong Kong Club Building, 3A Charter Road, in Central, Hong Kong. PROSPER TRADING: Members to Hold Final Meeting on December 3 ------------------------------------------------------------ The members of Prosper Trading Limited will hold their final meeting on December 3, 2007, at 12:00 p.m. During the meeting, the company's liquidators, Kan, Tim Hei and Fung,Tin Yau Felix, will give report on the company's wind-up proceedings and property disposal. The meeting will be held at 99 Queen's Road, in Central Hong Kong. The Liquidators can be reached at: Kan, Tim Hei Fung, Tin Yau Felix The Center, 31st Floor 99 Queen's Road, Central Hong Kong QUANTA COMPUTER: Sales Hit TWD74.39 Billion in October 2007 ----------------------------------------------------------- Quanta Computer Inc. reported sales of TWD74.39 billion in October 2007, bringing the year-to-date total to TWD595.15 billion. The October result was slightly lower than the sales of TWD79.53 billion in September 2007. Bloomberg News reports that Sept. 2007 saw record sales and shipments for the company. Bloomberg News relates that parent company sales, excluding affiliates, climbed 77% to TWD78.00 billion in September, from TWD44.20 billion a year earlier. Bloomberg News adds that notebook-computer shipments rose to 3.1 million units, surpassing the previous record of 2.9 million, set in August 2007. Bloomberg further adds that Quanta shipped a record 8.8 million laptops in the third quarter. Headquartered in Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. The Troubled Company Reporter-Asia Pacific reported on Feb. 9, 2007, that Fitch Ratings assigned Quanta Computer a long-term foreign currency issuer default rating of BB. QUANTA: Posts TWD12.88-Bil. Net Income for First Nine Months ------------------------------------------------------------ Quanta Computer Inc. booked a net income of TWD12.88 billion for the first nine months of 2007, exceeding the TWD8.72-billion net income recorded for the first nine months of 2006. For the nine-month period, the company posted record sales of TWD507.37 billion, which translates to an operating income of TWD8.91 billion after cost of goods sold and other operating expenses of TWD498.45 billion. Record Quarterly Income Bloomberg News notes that the 2007 third quarter income climbed 36% to TWD5.24 billion from the TWD3.86-billion net income recorded in the same period a year earlier. Bloomberg adds that the company reported its highest quarterly shipments in the three months through September as mobile- computer sales in the U.S. outpaced desktops for the first time. Bloomberg News further adds that laptops will continue to gain share this quarter, with consumers opting for more mobility, according to researcher Gartner Inc. Shipment Forecast Bloomberg also says that the computer maker's notebook shipments for the third quarter rose 19% to 8.8 million from the previous quarter's, outpacing the company's Aug. 31 guidance for growth of 15%. Quanta forecast shipments of 30 million notebooks this year, and predicted that in 2008 they would rise 20% to 36 million, Bloomberg adds. The report also mentions that mobile computers accounted for 40.8% of worldwide shipments in the third quarter, up from 38.3% in the second, and will probably rise to 42.8% this quarter. About Quanta Computer Headquartered in Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. The Troubled Company Reporter-Asia Pacific reported on Feb. 9, 2007, that Fitch Ratings assigned Quanta Computer a long-term foreign currency issuer default rating of BB. QUANTA COMPUTER: Gets License for Soleus Platform ------------------------------------------------- Intrinsyc Software International, Inc. and Quanta Computer Inc. entered into an agreement to license the Soleus mobile handset platform, Intrinsyc said in a press release. Quanta is using Soleus to develop a Third Generation (3G)/High- Speed Downlink Packet Access (HSDPA) mobile device, expected to be a breakthrough in the design concept and user experience of today's wireless communications electronics. Quanta has also engaged Intrinsyc's wireless engineering services to support development and accelerate this product's time to market, which is expected to be in the third quarter of 2008. This marks the fourth Soleus SLA in 2007. Headquartered in Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. The Troubled Company Reporter-Asia Pacific reported on Feb. 9, 2007, that Fitch Ratings assigned Quanta Computer a long-term foreign currency issuer default rating of BB. QUANTA COMPUTER: Wins Smart Phone Contracts From First Int'l ------------------------------------------------------------ First International Telecom has awarded WiMAX smart phone contracts to Quanta Computer Inc., TradingMarkets.Com reports, citing the Commercial Times. The report provided no further details regarding the contract. Headquartered in Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. The Troubled Company Reporter-Asia Pacific reported on Feb. 9, 2007, that Fitch Ratings assigned Quanta Computer a long-term foreign currency issuer default rating of BB. SAVE ON FOOD: Court to Hear Wind-Up Petition on Dec. 12 ------------------------------------------------------- The High-Court of Hong Kong will hear on December 12, 2007, at 9:30 a.m., a petition to have Save On Food Limited's operations wound up. Tam Hon Sam filed the petition on September 28, 2007. TAI TUNG: Court to Hear Wind-Up Petition on Dec. 12 ----------------------------------------------------- On September 28, 2007, Cheng Wai Lim filed a petition to have Tai Tung Transportation Limited's operations wound up. The petition will be heard before the High-Court of Hong Kong on December 12, 2007, at 9:30 a.m. TRION CHINA: Creditors' Proofs of Debt Due on December 10 --------------------------------------------------------- The creditors of Trion China Investments Limited are required to file proofs of debt by December 10 2007, to be included in the company's dividend and distribution. The company went into liquidation on September 7, 2007. The company's liquidator is: Tang Chiu Shun No. 19 Tai Kei Ling, Yuen Long New Territories Hong Kong TRION INTERNATIONAL: Creditors' Proofs of Debt Due on Dec. 10 ------------------------------------------------------------- The creditors of Trion International (China) Limited are required to file proofs of debt by December 10, 2007, to be included in the company's dividend and distribution. The company's liquidator is: Tang Chiu Shun No. 19 Tai Kei Ling, Yuen Long New Territories Hong Kong WILSON DRAYAGE: Commences Liquidation Proceedings ------------------------------------------------- Wilson Drayage Limited commenced liquidation proceedings on November 2, 2007. The company's liquidator is Cheung Cho Shun. WING HENG: Commences Liquidation Proceedings -------------------------------------------- Wing Heng Mercantile & Development Company Limited commenced liquidation proceedings on October 29, 2007. The company's liquidators is: Lim Ching Wah John Khoo Cheo Ping 17 Chi Fu Road, Hong Kong ========= I N D I A ========= AES CORP: Cash Tender Offer for US$1.24 Bil. Sr. Notes Expires -------------------------------------------------------------- The AES Corporation disclosed that the offer to purchase up to US$1.24 billion aggregate principal amount of its outstanding senior notes in accordance with the terms and conditions described in its Offer to Purchase and the related Letter of Transmittal expired as scheduled at 12:00 midnight on Nov. 13, 2007. As of such time, a total of approximately US$1.9 billion aggregate principal amount of Notes had been validly tendered, consisting of approximately: (i) US$192.6 million principal amount of 8.75% Senior Notes due 2008, (ii) US$600.0 million principal amount of 9.00% Second Priority Senior Secured Notes due 2015 and (iii) US$1.1 billion principal amount of 8.75% Second Priority Senior Secured Notes due 2013. In accordance with the terms of the tender offer, since the total amount of Notes tendered exceeded the Tender Cap, the company accepted for purchase all of the 2008 Notes, all of the 2015 Notes and approximately US$447.4 million principal amount of the 2013 Notes (representing a pro ration factor of 37.6714%, with each amount tendered rounded down to the nearest US$1,000) that were validly tendered prior to the expiration time. Settlement of the tender offer occurred today at which time none of the 2015 Notes, approximately US$9.3 million principal amount of the 2008 Notes and approximately US$752.6 million principal amount of the 2013 Notes remained outstanding. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$2 billion issuance of senior unsecured notes maturing 2015 and 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. AFFILIATED COMPUTER: Extends E-ZPass New Hampshire Toll Contract ---------------------------------------------------------------- Affiliated Computer Services, Inc. has extened the E-ZPass electronic toll collection contract with the New Hampshire Department of Transportation. The current contract allows for three additional three-year options to be exercised for a total contract length of 12 years. Affiliated Computer will continue to operate the E-ZPass toll collection customer service center during the current option period. The contract value for the option period is US$14.2 million. "During the past three years, ACS has done an excellent job managing the Customer Service Center functions for the New Hampshire Department of Transportation," said Bureau of Turnpikes Administrator, within the New Hampshire Department of Transportation, Harvey Goodwin. "ACS' experience and professionalism have helped make E-ZPass in New Hampshire a huge success. We are extremely pleased that this contract has been extended for an additional three years." The company operates three walk-in service centers across the state enabling citizens to enroll and maintain participation in the pre-paid electronic toll collection system. "Called one of the greatest innovations of our time, E-ZPass dramatically reduces traffic congestion, as well as air pollution caused by idling vehicles," said ACS managing director of Transportation Solutions, Michael Huerta. "ACS congratulates the New Hampshire Department of Transportation on its foresight in employing this technology." The New Hampshire E-ZPass program has 195,000 account holders with 335,000 E-ZPass transponders logging 64 million electronic toll transactions annually. The service center handles 290,000 phone calls and 70,000 walk-in customers each year. About Affiliated Computer Services Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ -- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Standard & Poor's Ratings Services has kept its 'BB' corporate credit and senior secured ratings on Affiliated Computer Services Inc. on CreditWatch with negative implications, where they were placed on Mar. 20, 2007. AGILENT TECH: Board Okays US$2-Billion Share-Repurchase Program --------------------------------------------------------------- Agilent Technologies Inc.'s Board of Directors has approved a share-repurchase program of up to US$2 billion of its common stock over the next two years. Agilent completed its previous US$2 billion share buyback in October, bringing its cumulative repurchases to US$6.466 billion since the program's inception in 2005. "The Board's decision reflects our confidence in Agilent's operating model and strong cash flow," said Bill Sullivan, Agilent president and chief executive officer. "It also demonstrates our continuing commitment to return excess cash to the owners." Agilent anticipates the share-repurchase program will be implemented using a variety of methods, which may include open- market purchases, block trades, accelerated share-repurchase transactions or otherwise, or by any combination of such methods. The number of shares to be repurchased and the timing of any repurchases will depend on factors such as the stock price, economic and market conditions, and corporate and regulatory requirements. The stock-repurchase program may be suspended or discontinued at any time. About Agilent Tech Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service has assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of US$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. AGILENT TECH: Earns US$180 Million in 4th Quarter Ended Oct. 31 --------------------------------------------------------------- Agilent Technologies Inc. reported orders of US$1.48 billion for the fourth fiscal quarter ended Oct. 31, 2007, 6 percent above one year ago. Revenues during the quarter were US$1.45 billion, 9 percent above last year. Fourth quarter GAAP net income was US$180 million. Last year's fourth quarter GAAP net income from continuing operations was US$126 million. Included in this quarter's GAAP income is US$36 million of share-based compensation expense. Excluding this item and US$10 million of other net adjustments, Agilent reported fourth quarter adjusted net income of US$206 million. On a comparable basis, the company earned US$190 million one year ago. "Agilent had a good fiscal fourth quarter, especially considering the continued divergent trends of our markets," said Bill Sullivan, Agilent president and chief executive officer. "Bio-analytical markets were strong in both Chemical Analysis and Life Sciences, and across all geographies. Electronic measurement markets were very mixed, with strength in aerospace/ defense and wireless R&D, a flat profile for wireless handset and electronic manufacturing test, and weakness in computer and semiconductor markets." Total fourth quarter revenues were up 9 percent from last year to US$1.45 billion. Adjusted net income per share, at US$0.53, was 18 percent above last year's results and near the top of the US$0.50 - US$0.54 guidance range. Mr. Sullivan noted that the Bio-Analytical segment grew at a double-digit pace for the sixth consecutive quarter, and that the segment operating margin was at a record level. "We are seeing sustained strength in our new Liquid Chromatograph, Mass Spectroscopy and Gas Chromatograph platforms, and Stratagene integration activities continue to go well. Last week, we announced the acquisition of Velocity11, adding lab automation to our expanding workflow solutions." "While the Electronic Measurement segment was flat overall, we saw good growth in those areas where we have invested in specific growth initiatives, such as aerospace / defense and wireless R&D," said Mr. Sullivan. Fourth quarter Return on Invested Capital reached a new high of 30 percent, a point better than last year's strong performance. Both Receivables Days-Sales-Outstanding and Inventory Days-On- Hand reached new historic lows. Cash generated from operating activities was US$398 million in the fourth quarter. During the period, the company repurchased US$631 million of its common stock, completing its US$2 billion buyback program. Full fiscal 2007 revenues grew 9 percent to US$5.4 billion. Adjusted net income per share rose 22 percent to US$1.82. Return on Invested Capital reached 27 percent, and cash generated from operating activities during fiscal 2007 was US$969 million. Said Mr. Sullivan, "Today, Agilent's Board of Directors authorized a new program to repurchase up to US$2 billion of Agilent's common shares, reflecting its confidence in Agilent's ability to create superior shareholder value, leveraging our operating model through higher sustainable growth." Looking ahead, Sullivan said the company was comfortable with the range of analyst estimates for FY2008 revenues and adjusted net income per share. For the fiscal first quarter of 2008, revenues are expected to be in the range of US$1.35 billion to US$1.40 billion, up 5 percent to 9 percent from last year. Comparisons of this year's first quarter adjusted net income will be affected by a change in the timing of Agilent's annual compensation awards program, and by a shift toward more variable compensation. Compared to last year, about US$32 million more compensation-related expense will be recognized in First Quarter Fiscal Year 20008. That US$0.06 per share cost increase will be offset by a US$0.04 reduction in Q2 expense, and by US$0.01 reductions in FY08's third quarter and fourth quarter. Reflecting this changed pattern of compensation expense, first quarter adjusted net income is expected to be in the range of US$0.38 to US$0.43 per share, 15 percent to 30 percent above last year's comparable earnings. About Agilent Tech Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service has assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of USUS$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. ARTSON ENGINEERING: Profit at INR6 Mil. in Qtr. Ended Sept. 30 -------------------------------------------------------------- Artson Engineering Ltd's reported a slight improvement in its net profit to INR6.16 million in the quarter ended Sept. 30, 2007, from the INR5.85 million booked in the same period last year. The improvement in the bottom line was not much when compared to earnings that more than doubled in the latest quarter under review. Artson Engineering reported total revenues of INR80.95 million in July-Sept. 2007, up 105% the INR39.42 million earned in the corresponding quarter in 2006. What pulled down the earnings is the expenditures from operations that soared 126% to INR72.5 million, leaving the company with an operating profit (before depreciation) of INR8.45 million. The company recorded depreciation charges of INR2.25 million and INR30,000 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?257a Headquartered in Mumbai, India, Artson Engineering Limited -- http://www.artson.net/-- is a niche engineering company, active in specialized area of refineries, ports and airports. The company was referred to the Board for Industrial and Financial Reconstruction as a sick company. It's restructuring proposal is currently under review by BIFR. CABLE & WIRELESS: Unveils Management Changes at Int'l. Business --------------------------------------------------------------- Cable and Wireless plc disclosed changes to the management of its International business in preparation for driving the next phase of its value creation. The key elements of the changes are: * Harris Jones to step down as chief executive of International and as a director of Cable and Wireless plc from Nov. 13, 2007, and leave towards the end of the year once handover is complete. A search to be initiated to find a new chief executive for International; * John Pluthero to become executive chairman of International with immediate effect, while continuing his similar role for Europe, Asia & US; * Lord Robertson of Port Ellen to act as senior international adviser to Cable & Wireless and to step down as non-executive chairman of International; and * All other aspects of the Group operating structure to remain the same, with Tony Rice continuing as joint managing director responsible for Central Activities and finance director. "On behalf of the Board, we are very grateful for the strong contribution that Harris has made to the business," Richard Lapthorne, chairman of Cable and Wireless plc, said. "Since he joined in November 2004, Harris has successfully rebalanced International towards the growth areas of mobile and broadband, doubling mobile and tripling broadband customer numbers. At the same time, the financial performance of International has improved and International shareholder value has increased by over GBP1 billion." "We are now at the stage where we need to accelerate the transformation of service and brand reputation, fueling further growth in the value of International. John Pluthero has an outstanding track record in this area and the capacity for the role, with the turnaround of Europe, Asia & US now out of the recovery phase, as evidenced by the strong interim results reported separately today and by having installed a strong management team, led by Europe, Asia & US Chief Executive Jim Marsh. "I am delighted that John has agreed to chair each of the two operating businesses and drive the next stage of our value plan within the existing organization structure that has served shareholders so well since it was introduced in April 2006, with an increase of nearly GBP2 billion in market capitalization and a total shareholder return of 75%." Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, Japan, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% CABLE & WIRELESS: Earns GBP134 Mln in Six Months Ended Sept. 30 --------------------------------------------------------------- Cable and Wireless plc released financial results for the six months ended Sept. 30, 2007. The Group reported a net profit of GBP134 million on revenue of GBP1.6 billion for the six months ended Sept. 30, 2007, compared with a net profit of GBP58 million on revenue of GBP1.7 billion for the same period in 2006. At Sept. 30, 2007, the Group's condensed consolidated interim balance sheet showed GBP4.5 billion in total assets, GBP2.4 billion in total liabilities and GBP2.1 billion in stockholders' equity. Outlook For Europe, Asia & US (including C&W Access), due to the improving trading performance and a GBP15 million full year estimated net pension credit for 2007/08, the Group now anticipates that its EBITDA for the full year 2007/08 will be between GBP205 million and GBP215 million -- a GBP35 million improvement from our previous EBITDA guidance. The Group has reduced its International dollar guidance by US$20 million to between US$820 million and US$840 million, primarily due to the poor performance in Jamaica. It has also updated its forecast US$:GBP exchange rate from 1.95 to 2.00. As a result sterling Group EBITDA guidance is essentially unchanged. "It's been another good six months," Richard Lapthorne, chairman of Cable and Wireless, said. "The Europe, Asia & US turnaround is ahead of our own, and market, expectations with the successful execution of our strategy clearly visible in gross margin and EBITDA. Turning cash flow positive in the second half will be a significant milestone for the business. International continues to deliver good growth from mobile and broadband. I am pleased to announce that we intend to pay a dividend of 2.5 pence, a further demonstration of our confidence in the current performance and future potential of both our businesses." Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, Japan, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% CANARA BANK: Gov't Appoints G. S. Vedi as Executive Director ------------------------------------------------------------ G. S. Vedi, general manager of Punjab and Sind Bank, is Canara Bank's new executive director. According to a filing with the Bombay Stock Exchange, India's central government, after consultation with the Reserve Bank of India, appointed Mr. Vedi as a whole time director (designated as the executive director) from from Nov. 7, 2007, and until further orders or until the date of his superannuation (June 30, 2010). The new Canara executive director began his banking career with Punjab and Sind Bank in 1969, where he held different positions including general manager of invetment management and foreign exchange, Asia Pulse Data Source relates. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com -- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. DEV'T CREDIT BANK: Fitch Gives 'D/E' Individual Rating ------------------------------------------------------ Fitch Ratings has affirmed India's Development Credit Bank Ltd.'s National Long-term rating and its INR1.6 billion subordinated debt at 'A-(ind)'. At the same time, the agency has assigned DCB a 'D/E' Individual rating and a Support rating of '5'. The Outlook on the ratings has been changed to Stable from Evolving. The change in outlook reflects DCB's improved capitalisation. The ratings are, however, constrained by the bank's small size, limited franchise, weak profitability and the evolving nature of its business strategy. The bank recorded a modest profit in FY07 (RoA: 0.16) and H108 (Annualised RoA: 0.71%) by reducing its lower margin corporate portfolio, enhancing its focus on retail assets and booking one-off gains on asset sales, although standard asset provisions resulted in a loss in the last quarter of FY07. DCB pursued corporate lending aggressively in the late 1990s and early 2000s in a bid to build up its balance sheet. Due to its weak competitive position, this resulted in poor asset selection which depressed margins, and more importantly led to high non- performing asset accumulation. The new top management, which took over in 2006, has since started focusing on the small business and retail segments for asset growth. While such a strategy is expected to support margins in the short term, its long-term impact is less clear at this stage. An aggressive reduction of legacy NPLs through recoveries and write-offs has resulted in a significant decline in gross NPLs (4.28% at end-June 2007; system median: 2.5% at end-March 2007), although the bank's fast growing unsecured retail lending to the self-employed segment is largely unseasoned and could lead to higher credit losses in an adverse interest rate environment. The business has higher regulatory standard asset provisioning and risk weight requirements (compared to secured lending and loans to corporates) that are expected to provide cushion in a downturn; however, current yields are driven by strong competitive forces and their appropriateness is yet to be tested through a credit cycle. The high losses from NPL write-offs resulted in DCB's equity shrinking between FY04 and FY06. The bank's IPO of INR1.86bn equity in FY07 and the subsequent issue of INR2.8bn equity to institutional investors in August 2007 have boosted capital levels (CAR: 13.54% in September 2007) and is expected to help fund growth over the next 12 months. Further equity infusions would however be necessary unless profitability improves, as the bank plans to expand its network and size (assets of INR60.9bn on 30 September 2007). Established in 1930 as a co-operative society to service the financing needs of a small community, DCB became a co-operative bank in the 1980s and a private commercial bank in 1993. The bank successfully completed its maiden equity issue in FY07 and has subsequently augmented capital through private placements. It is listed on major national stock exchanges and operates through 75 branches, mostly in western India. ESSAR OIL: Board Okays US$6-Bil. Vadinar Refinery Expansion ------------------------------------------------------------ Essar Oil Ltd's board of directors, at its meeting held on Nov. 16, 2007, has approved plans to increase the capacity of the refinery at Vadinar from 10.5 million tonnes (220,000 bbls per day) to 34 million tonnes per annum (700,000 bbls per day). The expansion is being carried out at a cost of approximately US$6 billion (INR24,000 crore). In order to meet part of the requirement of funds for the expansion project and other corporate purposes, including refinancing existing debt of the company, the board has approved the issue of GDS to the Promoters/Promoter Group on a preferential basis, up to a maximum of US$2 billion, at an effective price of INR200 per share for the underlying equity shares, subject to receipt of shareholders' and regulatory approvals as may be required. The current installed capacity of the refinery is 10.5 million tonnes per annum (220,000 bbls per day) made at an investment of approximately US$3 billion (INR12,000 crore). The refinery was commissioned in November 2006 and has been operating at approximately 7.5 million tonnes. The Fluid Catalytic Conversion Unit anti Diesel Hydro De-sulphuriser Unit, which will be fully operational shortly, will enable the refinery to reach its full capacity i.e., 10.5 million tonnes. These units will enable the company to process heavier crudes and meet the stricter international emission norms. The company will be expanding its capacity progressively to 34 million tonnes per annum by 2010. The first stage of expansion will involve de-bottlenecking and the addition of more sophisticated bottom upgrading units such as delayed coker. The second phase of expansion will see a new set of distillation units, including addition of all secondary units and another coker. Basic engineering design for the expansion has been completed. The equipment will incorporate the latest in technology from well renowned international suppliers. With the expansion, the refinery will be able to handle a wide range of crudes from light to heavy and take advantage of the market differential between heavy and light crudes. The Nelson Complexity Index of the refinery after the expansion to 34 million tonnes per annum will be approximately 12.8. (Nelson Complexity Index measures the ability of the refinery to upgrade the crude to best quality and maximum quantity of value added refined products). On completion of the expansion, the refinery will produce petroleum products of very high quality meeting the most stringent environmental norms i.e. Euro IV and Euro V internationally. The refinery is supported by dedicated infrastructure that includes utilities, terminals, crude intake and product evacuation facilities. The promoters have informed the company that they no longer intend to proceed with the delisting of the equity shares of the company from the stock exchanges. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. QUEBECOR WORLD: Considers Refinancing to Retire Some Loans ---------------------------------------------------------- Quebecor World Inc. disclosed a refinancing plan pursuant to which it intends to concurrently: (i) offer approximately CDNUS$250 million of its equity shares, consisting of a public offering of Subordinate Voting Shares in Canada and the United States for contemplated gross proceeds to the company of approximately CDNUS$185 million (US$191 million) or approximately CDNUS$213 million (US$220 million) if an over-allotment option granted to the underwriters involved is exercised in full; well as an issuance on a private placement basis in Canada to Quebecor Inc., the company's controlling shareholder, of a combination of Multiple Voting Shares and Subordinate Voting Shares for an aggregate amount of approximately CDNUS$65 million or US$67 million) on the same terms as the Public Equity Offering, in order to allow Quebecor Inc. to maintain the level of its current economic interest in Quebecor World; (ii) offer on a private placement basis an aggregate of US$500 million of new debt securities, consisting of: (1) new senior unsecured notes of the company in an aggregate amount of approximately US$400 million, and (2) new senior unsecured convertible debentures in an aggregate amount of approximately US$100 million; and (iii) amend the company's credit facilities, pursuant to which: (a) the commitment of the company's syndicate of lenders would be reduced to US$375 million; (b) the maturities of such facilities would be extended by one year to January 2010; and (c) the company would be provided with greater financial flexibility under its covenants. The Equity Offering, the Senior Note Offering and the Convertible Debenture Offering are conditional upon one another and the Credit Facilities Amendment is conditional on the completion of the Equity Offering, the Senior Note Offering and the Convertible Debenture Offering. The net proceeds of the Senior Note Offering and the Convertible Debenture Offering and a portion of the net proceeds of the Equity Offering will be used to repay indebtedness under the company's credit facilities and the company intends to use the remaining net proceeds of the Equity Offering to redeem its Series 5 Cumulative Redeemable First Preferred Shares for an aggregate redemption price of CDNUS$175 million or approximately US$185 million, plus accrued and unpaid dividends. The redemption of these preferred shares is conditional upon the completion of each of the elements of the refinancing plan and subject to re-confirmation by the company's board of directors. Any remaining net proceeds of the Equity Offering will be used for general corporate purposes, including for the repayment of additional indebtedness. The terms of both the new Senior Notes and the Convertible Debentures will be settled between the company and the respective initial purchasers of the notes. Both the Senior Notes and the Convertible Debentures will be issued by the company and will be unconditionally guaranteed on a senior unsecured basis by Quebecor World (USA) Inc., Quebecor World Capital ULC and Quebecor World Capital LLC, all wholly owned subsidiaries of the company. In addition, the company stated that it has re-filed its interim financial statements for the period ended Sept. 30, 2007, well as the corresponding management's discussion and analysis, in order to make certain changes to Note 18 - Subsequent Events to such financial statements relating to the company's disclosed sale/merger of its European operation, including to correct the amount reported for the estimated accounting (non-cash) loss on disposal before cumulative translation adjustment impact resulting from such sale/merger, from US$70 million to US$170 million. A copy of the prospectus may be obtained from: Quebecor World Inc. Investor Relations Department 612 St-Jacques Street, Montreal Quebec Canada H3C 4M8 Tel. (800) 567-7070 About Quebecor World Inc. Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses