T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, November 30, 2007, Vol. 10, No. 238 Headlines A U S T R A L I A ABSOLUTE CAPITAL: Names McGrathNicol as Voluntary Administrator ALMAR ENGINEERING: Liquidator to Give Wind-Up Report on Dec. 4 B&B ENVIRONMENTAL: Incurs AU$20-Million Net Loss for FY2007 B&B ENVIRONMENTAL: BBL Offers Alternative to Takeover Offer BABCOCK & BROWN POWER: Incurs AU$70.67MM Net Loss for FY2007 COEUR D'ALENE: PROXY Advises Shareholders To Vote for Proposals COLES GROUP: Wesfarmers Admits Overhauling Could Take Five Years COLONIAL GOURMET: To Declare First Dividend on December 12 COMMSCOPE INC: Unit Works with iconnect to Hook Up Langtree CROWN CASTLE: Fitch Holds 'BB' Rating on US$83MM Class G Notes FORRESTER RIDGE: Liquidator to Give Wind-up Report on Dec. 4 I. & J. CLEANING: Creditors Receive Wind-Up Report IMAGE FABRICS: Members and Creditors Set to Meet on December 4 INTERACTIVE TECHNOLOGIES: Sets Final Members' Meeting for Dec. 3 JELIMAR PTY: Liquidator to Present Wind-Up Report on Dec. 4 KENETA KITCHENS: Final Meeting Slated for December 4 KIMBERLEY DIAMOND: KPMG Raises Substantial Going Concern Doubt KIMBERLEY DIAMOND: Gem Diamond's Buy Offer Now Unconditional LIFESTYLE CLASSICS: Members and Creditors to Meet on Dec. 4 LOOKSUN PTY: Members and Creditors Hear Wind-Up Report MCLAREN INVESTMENTS: Members and Creditors to Meet on Dec. 4 PAN AUSTRALIAN: Incurs AU$281,000 Net Loss for 2007 Half-Year THE EVOLUTION DESIGN: Appoints Anthony Warner as Liquidator TRANSAX INT'L: Sept. 30 Balance Sheet Upside-Down by US$3.3 Mil. C H I N A & H O N G K O N G CHINA EVERBRIGHT: Shareholders OK Capital Injection from Gov't EMI GROUP: Moody's Withdraws B1 Corporate Family Rating HANESBRANDS INC: S&P Affirms B+ Corporate Credit Rating PARKSON RETAIL: Posts CNY151-Mil. Net Profit for Third Quarter I N D I A CABLE & WIRELESS: Loses J$506.8 Million in First Six Months CABLE & WIRELESS: Former Chair Criticizes Executive Payoff QUEBECOR WORLD: S&P Cuts Preferred Stock Rating to C from CCC- I N D O N E S I A ADARO INDONESIA: To Refinance US$400M Bonds Before Going Public AVNET INC: Operating Unit Inks Franchise Deal with Tyco MEDIA NUSANTRA: Plans to Buy Majority Stake in Linktone Ltd. PERUSAHAAN GAS: To Deliver Gas Using Grissik–Pagardewa Pipeline PERUSAHAAN: Hires Banks as Arrangers for Power Project Loans TELKOMSEL: Invests IDR50 Bil. in Establishing T-Cash Facility J A P A N ALL NIPPON: Inks Five-Year Deal with IBS Software Services AMR CORP: Plans to Divest American Eagle Division EMAGIN CORP: Sept. 30 Balance Sheet Upside-Down by US$3.6 Mil. GAP INC: Board Declares US$0.08 Per Share Quarterly Dividend HERBALIFE LTD: Taps Shankar Suryanarayanan as Sr. Vice President L&G K.K.: To Start Court-Led Bankruptcy Procedures METHANEX CORP: Declares US$0.14 Per Share Quarterly Dividend ORIENT CORP: Determined to Return to TSE's First Section * Fitch Affirms Japanese Major Banks After Posting H1 Results K O R E A BHK INC: Decides to Get KRW3 Billion Bank Loan E-NET: Sets Price of 14-Million Common Shares at KRW825 Each E-NET: Signs KRW4-Billion Contract with Korean Meat Wholesaler EG SEMICON: Board of Directors Decides Issuance of Bonus Shares EG SEMICON: Changes Shareholding Structure EG SEMICON: Plans to Sell Land & Plant for KRW1.1 Billion HANAROTELECOM: Corporate Watchdog Studies Deal With SK Telecom KOREA EXPRESS: NACF Considers Bidding RHODIA SA: Sept. 30 Balance Sheet Upside-Down by EUR226 Million RHODIA SA: Implements Global Price Increases for All Products SEJI CO: IC Corporation & Two Persons Acquire 18.91% Stake SEJI CO: Made Changes to Private Placement of Common Shares M A L A Y S I A FOREMOST HOLDINGS: Shareholders Approve Resolutions at EGM MBF HOLDINGS: Subsidiary Placed Under Voluntary Wind-Up MBF HOLDINGS: Unveils Changes to Audit Committee MBF HOLDINGS: Earns MYR25.7 Mil. in 3rd Qtr. Ended Sept. 30 MYCOM BERHAD: Ministry of International Trade OKs Share Issue SHAW GROUP: Environmental Unit Bags Deal from U.S. Army Corps N E W Z E A L A N D BARROSSA LTD: Fixes Dec. 5 as Last Day to File Proofs of Debt EXOTIC GROUP: Shareholders Resolve to Liquidate Business GOODFOUR LIMITED: Commences Liquidation Proceedings GOODTHREE LIMITED: Commences Wind-Up Proceedings GOODTWO LTD: Commences Liquidation Proceedings KA PAI CONSTRUCTION: Names Parsons and Kenealy as Liquidators MILLENNIUM RESIDENTIAL: Creditors' Proofs of Debt Due Today NZ GARDEN: Court Hears Wind-Up Petition ROYALE PASSENGER: Creditors' Proofs of Debt Due Today SHANE ENGLISH: Wind-Up Petition to be Heard on Jan. 24 THE LOADED HOG: Court to Hear Wind-Up Petition on December 3 P H I L I P P I N E S BANCO DE ORO-EPCI: IFC Injects PHP4 Bil. Into Lower Tier 2 Notes CHINA BANKING: No Plan to Integrate Manila Bank, Vice Chair Says IPVG CORP: PSE Approves Change in Stock Symbol to "IP" JG SUMMIT: Joins With Units to Offer New House Financing Scheme LIBERTY TELECOM: Replaces RCBC with ERT as Stock Transfer Agent LODESTAR INVESTMENT: Five More Board Members Resign LODESTAR INVESTMENT: PSE Bars Stocks from Trading Until Dec. 3 SAN MIGUEL: Chairman Keeps 20% Ownership, Sandiganbayan Says TYCO INTERNATIONAL: Receives Notice of Default from Bank of NY ZEUS HOLDINGS: Elects Directors, Auditor and Committees for 2008 * Price Hike May Have Cued 3.1% Inflation Rate in November S I N G A P O R E ADVANCED MICRO: Advances Phil Rogers to Corporate Fellow ALLIANCE SERTECH: Court to Hear Wind-Up Petition on Jan. 18 CROWN HOLDINGS: Completes Share Repurchase Deal with BNP Paribas HERCULES OFFSHORE: Inks Pact w/ Petrex to Offload Land Rig Fleet KEN AGENCIES: Pays First and Final Dividend LEVI STRAUSS: Forms Joint Venture Partnership with Nike Unit SEMBCORP MARINE: Asks Court to Protect Unit from BNP Liquidation SP KATONG: Requires Creditors to File Proofs of Debt by Dec. 26 T H A I L A N D BANK OF AYUDHYA: Offers New Service for High Net Worth Customers DOLE FOOD: S&P Places B Corp. Credit Rating on Watch Negative TMB BANK: Over-all Losses May Reach THB100 Bil. by Year's End TOTAL ACCESS: Plans New Services for High-End Customers in 2008 * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ABSOLUTE CAPITAL: Names McGrathNicol as Voluntary Administrator --------------------------------------------------------------- The board of Absolute Capital Group Limited has appointed a voluntary administrator, the company said in a press release. The appointment of administrators Tony McGrath and Joseph Hayes of McGrathNicol relates only to the Absolute Capital Group corporate entities and not to its core products such as the Yield Strategies Fund. The company says that following a period of prolonged illiquidity in global and local credit markets, the reduction in fees paid to the corporate entity from a number of its investment products impacted the long-term viability of the business. As a result, the company's board took the decision to enter voluntary administration and appointed Mr. McGrath and Mr. Hayes at McGrathNicol as joint and several administrators. McGrathNicol said it intends to move swiftly to review options and focus on securing the stability of the group, the company adds. “Our first priority is to review the options available for the Absolute Capital Group and the implications for the underlying products and determine the best possible outcome for investors and creditors,” the release relates, quoting Mr. McGrath. A meeting of creditors is slated on Dec. 3, 2007 where creditors will be provided with an update as to the financial position of the group. McGrathNicol May Sell Absolute Capital Stuart Washington, writing for the Sydney Morning Herald, reports that Absolute Capital has been affected by the deterioration of the U.S. sub-prime mortgages market and the resulting global credit crisis, and had to temporarily freeze redemptions in mid-2007 on its yield strategies fund product. The company used collateralised debt obligations for about half of its investments, Mr. Washington writes. Mr. Washington continues that McGrath Nicol may attempt to divest the fund products to a new owner. ABN Amro has a 50% stake in the troubled entity, which also received allocations from major institutional investors such as BT and Macquarie Bank in the past. About Absolute Capital Absolute Capital Group Limited -- http://www.absolutecapital.com/Home.htm-- is an Australian investment manager and holds an Australian Financial Services Licence (No. 245504). Absolute Capital Limited is a wholly- owned subsidiary of Absolute Capital Group Limited. The Absolute Capital Group is 50% owned by ABN AMRO Australia Limited, and 50 per cent owned by Absolute Capital Management Holdings Limited. ALMAR ENGINEERING: Liquidator to Give Wind-Up Report on Dec. 4 -------------------------------------------------------------- A final meeting will be held for the members and creditors of Almar Engineering Pty Ltd on December 4, 2007, at 9:30 a.m. At the meeting, the members and creditors will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Nov. 6, 2006. The company's liquidator is: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Almar Engineering Almar Engineering Pty Ltd provides engineering services. The company is located at Altona, in Victoria, Australia. B&B ENVIRONMENTAL: Incurs AU$20-Million Net Loss for FY2007 ----------------------------------------------------------- Babcock & Brown Environmental Investments Ltd. reported a net loss of AU$19.98 million for the year ended June 30, 2007, a decrease from the AU$28.83-million net loss recorded for the year ended June 30, 2006. The company reported sales revenue of AU$87.37 million for fiscal 2007, while cost of sales amounted to AU$65.33 million, giving the company a gross profit of AU$22.05 million. The company also earned other revenues totaling AU$8.45 million. The company recorded a loss from discontinued operations of AU$26.84 million, which includes an impairment loss from the write down of EarthPower. As of June 30, 2007, the company had total assets of AU$210.24 million, total liabilities of AU$128.45 million and accumulated losses of AU$79.51 million. Sydney, Australia-based Babcock & Brown Environmental Investments Ltd. -- http://www.bbeil.com.au/-- is engaged in investment and management of businesses in the renewables sector. The company has operations in the United States. B&B ENVIRONMENTAL: BBL Offers Alternative to Takeover Offer ----------------------------------------------------------- Babcock & Brown Limited announced that it would be offering a cash alternative of AU$0.50 for each share in Babcock & Brown Environmental Investments Ltd., Reuters Key Developments reports. According to Reuters, the cash consideration will be an alternative to the previously announced consideration of one BBL subordinated note for every 200 B&B Environmental shares held. The cash price of AU$0.50 carries a premium of approximately 31% above AU$0.38, the closing price of BEI on Nov. 9, 2007, the last day of trading prior to the trading halt requested by B&B Environmental, and approximately 6% higher than the AU$0.47 closing price of B&B Environmental on Nov. 22, 2007. B&B Environmental had previously announced that BBL wanted to acquire the company. B&B Environmental explained that BBL subordinated notes are listed on the Australian Securities Exchange and currently pays an interest rate (on their AU$100 face value) equal to the six month bank bill swap rate plus a margin of 2.20% per annum. B&B Environmental also related that based on the closing price of BBL subordinated notes on Nov. 13, 2007 at AU$101.55, the proposal is vlaued at AU$0.508 per B&B Environmental share. Sydney, Australia-based Babcock & Brown Environmental Investments Ltd. -- http://www.bbeil.com.au/-- is engaged in investment and management of businesses in the renewables sector. The company has operations in the United States. The company reported net losses of AU$19.98 million, AU$28.83 million, and AU$3.83 million for the years ended June 30, 2007, 2006 and 2005. BABCOCK & BROWN POWER: Incurs AU$70.67MM Net Loss for FY2007 ------------------------------------------------------------ Babcock & Brown Power Fund reported a net loss of AU$70.67 million for the year ended June 30, 2007, a little less than a ten-fold increase against the AU$7.45-million net loss reported for the year ended June 30, 2006. The group had revenues of AU$532.80 million, financing income of AU$12.69 million and a gain on interest rate derivative of AU$4.80 million. The company, however, spent AU$413.62 million on operating expenses, AU$32.97 million on management charges, AU$55.59 million on depreciation and AU$80.24 million on finance costs. The company also posted an AU$69.45-million fair value loss on electricity derivative. As of June 30, 2007, the company had total assets of AU$2.73 billion, total liabilities of AU$1.82 billion, and accumulated losses of AU$78.22 million. Based in Sydney, Australia, Babcock & Brown Power Fund -- http://www.bbpower.com -- is engaged in the power generation business. The company has interests in 13 operating power stations representing over 3,300 megawatt of installed generation capacity and five power stations under construction. The company owns a number of other associated power assets the largest being a 67% stake in the WA retail assets of AlintaAGL. The company has been has been developing, operating and acquiring the generation portfolio over a period of 10 years. The Company's assets are diversified by geographic location, fuel source, customers, contract types and operating mode. The Troubled Company Reporter-Asia Pacific reported on Oct. 10, 2007, that Fitch Ratings affirmed the company's BB+ long-term issuer default rating. The outlook is stable. COEUR D'ALENE: PROXY Advises Shareholders To Vote for Proposals --------------------------------------------------------------- Coeur d'Alene Mines Corporation announced that PROXY Governance Inc., a leading independent proxy advisory firm, has recommended that Coeur shareholders vote "FOR" the proposals related to the acquisition of Bolnisi Gold NL and Palmarejo Silver and Gold Corporation at the company's Special Meeting of shareholders scheduled for Dec. 3, 2007. PROXY Governance joins Institutional Shareholder Services and Glass Lewis & Co. as the third independent proxy advisory firm recommending that Coeur shareholders vote "FOR" the proposed acquisitions. In its report, PROXY Governance opined, "PROXY Governance supports this merger because we believe that it will enhance the company's long-term financial performance. In arriving at this decision, we are influenced by the board's reasoning for the acquisition and the favorable opinions of equity analysts." The company urges all shareholders to vote FOR the proposals to ensure their votes are counted at the Special Meeting. The vote of Coeur shareholders is very important regardless of the number of shares of common stock they own. Coeur shareholders can vote FOR the proposals through the Internet, by telephone as described on the proxy card or by completing and returning the proxy card. Shareholders who have questions or need assistance in voting should call D.F. King & Co., Inc. at 1-800-901-0068 (toll-free) or 212-269-5550. The Special Meeting of Coeur shareholders is scheduled for Dec. 3, 2007 at 9:30 a.m. local time at The Coeur d'Alene Resort and Conference Center, Second Street and Front Avenue, Coeur d'Alene. Coeur shareholders of record as of the close of business on Oct. 19, 2007, are entitled to vote at the Special Meeting. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. COLES GROUP: Wesfarmers Admits Overhauling Could Take Five Years ---------------------------------------------------------------- Wesfarmers Ltd., after taking over Coles Group Ltd., contends that it will take five years to overhaul the retail firm, Vanda Carson of the Sydney Morning Herald reports. Wesfarmers Chief Executive Officer Richard Goyder and appointed "adviser and deputy chairman of the Coles board," Archie Norman clarifies that while work on redeveloping Coles had started this week, it would be some time before shoppers notice any changes in the company's more than 700 supermarkets nationwide, relates SMH. Mr. Goyder is quoted by SMH as saying, "I am not pleading for time -- I am saying it is going to take time." Mr. Goyder, according to SMH, reveals that management would be juggling with "a multitude of issues" in the first year, but top priorities were cutting costs, improving efficiency and reshaping the new divisions. For the supermarket division, the focus, states SMH, will be on the supply chain systems, information technology, fresh produce and the look and feel of stores aimed at increasing sales and making sure products are on shelves. Consumers would see gradual changes in stores, starting with "better presentation" and "more energy" focused on the vegetables, bakery, meat and delicatessen sections. "This is the year of basics," says Mr. Goyder, asking investors to judge the turnaround of Coles not by its initial financial performance but by the speed of change to the company. In addition, there would be an aggressive push into private labels that will inevitably result in fewer overall items on the supermarket shelves, conveys SMH. Some improvements, explains Mr. Goyder, would be visible in the first year, but most would take longer, but there would be several write-downs in the first fiscal year of the takeover, says SMH. Meanwhile, Mr. Norman, who made his first public appearance since the appointment, would not say how much Wesfarmers would spend on the restoration of Coles only that the "amount of investment will be substantial." Mr. Norman, according to SMH, was coy about the terms of his consultancy and declined to reveal how long he would consult to the company, his salary or if he would be paid a share of the profit. The appointment of a new boss was likely to be made before Christmas, adds SMH. Bruce Hextal of AFX News Limited reported that Wesfarmers, in an investor briefing, plans to strengthen the retailer's management by appointing specialist local and international retailers while senior Wesfarmers commercial executives will join the leadership teams of all divisions. Wesfarmers, writes AFX News, that Wesfarmers also plan to integrate Coles into its business model to ensure that full value for the transaction is captured. Coles' food, liquor and convenience stores will be run as one division, the Target discount chain as another, the Kmart store chain as a third division while Coles' Officeworks office supplies and Wesfarmers' Bunnings home improvement chain will be placed under a combined management team, notes Mr. Hextal. AFX cites Macquarie Equities who said that though the deal will be earnings per share dilutive for Wesfarmers in the near term, the company is well placed to capture full value from the acquisition. 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. COLONIAL GOURMET: To Declare First Dividend on December 12 ---------------------------------------------------------- Colonial Gourmet Meats Pty Ltd will declare its first dividend on December 12, 2007. Creditors who were not able to file their proofs of debt by November 21, 2007, will be excluded from the company's dividend distribution. The company's deed administrator is: S. L. Horne Draper Dillon 499 St. Kilda Road Melbourne, Victoria 3004 Australia About Colonial Gourmet Colonial Gourmet Meats Pty Ltd operates meat packing plants. The company is located at Toukley, in New South Wales, Australia. COMMSCOPE INC: Unit Works with iconnect to Hook Up Langtree ----------------------------------------------------------- CommScope Enterprise Solutions, a division of CommScope, Inc., has partnered with iconnect Technologies, a connected real estate structured cabling solutions, to help make 'Langtree at the Lake' in Mooresville, North Carolina, one of the first truly connected communities of its kind. iconnect partnered with CommScope to create a common network infrastructure that will handle virtually every aspect of the community's technical operations, both commercially and residentially. Nestled on the shores of Lake Norman, the 125- acre mixed-use development will boast luxury condominiums, health clubs and a restaurant; while the communications network will enable residents to shop for groceries online, rent boats via the Internet, listen to satellite music and access IP telephones and television. "Langtree at the Lake will be a premier rural community with enhanced technology features that most development residents can only dream about," said The Langtree Group. chief operating officer, Brad Howard. "We brought in CommScope and iconnect to help make those dreams become reality. "Our main goal when planning the development was to help create a live-work-play experience for the residents that allowed them to broaden their idea of what a community should be. The joint contribution from iconnect and CommScope will create a single network infrastructure that I believe will complement the fine- living experience -- exceeding all of our expectations." added Mr. Howard. CommScope was selected for its familiarity with the area, knowledge of the industry and available resources. Although the companies are early in the project's design phase, CommScope intends to utilize its Uniprise(R) mixed-use offerings to best address the unique and diverse objectives of each business, neighborhood residence or leisure club. In addition, the company's integrated copper and fiber solutions will be employed in order to meet all network requirements, while balancing cost and performance. "If you look at the entire CommScope portfolio, you'll see that the services and products we provide create a reliable network infrastructure for a mixed-use community," said CommScope Enterprise senior vice president for global marketing, Mark Peterson. "The major benefit that CommScope brings to the table with Uniprise is a wide range of physical layer solutions with a single point of contact. From cabling conduit to any one of our cabling solutions to connectors, we provide a complete solution so that the developers won't need multiple vendors to create a successful network." With the completion of Langtree at the Lake set for 2014, developers are accounting for the reliable network to pave the way for lavish amenities not considered in the typical rural community. "We are excited to be involved in the revolution of connected real estate technology with Langtree at the Lake," said iconnect President Shohn Petty. "By using our vast experience to implement common physical layer infrastructure solutions, we are helping the developer save money through elimination of disparate physical layer network infrastructures," Mr. Petty added. "At Langtree at the Lake, residents and commercial tenants will experience the power of integrated technologies as well as the efficiencies and economies of scale that result from an engineered Integrated Business Infrastructure Solution master technology plan." About iconnect Technologies, LLC iconnect is a leader in the design and implementation of Intelligent Building Infrastructure Solutions. Through its diligent pursuit to forge integrated technology partnerships within a growing technology eco-system, iconnect has positioned itself as a leading physical layer design-build firm for connected real estate projects in the southeastern United States. iconnect is poised to take that professional design experience to a national, and even global, customer base of real estate development firms. About CommScope Enterprise Solutions CommScope Enterprise Solutions, a division of CommScope, Inc., offers a complete portfolio of network infrastructure solutions that help customers, regardless of size, industry or IT budget to make the most of their installed technology. Both SYSTIMAX(R) and Uniprise(R) product lines offer voice, data, video and converged solutions ranging from mission- critical, high-bandwidth and emerging applications to applications that demand unrelenting reliability and quality for everyday needs. Backed by CommScope Labs and a 20-year extended warranty, the Enterprise solutions are delivered through CommScope's global network of industry-leading BusinessPartners and distributors that ensure consistent, high-level service and support worldwide. About CommScope Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has affirmed its ratings on CommScope Inc. and Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn following its acquisition and debt refinancing. S&P said outlook is stable. CROWN CASTLE: Fitch Holds 'BB' Rating on US$83MM Class G Notes -------------------------------------------------------------- Fitch Ratings has affirmed these classes of Crown Castle, senior secured tower revenue notes, series 2005-1: -- US$948,460,000 class A-FX at 'AAA'; -- US$250,000,000 class A-FL at 'AAA'; -- US$233,845,000 class B at 'AA'; -- US$233,845,000 class C at 'A'; -- US$233,850,000 class D at 'BBB'. Fitch Ratings has also affirmed these classes of Crown Castle, senior secured tower revenue notes, series 2006-1: -- US$453,540,000 class A-FX at 'AAA'; -- US$170,000,000 class A-FL at 'AAA'; -- US$150,155,000 class B at 'AA'; -- US$150,155,000 class C at 'A'; -- US$150,150,000 class D at 'BBB'; -- US$144,000,000 class E at 'BBB-'; -- US$240,000,000 class F at 'BB+'; -- US$83,000,000 class G at 'BB'. The affirmations are due to the stable performance of the collateral. The Crown Castle, series 2005-1 closed on June 8, 2005 and was secured by 10,578 wireless communication sites. The Crown Castle, series 2006-1 represents an additional issuance with the contribution of 949 additional sites. As of September 2007, the collateral pool included 11,554 wireless communication sites owned, leased, or managed by the borrower. The notes issued by both transactions, which are secured by the same pool, are pari passu among like rated classes. As of the October 2007 distribution date, the aggregate principal balance of the notes remained unchanged at US$3.45 billion since issuance. Notes from both issuances are interest only for the entire five-year period. As part of the review, Fitch analyzed the management report dated Sept. 30, 2007 that was provided by the servicer, Midland Loan Services. As of Sept. 30, 2007, aggregate annualized run rate revenue increased 4.2% to US$686.9 million from US$644.5 million at issuance. Over the same time period, the Fitch adjusted net cash flow increased 3% since issuance. The tenant type concentration is stable. As of Sept. 30, 2007, total revenue contributed by telephony tenants was 94.7% compared to 95.9% at issuance. About Crown Castle Based in Houston, Crown Castle International Corp. (NYSE: CCI) -- http://www.crowncastle.com/-- engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers. Crown Castle offers significant wireless communications coverage to 91 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and over 1,400 wireless communication sites in the US and Australia, respectively. FORRESTER RIDGE: Liquidator to Give Wind-up Report on Dec. 4 ------------------------------------------------------------ The members and creditors of Forrester Ridge Pty Ltd will meet on December 4, 2007, at 10:45 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on June 27, 2007. The company's liquidator is: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Forrester Ridge Forrester Ridge Pty Ltd, which is also trading as Euro Style Cleaning Management, provides building cleaning and maintenance services. The company is located at Bentleigh East, in Victoria, Australia. I. & J. CLEANING: Creditors Receive Wind-Up Report -------------------------------------------------- The creditors of I. & J. Cleaning Services Pty Ltd met on November 23, 2007, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: S. L. Horne Draper Dillon 499 St Kilda Road Melbourne, Victoria 3004 Australia About I. & J. Cleaning Services I. & J. Cleaning Services Pty Ltd is a distributor of durable goods. The company is located at Carnegie, in Victoria, Australia. IMAGE FABRICS: Members and Creditors Set to Meet on December 4 -------------------------------------------------------------- A final meeting will be held for the members and creditors of Image Fabrics Pty Ltd on December 4, 2007, at 11:30 a.m. At the meeting, O'Keeffe Walton Richwol, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on June 7, 2007. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Image Fabrics Image Fabrics Pty Ltd operates drapery, curtain and upholstery stores. The company is located at South Melbourne, in Victoria, Australia. INTERACTIVE TECHNOLOGIES: Sets Final Members' Meeting for Dec. 3 ---------------------------------------------------------------- Interactive Technologies International Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on December 3, 2007, at 10:00 a.m. At the meeting, Richard Albarran, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Interactive Technologies Interactive Technologies International Pty Ltd operates travel agencies. The company is located at Surry Hills, in New South Wales, Australia. JELIMAR PTY: Liquidator to Present Wind-Up Report on Dec. 4 ----------------------------------------------------------- Jelimar Pty Ltd, which is in liquidation, will hold a meeting for its members and creditors on December 4, 2007, at 12:30 p.m. At the meeting, O'Keeffe Walton Richwol, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Jelimar Pty Jelimar Pty Ltd, which is also trading as Olive Tree Hotel, operates drinking places. The company is located at Sunbury, in Victoria, Australia. KENETA KITCHENS: Final Meeting Slated for December 4 ---------------------------------------------------- Keneta Kitchens Pty Ltd will hold a final meeting for its members on December 4, 2007, at 12:45 p.m. At the meeting, the members and creditors will hear a report by O'Keeffe Walton Richwol, Keneta Kitchen's liquidator, on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on June 14, 2007. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Keneta Kitchens Keneta Kitchens Pty Ltd is a distributor of wood kitchen cabinets. The company is located at Seaford, in Victoria, Australia. KIMBERLEY DIAMOND: KPMG Raises Substantial Going Concern Doubt -------------------------------------------------------------- Kimberley Diamond Company NL reported a net loss of AU$31.87 million for the year ended June 30, 2007, more than doubling a net loss of AU$13.13 million for the year ended June 30, 2006. Revenue for fiscal 2007 totaled AU$63.47 million, while costs of product sold amounted to AU$78.14 million, giving the company a gross loss of AU$14.67 million. As of June 30, 2007, the company had total assets of AU$238.18 million, total liabilities of AU$55.02 million, and accumulated losses of AU$104.36 million. The company also reported strained liquidity as of June 30, 2007, with total current assets of AU$19.76 million and total current liabilities of AU$43.89 million. Going Concern Doubt After reviewing the company's financial statements for FY2007, DP McComish at KPMG raised significant uncertainty about the company's ability to continue as a going concern, citing uncertainty in the outcomes of the company's funding sourcing activities. The directors explained in the annual report that additional funds are needed to enable the company and the group to meet its obligations as they fall due. The directors set forth the sources of funding as one or more of the following: * issue of new equity in the company (possibly subject to restrictions on the company's ability to issue new shares should this be required during the Gem Diamonds bid period); * increase to the limit of the Gem Diamonds facility (subject to the approval of Gem and the existing project financiers); or * Sale of shares in Blina Diamonds NL (subject to the approval of the existing project financiers). West Perth, Australia-based Kimberley Diamond Company NL -- http://www.kimberleydiamondco.com.au/-- is engaged in diamond mining, processing, marketing and exploration. The company is listed at both Australian Securities Echange Ltd. and London Stock Exchange. KIMBERLEY DIAMOND: Gem Diamond's Buy Offer Now Unconditional ------------------------------------------------------------ Gem Diamonds Australia Pty. Limited had served notice on Kimberley Diamond Company declaring its takeover offer free of all outstanding conditions, the company said in a corporate disclosure filed with the Australian Securities Exchange Ltd. In the company's annual meeting, Stephen Lee Wetherall, Neil Richard Kaner and Constantino Paoiliello were appointed to the board of directors of Kimberley Diamond while Miles Kennedy, Karl Simich, Kevin Somes, Peter Danchin and Robert Still resigned, the disclosure said. Forbes.Com relates that Gem Diamonds Australia now has an interest of 81.51% in Kimberley Diamond. The Forbes report says that Gem Diamonds Australia agreed to a AU$0.70 per share cash offer on July 19, 2007, which values the company at AU$300 million. The report adds that once Gem Diamonds Australia acquires 90% of the issued shares in Kimberley, it intends to compulsorily acquire the remaining 10% of the shares and de-list Kimberley from the Australian Stock Exchange, and also withdraw its admission to trade on London Stock Exchange's AIM Market. Kimberley Diamond former chair Miles Kennedy writes in the company's annual report that on July 19, 2007, Gem Diamonds Limited announced a takeover bid for the entire issued share capital of Kimberley Diamond at AU$0.70 a share together with the provision of a secured working capital loan of AU$10 million. The offer was made by Gem Diamonds Australia Pty Limited, a wholly owned subsidiary of Gem Diamonds Limited. Mr. Kennedy notes that the offer has been unanimously recommended for acceptance by the company's directors. The offer was set to close on November 2, 2007, but has been extended to Dec. 1, 2007. West Perth, Australia-based Kimberley Diamond Company NL -- http://www.kimberleydiamondco.com.au/-- is engaged in diamond mining, processing, marketing and exploration. The company is listed at both Australian Securities Echange Ltd. and London Stock Exchange. The company has incurred net losses of AU$31.87 million, AU$13.13 million, and AU$3.5 million for the years ended June 30, 2007, 2006, and 2005. Going Concern Doubt After reviewing the company's financial statements for FY2007, DP McComish at KPMG raised significant uncertainty about the company's ability to continue as a going concern, citing uncertainty in the outcomes of the company's funding sourcing activities. LIFESTYLE CLASSICS: Members and Creditors to Meet on Dec. 4 ----------------------------------------------------------- A final meeting will be held for the members and creditors of Lifestyle Classics Pty Ltd on December 4, 2007, at 1:00 p.m. At the meeting, the members and creditors will hear the report by O'Keeffe Waltom Richwol, the company's liquidator, on the company's wind-up proceedings and property disposal. The company commenced liquidatio proceedings on May 21, 2007. The company's liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Lifestyle Classics Lifestyle Classics Pty Ltd is a distributor of furnitures. The company is located at Moorabbin, in Victoria, Australia. LOOKSUN PTY: Members and Creditors Hear Wind-Up Report ------------------------------------------------------ The members and creditors of Looksun Pty Limited, which is in liquidation, met on Nov. 22, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Schon G. Condon RFD c/o Condon Associates Level 1, 34 Charles Street Parramatta, New South Wales Australia Telephone:(02) 9893 9499 About Looksun Pty Looksun Pty Limited is involved with nonresidential construction. The company is located at Bringelly, in New South Wales, Australia. MCLAREN INVESTMENTS: Members and Creditors to Meet on Dec. 4 ------------------------------------------------------------ Mclaren Investments Pty Ltd will hold a final meeting for its members and creditors on December 4, 2007, at 1:15 p.m. At the meeting, O'Keeffe Walton Richwol, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The company has been undergoing liquidation since June 29, 2007. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Mclaren Investments Mclaren Investments Pty Ltd operates hardware stores. The company is located at Elsternwick, in Victoria, Australia. PAN AUSTRALIAN: Incurs AU$281,000 Net Loss for 2007 Half-Year ------------------------------------------------------------- Pan Australian Resources Limited reported a AU$281,000 net loss for the half-year period ended June 30, 2007, an increase from the AU$84,000 net loss recorded for the half-year ended June 30, 2006. The company reported revenues of AU$13.47 million and other income of AU$934,000 for the six months to June 30, 2007. As of June 30, 2007, the company had total assets of AU$242.45 million, total liabilities of AU$60.92 million and accumulated losses of AU$28.61 million. The company's balance sheet also showed strained liquidity with total current liabilities of AU$44.78 million exceeding total current assets of AU$31.69 million. Headquartered in Brisbane, Australia, Pan Australian Resources Limited --http://www.panaustralian.com.au/-- is a mineral exploration company. The company is engaged in gold mining operations, mine development, precious and base metal project evaluation and mineral exploration. The company owns and operates mineral resource and exploration bases in Laos and Thailand. The company recorded consecutive net losses of AU$4.52 million, AU$4.99 million, AU$1.21 million, and AU$0.84 million for the years ended Dec. 31, 2006 through 2003. THE EVOLUTION DESIGN: Appoints Anthony Warner as Liquidator ----------------------------------------------------------- During a general meeting held on October 15, 2007, the members of The Evolution Design Group Pty Limited appointed Anthony Warner as the company's liquidator. The Liquidator can be reached at: Anthony Warner CRS Warner Kugel Level 5, 30 Clarence Street Sydney, New South Wales 2000 Australia Web site: http://www.crspartners.com.au About The Evolution Design The Evolution Design Group Pty Ltd is involved with commercial art and graphic design. The company is located at Darlinghurst, in New South Wales, Australia. TRANSAX INT'L: Sept. 30 Balance Sheet Upside-Down by US$3.3 Mil. ---------------------------------------------------------------- Transax International Limited's consolidated balance sheet at Sept. 30, 2007, showed US$2,112,254 in total assets and US$5,481,383 in total liabilities, resulting in a US$3,369,129 total stockholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with US$904,785 in total current assets available to pay US$5,021,264 in total current liabilities. The company reported a net loss of US$59,460 on revenues of US$1,328,636 for the third quarter ended Sept. 30, 2007, compared with a net loss of US$623,578 on revenues of US$1,115,930 in the same period last year. The increase in revenues is due to an increase in installations of the company's software or hardware devices at healthcare providers' locations in Brazil. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25d0 Going Concern Doubt Moore Stephens P.C., in New York, expressed substantial doubt about Transax International Limited's ability to continue as a going concern after auditing the company's consolidated financial statements as of the year ended Dec. 31, 2006. The auditing firm pointed to the company's accumulated losses from operations, working capital deficiency and net capital deficiency at Dec. 31, 2006. In addition, since fiscal 2000, the company has been deficient in the payment of Brazilian payroll taxes and Social Security taxes. At Sept. 30, 2007, these deficiencies, including interest and fines, amounted to approximately US$1,013,000. About Transax International Based in Miami, Florida, Transax International Limited (OTC BB: TNSX.OB) -- http://www.transax.com/-- primarily through its wholly-owned subsidiary, Medlink Conectividade em Saude Ltda. is an international provider of information network solutions specifically designed for healthcare providers and health insurance companies. The company has offices located in Miami, Florida and Rio de Janeiro, Brazil. The company's subsidiaries, TDS Telecommunication Data Systems LTDA provides services in Brazil; Transax Australia Pty. Ltd. operates in Australia; and Medlink Technologies Inc. initiates research and development. ================================ C H I N A & H O N G K O N G ================================ CHINA EVERBRIGHT: Shareholders OK Capital Injection from Gov't -------------------------------------------------------------- Shareholders of China Everbright Bank have approved a capital injection from the government, paving the way for the bank to sell equity stakes to strategic foreign investors, Reuters reports, citing China Everbright's statement on Wednesday. According to Reuters, the bank's statement did not specify the size of the cash infusion. However, the report recounts, China Everbright Chairman Tang Shuangning said earlier this month that the bank hopes to get CNY200 billion (US$2.7 billion) from Central Huijin, part of China's newly established sovereign wealth fund. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 8, 2007, China Everbright intends to invite foreign strategic investors and sell shares to the public after the capital infusion to its long-awaited restructuring plan from the government. The bank said it would speed up the search for strategic investors and aimed to float shares as early as the first half of 2008, Reuters relates. Reuters points out that despite China Everbright being saddled with debts, overseas lenders, keen to get into China, have been interested in the Everbright because of its size and geographical reach in a nation where many high-profile domestic banks have already partnered with foreign financial institutions. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/-- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China has approved mid-sized lender China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. EMI GROUP: Moody's Withdraws B1 Corporate Family Rating ------------------------------------------------------- Moody's Investors Service has withdrawn EMI Group Ltd.'s (fka EMI Group Plc) B1 Corporate Family Rating (under review for possible downgrade) for business reasons. The withdrawal follows the redemption of substantially all of EMI Group's existing public debt instruments. Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At Mar. 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. HANESBRANDS INC: S&P Affirms B+ Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services has revised its ratings outlook for intimate apparel and activewear maker Hanesbrands Inc. to positive from stable. At the same time, existing ratings on the company, including the 'B+' corporate credit rating, were affirmed. "The outlook revision reflects the company's positive operating momentum as a standalone entity since its spin-off from Sara Lee Corp. in September 2006, and its modestly improving credit protection measures," said S&P's credit analyst Susan Ding. "Management is on track in executing the company's strategies, is focusing on investing in key brands, and has benefited from its cost saving initiatives. Credit protection measures and operating results are in line with our expectations." The ratings on Hanesbrands reflect the company's leveraged financial profile, resulting from its debt-financed US$2.4 billion special dividend to Sara Lee Corp. following its spin- off; the commodity-like nature of some of Hanesbrands' products; the highly competitive and promotional retail environment; and the company's relatively narrow business focus. These risks are somewhat mitigated by Hanesbrands' strong and widely recognized brand names (including Hanes, Champion, Playtex, and Bali), its core replenishment business (which is less susceptible to fashion risk), and its relatively stable cash flows. Winston-Salem, North Carolina-based Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets innerwear, outerwear and hosiery apparel under consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men's underwear, children's underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries, including Dominican Republic, El Salvador, Mexico, Puerto Rico, India and China. PARKSON RETAIL: Posts CNY151-Mil. Net Profit for Third Quarter -------------------------------------------------------------- For the quarter ended September 30, 2007, Parkson Retail Group booked a net profit of CNY151 million, a slight increase from the CNY104-million net profit recorded for the same quarter in 2006, according to a Xinhua News Feed. Parkson Retail's sales for the 2007 third quarter totaled CNY695 million, versus sales of CNY526 million for the same period a year ago. For nine months ended Sept. 30, 2007, the group posted a net profit of CNY455 million, an increase from the CNY300-million net profit recorded for the nine months ended Sept. 30, 2006. Sales for the first nine months of 2007 totaled CNY2.18 billion, compared with the CNY1.47 billion figure recorded for the same period in 2006. Headquartered in Hong Kong, Parkson Retail Group Limited is engaged in the ownership and operation of a national network of department stores and supercenters in the People's Republic of China under the brand of Parkson and Xtra. The company owns and manages 37 parkson branded department stores and two xtra branded supercenters located in 26 cities in the China, including Beijing, Shanghai, Chongging and Xi'an. Parkson Retail Group Limited offers a range of merchandise under four categories, fashion and apparel, cosmetics and accessories, household, electrical goods and others, and groceries and perishables. It focuses on fashion lifestyle products, in particular the ladies fashion and cosmetic. The Troubled Company Reporter-Asia Pacific reported that, on December 4, 2006, Moody's Investors Service affirmed Parkson Retail Group Ltd's Ba1 senior secured bond rating following the successful closing of its US$200 million bond issuance. The rating has had its provisional status removed. The rating outlook is stable. On November 8, 2006, Standard & Poor's assigned its BB long-term corporate credit rating to Parkson Retail Group Ltd. The outlook is stable. ========= I N D I A ========= CABLE & WIRELESS: Loses J$506.8 Million in First Six Months ----------------------------------------------------------- Cable & Wireless' Jamaican unit lost some J$506.8 million in the first six months of 2007, The Jamaica Gleaner reports. The Gleaner relates that Cable & Wireless Jamaica has given up on collecting over half a billion dollars in debts and has written off the receivables in its second quarter 2007. It incurred J$478.7 million losses for the period. According to The Gleaner, Cable & Wireless Jamaica's half-year loss worsened "the depressed earnings legacy left by past president Rodney Davis, whose overnight departure came two months into the September quarter after two years with the telecoms." The Gleaner notes that Cable & Wireless Jamaica's over US$4 billion of receivables in June 2007 include: -- US$609 million connected to what the firm labeled "unbilled amounts", and -- recoverable out-payments from local and international carriers on whose networks the company calls terminated. Cable & Wireless Jamaica said in its quarterly earnings report for the second quarter ended September 2007, "We reviewed the recoverability of these amounts at Sept. 30 and as a result this amount was reduced by J$542 million." "Unbilled amounts and outpayments are done on a monthly basis," The Gleaner says, citing Cable & Wireless Jamaica president and chief executive officer Phil Green. Mr. Green commented to The Gleaner, "The majority of the reduction in accounts receivable relates to a reduction in our estimate of unbilled amounts. The reduction relates predominately to the second half of last year." Mr. Green assured The Gleaner that the adjustment was done in line with accounting standards and were fully audited. Meanwhile, Cable & Wireless Jamaica disclosed "depressed income" on its fixed line business, The Gleaner says. Mr. Green told The Gleaner that growth strategies for Cable & Wireless Jamaica's fixed line would be concentrated on "major improvements in service, specifically in relation to provisioning and repair times." "We anticipate that this in turn will drive a turnaround in demand for the fixed line service. In addition, we are also looking to re-position our fixed line product family, both prepaid and postpaid," Mr. Green commented to The Gleaner. According to the report, Cable & Wireless Jamaica's overall revenues were off by over J$1 billion to J$11.1 billion. Costs associated with making those sales increased by J$490 million to J$4.8 billion, indicating a worsening gross profit margin on the six-month results of 56%, compared to 64% in the same period last year. The Gleaner notes that bigger selling, administrative and marketing or SAD costs plus other operating expenses resulted to a J$98-million loss on operations. Finance costs and foreign exchange conversion losses led to a J$807-million pretax loss. Meanwhile, a J$300-million tax credit helped contain net losses to J$507 million. Some of the expenses were from "poor execution of a number of outsource contracts," damage from Hurricane Dean, and ongoing theft of cable, The Gleaner says, citing Cable & Wireless Jamaica . 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, 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: Former Chair Criticizes Executive Payoff ---------------------------------------------------------- Lord Young of Graffham, former chairman of Cable & Wireless plc, has criticized the board of the telecoms group after hearing that ousted international head Harris Jones was getting more than GBP5 million in compensation, the Daily Telegraph reports. As disclosed by C&W, Mr. Jones is to step down as chief executive of International and as a director, and leave the business towards the end of 2007 once handover is complete. Mr. Jones will receive his contractual entitlement on leaving, including GBP4.3 million for his pro-rated share in the Long Term Incentive Plan having delivered value creation on behalf of shareholders from International of over GBP1 billion since he joined in November 2004, of which three quarters of a billion has been created since the commencement of the LTIP on April 1, 2006. John Pluthero is to become executive chairman of International with immediate effect, while continuing his similar role for Europe, Asia & US. Mr. Pluthero will receive 50% of Mr. Jones' LTIP units for the remaining life of the LTIP after deduction of the LTIP payment above to Mr. Jones. "I just can't understand that incredible amount of remuneration," Lord Young was quoted by the Daily Telegraph as saying. "What is bizarre to me is those in the scheme itself, and the chairman Richard Lapthorne, are somehow saying they have to be remunerated as if they are running a private equity operation, but they are not risking a penny. It's 'head we win, tails we don't lose'." Lord Young, who left the company in 1995 after a boardroom bust- up, told the Daily Telegraph he took issue with the entire C&W pay scheme, not just Mr. Jones's entitlement. As previously reported in the TCR-Europe on Nov. 23, 2007, C&W is facing yet another dispute with shareholders and unions over excessive executive rewards after a management shake-up. Peter Montagnon, the Association of British Insurers' director of investment affairs, said it would go over the latest revisions of the C&W's remuneration scheme, which he describes as "quite unusual". At its Annual General Meeting on July 20, 2007, C&W recommended the removal of the GBP20 million cap on the amount that can be received by an individual within the LTIP, which angered investors. The telecoms group, however, maintained that its long term incentive plan was "working very well," the Press Association relates. 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, 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% QUEBECOR WORLD: S&P Cuts Preferred Stock Rating to C from CCC- -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its preferred stock rating on Quebecor World Inc. two notches to 'C' from 'CCC-'. The company's other ratings, including the 'B-' long- term corporate credit rating, remain unchanged. All ratings are on CreditWatch with negative implications, where they were initially placed Aug. 9, 2007. "The downgrade follows Quebecor World's announcement that it will be suspending dividend payments on its series 3 and series 5 preferred shares," said S&P's credit analyst Lori Harris. The company may be prevented from making the dividend payments because it might not satisfy the capital adequacy test within the Canada Business Corporations Act. Quebecor World will request shareholder approval at its next shareholder meeting in May 2008 to reduce the stated capital as permitted under the Canadian Act, which would involve reclassifying equity to allow dividend payments to resume, including accrued unpaid dividends. The next dividend payment is due Dec. 1, 2007. Should the company not make the declared dividend payment on that date as Quebecor World has stated, S&P will lower the preferred stock rating to 'D'. 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 with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. ================= I N D O N E S I A ================= ADARO INDONESIA: To Refinance US$400M Bonds Before Going Public --------------------------------------------------------------- PT Adaro Indonesia plans to hold an initial public hearing as soon as it has refinanced its US$400-million bond issue, Reuters reports, citing Indonesian investor Edwin Soeryadjay. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 19, 2007, Adaro Indonesia plans to borrow US$750 million from banks to repay bonds in December. Bankers said, Reuters recounts, that the company is seeking a US$600-million initial public offering on the Jakarta Stock Exchange early next year. TCR-AP said the company will sell between 20% and 30% of existing and new shares. Adaro's bonds, which mature in 2010, must be sold because they carry terms hindering plans to sell shares to the public and to invest in increasing production, the TCR-AP noted. According to Reuters, UBS and Goldman Sachs have been shortlisted to handle the issue. Headquartered in Indonesia, PT Adaro Indonesia -- http://www.adaro-envirocoal.com-- operates one of the world's largest sub-bituminous coalmines in Kalimantan, Indonesia. The company operates under a Coal Cooperation Agreement with the Government of Indonesia, which gives it the right to mine coal within its agreement area in the Tanjung district of South Kalimantan Province until the year 2022 with rights to extend by mutual agreement. There are four deposits within the Agreement Area, which contain total coal resources of approximately 3.0 billion tones of open cut coal characterized by extremely thick seams of up to 50 meters with relatively low overburden. * * * The Troubled Company Reporter-Asia Pacific reported on Nov. 9, 2007, that Moody's Investors Service placed PT Adaro Indonesia's Ba3 local currency corporate family and foreign currency bond ratings under review for possible upgrade. On Sept. 11, 2006, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Adaro Indonesia. The outlook is stable. At the same time, Standard & Poor's affirmed its 'B+' rating on the senior secured notes issued by Adaro's wholly owned subsidiary, Adaro Finance B.V. The issue is unconditionally and irrevocably guaranteed by Adaro, and its related company, PT Indonesia Bulk Terminal. Adaro had total assets or US$1.4 billion at March 31, 2006. It is the largest single-mine coal producer in Indonesia, with capacity of 38 million tons per year in 2006 and reserves of at least 14 years. AVNET INC: Operating Unit Inks Franchise Deal with Tyco ------------------------------------------------------- Avnet Electronics Marketing, an operating group of Avnet Inc., has disclosed that Tyco Electronics has extended its franchise agreement with Avnet to include all of Europe, Asia Pacific, Japan and India. The extension of the global franchise agreement is focused on Tyco Electronics' electronic components segment, which includes connectors and interconnect systems, relays, switches, circuit protection devices, sensors, wires and cable. These products are used primarily in the automotive, computer, consumer electronics, communication equipment, appliance, aerospace and defense, industrial machinery and instrumentation markets. "For 60 years, Tyco Electronics has a held a leadership position in the electronics industry. Through our newly expanded agreement with them, we are able to offer many advantages for our mutual customers across the globe - including shorter lead times, reduced time to market, and a broad product line," said Tom McCartney, senior vice president of IP&E business development worldwide for Avnet Electronics Marketing. "We look forward to working with Tyco Electronics to offer market-leading products and Avnet's support and supply chain capabilities locally on a global basis." "Avnet has a long-standing track record of providing exceptional service to our customers in the Americas," said Jack Voelmle, vice president for Tyco Electronics' global industrial and commercial business. "We are very pleased to offer our customers around the world the same opportunity to benefit from Avnet's superior logistical capabilities and innovative services." About Avnet Electronics Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company. Avnet Electronics Marketing serves electronic original equipment manufacturers and electronic manufacturing services providers in more than 70 countries, distributing electronic components from leading manufacturers and providing associated design-chain and supply-chain services. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. MEDIA NUSANTRA: Plans to Buy Majority Stake in Linktone Ltd. ------------------------------------------------------------ PT Media Nusantara Citra (MNC) has agreed to acquire a minimum of 51% in China-based Linktone Ltd's outstanding shares through a combination of a tender offer for existing shares and subscription for newly issued shares, various reports say. The company has offered US$0.38 per ordinary share (US$3.80 per ADS) representing a 53.8% premium over Linktone's closing price of US$2.47 per ADS on November 27, 2007, the report recounts. The tender offer, the report says, will be for 6.1 million ADS, or nearly 25% of total shares outstanding. RTT News notes that MNC will subscribe a minimum of 18.0 million ADS up to 25.2 million ADS, which is representing up to 57% and no less than 51% of total shares outstanding at the close of the subscription and tender. According to the report, the transaction is still subject to Linktone shareholders' approval, government's approval, and regulatory authorities and other customary closing conditions. The deal is expected to close in the first quarter of 2008, the report adds. Linktone CEO Michael Li told Digital Media Wire that the increases to their cash balances will enable aggressive execution and implementation of their cross media strategy. Linktone's advanced capabilities provide a strong platform for the Media Nusantara to establish a dominant position in the WVAS sector in Indonesia and the ability to expand into 'new media' market opportunities throughout Asia, the report adds. Joint Conference Call Held on Nov. 29 Management Teams from both Media Nusantara and Linktone hosted a joint conference call discussing the former company's recent public disclosure, Xinhua News reports. According to the report, the conference call was held yesterday, November 29, 2007 at 9:00 p.m. Eastern Time, and 10:00 a.m. Beijing/Hong Kong Time on November 30, 2007. Chief Financial Officer Colin Sung and MNC Group Chief Executive Officer Hary Tanoesoedibjo were on the call to discuss the transaction in detail and answer questions from participants. To access the replay: -- U.S. callers should dial 800- 379-7444 and enter passcode 11103879#; -- international callers should dial 303- 590-3000 and enter the same passcode. Headquartered in Jakarta, PT Media Nusantara Citra -- http://www.mnc.co.id/-- is an integrated media company with operations in television broadcasting network, radio and print media. It is the leader in Indonesia's FTA TV broadcasting market, owning 3 FTA TV networks out of a total of 11, and captured the largest audience and ADEX shares in 2005. MNC is 100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta Stock Exchange. The Troubled Company Reporter - Asia Pacific reported on Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term local and foreign currency corporate credit rating on Indonesia's integrated media company, PT Media Nusantara Citra. The outlook has been revised to positive from stable. On Sept. 19, 2006, that Moody's Investors Service has affirmed its B1 rating for the senior unsecured bonds issued by PT Media Nusantara Citra following the issuance's completion. At the same time, Moody's has affirmed its B1 corporate family rating for MNC. Both ratings have been removed from their provisional status. The ratings outlook is stable. PERUSAHAAN GAS: To Deliver Gas Using Grissik–Pagardewa Pipeline --------------------------------------------------------------- PT Perusahaan Gas Negara (Persero)'s Grissik – Pagardewa section of the company's South Sumatera–West Java transmission pipeline is ready to have initial gas flow, Reuters Key Developments reports. According to the report, the gas that passes through this pipelines flows in in stages starting at 20 to 50 million standard cubic feet per day. Subsequently, the report notes, the gas will be delivered together with the gas from Pertamina Pagardewa to the company's distribution pipeline at Cilegon, Bekasi, Jakarta, Karawang and Bogor area within a few days. Reuters relates that the company expects that the SSWJ transmission pipeline will transport 480 mmscfd to western part of Java in 2008 following the completion of Pagardewa – Labuhan Maringgai parallel line. Most parts of the pipeline grid which are connected to Bekasi, Karawang, Bogor, Tangerang and Jakarta have been completed while the connection from Bojonegara to Cilegon (Merak and Anyer) is underway, the report adds. Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk-- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Jan. 18, 2007, that Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. The TCR-AP reported on Dec. 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Perusahaan Gas to positive from stable. The ratings on the company are affirmed at 'B+'. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. PERUSAHAAN: Hires Banks as Arrangers for Power Project Loans ------------------------------------------------------------ PT Perusahaan Listrik Negara has appointed three local and two international banks as lead arrangers for financing of three coal-fired power plants, Reuters News reports. According to the report, the three projects -- the Labuan, Indramayu and Rembang power plants on Java island -- will generate 2,250 megawatts of electricity, which will improve power supplies for Java-Bali islands as well as reduce dependence on oil-fueled power plants. Parno Isworo, PLN's finance director, told the news agency that the company has appointed Bank Centra Asia, Bank Negara Indonesia, and Bank Mandiri to lead arrange financing for the rupiah content for each of the three projects. Furthermore, Bank of China and Barclays have been appointed to lead arrange the financing for the U.S. dollar component of the Indramayu and Rembang projects, the report notes. Fitri Wulandari of Reuters writes that the three projects will need IDR4.4 trillion and US$1.1 billion. Mr. Isworo said Perusahaan Listrik will be the direct borrower under the loan agreements with the ministry of finance providing a full government guarantee to support PLN's obligation, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. TELKOMSEL: Invests IDR50 Bil. in Establishing T-Cash Facility ------------------------------------------------------------- PT Telekomunikasi Selular Indonesia invested IDR50 billion in the establishment of the T-Cash facility, The Jakarta Post reports. T-Cash is is the first mobile wallet facility in Indonesia, the report explains. President Director Kiskenda Suriahardja told the news agency that T-Cash is the extension of Telkomsel's mobile banking program. This new program, the report adds, offers banking services like money transfers, deposit checks, bill payments and changes to personal identity numbers via a banking menu on a cellular phone. About Telkomsel PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/ -- is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of June 2006, Telkomsel had close to 29.3 million customers, which, based on industry statistics, represented a market share of more than 50%. Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, an internationally, through 259 international roaming partner in 53 countries as of June 2006. The company provides its subscribers with the choice between two prepaid cards-simPATI and kartuAs of a pre-paid simPATI service, or the post-paid kartuHALO service, as well as a variety of value-added services and programs. Fitch Ratings, in August 2006, upgraded PT Telekomunikasi Selular's long-term foreign currency issuer default rating to 'BB' from 'BB-'. ========= J A P A N ========= ALL NIPPON: Inks Five-Year Deal with IBS Software Services ---------------------------------------------------------- All Nippon Airways Co. Limited has inked a multi-million five- year deal with IBS Software Services to provide integrated supply chain management solution for their cargo business, Monster and Critics reports. IBS, in a press release, stated that its new-generation cargo management system, iCargo, will address current and future business requirements of ANA's entire airfreight operation, which has grown in revenue and load by over 20% in the last fiscal year, notes the report. ANA's senior vice-president on information technology services, Toru Sato, explained to Monster and Critics that the airline's decision to choose iCargo was prompted by the need for a system that would help them address the rapidly growing air cargo business around the world. Mr. Sato added that the deal with iCargo will help improve ANA's service quality, enhance profitability by optimizing capacity utilization, and conform to future requirements of the industry, notes Monster and Critics. IBS, conveys the report, is headquartered at the Technopark IT campus in India and is a leading global provider of new generation IT solutions to the travel, transportation and logistics industries. iCargo, adds Monster and Critics, is an integrated system which comprehensively addresses cargo reservations, capacity control, rating, load planning, cargo terminal operations, ground handling, revenue accounting and yield management requirements of cargo carrying airlines. About All Nippon Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The Troubled Company Reporter-Asia Pacific reported on April 20, 2007, that Moody's Investors Service placed the Ba1 senior unsecured debt ratings of All Nippon Airways Co., Ltd. under review for possible upgrade. The rating action reflects ANA's high and stable profitability despite the ongoing price hikes of aircraft fuel, as well as Moody's view that the company's financial flexibility is likely to be further improved by its recently announced asset disposition related to its hotel business. AMR CORP: Plans to Divest American Eagle Division ------------------------------------------------- AMR Corporation, the parent company of American Airlines Inc., plans to divest American Eagle, its regional carrier. AMR, which has been engaged in an ongoing strategic value review process, relates that a divestiture of American Eagle is in the best interests of AMR and its shareholders and will be beneficial to American, American Eagle, their employees, and other stakeholders. The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also stated that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services. AMR evaluates the form of the divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation from AMR. The company expects to complete the divestiture in 2008; however, the completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, well as the ultimate form of the divestiture. "The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," Gerard Arpey, AMR Chairman and CEO, said. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure." Mr. Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Mr. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, well as American, will better position American Eagle to compete for new customers and growth opportunities in the future. American Eagle is a fully developed operating unit providing a full range of regional airline services with excellent employees and a modern fleet. It operates approximately 300 aircraft, with approximately 1,700 daily flights to more than 150 cities throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. In 2007, American Eagle expects to generate annual revenues of approximately US$2.3 billion. The planned divestiture would include both American Eagle Airlines Inc., which feeds American Airlines hubs throughout North America, and its affiliate, Executive Airlines Inc., which carries the American Eagle name throughout the Bahamas and the Caribbean from bases in Miami and San Juan, Puerto Rico. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR also flies to Japan American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines Inc., as: (i)AMR: issuer default rating at 'B-'; and senior unsecured debt at 'CCC'/RR6'; (ii)American Airlines: issuer default rating at 'B-'; secured bank credit facility at 'BB-/RR1'. The Rating Outlook for both AMR and American has been revised to positive from stable. EMAGIN CORP: Sept. 30 Balance Sheet Upside-Down by US$3.6 Mil. --------------------------------------------------------------- eMagin Corp.'s consolidated balance sheet at Sept. 30, 2007, showed US$7,068,000 in total assets and US$10,724,000 in total liabilities, resulting in a US$3,656,000 total shareholders' deficit. The company reported a net loss of US$12,651,000 on total revenue of US$5,071,000 for the third quarter ended Sept. 30, 2007, compared with a net loss of US$3,769,000 on total revenue of US$2,292,000 in the same period a year ago. Higher revenue was primarily due to increased microdisplay demand and increased availability of finished displays due to manufacturing improvements. For the three months ended Sept. 30, 2007, the change in the derivative liability was a loss of approximately US$1.5 million, as compared to US$177,000 for the three months ended Sept. 30, 2006. On July 23, 2007, the company recorded a loss on extinguishment of debt of approximately US$10.7 million. This loss was in relation to amended agreements the company entered into with the note holders of the original notes issued July 21, 2006, and March 28, 2007. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25d2 Going Concern Doubt As reported in the Troubled Company Reporter on April 19, 2007, Eisner LLP expressed substantial doubt on eMagin Corp.'s ability to continue as a going concern after auditing the company's annual report for the year ended Dec. 31, 2006. Eisner reported that the company has had recurring losses from operations which is likely to continue, and has working capital and capital deficits at Dec. 31, 2006. About eMagin Corp. Headquartered in Bellevue, Washington, eMagin Corporation (AMEX: EMA) -- http://www.emagin.com/-- designs, develops, manufactures, and markets virtual imaging products which utilize OLEDs, or organic light emitting diodes, OLED-on-silicon microdisplays and related information technology solutions. The company offers its products to OEMs in the military, industrial, medical, and consumer market sectors through direct technical sales in North America, Japan, and Europe. GAP INC: Board Declares US$0.08 Per Share Quarterly Dividend ------------------------------------------------------------ The board of directors of Gap Inc. voted a quarterly dividend of US$0.08 per share payable on Jan. 30, 2008, to shareholders of record at the close of business on Jan. 9, 2008. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * The company continues to carry Fitch's BB+ Issuer Default Rating. The company also carries Standard & Poor's Ratings Services' BB+ corporate credit rating. HERBALIFE LTD: Taps Shankar Suryanarayanan as Sr. Vice President ---------------------------------------------------------------- Herbalife Ltd. has appointed Shankar Suryanarayanan as senior vice president of global operations to lead the strategic development of the company's manufacturing, strategic sourcing, supply chain, and process improvement efforts on a global basis. Having worked in India, Europe, Asia, and the U.S., Mr. Suryanarayanan's experience well suits Herbalife's global business model. He joins the company from Sandoz, a division of Novartis, where he was head of global sourcing and purchasing, based in Germany, responsible for an annual spend of over US$1 billion on direct materials, licensed products and manufacturing services from over 1,000 suppliers. Previously, Mr. Suryanarayanan served as head of global technical operations and leadership team member for Roche Consumer Health out of Switzerland. With responsibility for leading a team of 1,200 associates in engineering, quality, procurement, manufacturing and logistics, he is credited with streamlining processes to reduce time to market, fully integrating technical operations into the consumer health business, and establishing systems to obtain licenses from multiple regulatory agencies. Before moving to Europe, Suryanarayanan was a senior consultant in the operations management practice of Monitor Group, where he led teams that used economic modeling to determine competitive positions of clients' businesses. Earlier in his career, he spent over a decade at Fisher Controls International, a division of Emerson Electric, in positions of progressive responsibility, first in the company's Asia Pacific headquarters, and later in the global headquarters in the U.S. Mr. Suryanarayanan also gained experience as a manufacturing engineer at General Motors. He holds a master of science in management from MIT Sloan School of Management, a master of science in mechanical and aerospace engineering from University of Missouri, and a bachelor of technology in mechanical engineering from Indian Institute of Technology in Kharagpur, India. About Herbalife Ltd. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. * * * As reported in the Troubled Company Reporter on April 5, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Los Angeles-based Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an improved offer. L&G K.K.: To Start Court-Led Bankruptcy Procedures -------------------------------------------------- The Tokyo District Court has decided to commence bankruptcy procedures against L&G K.K., which allegedly run a fraudulent investment scheme using its own "Enten" currency, Kyodo News reports. The report states that the Court's decision was in line with a request filed on October 31 by a group of lawyers on behalf of individuals who suffered losses under the company's scheme. According to the report, the defendants' lawyers claim that L&G has a bank account savings in excess of JPY100 million. The first creditors' meeting is scheduled for July 2008, conveys Kyodo News. According to a separate Kyodo News report, the bedding supplier was suspected by the police of falsely promising its investigators that it will pay high dividends, which is in violation of the investment law. The investment law, explains Kyodo News, bans entities other than banks or other authorized financial institutions from obtaining money from the public and guaranteeing the principal. L&G, according to Kyodo News, collected more than JPY100 billion from about 50,000 individual investors nationwide, but the firm was believed to be effectively bankrupt. Police believed the firm reached the point of paralysis after using most of the investment money to pay dividends, relates Kyodo News. The Shinjuku Ward firm also collected funds by issuing its own currency, known as Enten, and pledging to pay at least JPY100,000 worth of Enten every year for deposits of at least JPY100,000 in cash, explains the report. The company organized bazaars at hotels in which food items and clothes could be bought with Enten and boasted that it had 1,000 member stores nationwide in which goods could be purchased using the currency, notes the report. The company, adds Kyodo News, would later reimburse the stores at a rate of JPY1 for every four Enten. In January, the firm told its members it would switch to paying dividends in Enten and stopped member stores from redeeming the currency. It eventually stopped making dividend payments, states the report. METHANEX CORP: Declares US$0.14 Per Share Quarterly Dividend ------------------------------------------------------------ Methanex Corp.'s Board of Directors has declared a quarterly dividend of US$0.14 per share that will be payable on Dec. 31, 2007 to holders of common shares of record on Dec. 17, 2007. Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) -- http://www.methanex.com/-- is a publicly-traded company engaged in the production, distribution, and marketing of methanol. The company's stock also trate on foreign securities market of the Santiago Stock Exchange in Chile under the trading symbol "Methanex". The company has locations in Belgium, Chile, China, Japan, Trinidad and the United Kingdom, among others. * * * Moody's Investor Services' credit ratings for the company's unsecured notes at Sept. 30, 2007, is Ba1. Moody's said the outlook is stable. ORIENT CORP: Determined to Return to TSE's First Section -------------------------------------------------------- Orient Corporation President Yoshimasa Nishida said that the company aims to resume its stock listing on the first section of the Tokyo Stock Exchange in mid-2008, Jiji Press relates. Mr. Nishida, in a press conference, revealed that he hopes to return to the TSE first section after the company's earnings report for fiscal year ending March 31, 2008, states Jiji Press. According to the report, Orient's shares were demoted to the second section of the TSE in August after the company fell into excess debt as of the end of March 2007. The Tokyo-based consumer finance firm, notes Jiji Press, eliminated its negative net worth at the end of September by replenishing its depleted capital through share issuance. Mr. Nishida plans to work hard to boost Orient's stock market capitalization to JPY100 billion or more, a condition required for the return to the TSE's first section, reports Jiji Press. Jiji Press notes that for the six-month period ended Sept. 30, 2007, Orient recorded an operating revenue of JPY144.50 billion, down 6.1% from a year earlier; an operating profit of JPY5.56 billion, down 62.7% year-on-year; and a net profit of JPY4.62 billion, down 49.4% year-on-year. About Orient Corp. Headquartered in Tokyo, Japan, -- http://www.orico.co.jp -- Orient Corporation's principal activity is the provision of consumer financing services including consumer credits, credit cards, guarantee and loan agent services, commercial financing and direct cash loans. The Group's other activities include real estate management, help supply, economy trend research/analysis, sale of goods, textiles manufacturing and golf courses. The operations are carried out through the following divisions: Financial services, Non-Financial Services, Financial Income (interests and dividends) and Other. The Troubled Company Reporter-Asia Pacific's "Large Companies With Insolvent Balance Sheets" on November 23, 2007, listed Orient Corp., with US$1,109.02 million in stockholders' equity deficit on total assets of US$37,956.19. * Fitch Affirms Japanese Major Banks After Posting H1 Results ------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Bank of Tokyo- Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation, Mizuho Financial Group, and subsidiary banks Mizuho Bank (MHBK), Mizuho Corporate Bank and Mizuho Trust and Banking, Sumitomo Mitsui Financial Group, Sumitomo Mitsui Banking Corporation, Sumitomo Trust and Banking and Chuo Mitsui Trust & Banking Company, as follows: BTMU, MUTB, MHFG, MHBK, MHCB, MHTB, SMFG, SMBC: Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'A+'; Short-term foreign and local currency IDRs affirmed at 'F1'; Individual rating 'B'; Support Rating and Support Rating Floor affirmed at '1' and 'A-' (A-minus), respectively. The Outlook is Stable. Sumitomo Trust: Long-term foreign and local currency IDRs at 'A'; Short-term foreign and local currency IDRs affirmed at 'F1'; Individual rating 'B/C'; Support Rating and Support Rating Floor affirmed at '2' and 'BBB+', respectively. The Outlook remains Positive. Chuo Mitsui Trust: Long-term foreign and local currency IDRs at 'BBB+'; Short-term foreign and local currency IDRs affirmed at 'F2'; Individual rating 'C/D'; Support Rating and Support Rating Floor affirmed at '2' and 'BBB+', respectively. The Outlook remains Positive. Major Japanese banks have posted results for their fiscal year first half, covering the six months to September 30th 2007, and these banks have seen a decline in bottom-line profitability from the previous year when the banks reported record net income. Aggregate net income for the banks mentioned above declined by 35% y/o/y owing to losses on specific areas of lending and investment, namely sub-prime investments and CDOs, ongoing problems in the consumer finance sector in Japan, as well as declines in reversals of loan loss reserves from which the banks benefited the previous year. Bankruptcy rates in Japan have shown a slight uptick but outside these specific areas, asset quality remains good. While their bottom line has been adversely impacted, their underlying profitability has remained stable due to higher net interest revenue, that has been in most cases, helped by better loan to deposit margins in addition to mostly flat fees and commissions. Fitch views the banks' overall risk profile and performance as being commensurate with their ratings which are in the range of 'A+' to 'BBB+'. We are therefore affirming our ratings. We will be publishing a longer report on banks' results and problem exposures in the coming weeks. ========= K O R E A ========= BHK INC: Decides to Get KRW3 Billion Bank Loan ---------------------------------------------- BHK Inc. has decided to get KRW3-billion bank loan, Reuters Key Developments reports. According to the report, the company will use the amount to secure its operational funds. Seoul, Korea-based BHK Inc. is engaged in international trading. The company's products consist of liquid crystal display televisions (LCD-TV's), electronic products, bed sheets, pillows, pillowcases, curtains and clothing. The company sells its bedding products in the department stores under the brand name Pierre Cardin. Currently, the company is also in the development stage for launching of a new business segment, which specializes in biomedical products, namely MyoCell, for heart muscle regeneration. The Troubled Company Reporter-Asia Pacific reported on Sept. 14, 2007, that the company has a shareholders' equity deficit of US$17.38 million on total assets of US$24.36 million. E-NET: Sets Price of 14-Million Common Shares at KRW825 Each ------------------------------------------------------------ E-Net Corporation has decided the final offering price for the rights issue of its 14 million common shares is at KRW 825 each, Reuters Investing Keys Developments reports. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 8, 2007, E-Net Corporation initially decided to offer its 14,000,000 common shares at KRW955 each. According to Reuters, the initial announcement regarding the rights issue was made on October 12, 2007. Headquartered in Seoul, Korea, E-Net Corporation -- http://www.e-net.co.kr/-- specializes in the provision of software and system integration solutions. The company provides two main products: e-business solutions, which provides under the brand names Commerce 21, customer relationship management (CRM) WORKS and BizwareFrame to manage e-commerce and customers, and online games such as TRAVIA and Dragon Gem. The Troubled Company Reporter-Asia Pacific reported on March 16, 2007, that Korea Ratings gave E-Net Corporation's fifth unregistered/unsecured overseas convertible bonds issuance of US$10 million with warrants a 'B-' rating with a stable outlook on March 6, 2007. E-NET: Signs KRW4-Billion Contract with Korean Meat Wholesaler -------------------------------------------------------------- E-Net Corpor