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 Monday, December 3, 2007, Vol. 10, No. 239 Headlines A U S T R A L I A ABSOLUTE CAPITAL: Placed in Voluntary Administration BABCOCK & BROWN LTD: To Set Up JPY100BB Fund with Bank of Tokyo CITIGOLD CORP: Incurs AU$10.05-Million Net Loss for FY2007 CITIGOLD CORP: Capital Raising Oversubscribed COLES GROUP: Moody's Withdraws Issuer & Short-term Ratings CRESCENT GOLD: Incurs AU$4.29-Million Net Loss for FY2007 CRESCENT GOLD: Spins Off Copper-Uranium Assets CYMBIS FINANCE: Fitch Puts 'B' Ratings on Negative Watch JABIRU METALS: Posts Third Annual Net Loss at AU$14.51 Million JABIRU METALS: Made First Delivery in Sept. 30 Quarter MARRICKVILL RSL: Gov't Begins Probe Due to State of Finances MINERAL DEPOSITS: Third Annual Net Loss Rises at AU$20.82 Mil. MINERAL DEPOSITS: Files Preliminary Prospectus for TSX Listing PERSERVERANCE CORP: Ernst and Young Raises Going Concern Doubt PERSERVERANCE CORP: Calls Meeting of Noteholders on Dec. 17 PERSERVERANCE: Northgate Buys Shares and Debts for AU$$282 Mil. SANCY FASHIONS: Sets Final Meeting for Dec. 4 SPICER SPORTSWEAR: Members and Creditors to Meet on Dec. 4 THE MOVIE CHANNEL: Members to Receive Wind-Up Report on Dec. 3 TIFFANY FABRICS: Liquidator to Present Wind-Up Report on Dec. 4 TRENNELL PTY: Final Meeting Slated for December 4 TRICOM SYSTEMS: Members to Have Meeting on December 3 WESTERN LODGEL: Placed Under Voluntary Liquidation WINEGROVE INVESTMENTS: Commences Wind-Up Proceedings C H I N A & H O N G K O N G ASIA PREMIUM: Plans to Expand and Change Name to P Phone Inc CHINA EASTERN AIRLINES: Shares Soar on Air China Merger Reports CHINA SOUTHERN AIR: Enters into Code Share Deal w/ Malaysia Air CITY TELECOM: Turns Around w/ HKD28.87-Mln Net Profit for FY2007 DANA CORP: Indiana and Pine Tree Object to Plan Confirmation DANA CORP: Creditors Group Supports Appaloosa Settlement Pact DANA CORP: Noteholders Balk at Appaloosa Settlement Agreement ELEPHANT TALK: Sept. 30 Balance Sheet Upside-Down by US$8.1 Mln. EMI GROUP: S&P Withdraws B+ Ratings at Company's Request PETROLEOS DE VENEZUELA: May Finalize Bahama Unit Sale in 10 Days * China Orders 7 Banks to Reduce Outstanding Loans in 4th Qtr I N D I A BALLARPUR INDUSTRIES: Bombay Court Approves Reorg Sheme w/ BILT TATA STEEL: Signs JV with Rivesdale Mining for Coal Project I N D O N E S I A ALCATEL-LUCENT: Deploys Optical Network Solution in Hong Kong DIRECTED ELECTRONICS: Moody's Cuts Corporate Family Rating to B2 GOLDEN-AGRI: Shareholders Raise SGD400.5MM from Combined Sale GOLDEN-AGRI: Nine Mos. Ended Sept. 30 Revenue Up 47% to US$1.2BB GOLDEN-AGRI: Unit Acquires PT Sinar Mas' 56,019,000 Shares HILTON HOTELS: Closes US$500-Million Unsec. Floating Rate Notes INDOSAT: Asia Mobile Holdings to Contest KPPU's Ruling INDOSAT: Signs US$228.5 Contract w/ HSBC to Finance Satellite MOBILE-8: To Expand into Four Indonesian Provinces MEDIA NUSANTARA: Moody's Affirms 'B1' Corporate Family Rating J A P A N ALL NIPPON: To Integrate Smart Cards with East Japan Railway MAZDA MOTOR: Posts 7.6% Boost in Global Output for October 2007 NIPPON SHEET: To Sell 50% Stake in NH Techno Glass, Nikkei Says SANYO ELECTRIC: Unveils 2008-2010 Midterm Business Plan SANYO ELECTRIC: Ties Up with Aeon to Develop Home Electronics SANYO ELECTRIC: To Make New Fuel Cell Company with Nippon Oil * Stable Rating Outlook for Japanese P&C insurers, Moody's Says K O R E A EUGENE SCIENCE: Opens New Office in Los Angeles HYNIX SEMICOMDUCTOR: Deal w/ TSMC Stalled Due to Disagreements HYNIX SEMICOMDUCTOR: Welcomes WTO Ruling Against Japanese Duties M A L A Y S I A ARK RESOURCES: Court Schedules Creditors' Meeting on Dec. 21 CNLT (FAR EAST): Incurs MYR2.3MM Net Loss in Qtr. Ended Sept. 30 EKRAN BERHAD: Incurs MYR40,000 Net Loss in Qtr. Ended Sept. 30 HARVEST COURT: Sept. 30 Balance Sheet Upside-Down by MYR17 Mil. SOLUTIA INC: Ruling on Sinorgchem's Exclusion Bid Still Pending SOUTH MALAYSIA INDUSTRIES: RAM Ratings Reaffirms B2 Rating SUNWAY: Aims to Complete Restructuring by 2008 1st Quarter N E W Z E A L A N D ARMADA COOPERATION: Fixes Dec. 14 as Last Day to File Claims BETA PROPERTIES: Creditors' Proofs of Debt Due on December 8 DENNY'S INC: Credit Repayment Cues S&P to Revise Rating to BB EQUITABLE LIFE INSURANCE: Gets S&P's 'BB+/B' Credit Ratings EQUITABLE MORTGAGES: S&P Assigns 'BB+/B' Issuer Credit Ratings EVOLUTION HOLDINGS: Court to Hear Wind-Up Petition on Dec. 3 FIVE STAR: Creditors' Proofs of Debt Due on December 6 HOT CHILLI: Taps McCloy and Fatupaito as Liquidators MACNICOL LOGGING: Court to Hear Wind-Up Petition Today MERCHANT IT: Requires Creditors to File Proofs of Debt by Feb. 1 PACIFIC EDGE: Offers Share Purchase Plan to NZ Shareholders ROYALE PASSENGER: M.G. Hollis and J.H. Ross Named Liquidators SERVICE ONE: Creditors Proofs of Debt Due on Feb. 1 STAR CHALLENGER: Appoints John Francis Managh as Liquidator P H I L I P P I N E S ACESITE(PHILS): To Reacquire 1.500 Million Shares in Auction EIB REALTY: Turns Around with PHP2.5-Mil. Profit for 3rd Quarter IPVG CORP: To Invest in a 40% Stake in Sabiclub's New Subsidiary NAT'L POWER: PSALM Plans to Prepay US$180-Mil. Worth of Loans * Gov't Posts 3rd Quarter Economy Results; Shows 6.6% Growth S I N G A P O R E ODYSSEY RE: Board Declares US$0.0625 A Share Quarterly Dividend REFCO INC: Judge Drain Approves Settlement Agreement with SPhinX REFCO INC: RCM Distributes US$279.5 Million from SPhinX Proceeds REFCO INC: RJM Wants Settlement Pact with FXCM Parties Approved SEA CONTAINERS: Court Approves Payment of Diligence Fees SEA CONTAINERS: Wants Exclusive Period Extended to February 20 T H A I L A N D KUANG PEI SAN: Board Authorizes Sale of Kuang Holding Shares NATURAL PARK: Peerapong Thungkasemwathana Resigns as Director POWER-P: Shareholders' Meeting Postponed, Moved to December 11 TRUE CORP: Discloses Results of Warrants Exercise - - - - - - - - ================= A U S T R A L I A ================= ABSOLUTE CAPITAL: Placed in Voluntary Administration ---------------------------------------------------- Absolute Capital Group has been put into administration after a sharp decline in revenues in the wake of the U.S. subprime mortgage crisis, various reports say. Absolute Capital's board of directors, according to a company- issued statement, has appointed Tony McGrath and Joseph Hayes, of McGrathNicol, saying that the appointment relates only to the Absolute Capital Group corporate entities and not to its core products such as the Yield Strategies Fund. In a July 25, 2007 company statement, ACG had to temporarily close its Yield Strategies Funds to protect investors due to the current lack of liquidity in global structured credit markets particularly the collaterized-debt obligation debt market backed by senior secured loans where the company invests in. The company's decision related to the two funds of the company, Absolute Capital Yield Strategies Fund and the Absolute Capital Yield Strategies Fund NZD. The two funds, which have approximately AU$200 million in invested funds, have investment exposure to structured credit assets including CDO, credit opportunity funds and Australian asset backed securities. Stuart Washington of The Sydney Morning Herald reports that in Absolute's latest update in October, the company estimated that the value of the fund had fallen about 11% in the three months to September 30, but had paid distributions to investors. ACG blamed the prolonged illiquidity in global and local credit markets for the reduction in fees paid to the corporate entity from a number of its investment products which impacted the long-term viability of the business. Mr. McGrath said, "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." A meeting of creditors will be held on December 3, 2007, where the creditors will be provided with an update on the financial position of the group. SMH notes that it was not clear whether Absolute Capital managing director, Deon Joubert, was working with the administrators. Mr. Joubert, according to the report, has previously said that the decision to freeze redemptions was made in an environment in which forced selling of structured debt products, in which the fund invests, would result in a poor outcome. Absolute Capital, explains Reuters, is not related to the London-listed firm Absolute Capital Management Holdings Ltd. Absolute Capital Group -- http://www.absolutecapital.com.au/home.htm-- is an Australian- based specialist structured credit investment manager offering a range of investment products to institutional and retail investors. Level 30, 25 Bligh Street Sydney NSW 2000 Australia BABCOCK & BROWN LTD: To Set Up JPY100BB Fund with Bank of Tokyo --------------------------------------------------------------- Babcock & Brown Pty. Ltd. and Bank of Tokyo-Mitsubishi UFJ, partnered to make investments in infrastructure projects in Asia, Thomson Financial News Limited, citing the Nikkei business daily, reports. According to the report, both companies will set up a fund to focus on investment in infrastructure assets and operations such as roads, harbour facilities and power plant facilities in Japan, Singapore, Thailand, Malaysia, South Korea, Hong Kong, China, India among others. Babcock & Brown, states Thomson Financial, will provide about JPY30 billion in the fund, while the core unit of Mitsubishi UFJ Financial Group will invest about JPY10 billion. Aiming to develop a JPY100 billion fund that will have an investment period of 10 years, the two firms will also solicit other investors through brokerages, relates Thomson Financial. Babcock & Brown Limited is an international investment banking company that provides underwriting, synidcation, advisory, investment managment, asset management and investment services. The Company's services are provided through its real estate, infrastructure and project finance, operating leasing, structured finance and investment/funds management groups. The Troubled Company Reporter-Asia Pacific's Distressed Bonds Column on November 13, 2007, listed Babcock & Brown Pty. Ltd.'s bond, with a 8.500% coupon and a December 31, 2049 maturity date, as trading at 9.50% on the New Zealand dollar. CITIGOLD CORP: Incurs AU$10.05-Million Net Loss for FY2007 ---------------------------------------------------------- Citigold Corporation Limited reported a net loss of AU$10.05 million for the year ended June 30, 2007, an increase of 135.92% from the AU$4.26-million net loss reported for the year ended June 30, 2006. The company had sales of AU$2.76 million for fiscal year 2007, and cost of sales amounted to AU$3.21 million, giving the company a gross loss of AU$0.45 million. As of June 30, 2007, the company had total assets of AU$191.28 million, total liabilities of AU$13.71 million, and accumulated losses of AU$51.77 million. Milton, Australia-based Citigold Corporation Limited -- http://www.citigold.com/-- is a gold producers engaged in the exploration and development of the Charters Towers goldfield. CITIGOLD CORP: Capital Raising Oversubscribed --------------------------------------------- Citigold Corp. Ltd.'s recent shareholder only capital raising closed with applications 150% above the company's internal budget, the company said in a corporate disclosure with the Australian Securities Exchange Ltd. Share Purchase Plan applications were received from almost 1,800 shareholders and raised a total of AU$7.5 million, well above the budgeted AU$3.0 million in line with previous plans, the company said. Participating shareholders subscribed to a total of 20,156,946 ordinary shares (including 959,855 bonus shares), the company added. The company also disclosed that it has accepted a small private placement of AU$550,000 at 45 cents per share for a total of 1,222,222 shares. Furthermore, 119,150 options, previously issued to shareholders, have been exercised. In October 2007, Citigold announced to its shareholders that its regular share purchase plan was being offered to all eligible shareholders. The funds raised from the plan will be used to assist further expansion of gold production at one of its mines. Milton, Australia-based Citigold Corporation Limited -- http://www.citigold.com/-- is a gold producers engaged in the exploration and development of the Charters Towers goldfield. The company incurred net losses of AU$10.05 million, AU$4.26 million, and AU$5.91 million for the years ended June 30, 2007, 2006 and 2005. COLES GROUP: Moody's Withdraws Issuer & Short-term Ratings ---------------------------------------------------------- Moody's Investors Service has withdrawn the Baa1 issuer rating assigned to Coles Group Limited and the P-2 short-term rating assigned to the wholly-owned finance entity, Coles Group Finance Limited. The Baa1 senior unsecured rating assigned to the AU$400mm of medium-term notes is not affected by this rating action and is affirmed. The terms of the MTNs have been amended to ensure that the group guarantees provided to debt holders at the Wesfarmers Ltd (rated Baa1) level are substantially the same as those for debt holders at the Coles level. These amendments include common events of default, cross-guarantees and financial covenants. Coles Group, based in Melbourne, is one of Australia's largest retailers. Approximately 80% of its revenues are obtained from its core supermarkets division, which encompasses the retailing of food and groceries, liquor and fuel. The company also operates a number of other retail formats, including Kmart and Target (which retail general merchandise and apparel), and Officeworks. Wesfarmers Limited, based in Perth, has a diversified portfolio of businesses in Australia and New Zealand. These include interests in home improvement products and building supplies, coal mining, gas processing and distribution, industrial and safety product distribution, chemicals and fertilizers manufacture and insurance. CRESCENT GOLD: Incurs AU$4.29-Million Net Loss for FY2007 --------------------------------------------------------- Crescent Gold Ltd. reported a net loss of AU$2,074,000, cutting by more than half the AU$4,289,000 net loss recorded for the year ended June 30, 2006, primarily due to the increase in activities as the company carries out commissioning of its Laverton Gold Plant using low grade stock piles. The company had revenue income from interest only of AU$979,000 (2006: AU$452,000). During the 12 months to June 30, 2007, the company incurred finance costs of AU$1,213,000, compared to AU$674,000 for the 12 months to June 30, 2006. Directors� fees for the 12 months to June 30, 2007, was AU$328,000. The increase in costs is mainly from share-based payments, which consist of the issue of options to directors. Exploration expenditure written off for the 12 months to June 30, 2007, amounted to AU$328,000 (2006: AU$1,361,000). The company realized a loss on its hedge book on the close out of the right to sell 100,000 oz at AU$750 resulting in a Realised Hedge Loss of AU$1,878,000 being recognized in the profit and loss account. The company for the first time took up tax losses carried forward which resulted in a credit to the profit and loss of AU$6,806,000. Headquartered in Perth, Australia, Crescent Gold Limited's -- http://www.crescentgold.com/-- assets comprises mineral exploration tenements and agreements concerning 58 tenements and three tenement applications covering an area of 8,592 square kilometers within Australia. The principal metal commodity exploration emphasis is on gold in Western Australia, gold copper-uranium in South Australia, and uranium in the Northern Territory. The Company�s subsidiaries include RAB Projects Pty Ltd, RAB Mining Ltd, Xinjiang Tianau Joint Venture Company, Uranium West Holdings Ltd, Laverton Nickel Pty Ltd, RAB Tian Shan Ltd and RAB Altay Shan Ltd. The company had total assets of AU$198.38 million as of June 30, 2007. CRESCENT GOLD: Spins Off Copper-Uranium Assets ---------------------------------------------- Crescent Gold Ltd. is set to spin off its copper-uranium assets in South Australia and the Northern Territory into a separately listed vehicle, The Age reports. The Age relates that the move would realize unrecognized value in the assets, which were held in a 100%-owned subsidiary, Uranium West Pty Ltd. The report says that under the proposal, Crescent would become a pure gold play and distribute Uranium West shares to Crescent shareholders on a pro-rata basis. Crescent director and acting chairman Roland Hill will be Uranium West's managing director. The report adds that preliminary investigations into the planned listing of Uranium West will be completed before the end of 2007. Headquartered in Perth, Australia, Crescent Gold Limited's -- http://www.crescentgold.com/-- assets comprises mineral exploration tenements and agreements concerning 58 tenements and three tenement applications covering an area of 8,592 square kilometers within Australia. The principal metal commodity exploration emphasis is on gold in Western Australia, gold copper-uranium in South Australia, and uranium in the Northern Territory. The Company�s subsidiaries include RAB Projects Pty Ltd, RAB Mining Ltd, Xinjiang Tianau Joint Venture Company, Uranium West Holdings Ltd, Laverton Nickel Pty Ltd, RAB Tian Shan Ltd and RAB Altay Shan Ltd. The company had total assets of AU$198.38 million as of June 30, 2007. The company incurred net losses of AU$2.06 million, AU$4.29 million, and AU$2.82 million for the years ended June 30, 2007, 2006 and 2005. CYMBIS FINANCE: Fitch Puts 'B' Ratings on Negative Watch -------------------------------------------------------- Fitch Ratings has placed the ratings of Cymbis Finance Australia Limited on Rating Watch Negative, following this morning's announcement regarding the appointment of receivers to its associated NZ finance company, Capital + Merchant Finance Limited. The ratings placed on RWN are as follows: Long-term foreign currency Issuer Default Rating 'B', Short-term foreign currency IDR 'B', Individual 'D', Support '5' and Support Rating Floor 'NF'. Fitch's rating action reflects its concern that CFAL may be negatively impacted by the failure of C+M. Although domiciled in different countries, the owners of CFAL and C+M are linked and there is a degree of operational interaction between the companies. Both businesses operate similar business models in which retail deposit funds are primarily lent for relatively high-risk property development purposes. Liquidity pressures in New Zealand's finance company sector have resulted in 13 company failures during the past 18 months, and Fitch notes that an escalation in CFAL's retail deposit redemptions in Australia would materially weaken its current business model. Fitch expects to resolve the RWN once it has determined how the failure of C+M might impact CFAL and its investors. CFAL is a privately-owned finance company established in August 2004, domiciled in Queensland, Australia. It lends primarily for property development projects in Queensland, which are typically viewed as a more risky form of lending. CFAL's ratings reflect its small size, limited trading history and the relatively high risk nature of its core lending activities. The company reported total assets of AU$121 million as at June 30, 2007. JABIRU METALS: Posts Third Annual Net Loss at AU$14.51 Million -------------------------------------------------------------- Jabiru Metals Ltd. reported a net loss of AU$14.51 million for the year ended June 30, 2007, a 168.21% increase from the AU$5.41-million net loss recorded for the year ended June 30, 2006. The company had recorded a net loss of AU$7.39 million for fiscal year 2005. The company posted other revenues of AU$1.25 million for FY2007. As of June 30, 2007, the company had total assets of AU$169.07 million, total liabilities of AU$58.16 million, and accumulated losses of AU$45.63 million. Headquartered in West Perth, Australia, Jabiru Metals Limited. -- http://www.jabirumetals.com.au/-- is engaged in mineral exploration and mining of base metals. JABIRU METALS: Made First Delivery in Sept. 30 Quarter ------------------------------------------------------ Jabiru Metals Ltd. achieved production of its first marketable concentrate early in the quarter ended Sept. 30, 2007, the company said in its quarterly report for the period ended Sept. 30, 2007. On July 31, the first zinc concentrate was delivered into the Geraldton port under the shared marketing and offtake agreement with Oxiana Ltd. The first copper concentrate was delivered on September 21, the company said. The company added that by the end of the quarter 5,136 tonnes of zinc (dmt) concentrate at 45.35% Zn and 1,439 dmt of copper concentrate at 19.9% Cu and 481g/t Ag was stockpiled in Geraldton ready for the first ship (scheduled in late October). First Revenue In line with the Oxiana concentrate agreement the first payments for concentrate deliveries were received by Jabiru on September 20, the company reported. The sum of US$2.5 million was received under the arrangement where 90% of the notional value of the metal delivered to port with the final 10% due under normal commercial terms once delivery to the final buyer has been effected, the company explained. Underground Ore Stoping Commenced Jabiru said that during the quarter the underground mine completed development of the first four stoping blocks and production from two of these commenced late in the quarter. This was the final outstanding KPI and means that the project now has two independent sources of high grade ore at Jaguar. The company further said that to support the increased production, Jabiru took delivery of its third underground truck, installed the stope tele-remote production loading system and commissioned both this and the emergency escape way/primary ventilation system The company related that these achievements are significant because it now means that Jabiru have a steady high grade stream of ore available for treatment in the concentrator. This will underpin future concentrate production and therefore revenue against budget targets. The company's full quarterly report may be viewed at no charge at: http://bankrupt.com/misc2/JBLQTRLY.pdf Headquartered in West Perth, Australia, Jabiru Metals Limited. -- http://www.jabirumetals.com.au/-- is engaged in mineral exploration and mining of base metals. The company suffered net losses of AU$14.51 million, AU$5.41 million, and AU$7.39 million for the years ended June 30, 2007, 2006 and 2005. MARRICKVILL RSL: Gov't Begins Probe Due to State of Finances ------------------------------------------------------------ Marrickville RSL Club Ltd., which is on the verge of bankruptcy, is being investigated by the State Government's gaming authority due to its finances, Clare Masters of The Daily Telegraph reports. The report states that the club's chief executive, Dalley Robinson, paid himself more than AU$600,000, included a AU$3.1-million exit clause in his contract, and set up a AU$900,000 overseas travel fund for board members. The club, which is set out to close, blames the impending closure on the government's anti-smoking laws and not fiscal responsibility by board members, claiming it has an income drop of AU$800,00, relates Daily Telegraph. Mr. Robinson, states the Daily Telegraph, said that club members had voted to cease trading on December 31, sell the premises and reopen on a smaller site, and added that the club was "doing the right thing." According to Mr. Robinson, they had to start selling off the poker machine entitlements to keep the club afloat and was able to shed about AU$3 million worth of poker machine entitlements -- approximately 168 entitlement at AU$18,000 each. However, The Daily Telegraph learns that while he was selling the equipment, Mr. Robinson was taking home a salary of AU$416,000. Terry Condon, chief executive of the Club Managers Association, confirms that the average salary for a club executive is AU$122,000. As for the multi-million termination clause in his contract and the overseas travel, Mr. Robinson defended that they were "normal procedure." The AU$90,00 set aside was agreed upon by the board members to be used for the "professional development and education of directors" which "may involve overseas travel." Clubs New South Wales spokesman Jeremy Bath contests that Sydney-based Marrickville was the only club in the state to refuse to sign the industry code of practice and adds that the establishment was a stark contrast to typical modern "family friendly" venues. RSL means Returned & Services League of Australia, as defined by TheFreeDictionary. While MSN Encarta briefly defines RSL as an Australian veterans' organization established in Australia in 1916 to provide help for former members of the armed forces and their families. MINERAL DEPOSITS: Third Annual Net Loss Rises at AU$20.82 Mil. -------------------------------------------------------------- Mineral Deposits Limited reported a AU$20.82-million net loss for the year ended June 30, 2007, an astounding 1,901.92% increase against the net loss of AU$1.04 million recorted for the year ended June 30, 2006. The company also reported a AU$7.15-million net loss for the year ended June 30, 2005. For fiscal year 2007, the company had other income of AU$5.92 million. Administration expenses jumped to AU$23.37 million from AU$7.31 million a year before. As of June 30, 2007, the company had total assets of AU$193.12 million, total liabilities of AU$9.77 million and accumulated losses of AU$52.39 million. Headquartered in Melbourne, Australia, Mineral Deposits Limited -- http://www.mineraldeposits.com.au/-- is a producer of mineral sands commodities, principally zircon and rutile. The company operates mainly in Australia and Senegal, west Africa. MINERAL DEPOSITS: Files Preliminary Prospectus for TSX Listing -------------------------------------------------------------- Mineral Deposits Limited has filed a preliminary prospectus in connection with its initial public offering of ordinary shares in Canada, the company said in a corporate disclosure. The syndicate of underwriters for the offering will be co-led by CIBC World Markets Inc. and BMO Capital Markets. The terms of the offering are yet to be determined. The company said that it plans to use the proceeds to further the recommended programs of its Sabodala Gold Project and Grande Cote Zircon Project, as well as for general working capital purposes. The offering is subject to the approval of the company's directors and shareholders, along with all regulatory agencies. The company had earlier announced on May 14 that it was seeking a listing on the Toronto Stock Exchange and has engaged Cassels Brock & Blackwell to assist. Headquartered in Melbourne, Australia, Mineral Deposits Limited -- http://www.mineraldeposits.com.au/-- is a producer of mineral sands commodities, principally zircon and rutile. The company operates mainly in Australia and Senegal, west Africa. The company suffered net losses of AU$20.82 million, AU$1.04 million, and AU$7.15 million for the years ended June 30, 2007, 2006 and 2005. PERSERVERANCE CORP: Ernst and Young Raises Going Concern Doubt -------------------------------------------------------------- Perseverance Corporation Limited incurred a net loss of AU$19.74 million for the year ended June 30, 2007, a 66.56% improvement against the AU$59.03-million net loss recorded for the year ended June 30, 2006. The company had total revenues of AU$117.22 million for fiscal year 2007, 83.30% more than total revenues of AU$63.95 million a year earlier. Cost of sales, on the other hand, amounted to AU$66.57 million, giving the company a gross profit of AU$50.65 million. As of June 30, 2007, the company had total assets of AU$191.00 million, total liabilities of AU$148.10 million and accumulated losses of AU$134.24 million. The company's balance sheet also showed strained liquidity with total current liabilities of AU$71.72 million exceeding total current assets of AU$30.29 million. After reviewing the company's financial statements for FY2007, Brett Croft at Ernst and Young, the company's independent auditors, raised an inherent uncertainty regarding the company's ability to continue as a going concern, citing these reasons: * The company and consolidated group current forecasts indicate that operating surpluses in the short term may be insufficient to fund the activity that is planned including investment in mine development; * The company and the consolidated group expects to be cash flow negative in the 2007/2008 year. Cash on hand as at June 30, 2007, together with the capital raising of AU$25.5 million (after costs) completed on August 30, 2007, may not be sufficient to fund all planned activities, including exploration activity and maintain an adequate working capital base; and * The company and members of the consolidated group may be required to: 1. restructure existing finance facilities with its bankers, the ANZ Banking Group Limited; 2. increase borrowings; 3. raise additional equity capital; 4. consider alternate financial instruments; or 5. a combination of the foregoing. If operational and financial performance does not meet expectations and the efforts to facilitate a fund raising or a restructuring of finance facilities are unsuccessful, both the company and the consolidated group may not be able to continue as a going concern. Fosterville, Australia-based Perseverance Corporation Limited -- http://www.perseverance.com.au/-- is a gold mining and exploration company. The company owns and operates gold mines at Fosterville and Stawell in Victoria, Australia, and has exploration tenements covering over 7,000 square kilometers along the Victorian goldfields. PERSERVERANCE CORP: Calls Meeting of Noteholders on Dec. 17 ----------------------------------------------------------- Perseverance Corporation Limited will be holding a meeting of noteholders on Dec. 17, 2007, the company said in a corporate disclosure lodged with the Australian Securities Exchange. The company has called on the holders of the its AU$37,000,000 6.75% convertible subordinate notes due 2012 to seek their approval, inter alia, on the: a. change of the definition of "maturity date" in condition 2 of the notes' terms and conditions, b. insertion of the definition of "share scheme", and c. amendments to condition 11. Fosterville, Australia-based Perseverance Corporation Limited -- http://www.perseverance.com.au/-- is a gold mining and exploration company. The company owns and operates gold mines at Fosterville and Stawell in Victoria, Australia, and has exploration tenements covering over 7,000 square kilometers along the Victorian goldfields. The company suffered net losses of AU$20.82 million, AU$1.04 million, and AU$7.15 million for the years ended June 30, 2007, 2006, and 2005. After reviewing the company's financial statements for FY2007, Brett Croft at Ernst and Young, the company's independent auditors, raised an inherent uncertainty regarding the company's ability to continue as a going concern. PERSERVERANCE: Northgate Buys Shares and Debts for AU$$282 Mil. --------------------------------------------------------------- Perseverance Corporation Limited and Northgate Minerals Corporation have signed a Merger Implementation Agreement, Perserverance said in a corporate disclosure filed with the Australian Securities Exchange Ltd. Bloomberg News explains that Northgate Minerals, a Canadian gold producer, agreed to buy Perseverance for about AU$282 million, including debt. Perserverance explains that under the schemes, a wholly owned subsidiary of Northgate will acquire all of the outstanding fully paid ordinary shares at AU$0.20 per share in Perseverance and the company�s options will be canceled. Bloomberg adds that Northgate Minerals is also offering AU$0.08 for each option and AU$100,000 plus accrued interest for each convertible note. Northgate Acquires All Debts Northgate Minerals has also agreed to acquire all of Perseverance�s existing bank debt, amounting to AU$33.50 million, Perseverance Corp. relates. In addition, Northgate Minerals is set to provide a new bridging facility of up to AU$25.00 million, and will also acquire the bank�s exposure of approximately AU$48.00 million to Perseverance�s gold hedges. Northgate Minerals with then close out this hedge position. Under the terms of the debt assumption and loan agreements, all debt held by Northgate will be in a first secured position and the interest on bridge financing will be deferred up to the date of successful conclusion of the Transaction or termination of the MIA, Performance Corp. explains. Fosterville, Australia-based Perseverance Corporation Limited -- http://www.perseverance.com.au/-- is a gold mining and exploration company. The company owns and operates gold mines at Fosterville and Stawell in Victoria, Australia, and has exploration tenements covering over 7,000 square kilometers along the Victorian goldfields. The company suffered net losses of AU$20.82 million, AU$1.04 million, and AU$7.15 million for the years ended June 30, 2007, 2006, and 2005. After reviewing the company's financial statements, Brett Croft at Ernst and Young, the company's independent auditors, raised an inherent uncertainty regarding the company's ability to continue as a going concern. SANCY FASHIONS: Sets Final Meeting for Dec. 4 --------------------------------------------- The members and creditors of Sancy Fashions Pty Ltd will have their final meeting on December 4, 2007, at 2:15 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Sancy Fashions Sancy Fashions Pty Ltd is a distributor of women's, misses' and juniors' outerwear. The company is located at Huntingdale, Victoria, Australia. SPICER SPORTSWEAR: Members and Creditors to Meet on Dec. 4 ---------------------------------------------------------- Spicer Sportswear Consolidated Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on December 4, 2007, at 2:30 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 Spicer Sportswear Spicer Sportswear Consolidated Pty Ltd is a distributor of mens and boys clothing. The company is located at Brunswick East, in Victoria, Australia. THE MOVIE CHANNEL: Members to Receive Wind-Up Report on Dec. 3 -------------------------------------------------------------- The Movie Channel Pty Ltd, which is in liquidation, will hold a meeting for its members on December 3, 2007, at 1:30 p.m. At the meeting, John Georgakis, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John Georgakis Ernst & Young 8 Exhibition Street Melbourne, Victoria 3000 Australia Telephone:(03) 9288 8000 About The Movie Channel Located at South Melbourne, in Victoria, Australia, The Movie Channel Pty Ltd is an investor relation company. TIFFANY FABRICS: Liquidator to Present Wind-Up Report on Dec. 4 --------------------------------------------------------------- A final meeting will be held for the members and creditors of Tiffany Fabrics Pty Ltd on December 4, 2007, at at 3:45 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 commenced liquidation proceedings on June 29, 2007. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Tiffany Fabrics Tiffany Fabrics Pty Ltd is a distributor of piece goods and notions. The company is located at Hawthorn East, in Victoria, Australia. TRENNELL PTY: Final Meeting Slated for December 4 ------------------------------------------------- The members and creditors of Trennell Pty Ltd will meet on December 4, 2007, at 4:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 7, 2006. The company's liquidator is: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris, Victoria 3146 Australia About Trennell Pty Trennell Pty Ltd is a distributor of durable goods. The company is located at Ormond, in Victoria, Australia. TRICOM SYSTEMS: Members to Have Meeting on December 3 ----------------------------------------------------- A final meeting will be held for the members of Tricom Systems Pty Ltd, which is in liquidation, on December 3, 2007, at 2:30 p.m. At the meeting, the members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: John Georgakis Ernst & Young 8 Exhibition Street Melbourne, Victoria 3000 Australia Telephone:(03) 9288 8000 About Tricom Systems Tricom Systems Pty Ltd operates offices of holding companies. The company is located at Bendigo, in Victoria, Australia. WESTERN LODGEL: Placed Under Voluntary Liquidation -------------------------------------------------- At an extraordinary general meeting held on October 11, 2007, the members of Western Lodge Supported Residential Services Pty Ltd resolved to voluntarily liquidate the company's business. Christopher Fawcett was appointed as liquidator. The Liquidator can be reached at: Christopher Fawcett WHK Armitage Downie 31 Grey Street Traralgon, Victoria 3844 Australia About Western Lodge Western Lodge Supported Residential Services Pty Ltd provides residential care. The company is located at Footscray, in Victoria, Australia. WINEGROVE INVESTMENTS: Commences Wind-Up Proceedings ---------------------------------------------------- During a general meeting held on October 10, 2007, the members of Winegrove Investments Pty Ltd resolved to voluntarily liquidate the company's business. James Patrick Downey was named as liquidator. The Liquidator can be reached at: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About Winegrove Investments Winegrove Investments Pty Ltd is a dealer of new and used cars. The company is located at Ferntree Gully, in Victoria, Australia. ================================ C H I N A & H O N G K O N G ================================ ASIA PREMIUM: Plans to Expand and Change Name to P Phone Inc ------------------------------------------------------------ Asia Premium Television Group, Inc. , a China-based marketing and ad sales company, today announced plans to expand into China's mobile sector and change its name from Asia Premium Television Group, Inc. to P Phone, Inc. in order to reflect its enhanced business strategy. On November 23, 2007, the company entered into an agreement with the China Mobile and Communications Association to acquire 100% of the P Phone Project (the "P" in "P Phone" stands for personalization and payment), a business venture that is developing P Phone, a mobile-based solution that will enable Personal Media and Mobile Payment on cell phones in Mainland China. Based in Beijing, CMCA is China's leading association of Telecoms with strong mobile service development and distribution capabilities. Its members include China Mobile, China Telecom, China Unicom, China Netcom, China Railcom, China Satcom and most of the leading telecom-related product manufacturers and distributors in China. Under the terms of agreement, ATVG will acquire from CMCA 100% of the rights to the P Phone Project for an aggregate consideration of US$2.8 million. The consideration will be satisfied through the issuance of 700,000 shares of ATVG common stock, valued at US$4 per share. (ATVG's stock closed at US$4 on November 21, 2007.) 30% of these 700,000 consideration shares will be issued to CMCA and 70% of the shares will be issued to CEC Unet plc, CMCA's strategic partner in the development of the P Phone. CEC Unet (AIM: CECU) is a leading Chinese mobile payment company that provides mobile top-up payment services to Chinese mobile users. It is playing a key role in developing and operating the P Phone mobile solution. It is also contributing access to its 50,000 retail sales outlets and 7 million mobile consumers in Mainland China and is fast expanding throughout China. P Phone technology is expected to play a crucial role in helping mobile companies such as CEC Unet convert their customers into loyal community members. For example, CEC Unet will be able to convert its 7 million mobile consumer base from occasional top- up consumers, who only access CEC Unet's (or any other service provider's) mobile media and e-payment services on average once every two months, to loyal P Phone users who access their mobile e-payment and personal media services on a daily basis. This will enable the company to build a loyal P Phone portal and user community for mobile payment and media consumption. The company's purchase of the P Phone Project includes the following key terms: (1) CMCA will invest up to US$1.8 million into the P Phone Project and manage its operations; (2) CMCA will undertake on a best efforts basis to reach at least 25 million users throughout China within 36 months of the signing of the agreement; (3) CEC Unet will contribute its 50,000 outlets and 7 million consumers for the distribution of the P Phone solution; and (4) The Company will issue to CMCA 200,000 bonus shares of ATVG common stock for every additional 5 million P Phone users CMCA attains for the company (beyond the initial 25 million user target). The maximum number of bonus shares that can be issued is 800,000. Pending completion of the agreement, CMCA and CEC Unet will both become significant shareholders of P Phone, Inc. (a.k.a. ATVG). They will provide operational support to the Company as it deploys its P Phone solution as the backbone of its integrated online-offline marketing services to corporations. About the P Phone Mobile Solution P Phone is a mobile solution that, once embedded in mobile phones, will provide users with: (1) Personal Media and (2) Mobile Payment. The Personal Media function will be powered by PIMIE (PIMIE stands for personal, intelligent, mobile, Internet, explorer), an innovative mobile phone technology that the Company intends to acquire in the future. PIMIE has the ability to intelligently learn a user's interests and browsing behavior and then deliver pre-loaded content and search results based on this behavior. The Mobile Payment function will be powered by mobile payment technology, developed and supplied by CMCA's strategic partner, CEC Unet, as well as others. The Company plans to launch P Phone in Fiscal 2008 through the following methods: (a) Co-Branding. The Company will co-brand with existing mobile phone brands by embedding the P Phone technology into their chips. This distribution method will enable the Company to capture market share of new cell phones entering into the market. (b) SIM Card and Smart Film Distribution. The Company will distribute P Phone by selling P Phone SIM cards and P Phone smart film, a specialized data film that is applied to the back of a normal mobile SIM card. The Company will sell these P Phone products through existing mobile SIM cards and payment networks such CEC Unet's network of 50,000 sales outlets. This distribution method will enable P Phone to capture market share from cell phones already existing in the market. Once establishing a P Phone presence in the market, the Company plans to generate revenue through mobile-marketing, commissions on bill payments and eventually mobile commerce. Mr. Li Li, Chairman of Asia Premium Television Group, Inc. commented on these developments, "We have acquired the P Phone Project and changed our company name to P Phone, Inc. in order to best reflect our enhanced business strategy for Fiscal 2008 and beyond. By expanding our existing brand marketing operations to include mobile phone-based marketing and commerce services, we are positioning ourselves for long-term, scalable growth. At the same time, we are staying true to our original objectives -- to most effectively connect brands and content with their target consumers in Mainland China." P Phone, Inc. will continue to be quoted on the NASDAQ OTC Bulletin Board under the symbol "ATVG" until further notice. Beijing-based Asia Premium Television Group was incorporated in Nevada in 1989 and is operating in China. The company's ASTV, together with its subsidiaries, operates as a single segment business and provides advertising, media and marketing solutions to product manufacturers, service providers and other clients located in China. Asia Premium Television Group, Inc., provides marketing, brand management, advertising, media planning, public relations and direct marketing services to clients in the People's Republic of China. The Company's primary operating activities are publishing advertisements as agents for clients; Media consulting services; and Advertising production. Going Concern Doubt At Sept. 30, 2006, the company had a working capital deficiency of US$3,470,665. The company's management expressed substantial doubt about the company's ability to continue as a going concern due to liquidity problems. However, management believes the going concern is mitigated because of these factors: a) convertible notes payable in the amount of US$4,000,000 is included in current liabilities but the note is held by a significant shareholder and will be repaid by conversion into common stock; b) the Company has shown a net profit in each of the two most recent fiscal years and expects the trend to continue; and the Company has generated positive cash flows in each of the two most recent fiscal years and expects the trend to continue. CHINA EASTERN AIRLINES: Shares Soar on Air China Merger Reports --------------------------------------------------------------- Shares in China Eastern Airlines Corp Ltd (SHA: 600115; HK: 0670; NYSE: CEA) were sharply higher in Shanghai on speculation that the airline company could be acquired by Air China Ltd (SHA: 601111; HK: 753), Trading Markets reports. According to Trading Markets, local media reported that Air China probably will propose a new plan to merge with China Eastern ahead of the Air China shareholder meeting scheduled for Jan. 8, 2008. At 10:55 a.m. on Nov. 29, China Eastern was up CNY1.32 or 9.05% at CNY15.90, the report says. Air China added CNY1.33 or 6% to reach CNY23.29. Trading Markets points out that airline stocks have outperformed the market recently due to the continued appreciation of the Chinese yuan and retreating oil prices. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA SOUTHERN AIR: Enters into Code Share Deal w/ Malaysia Air --------------------------------------------------------------- China Southern Airlines has signed a code share agreement with Malaysia Airlines, eTravel Blackboard reports. The code share deal, eTravel notes, aims to give the airlines' customers more choice and to streamline travel to destinations served by both airlines. The agreement commenced Nov. 27 and will provide customers of both airlines with a total of 35 weekly flights between Kuala Lumpur and Guangzhou, Shanghai and Beijing. The agreement will also allow China Southern Airlines' customers flying into Kuala Lumpur to connect to all domestic points served by Malaysia Airlines and MASwings, paving the way for Kuala Lumpur to be seen as the gateway for Chinese travelers into Malaysia. Both carriers also plan to add to the agreement, enabling their frequent flier members to earn and redeem miles when they travel on each other's services. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. CITY TELECOM: Turns Around w/ HKD28.87-Mln Net Profit for FY2007 ---------------------------------------------------------------- City Telecom (H.K.)Limited (Nasdaq: CTEL; HKEx: 1137) announced that it has filed its Annual Report on Form 6-K for the year ended August 31, 2007, with the United States Securities and Exchange Commission. For the fiscal year ended August 31, 2007, City Telecom booked a net profit of HKD28,865,000, a turnaround from the HKD92,241,000 net loss recorded for the fiscal year ended August31, 2006. The company posted an operating profit of HKD118,395,000 for FY2007, against the HKD10,848,000 operating loss it incurred for FY2006. City Telecom's consolidated balance sheet as of end-August 2007 showed total current assets of HKD854,293,000 and total current liabilities of HKD303,992,000. The company's balance sheet also reflected total assets of HKD2,161,133,000 and total liabilities of HKD1,257,251,000, resulting in total equity of HKD903,882,000. The company Annual Report for FY2007 is available for free at its Web site: http://www.ctigroup.com.hk/ In a press release, City Telecom informs its ADR holders that they may receive a hard copy of the Annual Report on Form 6-K, which includes the company's audited financial statements, free of charge upon request. Written request should be sent to City Telecom (H.K.) Limited, Investor Relations, Level 39, Tower 1, Metroplaza, No. 223 Hing Fong Road, Kwai Chung, New Territories, Hong Kong. About City Telecom Hong Kong-based City Telecom (H.K.) Limited -- http://www.ctihk.com/-- is engaged in the provision of international telecommunications services (IDD) and fixed telecommunications network services (FTNS) to customers in Hong Kong and Canada. The Company operates in two segments: international telecommunications, which is engaged in the provision of international long-distance calls services, and fixed telecommunications network, which is engaged in the provision of dial up and broadband Internet access services, local voice-over-Internet protocol services and Internet protocol television (IP-TV) services. City Telecom (H.K.) Limited's wholly owned subsidiaries include Attitude Holdings Limited, Automedia Holdings Limited, City Telecom (B.C.) Inc., City Telecom (Canada) Inc., City Telecom Inc., City Telecom International Limited, Credibility Holdings Limited, CTI Guangzhou Customer Services Co. Ltd., CTI Marketing Company Limited, Golden Trinity Holdings Limited, Hong Kong Broadband Network Limited and IDD 1600 Company Limited. Moody's Investors Service on Feb. 1. 2007, affirmed its B2 corporate family rating and senior unsecured bond rating for City Telecom Ltd, and at the same time has revised the company's rating outlook to positive from stable. The Troubled Company Reporter - Asia Pacific reported on December 22, 2006 that Fitch Ratings assigned a Long-term foreign currency Issuer Default rating of 'B+' to Hong Kong- based City Telecom (HK) Limited. The Outlook on the rating is Stable. At the same time, Fitch assigned an instrument rating of 'BB-' to the US$125 million senior unsecured notes due 2015 issued by CTI on the expectation of good recovery prospects given default as denoted by the agency's recovery rating of 'RR3'. DANA CORP: Indiana and Pine Tree Object to Plan Confirmation ------------------------------------------------------------ As of November 27, 2007, two parties have filed objections to confirmation of Dana Corp. and its debtor-affiliates' Third Amended Joint Plan of Reorganization. Objections are due November 28. The Debtors will submit the Plan for confirmation on Dec. 10, 2007. (a) Indiana Environment Department The Indiana Department of Environmental Management objects to all portions of the Plan as might be construed to limit or prohibit its exercise of police or regulatory powers, if and as necessary, to compel Dana Corp. to address ongoing environmental violations existing at sites located in the State as a result of the company's prior operations at those sites. The Department has filed a US$14,000,000 claim against the Debtors based on the Sites and, to the extent quantifiable, the estimated cleanup costs at each site. Elizabeth A. Whelan, Esq., the state's Deputy Attorney General, relates that the Debtors and the Department have been exchanging cleanup information in a good faith attempt to resolve potentially disputed claims. The goal of the settlement discussions is to reach an agreed- upon dollar value of the Department's claims, thus allowing payment pursuant to the terms of the Plan, Ms. Whelan says. (b) Pine Tree ISD, et al. Pine Tree Independent School District, Longview Independent School District, Hallsville Independent School District, and the county of Harrison, each have claims against the Debtors, which are included in the class of claims described as Class 2A Claims under the Third Amended Joint Plan of Reorganization. Michael Reed, Esq., at McCreary, Veselka, Bragg & Allen, P.C., in Round Rock, Texas, relates that the secured claims arise from property taxes for the tax years 2005-2007 due on the Debtors' real and business personal property located in Texas. According to the laws of the state of Texas, the tax liens securing property taxes are superior claims over any other claim or lien against the property. Mr. Reed points out that the Plan provisions dealing with the secured claims fail to provide fair and equitable treatment to the Creditors' secured claims as required by Section 1129(b)(1) and (2)(A) of the Bankruptcy Code, in that their secured claims are entitled to express retention of all property tax liens, including those for postpetition taxes, until all taxes, penalties and interest protected by those liens have been paid. Mr. Reed also points out that the Plan fails to provide for interim interest as required by Section 506(b), at the statutory rate provided in Section 511, being 1% per month as required by the Texas Property Tax Code. The interest must be paid in cash in full as a component part of the Creditors' Tax Claims, calculated through the Effective Date of the plan and to be paid on the Effective Date, he contends. To the extent the Tax Claims not be paid for any reason, on the Effective Date, Mr. Reed asserts that post-Effective Date interest at the same statutory rate of 1% per month must be provided for the Claims. To the extent that prepetition penalty has attached to any of the Tax Claims, that prepetition penalty is entitled to be considered a part of the Claims and must be paid in cash, in full on the Effective Date, he further asserts. Furthermore, to the extent any claims for administrative expense are not timely paid as provided in the Plan, the Tax Claims will be entitled to interest and penalty to be paid in full in cash on the ultimate resolution and payment of these claims as provided in Section 503. Pine Tree, et al., also object to the bar date for objections to claims being 150 days after the Effective Date. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Creditors Group Supports Appaloosa Settlement Pact ------------------------------------------------------------- The Official Committee of Unsecured Creditors supports Dana Corp. and its debtor-affiliates' settlement with Appaloosa Management, L.P. As reported in the Troubled Company Reporter on Nov. 28, 2007, the Debtors asked the Court to approve a settlement that resolves their disputes with Appaloosa, which had lost a bid to provide equity exit financing to the company. Under the settlement, Dana agreed to reimburse up to US$2,000,000 for out- of-pocket expenses Appaloosa Management incurred in the Chapter 11 cases, in exchange for its support to Dana's Joint Plan of Reorganization. The Creditors Committee was party to the Settlement and was involved in the negotiation of its terms. It believes that the provisions of the Settlement are fair, reasonable, and appropriate under the circumstances. Among other things, the Settlement will resolve potential obstacles to confirmation of the Debtors' plan of reorganization and permit Appaloosa to acquire unsecured claims prior to the Trade Claims Record Date, the Creditors Committee says. Moreover, while the Creditors Committee has agreed to support US$2,000,000 in reasonable fees and expenses incurred by Appaloosa in the Debtors' bankruptcy cases, the panel says Appaloosa must still file an application that will be subject to Court review and approval pursuant to Section 503(b) of the Bankruptcy Code. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Noteholders Balk at Appaloosa Settlement Agreement ------------------------------------------------------------- The Ad Hoc Committee of Dana Noteholders tells the U.S. Bankruptcy Court for the Southern District of New York that, initially, Dana Corp. and its debtor-affiliates have brought the Appaloosa settlement to the panel but it was summarily rejected because the panel saw that the settlement was nothing more than a gift in exchange for the removal of a hollow threat, which in this case, is Appaloosa's appeal. The Ad Hoc Committee, whose membership currently consists of holders of approximately US$1,400,000,000 of Dana Corp.'s unsecured bonds, believes that it is inappropriate at this point for the Creditors Committee to support an application by Appaloosa under Section 503(b) for reimbursement of its expenses, particularly when the contents of those fee applications are unknown. The Ad Hoc Committee contends that those fee applications cannot be supported on the bases of Appaloosa having made a "substantial contribution" to the Debtors' bankruptcy cases. Furthermore, the Ad Hoc Committee points out that the Debtors and the Creditors Committee, who is not a party to the Plan Support Agreement, cannot unilaterally waive Appaloosa's breach of the Plan Support Agreement to permit it to participate in the Series B preferred offering because the terms of the Plan Support Agreement require the consent of all its parties. As reported in the Troubled Company Reporter on Nov. 28, 2007, the Debtors asked the Court to approve a settlement that resolves their disputes with Appaloosa, which had lost a bid to provide equity exit financing to the company. Under the settlement, Dana agreed to reimburse up to $2,000,000 for out- of-pocket expenses Appaloosa Management incurred in the Chapter 11 cases, in exchange for its support to Dana's Joint Plan of Reorganization. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). ELEPHANT TALK: Sept. 30 Balance Sheet Upside-Down by US$8.1 Mln. ---------------------------------------------------------------- Elephant Talk Communications Inc.'s consolidated balance sheet at Sept. 30, 2007, showed US$23.6 million in total assets, US$31.4 million in total liabilities, and US$271,549 in minority interest, resulting in an US$8.1 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with US$9.3 million in total current assets available to pay US$28.7 million in total current liabilities. The company reported a net loss of US$1.0 million on revenues of US$11.6 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $3.1 million on revenues of US$29,521 in the same period last year. Revenues for the three months ended Sept. 30, 2007, were derived primarily from the premium rate services provided by the company's subsidiary Elephant Talk Communication Holding AG to its customers. Cost of revenues was US$11.6 million for the three months ended Sept. 30, 2007, compared to US$26,956 for the same period in 2006. Cost of revenues includes depreciation & amortization directly attributable to revenue. Gross margins for the three months ended Sept. 30, 2007, was a loss of US$27,846 as compared to a profit of US$2,565 for the same period in 2006. Selling, general and administrative expenses were US$704,010 for the three months ended Sept. 30, 2007, compared to US$1.7 million for the same period in 2006. 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?25dd Going Concern Doubt As reported in the Troubled Company Reporter on May 2, 2007, Kabani & Company Inc. expressed substantial doubt about Elephant Talk Communications Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's loss of US$4,829,665, working capital deficit of US$3,181,589, accumulated deficit of US$16,962,100, and cash used in operations of US$1,330,061. About Elephant Talk Based in Orange, California, Elephant Talk Communications Inc. (OTC BB: ETLK) -- http://www.elephanttalk.com/-- until recently was engaged in the long distance telephone business in China and the Special Administrative Region Hong Kong. The company currently operates a switch-based telecom network with national licenses and direct fixed line interconnects with the Incumbents/National Telecom Operators in eight (8) European countries, one (1) in the Middle East (Bahrain), licenses in Hong Kong and the U.S.A. and partnerships with telecom operators in Scandinavia, Poland, Germany and Hong Kong. EMI GROUP: S&P Withdraws B+ Ratings at Company's Request -------------------------------------------------------- Standard & Poor's Ratings Services has withdrawn its 'B+' long- term and 'B' short-term corporate credit ratings on U.K.-based music group EMI Group PLC, at the company's request. The ratings were on CreditWatch with negative implications at the time of the withdrawal. All of EMI's public debt has been repaid. Debt ratings on EMI Group PLC and related entities were withdrawn following EMI's acquisition by Maltby Ltd. 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. PETROLEOS DE VENEZUELA: May Finalize Bahama Unit Sale in 10 Days ---------------------------------------------------------------- The sale of Venezuelan state-run oil firm Petroleos de Venezuela SA unit Bahamas Oil Refining Co. aka BORCO in Grand Bahama could be finalized in 10 days, Courtnee Romer at The Bahama Journal reports, citing a BORCO official. The official confirmed to The Journal that BORCO has been sold but didn't disclose the new owners of the unit. The Journal relates that Morgan Stanley was reportedly the leading bidder for the oil storage and bunkering terminal from Petroleos de Venezuela. Bidders also included: -- Nu Star Energy, -- Glencore, -- Vitol, -- PetroChina, and -- Petrobas. Meanwhile, sources told Reuters that BORCO could still be bought as early as this weekend by private equity fund First Reserve Corp. Reuters explains that First Reserve wasn't included in the initial list of bidders for BORCO. First Reserve could pay up to US$700 million for BORCO, Nassau's morning news daily Tribune says, citing the sources. Reuters notes that First Reserve wouldn't resume BORCO's oil refining capabilities, "which were mothballed in the mid-1980s" after Petroleos de Venezuela took over the firm. Purchasers wanted to exploit the 208 acres of BORCO's 500-acre site that have never been developed. The official told The Journal that BORCO's 164 workers shouldn't be affected by the sale. BORCO is a profitable entity and the sale was not due to "slow business." According to published reports in September 2007, Petroleos de Venezuela had postponed the sale of BORCO "after Venezuelan officials had indicated that no sale was planned and that the supposed offer had been an exercise to determine BORCO's worth." Petroleos de Venezuela would get more than the previous US$700- million estimate for BORCO due to the "potential for future expansions and the existing condition of the facility." The buyers were committing to invest up to US$700 million in BORCO's expansion, Reuters states, citing the sources. About Morgan Stanley Headquartered in New York, USA, Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to customers, including corporations, governments, financial institutions and individuals. It operates in four business segments: Institutional Securities, Global Wealth Management Group, Asset Management and Discover. About First Reserve First Reserve Corporation is a private equity firm that invests in mid-market energy companies, and currently manages about US$12.5 billion in four funds. Its typical investment ranges from US$50 million to US$500 million. Included in the firm's portfolio are Dresser, Quintana Maritime, and T-3 Energy Services. First Reserve fund investors are primarily corporations, endowments, foundations, and public retirement funds. In 2004 First Reserve acquired Dresser-Rand Group, which it took public in 2005. Later that year, it acquired engineered products maker Chart Industries. About BORCO Bahamas Oil Refining Company International Limited aka BORCO was purchased by Petroleos de Venezuela in 1990 and runs a terminal with 20 million barrels crude oil and products. It had shut down its refining operations in mid-1985 in response to the oil glut on the world market. BORCO continued its oil transshipment operations, however, importing large quantities of oil from the Middle East and Africa for transshipment and for domestic use. In the Bahamas, oil exploration by several international companies began in the early 1980s; marine geologists believed vast deposits of oil and natural gas might be found. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. * China Orders 7 Banks to Reduce Outstanding Loans in 4th Qtr ------------------------------------------------------------- The Chinese government has issued a circular requiring seven banks to reduce the total level of their outstanding loans within the fourth quarter, Thomson Financial News reports, citing the official Shanghai Securities News. The report identifies the seven banks as: 1. China Development Bank, 2. Agricultural Development Bank of China, 3. Export-Import Bank of China, 4. Agricultural Bank of China, 5. China Everbright Bank, 6. Guangdong Development Bank, and 7. Shenzhen Development Bank. Thomson Financial says that in addition, the government has required most joint-stock commercial banks to hold their outstanding loan levels within a specified limit through the end of the current quarter. ========= I N D I A ========= BALLARPUR INDUSTRIES: Bombay Court Approves Reorg Sheme w/ BILT --------------------------------------------------------------- The High Court of Bombay, Nagpur Branch, approved on Nov. 30, 2007, the Scheme of Arrangement and Reorganization between Ballarpur Industries Ltd and BILT Graphic Paper Products Ltd. As previously reported by the Troubled Company Reporter-Asia Pacific, Ballarpur's shareholders and creditors gave their nods to the Scheme on Oct. 19, 2007. As part of the scheme, it would be mandatory for the investors to sell 40% of their holdings back to the company at a price of INR125 per share. Pursuant to the restructuring, Moneycontrol.com relates, BILT is transferring its three units to its subsidiary BPH for a cash consideration of INR19.5 billion. It will utilize INR9.4 billion for the compulsory buy-back of shares and INR10.1 billion for repaying debt. Before the buy-back, share capital of BILT will be split into '5' shares of face value of INR2 each from the current face value of INR10. BPH (Netherland) is an 80% owned subsidiary of BILT, while 20% is held by JP Morgan. BPH already holds Sabah Forest Industries. BILT is transferring three units under BPH, which in turn will raise funds in the form of debt & private equity to pay BILT for its plants. This is expected to reduce the JP Morgan's stake from 20% to 4% and BILT's stake to 77%. The balance 19% stake will be held by the private equity. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of Dec. 2, 2007, the company still carry those ratings. TATA STEEL: Signs JV with Rivesdale Mining for Coal Project ----------------------------------------------------------- Riversdale Mining Limited and Tata Steel Limited have signed an agreement to establish a special purpose joint venture vehicle to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique. Under the terms of the agreement, Tata will pay AU$100 million (approximately US$88.2 million) to acquire a 35% Project Interest. For this consideration, Tata secures a key position in the JV formed to develop the Mozambique Coal Project, as well as a 40% share of the off-take for coking coal. Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale's surrounding tenements. The JV comprises two licences (the Benga and Tete licenses) and covers an area of 24,960 hectares (approximately 96.7 square miles). Riversdale Mining holds a total acreage of over 290,000 hectares (1,120 square miles) in Mozambique. Riversdale Mining had recently announced a major coal resource in the Benga Licence. Based on the drilling results undertaken by Riversdale, the total Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open-cut methods. The coking coal derived from this project will be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere. At the signing ceremony in Sydney on Nov. 30, 2007, Riversdale Chairman and CEO Mr. Michael O'Keeffe said that the formation of the Joint Venture with the global steel major Tata Steel would ensure the coal project in Mozambique was well positioned to exploit the full potential of the Moatize region. The value of Tata's on-the-ground experience should not be under-estimated for a project of this scale. This was a major consideration for Riversdale, and we look forward to working with Tata as the project advances. "The JV with Tata Steel represents the best possible outcome for these tenements in Mozambique. The global steel business of Tata has an increasing need to source coal, and the Mozambique Coal Project is well positioned to help meet their future demands for hard coking coal." Riversdale recently announced a capital raising that will see up to AU$235 million (approximately US$206.988 million) of additional funds available to develop the company's projects in Mozambique. "We are in an extremely strong position to develop into a regional force in the coal markets. Riversdale now has an extensive portfolio of tenements in Mozambique of over 290,000 hectares (1,120 square miles), an initial JORC Code compliant inferred resource of over 1.2 billion tonnes of coal, a strategic partner in Tata Steel, and over AU$300 million (approximately US$264.24 million) of funding to advance its interests in the region," Mr. O'Keeffe said. "Riversdale has a dominant land holding in a coal region of increasing global significance, a supportive government and strategic joint venture partner of similar standing in Tata Steel. Our overall position and timing could not be better," Mr. O'Keeffe said. Mozambique is fast-becoming a region of global significance for the coal sector. In addition to Riversdale and Tata Steel's involvement, one of the world's largest mining groups, Companhia Vale do Rio Doce has also invested significantly in plans to advance a massive coal project next to Riversdale's tenements in Moatize. The Managing Director of Tata Steel Limited, Mr. B Muthuraman said: "Tata Steel is very pleased to have signed this agreement. Tata Steel has vast experience of coal mining spanning over several decades and will be contributing technical expertise to the Joint Venture". Mr. Muthuraman further stated that this investment is a significant step in Tata Steel's initiatives for raw material security. It gives Tata Steel an opportunity to participate in the development of the region as a coal resource for its global operations. This will enhance Tata Steel's long term competitiveness. Mr. Muthuraman further added that it is Tata philosophy to participate and be a part of a country's development process and Tata Steel through its well known and well acknowledged social initiatives will make a positive impact on improving the quality of life of the people of Mozambique. About Riversdale Mining Riversdale Mining Limited, incorporated in 1986, is engaged in mining activities and is listed on the Australian Stock Exchange. The company owns a 74% share of two anthracite projects in South Africa. In October 2006, the company acquired Africoal Mozambique Limitada through its 100% subsidiary Riversdale Energy (Mauritius) Limited, and thereby the ownership of large coal tenements in Mozambique in the Zambezi basin. The company recently acquired coal tenements from Aquila Resources Limited, located in the Tete province, contiguous with tenements already held in Mozambique by Riversdale. The acquisition positions Riversdale as the largest tenement holder in Tete- Moatize, with an extensive area capable of supporting long life operations in this emerging and highly prospective region. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. In April 2007, the company completed the acquisition of Corus Group plc. Corus' main steelmaking operations are located in the United Kingdom and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the United Kingdom at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating is removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd, and changed the outlook to negative from stable. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Deploys Optical Network Solution in Hong Kong ------------------------------------------------------------- Alcatel-Lucent and Hong Kong Broadband Network Limited, a wholly owned subsidiary of City Telecom (HK) Limited have deployed the first Gigabit Passive Optical Network in Hong Kong. The collaboration contract also includes network maintenance. Alcatel-Lucent's Fiber-to-the-Home solution will enable the broadband company to deliver advanced triple play services to its subscribers and enlarge its FTTH network coverage in Hong Kong. The new network is expected to be in service in January 2008. The demand for advanced multimedia and data services in Hong Kong is expected to increase substantially in the coming years, driven by services such as high definition TV (HDTV) and enhanced multimedia applications. According to the FTTH Councils of Asia-Pacific, Europe and North America, Hong Kong is the world leader in percentage of homes wired with broadband communications over direct fiber optic connections, followed by South Korea and Japan. Hong Kong Broadband Network Ltd., the first provider in Hong Kong to launch fiber-to-the-home 100Mbps and 1Gbps services in 2005, plans to increase its coverage from 1.4 million to 2 million home passed within three years. "After an intensive trial of Alcatel-Lucent's GPON solution, we are pleased with the maturity and performance of the technology," said Hong Kong Broadband Network Ltd. Chief Executive Officer, Paul Cheung. "By leveraging Alcatel-Lucent's market- leading expertise in FTTH, we will continue to deploy new and advanced service offerings, providing seamless and premium connectivity services catering to our customers' requirements." "We are proud to partner with HKBN delivering the first GPON network in Hong Kong," said President of Alcatel-Lucent's activities for North East Asia, Sean Dolan. "We are committed to the local market, providing our best of breed solutions and global expertise, helping Hong Kong to maintain its technology leadership -- in this case advance broadband deployment." Under the terms of the agreement, Alcatel-Lucent will deploy the 7342 Intelligent Services Access Manager Fiber-to-the-Home solution. The system is designed specifically for packet-based voice convergence and triple play services and delivers maximum bandwidth and QoS over a fiber access network. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, China, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service has downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short term debt of Alcatel-Lucent. Moody's outlook for the ratings is stable. DIRECTED ELECTRONICS: Moody's Cuts Corporate Family Rating to B2 ---------------------------------------------------------------- Moody's Investors Service downgraded Directed Electronics' corporate family rating to B2 from B1 and the probability of default rating to B3 from B2 following continued softness in the company's operating performance. At the same time, the ratings on the senior secured credit facility (term loan and revolver) were also downgraded to B2 from B1 and the ratings were placed under review for further possible downgrade. LGD assessments are also subject to change. "The downgrade reflects the softness in Directed's operating performance, highlighted by a 42% decrease in satellite radio product sales, and the failure to delever following the Polk Audio acquisition in September 2006" said Kevin Cassidy, Vice President/Senior Credit Officer at Moody's Investors Service. "The downgrade also reflects a general deterioration in credit metrics since the Polk acquisition, which Moody's believes will not materially recover in the near term, with adjusted leverage for the twelve months ended September 2007 increasing by more than a turn to over 5x and interest coverage falling a half-turn to below 2x" said Cassidy. "The review for possible downgrade will focus on the company's ability to comply with or amend its financial covenants and demonstrate improvement in its business during the critical holiday shopping season and, if improved, Moody's view of the sustainability of the improvement, given the continued softness in consumer spending for discretionary items" said Cassidy. The review will also focus on the uncertainty surrounding the SIRIUS satellite radio and XM Radio merger, including yesterday's announcement that Directed's contract with SIRIUS was extended through August 2008. These ratings were downgraded: -- Corporate family rating to B2 from B1; -- Probability of default rating to B3 from B2; -- $306 million senior secured term loan, due 2011, to B2 (LGD 3, 34%) from B1 (LGD 3, 32%); -- US$100 million senior secured revolver, due 2010, to B2 (LGD 3, 34%) from B1 (LGD 3, 32%) About Directed Electronics Directed Electronics, Inc. (Nasdaq: DEIX) -- http://www.directed.com/-- is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home audio, mobile audio and video, and satellite radioproducts. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking and navigation, and accessories, which are sold under its Viper(R), Clifford(R), Python(R), and other brand names. In the home audio market, Directed designs and markets Definitive Technology(R) and a/d/s/(R) premium loudspeakers. Directed's mobile audio products include speakers, subwoofers, and amplifiers. Directed also markets a variety of mobile video systems under the Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed also markets and sells certain SIRIUS- branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base. The company has Asian Sales offices, including in Indonesia, Japan, Malaysia, Singapore, Korea and Thailand. GOLDEN-AGRI: Shareholders Raise SGD400.5MM from Combined Sale ------------------------------------------------------------- Golden Agri-Resources Ltd.'s two shareholders raised a combined SGD400.5 million (US$277 million) from the sale of company shares, FinanceAsia reports. The report relates that Singapore's independent brokerage and investment group CLSA arranged the placement, which attracted good interest due to a strong demand for crude palm oil and rising CPO prices, ended about 1.6 times covered. The demand allowed upsize option of 45 million shares to be exercised, the report says. However, the report relates, one of the vendors had wanted a minimum price of at least USS$1.80 per share, and decided not to sell any additional paper, it resulted to a final size equal to the base size of 225 million shares. The shares were offered in a range between SGD1.76 and SGD1.85, priced at SGD1.78 as the positive sentiment surrounding the sector was up against a growing reluctance among many investors to increase their exposure in the current volatile markets, the FinanceAsia points out. Furthermore, the latter was reflected by the fact that the indicative price range represented a wide discount range of 6.1% to 10.7%, the report notes. The final price, FinanceAsia adds, translated into a 9.6% discount versus Nov. 29's close of SGD1.97. About Golden Agri-Resources Golden Agri-Resources Ltd, headquartered in Jakarta, is the largest privately-owned oil palm plantation company in Indonesia. Listed on the Singapore Stock Exchange in 1999, it operates in Indonesia and China and is 48% owned by the Widjaja family. The Troubled Company Reporter - Asia Pacific reported on Jul. 25, 2007, that Moody's Investors Service has affirmed Golden Agri-Resources Ltd's Ba3 corporate family rating. At the same time, Moody's has assigned Aa3.id national scale corporate family rating to GAR. The ratings outlook is stable. GOLDEN-AGRI: Nine Mos. Ended Sept. 30 Revenue Up 47% to US$1.2BB ---------------------------------------------------------------- Golden Agri-Resources Ltd. disclosed results for the third quarter and nine months ended 30 September 2007. Group Financial Performance The Group delivered strong revenue growth of 47% to reach US$1.2 billion for the nine months ended 30 Sep 2007, in line with the upward price trend of crude palm oil and related products. Revenue for the three months ended 30 September 2007 was up an impressive 83% year-on-year to US$534 million. Gross profit increased 101% for the nine months as selling prices increased much higher than cost. EBITDA doubled from US$171 million in the previous period to US$364 million. In particular, compared to the same quarter in 2006, EBITDA for the three months ended 30 September 2007 improved by a significant 181% to US$153 million. Net profit attributable to shareholders rose 36% to US$591 million for the nine months, in line with the increase in EBITDA. Earnings per share was USD 13 cents for the period. Mr Franky Widjaja, Chairman and CEO for Golden Agri-Resources Ltd, said "We are very pleased with the results. The strong performance is the result of our strategy to invest in management expertise, advanced technology, and R&D. Our vertically integrated operations, combined with the age profile of our trees, favorably positions GAR to capture the upside in CPO prices." Operational Performance Revenue from the Indonesia Agri-business, which makes up 75% of Group revenue, improved 57% to US$910 million. The average international CPO (CIF Rotterdam) price during the period was US$727 per ton, about 60% higher as compared to the average of US$454 per ton for the prior period. As at 12 November 2007, the CPO price (CIF Rotterdam) has reached US$950 per ton. The Group also enjoyed a recovery in CPO production yield, after the El Nino weather effect impacted CPO production during the first half. Palm products production increased about 9% between the second and third quarter of 2007. This coincided with the recent surge in CPO price. With the recovery in production, the Group expects to achieve its normal fourth quarter production volume which is usually the highest for the year. The China Agri-business, which makes up the remaining 25% of Group revenue, saw a revenue increase of 24% for the nine months, to US$306 million, primarily due to improved revenue from higher selling price for refined edible oil products. Financial position The Group continued to exhibit continuous growth in total assets with a low gearing ratio. Total assets increased 40% or US$1.2 billion from end 2006 to US$4.2 billion as at 30 September 2007. This was due in part to a US$734 million increase in plantation assets and US$130 million increase in inventory over the period. Total shareholders' fund was US$2.7 billion as at 30 September 2007, representing a 60% growth from end 2006. Rising free cash flows from plantations operations and controlled capital expenditure resulted in falling net debt. The net debt-to-equity ratio as at 30 September 2007 was 0.09 times compared to 0.20 times as at end 2006 Growth Achievements and Developments. As of September 2007, the Group's total planted area was 352,000 hectares, of which 83% was mature estates. The Group originally targeted an additional planted area of 40,000 hectares for financial year 2007 but has exceeded this target as of September 2007, achieving an additional planted area of 45,000 hectares. Other downstream developments during the nine-month period include: -- A new specialty fat factory was completed in Ningbo, China with capacity of 44,000 tonnes per year. -- In April 2007, the Surabaya and Medan refineries successfully converted their energy source from diesel to coal. -- Additional specialty fat and CPO refinery facilities are under construction in Indonesia. Between July to November 2007, GAR through PT Purimas Sasmita increased its ownership in PT SMART Tbk from 83.9% to 92.7% at a total cost of US$124 million. The acquisition will give immediate earnings benefit in the light of favourable palm oil industry and SMART's well established business supported by its approximately 123,400 hectares of planted area. Conclusion Mr Widjaja said, "We believe that current high price of palm oil will be sustainable, driven by strong demand from both food and energy consumption. Palm oil price is highly correlated to crude oil price. As a key player in the market, Golden Agri-Resources is well positioned to benefit from this increase in price and demand. "In Indonesia, we are committed to increase production through plantation expansion and higher operational efficiency by improving plantation management techniques, transportation infrastructure and construction of additional CPO mills. "In China, amidst a highly competitive operating environment and rising commodity prices, we will strive to manage our cost and increase sale of palm-based products in order to expand our presence in the market." d About Golden Agri-Resources Golden Agri-Resources Ltd, headquartered in Jakarta, is the largest privately-owned oil palm plantation company in Indonesia. Listed on the Singapore Stock Exchange in 1999, it operates in Indonesia and China and is 48% owned by the Widjaja family. The Troubled Company Reporter - Asia Pacific reported on Jul. 25, 2007, that Moody's Investors Service has affirmed Golden Agri-Resources Ltd's Ba3 corporate family rating. At the same time, Moody's has assigned Aa3.id national scale corporate family rating to GAR. The ratings outlook is stable. GOLDEN-AGRI: Unit Acquires PT Sinar Mas' 56,019,000 Shares ---------------------------------------------------------- Golden Agri-Resources Ltd acquired PT Sinar Mas Agro Resources and Technology's (SMART) 56,019,000 shares at a nominal value of IDR200 each. This represents approximately 1.95% of the shareholding in SMART, at IDR319,297,096,200. The purchase consideration, which was based on a willing buyer willing seller basis, was fully settled in cash and funded by internal resources. Following this transaction, Purimas' ownership in SMART increased to 92.74% from 90.79%. About Golden Agri-Resources Golden Agri-Resources Ltd, headquartered in Jakarta, is the largest privately-owned oil palm plantation company in Indonesia. Listed on the Singapore Stock Exchange in 1999, it operates in Indonesia and China and is 48% owned by the Widjaja family. The Troubled Company Reporter - Asia Pacific reported on Jul. 25, 2007, that Moody's Investors Service has affirmed Golden Agri-Resources Ltd's Ba3 corporate family rating. At the same time, Moody's has assigned Aa3.id national scale corporate family rating to GAR. The ratings outlook is stable. HILTON HOTELS: Closes US$500-Million Unsec. Floating Rate Notes --------------------------------------------------------------- Hilton Hotels Corporation has completed its previously announced sale of an aggregate principal amount of US$500 million of unsecured Floating Rate Notes due 2013. As reported in the Troubled Company Reporter-Latin America on Nov. 23, 2007, the notes will bear interest equal to three month LIBOR plus 4.50% per year, adjusted quarterly. The proceeds of the sale of the Notes will be used to repay an equal amount of Hilton's secured mezzanine loans incurred in connection with the funding of the acquisition of Hilton by investment funds affiliated with The Blackstone Group and related transactions. The notes have been offered and sold in a private placement to qualified institutional buyers pursuant to Section 4(2) of the Securities Act of 1933, as amended. The notes have not been registered under the Securities Act or securities laws of any state and may not be offered or sold in the United States absent an applicable exemption from registration requirements under the Securities Act or the laws of any state. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Costa Rica, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Moody's Investors Service downgraded Hilton Corporation's Corporate Family Rating and senior unsecured ratings to B3 and Caa1, respectively. INDOSAT: Asia Mobile Holdings to Contest KPPU's Ruling ------------------------------------------------------ PT Indosat Tbk's largest shareholder telecoms investment company, Asia Mobile Holdings, will contest the Business Competition Monitoring Commission (KPPU)'s recent ruling, various reports say. Channel News explains that Asia Mobile, which holds 41.9% in Indosat is owned by Temasek's unit ST Telemedia and Qatar Telecom. ST Telemedia holds a 75% stake in Asia Mobile, while Qatar Telecom holds the remaining 25% stake, CNN MOney relates. ST Telemedia told Reuters that its Indonesian investment was for the long-term, and it would seek justice from Indonesian and international courts to protect the investment. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 23, 2007, Temasek Holdings was found guilty by KPPU of violating Indonesia's anti monopoly laws. KPPU said that Temasek Holdings violated the country's anti-monopoly laws through its ownership in two large mobile telecommunication operators. The TCR-AP pointed out that Temasek's subsidiaries own a 42% stake in Indosat and a 35% stake in Telkomsel. The two mobile operators dominate 80% of the GSM cellular phone market in Indonesia. The TCR-AP related that KPPU ruled that Temasek must sell its minority stake in either Telekomunikasi Selular or Indosat. Syamsul Maarif, KPPU commission assembly chairman, reportedly said the shares must be sold within two years at the maximum since the decision has legal grounds. KPPU also ruled that Temasek's units should also pay IDR25 billion in fines. Furthermore, Mr. Maarif said Temasek should also let go of the voting rights and the right to install a commissioner director in one of the companies to be released. Channel News notes that ST Telemedia and Qatar Telecom reiterated their position on KPPU's anti-monopoly ruling in an hour-long news briefing. Qatar Telecom Remains Committed to Partner Qatar Telecom, CNN Money relates, remains committed to its partnership with ST Telemedia despite the legal difficulties faced by their investment in Indosat. Qatar Telecom Director for Business Development Guy Norman told C