T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, December 7, 2007, Vol. 10, No. 243 Headlines A U S T R A L I A AQUARIUS CARWASH: Members Agree on Voluntary Liquidation CAPSARIN PTY: Members Opt to Shut Down Business CHRYSLER LLC: Implements Downsizing Plan, Workers Leave COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition DREAM MERCHANT: To Declare Dividend for Unsecured Creditors G J MORGAN: Appoints Lynette Evans as Liquidator JARABB PTY: Undergoes Liquidation Proceedings JERVOIS PASTORAL: Members' Final Meeting Set for December 12 LEAN TEAM: Placed Under Voluntary Liquidation REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos. RILEY HOLDINGS: Commences Liquidation Proceedings SAMAR SERVICES: Commences Wind-Up Proceedings STARK DISTRIBUTION: Will Declare Priority Dividend on Dec. 14 C H I N A , H O N G K O N G & T A I W A N ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives CHUNG SHING: Balance Sheet Upside-Down by TWD3.09BB at Sept. 30 CHUNG SHING: Incurs TWD15.76-Million Loss Due to Typhoon Krosa CHUNG SHING: September Sales Total TWD86.26 Million CIS TECH: Sept. 30 Balance Sheet Upside-Down by TWD730 Million CIS TECH: Continues Bleak Sales Record for August 2007 CMC MAGNETICS: Incurs TWD140-Mil. Net Loss for Jan.-Sept. Period CMC MAGNETICS: Obtains Level-A Laboratory Certification COSMOS BANK: Bondholders Agree to Recapitalization Plan PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency RITEK CORP: Posts TWD78.4-Mil. Net Profit in First Nine Months RITEK CORP: Appoints Zhang Yuhuan as Assistant Finance GM RITEK CORP: Divests Giantplus Technology Shares TAIWAN BUSINESS BANK: Mega Financial Might Divest Shares YEU TYAN: June 30 Balance Sheet Upside-Down by TWD9 Billion YEU TYAN: September 2007 Sales Down to TWD96,000 I N D I A AES CORP: Unit To Decrease Concession Area Power Losses To 11.6% SPICEJET: Auditor Says Loss in July-Sept Would Have Been Higher STATE BANK OF INDIA: No Development Yet on SBH Merger STATE BANK OF INDIA: Gov't Okays Subcription to Rights Issue TATA MOTORS: To Commence Thai Pick-Up Production in Early 2008 * Fitch Says Indian Banks Face Increased Challenges I N D O N E S I A ANEKA TAMBANG: Expects 2008 Nickel Output to Increase by 6.3% BANK NEGARA: Fitch Affirms Short-Term Rating at 'B' BANK MANDIRI: Fitch Affirms Long-Term IDR at 'BB-' TELKOM INDONESIA: Responds to Indonesian Watchdog's Ruling TELKOM INDONESIA: Pays IDR48.45. Share Interim Dividend for 2007 TELKOM : Gov't Orders Opening of DLD Service by April 3, 2008 J A P A N COREL CORP: Partners with ConceptShare for Online Collaboration TENNECO INC: Completes Partial Offering of 10-1/4% Senior Notes K O R E A JINRO LTD: Parent Won't Sell Sales Unit in Japan HANARO: SK Telecom Denies Rumors of Possible Deal Nullification MAGNACHIP: Claims Withdrawn on Contact Hole Process Patent MAGNACHIP SEMICONDUCTOR: Enters Power Management Segment * Fitch Reports H107 Results and Outlook for Korea's Banks M A L A Y S I A EKRAN BERHAD: Exempted by Bourse to Submit Regularization Plan FA PENINSULAR: Bursa to Delist Securities on December 13 FCW HOLDINGS: Expects to Complete Corporate Exercises by Jan. 8 MANGIUM INDUSTRIES: In Midst of Finalizing Valuation Report MEGAN MEDIA: In Talks w/ Creditor Banks to Regularize Condition PANGLOBAL BHD: Incurs MYR20.2MM Net Loss in Qtr. Ended Sept. 30 SOLUTIA INC: Moody's Assigns B1 Corporate Family Rating * Malaysian Parliament Records 158,042 Bankruptcy Cases N E W Z E A L A N D AFS (2002): Court to Hear Wind-Up Petition on December 13 BOOST SMP: Appoints Finnigan and Whittfield as Liquidators CLEAR CHANNEL: Gets FCC Approval for US$1.3BB Sale to Newport TV FELTEX: CAFCA Questions SC Investigations & Ernst & Young Audit JPM MANGERE: Subject to CIR's Wind-Up Petition LIFT TRANZ: Court to Hear Wind-Up Petition on February 8 NZ BUSINESS: Wind-Up Petition Hearing Set for February 21 RESIDENTIAL MORTGAGES: Court Hears Wind-Up Petition RODNEY ELECTRICAL: Faces CIR's Wind-Up Petition SHOW-OFF NEW ZEALAND: Faces CIR's Wind-Up Petition T K LOGGING: Subject to CIR's Wind-Up Petition S I N G A P O R E AAR CORP: Completes Acquisition of Summa Technology CHEE TAT: Final Meeting Slated for December 31 EXCEL PRECISION: To Pay First Dividend on December 14 HUP HIN: Creditors' Proofs of Debt Due on December 14 SEMITECH ELECTRONICS: Will Hold General Meeting on December 28 * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= AQUARIUS CARWASH: Members Agree on Voluntary Liquidation -------------------------------------------------------- On October 26, 2007, the members of Aquarius Carwash Systems Pty Limited agreed to voluntarily liquidate the company's business. C. W. Nicholls was appointed as liquidator. About Aquarius Carwash Aquarius Carwash Systems Pty Ltd is a distributor of service industry machineries. The company is located at Artarmon, in New South Wales, Australia. CAPSARIN PTY: Members Opt to Shut Down Business ----------------------------------------------- During a general meeting held on October 24, 2007, the members of Capsarin Pty Limited resolved to voluntarily liquidate the company's business. About Capsarin Pty Capsarin Pty Limited is involved with real estate agents and managers. The company is located at Wollongong, in New South Wales, Australia. CHRYSLER LLC: Implements Downsizing Plan, Workers Leave ------------------------------------------------------- Chrysler LLC's first batch of salaried workers, who opted for the company's buyout proposals, left Friday. Another batch will be leaving at the end of the year, various reports stated. As reported in the Troubled Company Reporter on Nov. 5, 2007, Chrysler disclosed that it would make volume-related reductions at several of its North American assembly and powertrain plants. Shifts will be eliminated at five North American assembly plants which, combined with other volume- related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008. Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37%. The company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume. The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan announced in February. The objectives of the RTP remain the same. Sources say, citing Chrysler spokesman David Elshoff, that the first buyout program called the "special incentive program" was offered to workers who were 62 years old or older with 10 years (or more) of service. The buyout program presented these white- collared workers three months' salary and either a vehicle voucher worth US$20,000 after taxes or a US$20,000 tax-free contribution to a retirement health care account, in addition to full pension and retiree health benefits. Workers ages 53 to 61 with at least 10 years of service who make less than US$100,000 annually, as well as select workers ages 55 to 61 with 10 years of service who make US$100,000 or more in salary will be offered Chrysler's second buyout program, which provides full pension and retiree health care benefits," Eric Morath of The Detroit News relates. The program is otherwise known as "the special early retirement program." About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition -------------------------------------------------------------- Palmarejo Silver and Gold Corporation shareholders has approved a plan of arrangement pursuant to which, among other things, Coeur d'Alene Mines Corporation will acquire all of the outstanding shares of Palmarejo held by shareholders other than Bolnisi and, through its acquisition of Bolnisi Gold NL, all of the Palmarejo shares held by Bolnisi, as more particularly described in the Palmarejo Notice and Management Information Circular dated Oct. 31, 2007. At a meeting of Palmarejo shareholders held earlier today, the arrangement was approved by over 99.99% of the votes cast, and 99.99% of the "minority" votes, excluding those votes required to be excluded by applicable securities laws. Approximately 90.2% of the total eligible Palmarejo shares were voted at the meeting. Under the terms of the arrangement, Palmarejo shareholders will receive 2.715 Coeur shares and US$0.004 for each Palmarejo share. "Today's overwhelming vote in favor of this arrangement demonstrates that our shareholders support Palmarejo joining forces with Coeur," said James Crombie, President and Chief Executive Officer of Palmarejo. "The new Coeur, with the addition of Palmarejo's projects, will enjoy an excellent profile in the industry." On Dec. 4, 2007, Bolnisi shareholders also voted in favor of the resolution to allow the offer by Coeur to acquire all of the shares of Bolnisi by way of a scheme of arrangement to be implemented in accordance with the Merger Implementation Agreement between Bolnisi and Coeur. Under the scheme of arrangement, Bolnisi shareholders will receive 0.682 of a Coeur share and AU$0.004 in cash for each Bolnisi share. Coeur announced on Dec. 3, 2007 that it has adjourned its special meeting of shareholders to vote on the amendment of its charter and the issuance of its shares in connection with its proposed acquisition of Bolnisi and Palmarejo to Dec. 7, 2007, at 4:00 p.m. (PST). Coeur has received overwhelming support for the proposals related to the acquisition with in excess of 91% of the votes submitted having voted in favor. Proxies are continuing to be received and votes representing an additional 1.7% of the outstanding shares are needed to achieve quorum and enable the matters to be put to a vote at the meeting. The adjournment will allow Coeur to receive the necessary additional proxies. Palmarejo's application to the Ontario Superior Court of Justice to obtain the final court order approving the arrangement is scheduled for Dec. 5, 2007. Completion of the transaction remains subject to satisfaction of certain conditions set out in the plan of arrangement and the Merger Implementation Agreement between Palmarejo and Coeur. About Palmarejo Silver Palmarejo Silver And Gold Corporation is a silver/gold exploration company listed on the TSX Venture Exchange under the symbol "PJO". Palmarejo's principal activity is to explore and develop gold and silver properties located in the Temoris District of Chihuahua, Mexico within the Sierra Madre Occidental mountain range. Additional information is available on SEDAR and on the Company's website. About Coeur d'Alene Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. DREAM MERCHANT: To Declare Dividend for Unsecured Creditors ----------------------------------------------------------- Dream Merchant Pty Limited, which is subject to deed of company arrangement, will declare dividend for its unsecured creditors on December 14, 2007. Only creditors who were able to file their proofs of debt by the Nov. 27, 2007 deadline will be included in the company's dividend distribution. The company's deed administrator is: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Dream Merchant Dream Merchant Pty Limited provides business services. The company is located at Cronulla, in New South Wales, Australia. G J MORGAN: Appoints Lynette Evans as Liquidator ------------------------------------------------ On October 24, 2007, G J Morgan Pty Ltd's members decided to voluntarily liquidate the operations of the company. Lynette Evans was appointed as liquidator. About G J Morgan G J Morgan Pty Ltd provides health and allied services. The company is located at Nyngan, in New South Wales, Australia. JARABB PTY: Undergoes Liquidation Proceedings --------------------------------------------- The members of Jarabb Pty Ltd met on October 24, 2007, and passed a resolution to voluntarily liquidate the company's operations. Anthony M. Long was named as liquidator. The Liquidator can be reached at: Anthony M. Long c/o Boyce Chartered Accountants 19 Montague Street Goulburn, New South Wales 2580 Australia About Jarabb Pty Located at Mungindi, in New South Wales, Australia, Jarabb Pty Ltd is an investor relation company. JERVOIS PASTORAL: Members' Final Meeting Set for December 12 ------------------------------------------------------------ A final meeting will be held for the members of Jervois Pastoral Co Pty Ltd on December 12, 2007, at 10:00 a.m. At the meeting, the members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Noel Robert Willis KPMG 491 Smollett Street Albury, New South Wales 2640 Australia Telephone:(02) 6021 1111 About Jervois Pastoral Jervois Pastoral Co Pty Ltd is involved in the beef cattle feedlots business. The company is located at Alice Springs, in NT, Australia. LEAN TEAM: Placed Under Voluntary Liquidation --------------------------------------------- On October 8, 2007, a special resolution was passed to voluntarily wind up Lean Team Australia Pty Ltd's operations. A. T. Macgillivray was appointed as liquidator. The Liquidator can be reached at: A. T. Macgillivray c/o Provimi Australia Pty Ltd PO Box 15 Macclesfield, South Australia 5153 Australia About Lean Team Located at Adelaide, in South Australia, Australia, Lean Team Australia Pty Ltd is an investor relation company. REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos. ---------------------------------------------------------------- Moody's Investors Service has affirmed all of the ratings of Revlon Consumer Products Corporation but revised the outlook to positive from negative. The revision of the outlook to positive reflects the elimination of a significant near-term maturity following the company's announcement that it intends to repay in full the US$167.4 million of remaining 8-5/8% senior subordinated notes in a manner that is neutral to bondholders by retaining a US$170 million senior subordinated term loan from its indirect parent company, MacAndrews and Forbes. The revised outlook also reflects Revlon Consumer's success in achieving its financial targets for the last twelve-month period ending September 2007 and the resulting significant improvement in profitability and credit metrics. "While Revlon's financial performance has significantly improved and market share trends have stabilized over the last twelve months, the company still needs to demonstrate that these gains are sustainable while at the same time achieving profitable growth in its core Revlon and Almay franchises," says Moody's Vice President Janice Hofferber. These ratings of Revlon Consumer were affirmed: -- Corporate family rating at Caa1; -- Probability of default rating at Caa1; -- US$160 million senior secured asset based revolving credit facility due 2012 at B1 (point estimate revised to LGD 2, 12% from LGD 2, 11%); -- US$840 million senior secured term loan facility due 2012 at B3 (point estimate revised to LGD 3, 37% from LGD 3, 36%); -- US$387 million 9.5% senior notes due 2011 at Caa2 (point estimate revised to LGD 4, 63% from LGD 4, 61%); -- US$167 million 8.625% senior subordinated notes due 2008 at Caa3 (point estimate revised to LGD 6, 94% from LGD 6, 93%); and -- Speculative grade liquidity rating of SGL-4 Outlook revised to positive from negative. Revlon Consumer's Caa1 corporate family rating reflects the weak free cash flow, high leverage and weak liquidity profile of the company. The Caa1 rating also incorporates the remaining refinancing risks that the company faces due to the relatively short maturity date of the newly provided term loan (matures Aug. 1, 2009), as well as the ongoing financial and operational challenges the company continues to face. While Moody's views MacAndrews & Forbes' agreement to provide Revlon Consumer with a US$170 million senior subordinated term loan as helpful in the near term, but notes that the short dated maturity of the term loan as well as the expiration of MacAndrews & Forbes' existing US$50 million back-up line of credit at closing will continue to strain liquidity. Nevertheless, MacAndrews & Forbes' willingness to provide this critical financing as well as its track record of supporting Revlon Consumer over the last several years by backstopping equity rights offerings and by providing back-up liquidity, is an important ratings factor. The positive outlook reflects Moody's recognition that the company has eliminated a significant near-term maturity and that its credit metrics and financial performance have meaningfully improved. Accordingly, profitability and cash flow generation have improved such that EBITA margins are approaching 10% and free cash flow usage has substantially improved. In addition, other key credit metrics, while still more consistent with a Caa issuer, are also stronger -- EBITDA to interest coverage ratios are in excess of 1.6 times and Debt to EBITDA was 6.7 times for the last twelve month period ending September 2007. Nevertheless, Revlon Consumer will need to demonstrate a longer track record of financial stability and profitable market share growth given the still leveraged profile, negative free cash flow and need to refinance the MacAndrews & Forbes term loan by August 2009. The company's highly leveraged profile and liquidity constraints remain on-going rating concerns as the company participates in an industry segment that requires material upfront brand support, fixture, and product development expenditures with uncertain consumer receptivity. Moody's affirmation of Revlon Consumer's speculative grade liquidity rating of SGL-4 reflects the company's still weak cash flow from operations and inability to satisfy its basic cash requirements through internal sources with no additional need for external financing. In addition, while the agreement with MacAndrews & Forbes to provide a US$170 million senior subordinated loan satisfies a critical requirement in its 8 5/8% senior note indenture in a way that is not detrimental to bondholders and has a positive impact on liquidity, the short term maturity date of the term loan will require another significant financing. The company's resolution of these two critical factors would likely lead to an upgrade in its speculative grade liquidity rating. Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company's vision is to deliver the promise of beauty through creating and developing the most consumer preferred brands. The company's brands include Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R), Flex(R), and Mitchum(R). The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. The company has Asia Pacific operations in Australia, China, Hong Kong, Singapore, and Taiwan. Headquartered in New York, Revlon Consumer Products Corp. is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company is a wholly owned subsidiary of Revlon Inc. -- http://www.revloninc.com/-- which in turn is majority-owned by MacAndrews and Forbes, which is wholly owned by Ronald O. Perelman. The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. RILEY HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------- During a general meeting held on December 10, 2007, the members of Riley Holdings Pty Ltd resolved to voluntarily liquidate the company's business. R. B. Chippindale was appointed as liquidator. The Liquidator can be reached at: R. B. Chippindale WT Martin & Associates 17a Althrop Street East Gosford, New South Wales 2250 Australia About Riley Holdings Located at Dalkeith, in Western Australia, Australia, Riley Holdings Pty Ltd is an investor relation company. SAMAR SERVICES: Commences Wind-Up Proceedings --------------------------------------------- During a general meeting held on October 12, 2007, the directors of Samar Services Pty Limited passed a resolution to voluntarily liquidate the company's business. Ieuan Griffiths was named as liquidator. The Liquidator can be reached at: Ieuan Griffiths 9 Orangegrove Avenue Unanderra, New South Wales, 2526 Australia About Samar Services Samar Services Pty Limited operates manufacturing industries. The company is located at Wollongong, in New South Wales, Australia. STARK DISTRIBUTION: Will Declare Priority Dividend on Dec. 14 ------------------------------------------------------------- Stark Distribution Services Pty Limited, which is in liquidation, will declare its first dividend for priority creditors on December 14, 2007. Creditors who were not able to file their proofs of debt by the November 30, 2007 deadline will be excluded from the company's dividend distribution. The company's liquidator is: N. C. Malanos Star Dean-Willcocks Level 1, 32 Martin Place Sydney, New South Wales 2000 Australia Telephone:(02) 9223 2944 Facsimile:(02) 9223 3011 About Stark Distribution Stark Distribution Services Pty Limited is involved with trucking business, except local. The company is located at Moorebank, in New South Wales, Australia. ============================================= C H I N A , H O N G K O N G & T A I W A N ============================================= ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives --------------------------------------------------------------- Acxiom(R) Corporation has entered into a new strategic partnership with Nashua, N.H.-based Search Initiatives LLC, which will provide clients of Acxiom with more detailed business directory data on small- to medium-sized businesses across the country. Acxiom will include data from Search Initiatives' subsidiary, eLocal Listing, to further enhance its business data listings. In turn, Search Initiatives will incorporate Acxiom data into its products, including the company's search and search engine optimization offerings. "The U.S. business sector is constantly changing," said Jon Cohn, Acxiom product leader, "and we are constantly looking for innovative ways to further improve the quality of our business data listings. With this agreement, we'll be able to provide even more detailed business information to our many data clients." "We are in the business of speaking to thousands of U.S. businesses every day," said Tim Judd, chief executive officer of Search Initiatives. "Through our subsidiary, eLocal Listing, and our network of call centers, we reach out and touch millions of SMBs each year. The additional information we discover about those companies during our process will be incorporated into Acxiom's core business listing products." The strategic alliance between the two companies reinforces the importance of the emerging local online market and the value of enhanced local contact data. "The national online market has developed on a largely self- service basis that doesn't work as well at the local level with time-starved small businesses," Mr. Judd said. "To be effective while marketing to the enormous U.S. small business market, you need accurate, current data supported by the ability to talk to those customers with a personal touch." Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Little Rock, Arkansas-based Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. CHUNG SHING: Balance Sheet Upside-Down by TWD3.09BB at Sept. 30 --------------------------------------------------------------- Chung Shing Textile Co. Ltd. recorded a net loss of TWD378.20 million for the nine months ended Sept. 30, 2007, almost halving the TWD714.70-million net loss recorded for the nine-month period ended Sept. 30, 2006. The company had net sales of TWD2.71 billion for the period in review. Cost of goods sold and other operating expenses amounted to TWD2.91 billion, giving the company an operating loss of TWD207.60 million. The company also paid TWD222.40 million in interest expenses for the first nine months of 2007. As of Sept. 30, 2007, the company had a shareholders' equity deficit of TWD3.09 billion on total assets of TWD10.37 billion and total liabilities of TWD13.46 billion. Taiwan-based Chung Shing Textile Co. Ltd. -- http://www.chung-shing.com.tw/-- is engaged in the manufacture and sale of various fibers, textiles and garments. The Company's products include knitting cotton apparels and knitting synthetic fiber apparels, cotton yarns, synthetic fiber cloth, plain woven cloth, polyester yarns, nylon filament yarns, polyester staple fibers, textured yarns, polyester chips and others. CHUNG SHING: Incurs TWD15.76-Million Loss Due to Typhoon Krosa -------------------------------------------------------------- Chung Shing Textile Co. Ltd. estimates a loss of TWD15.76 million as a result of typhoon Krosa, Reuters Key Developments reports. Reuters did not provide further details regarding the matter. Taiwan-based Chung Shing Textile Co. Ltd. -- http://www.chung-shing.com.tw/-- is engaged in the manufacture and sale of various fibers, textiles and garments. The Company's products include knitting cotton apparels and knitting synthetic fiber apparels, cotton yarns, synthetic fiber cloth, plain woven cloth, polyester yarns, nylon filament yarns, polyester staple fibers, textured yarns, polyester chips and others. As of Sept. 30, 2007, the company had a shareholders' equity deficit of TWD3.09 billion on total assets of TWD10.37 billion and total liabilities of TWD13.46 billion. The company also incurred net losses TWD1.82 billion, TWD988.70 million, TWD1.69 billion, TWD2.90 billion and TWD1.13 billion for the years ending Dec. 31, 2002 through 2006. CHUNG SHING: September Sales Total TWD86.26 Million --------------------------------------------------- Chung Shing Textile Co. Ltd.'s sales in September 2007 fell 88.06% year-on-year to TWD86.26 million from TWD722.69 million, according to data obtained from Bloomberg News. The company's year-to-date sales totaled TWD2.81 billion, 68.52% less than the previous year's TWD8.93 billion. The company's August 2007 sales also fell 90.70% year-on-year to TWD111.44 million from TWD1.20 million. Taiwan-based Chung Shing Textile Co. Ltd. -- http://www.chung- shing.com.tw/ -- is engaged in the manufacture and sale of various fibers, textiles and garments. The Company's products include knitting cotton apparels and knitting synthetic fiber apparels, cotton yarns, synthetic fiber cloth, plain woven cloth, polyester yarns, nylon filament yarns, polyester staple fibers, textured yarns, polyester chips and others. As of Sept. 30, 2007, the company had a shareholders' equity deficit of TWD3.09 billion on total assets of TWD10.37 billion and total liabilities of TWD13.46 billion. The company also incurred net losses TWD1.82 billion, TWD988.70 million, TWD1.69 billion, TWD2.90 billion and TWD1.13 billion for the years ending Dec. 31, 2002 through 2006. CIS TECH: Sept. 30 Balance Sheet Upside-Down by TWD730 Million -------------------------------------------------------------- CIS Technology Inc. reported a net loss of TWD80.10 million for the nine months ended Sept. 30, 2007, almost halving the TWD164.8-million net loss reported for the nine months ended Sept. 30, 2006. The company had net sales of TWD0.10 million for the period in review, while costs of goods sold and other operating expenses amounted to TWD0.90 million and TWD18.50 million, respectively, resulting in an operating loss of TWD19.30 million. The company also paid TWD37.30 million in interest expenses. As of Sept. 30, 2007, the company's balance sheet showed total assets of TWD1.03 billion and total liabilities of TWD1.76 billion, resulting in a capital deficiency of TWD730.40 million. Hsi Chih, Taiwan-based CIS Technology Inc. -- http://www.cis.com.tw/-- is principally engaged in the manufacture of computer peripheral products, as well as video and audio products. The company's major products include crystal display televisions and crystal computer monitors. CIS TECH: Continues Bleak Sales Record for August 2007 ------------------------------------------------------ CIS Technology Inc. reported no sales for August 2007, according to data obtained from Bloomberg. The company virtually had no sales activity since the start of the year, with only TWD97,000 in sales recorded for June 2007. The company had sales of TWD30.46 million in the January to August 2006 period. Hsi Chih, Taiwan-based CIS Technology Inc. -- http://www.cis.com.tw/-- is principally engaged in the manufacture of computer peripheral products, as well as video and audio products. The company's major products include crystal display televisions and crystal computer monitors. As of Sept. 30, 2007, the company had total assets of TWD1.03 billion and total liabilities of TWD1.76 billion, resulting in a capital deficiency of TWD730.40 million. The company also incurred net losses of TWD307.9 million, TWD80.6 million, TWD630.2 million, and TWD445.2 million for the years ended Dec. 31, 2003 through 2006, respectively. CMC MAGNETICS: Incurs TWD140-Mil. Net Loss for Jan.-Sept. Period ---------------------------------------------------------------- CMC Magnetics Corporation reported a net loss of TWD140.0 million for the first nine months of 2007, a disappointing turn compared to the TWD447.4-million net profit in the previous corresponding period. The company also recorded a net profit of TWD146.9 million for the half-year ending June 30, 2007. For the 2007 nine-month period, the company had sales of TWD18.4 billion, which translated to an operating income of TWD475.9 million after operating expenses of TWD17.9 billion were deducted. The company, however, recorded a TWD466.0 interest expense charge. As of Sept. 30, 2007, the company had total assets of TWD79.4 billion, total liabilities of TWD25.7 billion, and total equity of TWD53.7 billion. Headquartered in Taipei, Taiwan, CMC Magnetics Corporation -- http://www.cmcdisc.com/-- is engaged in the manufacture and sale of media storage devices and opto-electrical products. The Company distributes its products within the domestic market and to overseas markets, including the Americas, Europe and rest of Asia. The Troubled Company Reporter-Asia Pacific reported that on Jan. 11, 2007, Moody's Investors Service changed to stable from negative the outlook for both CMC Magnetics Corporation's B1 corporate family rating and its Ba2.tw national scale issuer rating. CMC MAGNETICS: Obtains Level-A Laboratory Certification ------------------------------------------------------- Optical disc makers CMC Magnetics and Ritek Corp. recently obtained Level A laboratory certification for 4x Blu-ray Disc (BD)-R SL discs, the Digitimes.Com reports. Digitimes relates that CMC and Ritek are keeping apace with each other in terms of their progress in R&D for blue-laser optical discs, with each having so far secured level A laboratory certification for 2x HD DVD-R SL, 1x HD DVD-RW SL, 2x BD-RE SL and 4x BD-R SL, according to industry sources in Taiwan. The report explains that CMC will focus on markets in North America, Europe and Japan for its 4x BD-R SL discs for the time being, and whether or not it expands its production capacity of BD discs will hinge on global market conditions, the company pointed out. Ritek is already poised to start volume production of HD DVD and BD discs, the company indicated. Headquartered in Taipei, Taiwan, CMC Magnetics Corporation -- http://www.cmcdisc.com/-- is engaged in the manufacture and sale of media storage devices and opto-electrical products. The Company distributes its products within the domestic market and to overseas markets, including the Americas, Europe and rest of Asia. The Troubled Company Reporter - Asia Pacific reported that on Jan. 11, 2007, Moody's Investors Service changed to stable from negative the outlook for both CMC Magnetics Corporation's B1 corporate family rating and its Ba2.tw national scale issuer rating. COSMOS BANK: Bondholders Agree to Recapitalization Plan ------------------------------------------------------- Cosmos Bank Taiwan's bondholders had signed agreements for its recapitalization plan, the Taipei Times relates. The Times reports that the cash-strapped lender's bondholders have agreed to convert their debt holdings into Cosmos equities to help improve the bank's financial structure, the bank said in a statement. As of Dec. 4, 2007, bondholders held TWD4.685 billion in the lender's debt, or 35.4% of the total, The Times says, citing the bank's statement. The report adds that the bondholders agreed to exchange their debt holdings for the lender's equities at TWD2 per share, which will represent a fully diluted stake of 4.2% in the bank. The report also explains that the bondholders' agreements depend on the planned capital injection of TWD29.7 billion from US private equity firm SAC Private Capital Group LLC and GE Money. Headquartered in Taipei, Taiwan, Cosmos Bank, Taiwan -- http://www.cosmosbank.com.tw/-- provides financial services for individuals and small and medium-sized enterprises in Taiwan. Cosmos reported a net loss of NT$11.29 billion (US$342.1 million) for FY2006. Its capital-adequacy ratio fell to 7.51% as of the end of March, below the 8% level required by Taiwan's regulator. In April, Cosmos said it planned to increase its capital by the third quarter to avoid being taken over by the government. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Fitch Ratings downgraded the bank's individual rating of Cosmos Bank to F, reflecting Fitch Rating's view that Cosmos would have defaulted if it had not received external support. In order to distinguish failed banks more clearly, Fitch, in June 2007, added a sixth rating category to its Individual rating scale, i.e. 'F', which denotes a bank that has either defaulted or, in Fitch's opinion, would have defaulted if it had not received external support. PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million --------------------------------------------------------------- Pacco Tech Co. Ltd. reported a net loss of TWD3.8 million for the half-year period ended June 30, 2007. As of June 30, 2007, the company had total assets of TWD282.3 million and total liabilities of TWD617.5 million, resulting in a capital deficiency of TWD335.2 million. Preliminary nine-month results The company also reported a net loss of TWD7.6 million for the nine months to Sept. 30, 2007, significantly lower than the net loss of TWD31.1 million reported for the nine months ended Sept. 30, 2006. Pacco Tech Co. Ltd. -- http://www.paccogroup.com/-- is a Taiwan-based company engaged in the manufacture and sale of electronic products, as well as construction business. PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year -------------------------------------------------------------- Venezuelan oil and energy minister Rafael Ramirez told Business News Americas that state-run oil firm Petroleos de Venezuela SA wants to have about 190 oil rigs running by the end of 2008. Minister Ramirez said in a statement that with the recent arrival of two Chinese-made rigs, about 156 rigs are operating in Venezuela. BNamericas relates that Venezuela will run 27 Chinese rigs after Petroleos de Venezuela signed an accord with Chinese counterpart China National Petroleum Corp. About 13 rigs will be shipped from China and some 14 will be assembled in Venezuela. Minister Ramirez said in a statement that Venezuelan technicians and engineers have been studying how to run the rigs in China. Minister Ramirez commented to BNamericas, "They are coming back with the ability to operate our own rigs." The Venezuelan government wants to begin natural gas production at offshore wells by the end of next year as part of its Costa Afuera program, BNamericas says, citing Minister Ramirez. The Venezuelan officer said in the report that Petroleos de Venezuela contracted a Singapore-based rig vessel to drill up to 32 natural gas wells. 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 USUS$2 billion notes due 2017, USUS$2 billion notes due 2027, and USUS$1 billion notes due 2037. 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, USUS$2 billion notes due 2027, and US$1 billion notes due 2037. PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency --------------------------------------------------------------- Protop Technology Co. Ltd. reported a net loss of TWD58.60 million for the half-year ended June 30, 2007, an improvement against the TWD1.54-billion net loss for the half- year ended June 30, 2006. It is, however, a disappointment compared to the net profit of TWD41.80 million recorded for the first quarter of 2007. The company posted sales of TWD141.40 million for the half-year in review, while costs of goods sold and other operating expenses amounted to TWD75.40 million and TWD197.7 million, respectively, giving the company an operating loss of TWD131.7 million. The company also had a TWD42.20 million interest expense. As of June 30, 2007, the company had total assets of TWD1.05 billion and total liabilities of TWD1.66 billion, resulting in a capital deficiency of TWD603.55 million. Taiwan-based Protop Technology Co. Ltd. -- http://www.protop.com.tw/-- is engaged in the manufacture and distribution of home video electronics and portable video electronics. Its products are applied to consumer electronics. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. RITEK CORP: Posts TWD78.4-Mil. Net Profit in First Nine Months -------------------------------------------------------------- Ritek Corp. posted a net income of TWD78.4 million for the first nine months of 2007, a turnaround against the TWD2.99-billion net loss recorded for the first nine months of 2006. The company boasted net sales of TWD15.02 billion, which translated to an operating income of TWD639.10 million as cost of goods sold and other operating expenses amounted to TWD13.28 billion and TWD1.10 billion, respectively. As of Sept. 30, 2007, the company had total assets of TWD59.51 billion, total liabilities of TWD19.71 billion and total shareholders' equity of TWD39.80 billion. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004 through 2006. RITEK CORP: Appoints Zhang Yuhuan as Assistant Finance GM --------------------------------------------------------- Ritek Corp.'s board of directors has appointed Zhang Yuhuan as Assistant General Manager of Finance, Reuters Key Developments reports. Zhang replaces Pan Yanmin effective on Oct. 26, 2007, Reuters adds. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004 through 2006. RITEK CORP: Divests Giantplus Technology Shares ----------------------------------------------- Ritek Corp.has sold 7,416,000 shares of Giantplus Technology Co., Ltd., at a price of TWD44.49 per share, Reuters Key Developments reports. No further details were reported. Headquartered in Hsinchu County, Taiwan, Ritek Corporation -- http://www.ritek.com/-- is engaged in the manufacture, processing and sale of optical products. The company's major products include electronic storage media products, such as flash memory cards; information technology products; optoelectronic components, such as indium tin oxide conductive glasses, as well as optical discs and their peripherals. The company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. Ritek Corp. incurred net losses of TWD12.27 billion, TWD2.35 billion, and TWD6.67 billion for the years ended Dec. 31, 2004 through 2006. TAIWAN BUSINESS BANK: Mega Financial Might Divest Shares -------------------------------------------------------- Mega Financial Holding Co. may sell its shares in Taiwan Business Bank after the island's presidential election in March 2008, Bloomberg News reports, citing an Apple Daily report. According to Bloomberg, the Ministry of Finance has agreed that the two lenders won't seek a merger. Bloomberg explains that Mega Financial owns 13% of Taiwan Business Bank, according to the newspaper. No explanation was given in the report for the timing of the possible stake sale, the report adds. Taipei, Taiwan-based Taiwan Business Bank -- http://www.tbb.com.tw/-- provides corporate financial services personal financial services. The bank's domestic branch network covers the whole island of Taiwan. In additon there are three overseas units,including Los Angeles Branch in US, Hong Kong Branch in Hong Kong and Sydney Branch in Australia. The Troubled Company Reporter-Asia Pacific reported that Fitch Ratings, on Jan. 22, 2007, affirmed the bank's long-term issuer default rating at BB+, and short-term rating at B. YEU TYAN: June 30 Balance Sheet Upside-Down by TWD9 Billion ----------------------------------------------------------- Yeu Tyan Machinery Manufacturing Company, Ltd. reported a net loss of TWD153.8 million for the half-year ended June 30, 2007. The company reported TWD8.6 million in net sales, while cost of goods sold and other expenses amounted to TWD7.6 million and TWD9.6 million, respectively, giving the company an operating loss of TWD8.6 million. As of June 30, 2007, the company had total assets of TWD1.3 billion and total liabilities of TWD10.2 billion, resulting in a capital deficiency of TWD9.0 billion. Yeu Tyan Machinery Manufacturing Company, Ltd. manufactures and markets automobile and related parts. YEU TYAN: September 2007 Sales Down to TWD96,000 ------------------------------------------------ Yeu Tyan Machinery Manufacturing Company, Ltd.'s sales for September 2007 fell 8.57% year-on-year to TWD96,000 from TWD105,000, Bloomberg News reports. The report adds that sales figures for the first nine months of 2007 totaled TWD2.21 million, down 30.36% from sales figures in the previous corresponding period. Yeu Tyan Machinery Manufacturing Company, Ltd. manufactures and markets automobile and related parts. The company incurred net losses of TWD973.5 million, TWD699.8 million, TWD487.2 million, TWD537.4 million, and TWD351.5 million for the years ending Dec. 31, 2002 through 2006. The Troubled Company Reporter-Asia Pacific reported that as of June 30, 2007, the company had total assets of TWD1.3 billion and total liabilities of TWD10.2 billion, resulting in a capital deficiency of TWD9.0 billion. ========= I N D I A ========= AES CORP: Unit To Decrease Concession Area Power Losses To 11.6% ---------------------------------------------------------------- AES Eletropaulo's corporate revenue manager Charles Capdeville told Business News Americas that power losses in the firm's concession area will decrease to 11.6% of overall distribution in 2007, from 12.0% in 2006. AES Eletropaulo wants to reduce the "rate," planning to bring down power losses in its concession area by 0.4 percentage points a year to 9.7% or 9.8% in the next five years, BNamericas says, citing AES Eletropaulo's loss reduction manager Jose Cavaretti. Mr. Capdeville told BNamericas.com that AES Eletropaulo decreased by a third energy consumption in Paraisopolis, one of Sao Paulo's poorest neighborhoods. BNamericas relates that consumption declined partly due to AES Eletropaulo's Paraisopolis clients, who began paying for power. Mr. Capdeville commented to BNamericas, "We had a 100% loss rate in Paraisopolis. After a major and thorough community awareness program, we were able to reduce power losses to 65% of all consumption." According to BNamericas, Paraisopolis has about 4,365 power- consuming units: -- 80% are residential customers, -- 10% are commercial users, and -- 10% are a mix of residential and commercial clients. Mr. Cavaretti told BNamericas that the firm was able to catalog power users in the community through door-to-door visits, conducting mini-audits in over 4,000 homes and 70 shops. The firm distributed about 9,600 efficient light bulbs and some 500 new refrigerators in the community in an effort to encourage conservation. "After a user migrates to our client database, it is hard for them to become delinquent again as we connected Paraisopolis slum to the system with state-of-the-art cables, which make illegal connections more difficult," Mr. Capdeville commented to BNamericas. BNamericas notes that polling institute Ibope 's director Silvia Penteado Cervellini said during a conference in Sao Paulo that a market study by the institute indicated that 62% of Paraisopolis residents accept Eletropaulo's program. Ms. Cervellini explained that the approval rating was taken from interviews with 400 power users. When the institute only considers users who were given brand new refrigerators, this increases to 88%. The residents were positive that the program can lessen the risk of fire and boost efficiency. Paraisopolis was chosen as it is among the poorest areas in AES Eletropaulo's concession area. It also has a mix of residential and commercial users, BNamericas states, citing Mr. Capdeville. About AES Eletropaulo AES Eletropaulo is a power distributor in Sao Paulo. It has 4.6 million clients and serves an estimated 14 million people in its 4,526sq km concession area. In terms of revenues, it is the largest electricity distributor in Latin America. About AES Corp. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to USNZ$2 billion from USNZ$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's USNZ$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. SPICEJET: Auditor Says Loss in July-Sept Would Have Been Higher --------------------------------------------------------------- Spicejet Ltd's auditors, in the limited review of the airline's financial results for the quarter ended Sept. 30, 2007, said that had certain adjustments been included, the company's loss for the quarter would have been higher by INR298.15 million. As previously reported by the Troubled Company Reporter-Asia Pacific, SpiceJet booked a net loss of INR377.71 million in the quarter ended Sept. 30, 2007. In the limited review report, the auditors recalled that the audit report on the company's financial statements for the period ended March 31, 2007 was qualified in respect of certain disputed and therefore, doubtful receivables and non-accrual of interest on liabilities aggregating to INR624.15 million. These matters are detailed in the company in Note 6 of the unaudited financial results and detailed in paragraph 5 of the said audit report. Considering the reduction in doubtful receivables and addition to the un-accrued interest, the auditors limited review pointed out, the impact of those qualifications as at Sept. 30, 2007, stands at INR298.15 million. Had these adjustments been recorded in the quarter ended Sept. 30, 2007, the loss after tax would have been higher by INR298.15 million, the report said. Gurgoan, India-based SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier. In fiscal 2006, SpiceJet carried over 1.6 million passengers. As of May 31, 2006, the company operated over 60 daily flights covering 13 destinations, including eight Boeing 737-800 aircraft. SpiceJet has integrated with various travel related Websites, such as indiatimes, makemytrip, travelguru and cleartrip. The company has launched a co-branded credit card with State Bank of India in association with MasterCard. In fiscal 2006, SpiceJet entered into a sale and lease back agreement with Babcock & Brown Aircraft Management along with its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing 737-800/-900ER aircraft. Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. STATE BANK OF INDIA: No Development Yet on SBH Merger ----------------------------------------------------- There is no concrete development yet on the issue of merger of State Bank of Hyderabad with State Bank of India, Business Line quotes SBH Managing Director Amitabha Guha as saying. SBI is planning to merge with its seven associate banks -- SBH, State Bank of Indore, State Bank of Saurashtra, State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Travancore and State Bank of Mysore. So far, SBI's board has only approved one of the proposed mergers, and no firm decisions have been taken on the merger with SBH or no road is given yet, Business Line quotes Mr. Guha in an interview. As reported by the Troubled Company Reporter-Asia Pacific on Aug. 29, 2007, SBI's central board approved the bank's merger with the State Bank of Saurashtra. The mergers are still subject to the approval of the government and the Reserve Bank of India in accordance with State Bank of India Act, 1955. Employees and officers of the associated banks opposed the proposed mergers and even staged a two-day strike that started on Monday. The SBI is facing tough competition to maintain its top position and hence planning to merge these associate banks with itself to utilize their assets for its own �selfish ends", Business Line cites a bank employees union as saying. The union asserted that merger is not in the interest of customers or the staff and is not at all in the national interest. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Primerating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. STATE BANK OF INDIA: Gov't Okays Subcription to Rights Issue ------------------------------------------------------------ The Government of India has conveyed its approval to subscribe to the proposed rights issue of shares of the State Bank of India, a regulatory filing with the Bombay Stock Exchange discloses. The subscription of around INR10,000 crore will be by way of issue of SLR Marketable Government Securities. A Security Redemption Fund will be created for redeeming these securities on the due date. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Primerating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. TATA MOTORS: To Commence Thai Pick-Up Production in Early 2008 -------------------------------------------------------------- Tata Motors Ltd will commence production of pick-up trucks at its Thailand early next, Thomson Financial reports. According to the report, the automobile maker's subsidiary, Tata Motors (Thailand), will dole out THB1.3 billion to set up its first output base in Thailand, the biggest auto market in Southeast Asia. Production will start in March 2008 with output capacity of 35,000 units per year, the news agency quotes the company in a media release. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed USNZ$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. * Fitch Says Indian Banks Face Increased Challenges --------------------------------------------------- Fitch Ratings, on Dec. 5, said that the tightening bias of India's monetary policy, together with increased consumer leverage and the appreciating rupee could impact the immediate prospects of the country's banks. Asset quality has come under some pressure, particularly in consumer loans that grew rapidly in the past and has now started to season, forcing banks to re- examine the loss assumptions in some parts of the business. Fitch would therefore likely be increasingly cautious in its near-term outlook on the performance of Indian banks; the banks, however, will continue to benefit from the growth opportunities in the economy given their dominant status as financial intermediaries -- the strong investment cycle currently underway is the new growth engine for bank credit. In the report titled "Indian Banks - Annual Review and Outlook", Fitch observes that while the increase in net income of Indian banks remained strong at 25% yoy during H108 (24% in FY07), on the back of loan growth and lower mark-to-market depreciation on government securities portfolios, the rise in net interest income was more sedate at 11% in H108 reflecting the pressure on net interest margins. The slowdown in loans growth in FY08, together with any increase in loan loss provisions, could therefore affect net income. NPL ratios will remain under focus, particularly in consumer loans where rising interest rates and increased consumer leverage has affected borrowers' repayment capacity, leading to growing delinquencies in the unsecured loan portfolio. Asset quality in residential mortgage loans (accounting for about half the retail loan portfolio) has held steady, but could be vulnerable if rising interest rates are accompanied by a correction in property prices. The appreciation of the rupee against the US dollar could affect the smaller exporters of textiles; banks have reportedly restructured some of their exposure to this segment in FY08. The ability to raise timely capital could remain a key differentiator between banks, given that internal capital generation is unlikely to meet the requirements of growth in risk weighted assets, as well as the increased capital charge for operational risk and the need for government banks to make additional provisions for pension liabilities. The larger private banks have demonstrated greater capabilities in raising capital in a timely manner. Preference shares have been added to the list of hybrid capital that banks can issue; however, credit spreads in the international markets (that have been the largest source of hybrid Tier 1 capital for Indian banks) has dramatically widened since July 2007 following the global tightening of liquidity, forcing banks to postpone their plans to issue these instruments overseas. The need to access capital may come into sharper focus if the credit cycle deteriorates, which could well provide an impetus for consolidation. The report, "Indian Banks - Annual Review and Outlook", also contains a comparison of key financial parameters of 47 government and private banks that accounted for over 90% of commercial bank assets in India in FY07, and will be available shortly on the agency's subscription Web site, http://www.fitchratings.com ================= I N D O N E S I A ================= ANEKA TAMBANG: Expects 2008 Nickel Output to Increase by 6.3% ------------------------------------------------------------- PT Aneka Tambang Tbk expects its ferro-nickel output to rise by 6.3% next year as it gradually lifts the output of its damaged smelter, Reuters reports. According to the report, Antam expects to produce 17,000 tonnes on ferro-nickel in 2008 compared to an estimated 16,000 tonnes this year. In October, the report recounts, Antam cut its ferro-nickel production forecast for 2007 to 16,000 from 20,000 tonnes due to a leak in its new nickel. As reported by The Troubled Company Reporter-Asia Pacific on June 21, 2007, Aneka had a metal leakage in its third smelter FeNi III. The leak from the furnace wall occurred on June 16 and lasted for 90 minutes. It prompted Antam to reduce the power load at the smelter to prevent damage and for safety reasons. Company Director Darma Ambiar told Reuters that Antam is aiming to produce 15 tonnes of gold a year by 2017, from around 3 tonnes a year currently, to reduce its reliance on nickel output. The company expects the contribution from nickel to its revenue to come down to 60-70 %within the next 10 years, compared to more than 90% currently, Reuters adds. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Oct. 24, 2007, Moody's Investors Service has put on review for possible upgrade the B1 corporate family rating of PT Aneka Tambang (Persero) Tbk. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. BANK NEGARA: Fitch Affirms Short-Term Rating at 'B' --------------------------------------------------- Fitch Ratings has upgraded the National Long-term rating of PT Bank Negara Indonesia to 'AA-(idn)' (AA minus (idn)) from 'A+ (idn)). The Outlook is Stable. This rating action resolves the Positive Outlook that BNI's National rating was placed on in September 2007. At the same time, Fitch has affirmed BNI's other ratings, as follow: -- Long-term foreign and local currency Issuer Default Ratings at 'BB-' with a Positive Outlook, -- Short-term rating at 'B' -- Individual rating at 'D' -- Support rating at '4', and -- Support rating floor at 'B+' The upgrade of BNI's National rating reflects its stronger capital, post its rights issue in Q307, its improving but still weak loan quality, generally stable but below-average profitability relative to that of its peers. It also takes into account its majority state-ownership (76.36%) and size (9.3% of system assets). BNI raised IDR3.9 trillion in new capital in a secondary share offering in August 2007, which involved a rights issue of 1.99 billion new shares followed by a vendor sale of almost 4 billion government shares. The rights issue increased BNI's total CAR to 17.6% at end-9M07 (Tier-1: 13%) from 15.3% at end- 2006. However, this was still below the peer average of about 20% (Tier-1: 15%). Progress in loan restructuring and more favorable macro conditions in 2007 contributed to an improvement in loan quality. NPLs were reduced to 8.3% of gross loans at end-9M07 from 10.5% at end-2006 and 13.7% at end-2005. In the first nine months of 2007, BNI finalized restructuring of about IDR1.3 trillion of non-performing corporate loans (1.6% of gross loans) and upgraded about half to performing loans, and reduced the NPL ratio for the corporate segment to 6.4% at end-9M07 from 10.7% at end-2006. However, the NPL ratio for commercial/SME loans remained quite high although there was a modest decline to 11.1% at end-9M07 from 11.9% at end-2006 as the bank focused on the resolution of larger corporate NPLs. Provision cover improved to 62% of NPLs at end-9M07 from 55% at end-2006, but was still below that of its peers of about 90% based on June 2007 numbers. Fitch considers the provision cover as quite low given the volatile operating condition and weak legal system in Indonesia. A significant amount of restructured loans, about 13% of total loans at end-9M07 (of which about two- thirds were classified as performing loans), may also be prone to a relapse if macro conditions worsen. Pre-tax ROA was stable at 1.8% in 9M07 and 2006, as higher trading and fee income offset weaker net interest income. Net interest margins narrowed to 4.4% in 9M07 from 4.9% in 2006 partly due to higher funding costs as time deposits increased to 50% of total deposits at end-Q107 from 42% at end-2005. However, in the past six months ended 9M07, BNI has made the effort to cut the time deposit amount and raise the proportion of low cost savings and demand deposits, resulting in better funding mix - time deposits declined to 43% of total deposits at end-9M07. New lending has picked up, raising the share of loans to 44% of total assets at end-9M07 from 37% at end-2006. Corporate loans remained substantial at 41% of total loans at end-9M07 but reduced from 72% at end-2001, reflecting increased exposure to better-yielding SME and consumer loans. BNI intends to maintain a 40:60 loan distribution between corporate and consumer/SME loans. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. BANK MANDIRI: Fitch Affirms Long-Term IDR at 'BB-' -------------------------------------------------- Fitch Ratings has upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The Outlook on the National rating remains Stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' The upgrade in the Individual Rating reflects its stronger balance sheet position, as reflected by its substantially reduced NPLs and increased provision cover, as well as the restoration of profitability ratios, since Q107, closer to peer levels. The improved credit profile relative to other Fitch- rated Indonesian banks, and its systemic importance as the largest state-owned bank in Indonesia accounting for about 16% of system assets, underpin the upgrade in its National Rating. Meanwhile, the Positive Outlook on its international ratings reflect the Indonesian sovereign ('BB-' (BB minus)/Positive). Thanks to increased loan restructuring and recovery efforts under the new management team and the more favorable operating conditions in Indonesia since H206, NPLs were substantially reduced to IDR14.4 trillion (12.9% of gross loans) at end- September 2007, from IDR26.6tn (26.6%) at end-2005. Provision cover on NPLs was raised to 92% at end-Sep07, as compared with 77% at end-2006 and 45% at end-2005; provision charges increased sharply in 2005-2006 (dampening profitability then), while provisions, which could have been written back, were ploughed back to bolster reserves. Stress testing by the agency assuming harsher write-offs on existing NPLs and special mention loans (which include a large portion of its restructured loans), indicates much reduced capital impairment risk amounting to about 20% of equity (compared with 50%-60% when NPLs peaked in H205 to H106); Fitch notes that actual impairment should be lower due to ongoing earnings accretion (ROE was 15.5% in 9M07). The agency understands the bank is on track to further reduce gross NPLs to 10% or less of loans by end-2007 through a combination of write- offs and loan recoveries/restructuring. Meanwhile, ROA recovered to 1.6% in the first three quarters of 2007 (ROE: 15.5%) compared with 0.9% in 2006 and 0.2% in 2005, which are also closer to the peer average of 2.0% (ROE: 18.5%) based on H107 data. This reflects stronger income growth on the combined impact of reduced NPL drag and lower deposit funding, as well as decreased provision charges as NPLs fell. Tier 1 and Total CAR ratios remained strong at 18.3% and 22.4%, respectively (peer average of 16% and 20% respectively), albeit noting the high proportion of zero-weighted government recap bonds in its balance sheet (33% of total assets). Long term CAR targets are unchanged at 18%-20% (total CAR) to support the bank's organic and non-organic expansion plans. However, given its still high NPL ratio and exposure to restructured loans (accounting for 20% of total loans), Fitch will continue to monitor the progress of its NPL reduction. It should also be noted that the improvements made to the bank's risk management system in the last two years with the help of external consultants (under the new management team) remained largely untested amidst the setting of stronger loan targets for the bank in the medium term. Mandiri's loans slowed to a 10%+ annualized rate in 2005-2006 (due to the focus on NPL resolution) from 20%+ in 2004. Loan composition was 46% corporates, 31% commercial, 11% small/micro loans and 13% consumer at end-September 2007. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. TELKOM INDONESIA: Responds to Indonesian Watchdog's Ruling ---------------------------------------------------------- PT Telekomunikasi Indonesia Tbk said the Business Competition Supervisory Commission has issued a press release through its Web site on November 19, 2007, stating its ruling which involves one of Telkom's major subsidiaries, PT Telekomunikasi Selular, with the following decisions: -- Telkomsel has breached Article 17 (1) Law No.5/1999 regarding domination upon production and or marketing of services suspected to create a monopolistic act and unfair business practice. -- Telkomsel did not breach Article 25(1) Law No.5/ 1999. -- KPPU has told Telkomsel to stop its practices of applying high tariffs and to lower its current cellular tariffs up to a minimum of 15% . -- KPPU has imposed a fine to Telkomsel in the amount of IDR25 billion. In view of the above, the company said that: -- In general, Telkom respects the legal processes which has been conducted by KPPU as an independent body for supervising fair competition in Indonesia. Telkom will always be committed to comply with good corporate governance practices. -- As the majority and controlling shareholder of Telkomsel, Telkom has requested Telkomsel to immediately carry out a legal review in accordance with its own internal processes and governance practices. -- Telkom will fully support all legal efforts made by Telkomsel, including any options for an appeal to the District Court. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service has changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings has affirmed Telekomunikasi Indonesia's Long-term foreign and local currency Issuer Default Ratings at 'BB-'. TELKOM INDONESIA: Pays IDR48.45. Share Interim Dividend for 2007 ---------------------------------------------------------------- PT Telekomunikasi Indonesia Tbk 's Board of Directors Meeting decided to distribute an interim dividend for the financial year 2007 in the amount of IDR48.45 per share with a nominal value of IDR250 to all of its shareholders registered in the company's Shareholders Registry on December 4, 2007 at 16.00 Western Indonesian Time. The distribution of the interim dividend is based on the Company's Financial Statements for the period ended on September 30, 2007 (Q3-2007). In relation to that, the company hereby announces the schedules and procedures of the distribution of the interim dividend for the financial year of 2007 as follows: A. Schedule Date ---------------- Recording Date December 4, 2007 Cum Dividend - Regular and Negotiation Market November 29, 2007 - Cash Market December 4, 2007 Ex Dividend - Regular and Negotiation Market November 30, 2007 - Cash Market December 5, 2007 Payment Date December 18, 2007 B. Procedures for Distribution of Dividend * The eligible shareholders are shareholders registered in the company's Shareholders Registry (Recording Date) on December 4, 2007 at 16.00 Western Indonesian Time, or at Kustodian Sentral Efek Indonesia securities account at the close of trading on December 4, 2007. * For the American Depository Shareholders, the New York Stock Exchange regulations shall apply, and the interim dividend will be paid through the Custodian Bank appointed by the Bank of New York in accordance with the numbers registered at the record date at the Stock Administration Bureau and Kustodian Sentral Efek Indonesia on December 4, 2007. * For shareholders whose shares are registered with KSEI, the payment of the interim dividend will be conducted through KSEI and will be distributed to the respective securities account or custodian bank on December 18, 2007. The payment receipt will be provided by KSEI to the respective securities company or the bank of the securities company or Custodian Bank where the shareholders open their accounts. * For shareholders whose shares are not registered with KSEI, the company will send a Notice of Dividend Payment to the shareholders' address. -- Interim Dividends can be withdrawn at the nearest Bank Negara Indonesia branches in Indonesia. The shareholders should bring along valid original identity cards, or if a proxy represents a shareholder, the proxy should bring along a Power of Attorney (�POA�) along with the valid original Identity Card of both the POA Grantor and the POA Grantee. -- The interim dividend can only be transferred to the Shareholder's bank account if: * The amount of Interim Dividends received by the shareholder is at least IDR500,000, and * the shareholders must inform their bank account numbers correctly and notify the account number to PT DATINDO ENTRYCOM, Puri Datindo � Wisma Sudirman, Jl. Jend. Sudirman Kav.34-35, Jakarta 10220 before December 4, 2007. * The Company will apply Income Tax Deduction in accordance with the applicable tax regulations for the payments of dividend. * In accordance with Circular Letter of the Director General of Tax No. SE-03/PJ.101/1996 dated 29 March 1996, foreign Shareholders whose countries have signed Agreements to Avoid Double Taxation with Indonesia must deliver the original letter of Domicile issued by their Governments or a copy the letter of Domicile which has been legalized by the Go Public Tax Office, to PT Datindo Entrycom or KSEI, at the latest at 16.00 Western Indonesian Time (WIB) on December 4, 2007. Without that letter, the interim dividend will be subject to 20% income tax based on PPh Article 26. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service has changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings has affirmed Telekomunikasi Indonesia's Long-term foreign and local currency Issuer Default Ratings at 'BB-'. TELKOM : Gov't Orders Opening of DLD Service by April 3, 2008 ------------------------------------------------------------- The government of Indonesia has ordered PT Telekomunikasi Indonesia Tbk to open up its DLD service by April 3, 2008, various reports say. According to Teleography News, this company move is aimed to rival PT Indosat Tbk. Telkom must allow its fixed-line subscribers, initially in Balikpapan, East Kalimantan, to use the service provided by rival Indosat by the deadline given, Thomson Financial reports. Indosat Director Guntur Siboro told Thomson Financial that "We appreciate the decision to open up domestic long distance access code in Balikpapan. We hope this will be a first step for the creation of healthier climate for competition that will ultimately benefit general public and subscribers, he added. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service has changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings has affirmed Telekomunikasi Indonesia's Long-term foreign and local currency Issuer Default Ratings at 'BB-'. ========= J A P A N ========= COREL CORP: Partners with ConceptShare for Online Collaboration --------------------------------------------------------------- Corel Corporation has partnered with ConceptShare Inc., an emerging leader in online collaboration. www.CorelDRAWConceptShare.com is launched as the first project in a five-year partnership between the two companies. This new online tool enables designers to easily share their work with other designers, colleagues or clients, providing a more dynamic and collaborative experience, while accelerating the design process. CorelDRAWConceptShare.com helps designers and clients by making it easier to review concepts, make adjustments and complete projects faster. By moving consultations online, CorelDRAWConceptShare.com also saves time and money by eliminating the need to travel for face-to-face meetings. In addition, discussions about visual concepts are centralized, improving information flow and the speed of decision making between designers and their key stakeholders. "CorelDRAW(R) has long been recognized as a premier graphics application that delivers the features and functionality our users need to be more productive in their day-to-day activities," said Gerard Metrailler, Director of Product Management, Graphics for Corel. "We understand the time many users spend trying to collaborate on designs and feel that partnering with ConceptShare, an emerging leader in the online collaboration space, provides our users with the ability to get the feedback they need on all of their designs in an efficient and meaningful way." "We are enthusiastic about our partnership with Corel. The CorelDRAW version of ConceptShare(TM) provides us immediate exposure to millions of CorelDRAW users worldwide and will help to accelerate our growth into international markets," said Bernie Aho, Product Manager and Co-Founder, ConceptShare. "This strategic partnership demonstrates a new model for relationships between web application providers and desktop software companies." About ConceptShare Inc. ConceptShare Inc. -- http://www.conceptshare.com/-- is a world leader in online design collaboration founded in 2006 in Sudbury, Ontario, Canada by a team of designers and industry professionals that understood the pains of the design collaboration process. The company has developed a web application that allows users to easily share, discuss and mark- up designs for review over the web. About Corel Corp. Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX: CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). The company has operations in Germany, Italy, the United Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among others. * * * As reported Troubled Company Reporter-Latin America on Nov. 15, 2007, Standard & Poor's Ratings Services has revised its outlook on Corel Corp. to stable from positive. At the same time, S&P affirmed the ratings, including the 'B' long-term corporate credit rating, on the company. TENNECO INC: Completes Partial Offering of 10-1/4% Senior Notes --------------------------------------------------------------- Tenneco Inc. has completed its partial tender offer and consent solicitation for its 10-1/4% Senior Secured Notes due 2013 (CUSIP 880349AD7). As of midnight, New York City time, on Nov. 30, 2007, the expiration date, holders of Notes had tendered approximately US$474 million principal amount of Notes and Tenneco purchased US$230 million principal amount of such Notes, which was the maximum amount of the offer, or 48.5% of the principal amount of Notes tendered in the offer. The total purchase price of the Notes was US$250 million, including US$20 million in premiums. Holders whose Notes were accepted for purchase were also paid accrued and unpaid interest on their purchased Notes up to, but not including the payment date. Banc of America Securities LLC and Citigroup Global Markets, Inc. served as dealer managers and solicitation agents in connection with the tender offer and consent solicitation. About Tenneco Inc. Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, with its European operations headquartered in Brussels, Belgium. The company has approximately 19,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Fitch Ratings has placed Tenneco Inc.'s Issuer Default Ratings and securities ratings on Rating Watch Negative. Fitch confirmed these ratings: (i) IDR 'BB-'; (ii) Senior secured bank facility 'BB+'; (iii) Senior secured notes 'BB'; and (iv) Subordinated 'B'. ========= K O R E A ========= JINRO LTD: Parent Won't Sell Sales Unit in Japan ------------------------------------------------ Jinro Ltd.'s parent company, Hite Brewery Co., said it wont sell Jinro's sales unit in Japan, Yonhap News reports. According to the report, this company move is influenced by Japan's liquor brand's public awareness. Rumors have circulated that Hite might sell Jinro's unit in Japan as it lost market share when Jinro was in a court receivership before being bought by Hite, the report recounts. With distilleries in Ichon, Cheongwon and Masan in South Korea, Jinro Ltd. -- http://www.jinro.co.kr/english/main.asp/-- specializes in manufacturing soju, a vodka-like distilled liquor. Jinro also produces and sells wine, whisky and ginseng liquors as well as non-alcoholic beverages like mineral water and soft drinks. In addition, the Company provides information processing, financial services as well as construction services. Before it was sold to Hite Brewery in 2005, Jinro was declared bankrupt on September 9, 1997. The Company was delisted effective Jan. 10, 2003. According to the Financial Times, in spite of high expectations of synergies from Hite's takeover of Jinro, the company is facing severe competition in the Soju market. Jinro, market share, the report says, has fallen from 55% in Feb. 2006 to 50% at the end of June 2006. The Financial Times related that analysts cautioned that the acquisition of Jinro would lay a substantial financial burden on Hite. Although Hite's operating profit was only 3% lower in the first quarter of 2006 compared with a year ago, its profits before tax were down 59%, largely due to Jinro. HANARO: SK Telecom Denies Rumors of Possible Deal Nullification -------------------------------------------------------------- SK Telecom Co. dismissed rumors that its recently announced deal to takeover hanarotelecom Inc. could be nullified, saying the company will push ahead with its plan to buy the company, Asia Pulse reports. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 4, 2007, SK Telecom agreed to buy hanarotelecom for KRW1.09 trillion in cash, a near 50% premium on pre-acquisition talks. But later, Asia Pulse relates, Hanarotelecom denied SK Telecom's announcement, saying that its largest shareholder said that "the deal isn't signed at the moment." The TCR-AP related that American International Group and Newbridge Capital, a consortium that bought hanarotelecom shares for US$500 million in 2003, is looking to sell its 40% stake. SK Spokesperson Kim Hyun-young said "It is a fact that we have signed the takeover contract with the consortium and will push ahead with the process to get the needed approval from the government," Asia Pulse says. "First of all, we plan to submit the necessary documents to the Financial Supervisory Service within this week for the planned acquisition of Hanarotelecom shares," she added. Asia Pulse points out that an official of Goldman Sachs, the lead manager of the envisioned stake sale for hanarotelecom, neither elaborated on the controversy nor confirmed the deal. However, he told Asia Pulse on condition of anonymity that there are some "procedural problems." About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and its senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. MAGNACHIP: Claims Withdrawn on Contact Hole Process Patent ---------------------------------------------------------- The claims on the disputed contact hole process patent asserted by MagnaChip Semiconductor have been completely withdrawn from the company in Seoul High Court, Thomson Financial reports. With the development, the report relates, MagnaChip's patent infringement claims on the contact hole process patent will no longer be contested or remain an issue. In February 2007, Pixelplus Co. Ltd obtained a completely positive and affirmative ruling in the patent infringement proceedings from the Seoul Central District Court on the disputed color filter and contact hole process patents claimed by MagnaChip, Reuters recounts. In March 2007, Reuters adds, MagnaChip filed an appeal with the Seoul High Court to reverse this earlier ruling issued by the District Court. About Pixelplus Co., Ltd. Pixelplus is a South Korea-based developer of high-performance, high-resolution, and cost-effective CMOS image sensors for use primarily in mobilecamera phones. In addition to mobile phones, Pixelplus provides CMOS imagesensors and SoC solutions for use in webcams and notebook embedded cameras,toys and games, and security and surveillance system applications. As a fabless semiconductor company, Pixelplus is focused on creatingproprietary design technologies to develop CMOS image sensors with sharp,colorful and enhanced image quality, size efficiency, and low powerconsumption. About MagnaChip Semiconductor Based in Korea, MagnaChip Semiconductor -- http://www.magnachip.com/-- designs, develops, and manufactures mixed-signal and digital multimedia semiconductors addressing the convergence of consumer electronics and communications devices. MagnaChip also provides wafer foundry services utilizing CMOS high voltage, embedded memory, and analog and power process technologies for the manufacture of IC's for customer-owned designs. MagnaChip has world-class manufacturing capabilities and an extensive portfolio of approximately 8,500 registered and pending patents. As a result, MagnaChip is a valued partner in providing leading technology solutions to its customers worldwide. * * * The Troubled Company Reporter-Asia Pacific reported on Oct. 10, 2007, that Moody's Investors Service confirmed the B2 corporate family rating of MagnaChip Semiconductor LLC. At the same time, Moody's confirmed the ratings of the debt issued by MagnaChip Semiconductor Finance Co and MagnaChip Semiconductor S.A., including: 1) B1 rating of the US$100 million five-year senior secured credit revolver 2) B2 rating of the US$500 million aggregate floating and fixed-rate second-priority senior secured notes due 2011 3) Caa1 rating of the US$250 million senior subordinated notes due 2014 On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on MagnaChip to 'B' from 'B+'. At the same time, S&P lowered the rating on MagnaChip's senior unsecured debt to 'B' from 'B+' and rating on its senior subordinated notes due 2014 to 'CCC+' from 'B-'. MAGNACHIP SEMICONDUCTOR: Enters Power Management Segment -------------------------------------------------------- MagnaChip Semiconductor Ltd has begun marketing a new line of power management solutions. The company's initial power management products include MOSFETs, DC-DC converters and linear regulators. These initial products are designed for applications such as mobile phones and LCD televisions and allow electronics manufacturers to achieve specific design goals of high efficiency and low standby power consumption. For mobile device applications, MagnaChip's product design is focused on improving battery life. For LCD televisions, the company has focused its product design on controlling and reducing standby power consumption. The company believes that its power management solutions will enable customers to increase system stability and reduce heat dissipation and energy use, resulting in cost savings for our customers and consumers, as well as environmental benefits. MagnaChip's move into power management products is part of an overall strategy to leverage its leading analog and mixed- signal technology platform and systems level expertise to extend its product and service offerings within its target end markets. MagnaChip's power management solutions will utilize the company's extensive patent portfolio, process technologies, and analog and mixed-signal technology platform to expand its market opportunity and meet more of its customers' needs. About MagnaChip Semiconductor Based in Korea, MagnaChip Semiconductor -- http://www.magnachip.com/-- designs, develops, and manufactures mixed-signal and digital multimedia semiconductors addressing the convergence of consumer electronics and communications devices. MagnaChip also provides wafer foundry services utilizing CMOS high voltage, embedded memory, and analog and power process technologies for the manufacture of IC's for customer-owned designs. MagnaChip has world-class manufacturing capabilities and an extensive portfolio of approximately 8,500 registered and pending patents. As a result, MagnaChip is a valued partner in providing leading technology solutions to its customers worldwide. * * * The Troubled Company Reporter-Asia Pacific reported on Oct. 10, 2007, that Moody's Investors Service confirmed the B2 corporate family rating of MagnaChip Semiconductor LLC. At the same time, Moody's confirmed the ratings of the debt issued by MagnaChip Semiconductor Finance Co and MagnaChip Semiconductor S.A., including: 1) B1 rating of the US$100 million five-year senior secured credit revolver 2) B2 rating of the US$500 million aggregate floating and fixed-rate second-priority senior secured notes due 2011 3) Caa1 rating of the US$250 million senior subordinated notes due 2014 On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on MagnaChip to 'B' from 'B+'. At the same time, S&P lowered the rating on MagnaChip's senior unsecured debt to 'B' from 'B+' and rating on its senior subordinated notes due 2014 to 'CCC+' from 'B-'. * Fitch Reports H107 Results and Outlook for Korea's Banks ---------------------------------------------------------- Fitch Ratings has just published a report on the H107 results and outlook for Korea's banks. The report begins with a discussion of the Korean banks' quite strong loans growth over FY06 and H107, noting the fastest growing banks in this regard and the fastest areas of growth (mortgages and SMEs). It then comments on the banks' good current loans quality; at June 30, 2007, NPLs and precautionary loan ratios for the system stood at just 0.8% and 1.2% respectively, with close to 200% reserves coverage of NPLs. Going forward, loans quality should remain satisfactory assuming economic growth in Korea remains broadly positive, which in turn could be somewhat subject to developments in the US economy. As such, bank profitability should remain generally sound, albeit constrained by notably narrower margins due to loans and deposits competition (the latter from non-bank securities companies providing wealth management products) - with fee income and better efficiency for the banks compensating somewhat; the banks' core RoAA is expected to come in at about 0.9% going forward versus around 1.1% over the past couple of years. Meanwhile, capitalization should remain solid (system-wide Tier I and Total CARs of 9.4% and 12.9%, respectively, at 30Jun07) with the regulator likely to curtail any efforts by the banks to manage down capital, due say to profitability pressures. The report also discusses the banks' exposure to US sub prime/CDO securities (which is quite limited), as well as their foreign currency borrowing/lending activities. In regards to the latter, foreign currency borrowing by the banks (particularly the foreign banks in Korea) has been substantial over recent years, mainly due to strong demand from their customers for foreign currency hedging facilities, and to a lesser extent, foreign currency credit facilities. Such borrowings by the banks, however, in the current global environment of tightened liquidity and widening spreads, have become more difficult and expensive to obtain, reducing the ability of the banks to provide such facilities. The report then goes on to comment on the competitive landscape including the most major developments over recent times, such as the Shinhan Group's acquisition of LG Card, HSBC's bid for Korea Exchange Bank, strategy and ownership of the Woori group and privatisation plans for Korea's policy and specialised banks. The report concludes with comments on Korea's new Capital Markets Law. =============== M A L A Y S I A =============== EKRAN BERHAD: Exempted by Bourse to Submit Regularization Plan -------------------------------------------------------------- In an update to Ekran Berhad's plan to regularize its financial condition pursuant to Practice Note 17/2005, the company disclosed that is was exempted by the Bursa Malaysia Securities Berhad to submit a Regularization Plan that falls with the ambit of Section 32 of the Securities Commission Act 1993. Bursa Securities� decision is without prejudice to its right to proceed to suspend the trading of the company's securities and to commence de-listing procedures against it in the event that certain conditions imposed by Bursa Securities are not fulfilled by December 31, 2007. Ekran Berhad is a Malaysian company engaged in investment holding and the provision of management services to its subsidiary companies. Through its subsidiaries, the company is engaged in property development; the provision of property management services; timber logging and saw milling; the sale of timber products, and the operation of oil palm plantations. The company's operations are mainly concentrated in Malaysia, China and the Philippines. Ekran has been classified as an affected listed issuer under Amended Practice Note 17, when the auditors have expressed a disclaimer opinion on the company's audited financial report for the fi