T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, December 11, 2007, Vol. 10, No. 245 Headlines A U S T R A L I A ALPHATOP PTY: To Declare First Dividend on January 2 AMG PLASTERING: To Hold Final Meeting on December 11 AUSTRALIAN RICE: Creditors Receive Wind-Up Report CHEMEQ LTD: Receivers Claim Valuation of Assets are Low FORTESCUE METALS: To Explore Ore Blending with Mineralogy Pty LACHLAN VALLEY: Members & Creditors Joint Meeting Set for Dec. 6 M&J MASTWYK: Undergoes Liquidation Proceedings MARSH & PARTNERS: Placed Under Voluntary Liquidation N.D. FASHIONS: Liquidator Presents Wind-Up Report PINEWOOD FURNITURE: Members & Creditors Receive Wind-Up Report RG ELECTRONICS: Members Opt to Shut Down Business SYMBION HEALTH: Sees 10% EBIT Growth by the End of FY2007 C H I N A , H O N G K O N G & T A I W A N AGILE PROPERTY: Acquires 4 Land Sites in Guangzhou for CNY920MM AGRICULTURAL BANK: May Write Off NPLs with Own Capital or Profit ASIA SPORTS: Commences Liquidation Proceedings CSL UNITED: Appoints New Liquidators DANA CORP: Affinia Still Involved in Company's Bankruptcy DANA CORP: Urges Court to Disallow 1,064 Claims EMPIRE TOYS: Creditors Final Meeting Slated for December 18 FELIX TSANG: To Pay Second Ordinary Dividend on Dec. 14 FIAT SPA: Commits EUR70 Mln for Pomigliano Plant Integration GOLDEN BRIDGE: Creditors Final Meeting Slated for December 18 HEXCEL CORP: Expects Double Digit Sales Growth in 2008 JUST YIELD: Members Final Meeting Fixed for January 14 NM AGENCY: Commences Liquidation Proceedings PETROLEOS DE VENEZUELA: Unit Establishes Four Joint Ventures * Euler Hermes Signs Agreement with Bank of China Insurance I N D I A DECCAN AVIATION: Board Considers Hiving Off of Charter Services GENERAL MOTORS: Mulls Production Cuts Due to Low November Sales GERDAU SA: Socopo Puts Hold Recommendation on Firm's Shares ICICI BANK: Mulls Strategic Tie-Up With Janashakthi Insurance NOVELL INC: SEC Inquiries Prompt Delay in 2007 Earnings Release TATA MOTORS: Submits Revised Offer for Jaguar and Land Rover I N D O N E S I A BEARINGPOINT INC: Sept. 30 Balance Sheet Upside-Down by US$362MM CILIANDRA PERKASA: Moody's Changes Ratings Outlook to Positive CENTRAL PROTEINAPRIMA: To Spend US$242MM on Shrimp Production CENTRAL PROTEINAPRIMA: Sets FY 2007 and 2008 Revenue Target CENTRAL PROTEINAPRIMA: To Sell Two Power Plants for IDR780 Bil. GARUDA INDONESIA: To Connect Chennai-Medan Daily from April 2008 GOODYEAR TIRE: Noteholders Tender US$346-MM Convertible Notes J A P A N KOJIMA CO: Violates Recycling Law for the Second Time SEIYU LTD: Wal-Mart to Buy Remaining 45% Shares for JPY93.4 Bil. SOFTBANK CORP: Beats Rivals in Nov. Gains from Switching Users * Japan's Consumer Prices Rise 0.1% in October 2007 K O R E A ARROW ELECTRONICS: Arrow ECS Merges Distribution Biz with ATI EUGENE SCIENCE: Completes Move to Larger Facility LG TELECOM: To Provide Customers w/ Open Mobile Internet Policy HANAROTELECOM: Telecom Firms Protests SK Telecom's Acquisition REMY WORLDWIDE: Emerges from Chapter 11, Completes Sale of Knopf REMY WORLDWIDE: Wants Court to Close 27 Bankruptcy Cases M A L A Y S I A ARK RESOURCES: Court Extends RO Expiry to March 31, 2008 ELECTRONIC DATA: Share Buyback Won't Impact Rating, Moody's Says FOREMOST HOLDINGS: Ismail bin Jusoh Steps Down as Director LITYAN HOLDINGS: To Undertake Proposals to Regularize Condition PAN MALAYSIAN: Court OKs Par Value & Share Premium Reduction SHAW GROUP: Earns US$645,000 in 2007 4th Quarter Ended Aug. 31 SOLUTIA INC: S&P Rates Proposed US$1.2 Billion Term Loan at B+ TALAM CORP: Unit Enters into Project Deal with Radiant Pillar TANCO HOLDINGS: Taps Andrew Tan Jun Suan as Executive Director TANCO HOLDINGS: Incurs MYR12MM Net Loss in Qtr. Ended Sept. 30 TANCO HOLDINGS: Court Sanctions Composite Schemes TENGGARA OIL: Subsidiaries Placed Under Voluntary Liquidation TRIPLC BHD: Extends Employee Share Option Scheme to Jan. 2013 VERIFONE INC: Financial Restatement Cues S&P's Negative Outlook WEMBLEY: Balance Sheet Upside-Down by MYR922 Mil. at Sept. 30 N E W Z E A L A N D AMY CONTRACTING: Taps Rodewald and Neilson as Liquidators BLAZER PROPERTY: Fixes December 13 as Last Day to File Claims GLASS EARTH: Incurs CND$136,000 Net Loss in Qtr. Ended Sept. 30 HFT CONSTRUCTION: Appoints Parsons and Kenealy as Liquidators KONSTANCIN GROUP: Appoints John Francis Managh as Liquidator LAKE TAUPO: Names Rodewald and Neilson as Liquidators SENSE RESEARCH: Commences Liquidation Proceedings SOBERBIA INVESTMENTS: Claims Bar Date Fixed on Dec. 15 STEWART ISLAND: Wind-Up Petition Hearing Slated for Feb. 11 TE KAIRANGA: Shareholders Approve NZ$5.5-Mil. Share Sale WHANGAPARAOA ROAD: Creditors' Proofs of Debt Due on Dec. 14 P H I L I P P I N E S FEDDERS CORP: Taps Roux Associates as Environmental Consultant PHIL. LONG DISTANCE: Wins PEMC Fiber Optic Linkage S I N G A P O R E GENESIS TECHNOLOGIES: To Pay Preferential Dividend on Dec. 17 MUSIC JUNCTION: Creditors Meeting Scheduled for December 18 PANKO PRIVATE: Requires Creditors to File Claims by January 7 RITRONICS COMPONENTS: Creditors' Meeting Set for December 24 SANG CHOY: Court to Hear Wind-Up Petition on January 11 T H A I L A N D TPI POLENE: Delays THB8BB Refinancing After Court Imposes Fines * Moody's Says Strong Demand Supports Ratings for Asian Shipping * BOND PRICING: For the Week 10 December to 14 December 2007 - - - - - - - - ================= A U S T R A L I A ================= ALPHATOP PTY: To Declare First Dividend on January 2 ---------------------------------------------------- Alphatop Pty Ltd will declare its first dividend on January 2, 2008. Priority creditors who were not able to file their proofs of debt by the November 28, 2007 deadline will be excluded from the company's dividend distribution. The company's deed administrator is: John David Adams BDO Kendalls Chartered Accountants Level 30, 525 Collins Street Melbourne, Victoria 3000 Australia About Alphatop Pty Alphatop Pty Ltd is involved with trusts, except educational, religious, and charitable trusts. The company is located at Footscray, in Victoria, Australia. AMG PLASTERING: To Hold Final Meeting on December 11 ---------------------------------------------------- AMG Plastering Pty Ltd will hold its final meeting on Dec. 11, 2007, at 10:00 a.m. At the meeting, Richard Judson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Richard Judson Judson & Co Chartered Accountants 1st Floor, 10 Park Road Cheltenham, Victoria 3192 Australia Telephone:(03) 9585 5227 About AMG Plastering AMG Plastering Pty Ltd is involved in the business of plastering, drywall, and insulation. The company is located at Keysborough, in Victoria, Australia. AUSTRALIAN RICE: Creditors Receive Wind-Up Report ------------------------------------------------- The creditors of Australian Rice Holdings Pty. Ltd. met on December 4, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: R. G. Mansell Australia Telephone:(03) 9603 0090 Facsimile:(03) 9603 0099 About Australian Rice Australian Rice Holdings Pty Ltd is a distributor of rice. The company is located at Melbourne, in Victoria, Australia. CHEMEQ LTD: Receivers Claim Valuation of Assets are Low ------------------------------------------------------- Chemeq Ltd.'s administrators estimated that the company's total assets are worth AU$25.9 million, based on the information supplied by the company's former directors, Mark Beyer reports for WA Business News. According to the report, KordaMentha administrators Brian McMaster and David Winterbottom said that receivers Ferrier Hodgson did not accept some of the valuations provided by the directors, which in most cases were the written down values in the company's books. WA Business relates that secured creditors were owed AU$61.1 million, employees were owed AU$1.3 million and other claims totaling AU$1.6 million, making a deficiency of AU$37.4 million. Receivers Jones Lang LaSalle appointed to value the property, and CB Richard Ellis, appointed to market the property for sale in July, advised the offers received to date were below the valuation as interested parties had not assigned any material value to specialized aspects of the facility, states the report. Aside from this, the receivers, writes Mr. Beyer, also disputed the AU$2.8-million valuation attributed to the company's intellectual property, which comprise its once-vaunted polymeric anitmicrobial designed to replace antibiotics in pig and chicken farming operations. Chemeq's land and buildings, including its special-purpose manufacturing facility at Rockingham, are considered to be the company's main assets. These assets are valued at AU$13.2 million, adds WA Business. About Chemeq Ltd. Headquartered in Rockingham, West Australia, Chemeq Limited -- http://www.chemeq.com.au/-- is an Australia-based veterinary pharmaceutical company, in the business of developing, manufacturing and marketing its product, CHEMEQ polymeric anti- microbial, for the prevention and control of intestinal bacterial diseases in feedstock animals, such as pigs and poultry. The Company believes that its product, CHEMEQ, has demonstrated in vitro activity against a range of microorganisms, including gram-positive and gram-negative bacteria, bacterial spores, mycobacteria, protozoa, viruses, yeasts and fungi. In addition, it believes that CHEMEQ has the same effectiveness against multiple antibiotic resistant bacteria as non-resistant bacteria, including pathogenic strains of Escherichia coli. On June 6, 2007, Troubled Company Reporter-Asia Pacific reported that Chemeq Limited was placed in administration after two of its creditors claimed that the company had defaulted on a AU$60-million loan. FORTESCUE METALS: To Explore Ore Blending with Mineralogy Pty ------------------------------------------------------------- Fortescue Metals Group Limited and Mineralogy Pty. Ltd. have signed a Memorandum of Understanding to investigate geological, infrastructure, financial, technical and approval matters as a prelude to a potential project involving the blending of iron ore from both companies. Fortescue will arrange for sinter tests to establish the productivity of a sinter blend comprising Mineralogy's concentrate and material from Fortescue's Resource within its Solomon tenement holding. On November 15, 2007 Fortescue announced an Inferred Resource estimate for the Serenity deposit which comprises part of the Solomon project area. Under the terms of the MoU, it is intended that port facilities would be investigated at Cape Preston capable of exporting a variety of products ranging from high grade magnetite concentrate through varying blends of magnetite/hematite mix to a 'direct ship' hematite. The plans encompass an initial export capability of around 50Mt/a, with the potential to expand to more than 100Mt/a. The Chairman of Mineralogy, Professor Clive F. Palmer stated that "the blending of Western Australian iron ores to produce high quality direct shipping iron ore products for specific needs in the iron ore industry is the way of the future for Western Australian iron ore production." Graeme Rowley of FMG stated that "with Fortescue having the largest iron ore tenement area holding in the Pilbara and Mineralogy having billions of tonnes of Magnetite resources and an approved port, the alliance makes sound business sense for both companies." About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue MetalsGroup Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, wasAU$2.15 million. LACHLAN VALLEY: Members & Creditors Joint Meeting Set for Dec. 6 ---------------------------------------------------------------- On December 6, 2007, a joint meeting was held for the members and creditors of Lachlan Valley Food Processors Pty Ltd. At the meeting, Robert M. H. Cole, the company's liquidator, presented a report on the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Robert M. H. Cole Robert M H Cole & Co Chartered Accountants 6 Moorabool Street Geelong, Victoria 3220 Australia About Lachlan Valley Lachlan Valley Food Processors Pty Ltd is a distributor of poultry and poultry products. The company is located at Melbourne, in Victoria, Australia. M&J MASTWYK: Undergoes Liquidation Proceedings ---------------------------------------------- During a general meeting held on October 18, 2007, the members of M&J Mastwyk Pty Ltd resolved to voluntarily liquidate the company's business. Roger David Midgley was named as liquidator. The Liquidator can be reached at: Roger David Midgley 126 George Street Morwell, Victoria 3840 Australia About M & J Mastwyk M&J Mastwyk Pty Ltd is an automotive dealer. The company is located at Morwell, in Victoria, Australia. MARSH & PARTNERS: Placed Under Voluntary Liquidation ---------------------------------------------------- On October 23, 2007, the creditors of Marsh & Partners Pty met and resolved to voluntarily liquidate the company's business. James Patrick Downey was appointed as liquidator. The Liquidator can be reached at: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About Marsh & Partners Marsh & Partners Pty provides business services. The company is located at Gatton, in Queensland, Australia. N.D. FASHIONS: Liquidator Presents Wind-Up Report ------------------------------------------------- On December 3, 2007, the members of N.D. Fashions Pty Ltd held a meeting and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stan Traianedes McLean Delmo Hall Chadwick Accountants & Business Advisers Level 12, 459 Collins Street Melbourne, Victoria 3000 Australia About N.D. Fashions N.D. Fashions Pty Ltd is a distributor of womens' and misses' blouses and shirts. The company is located at Moorabbin, in Victoria, Australia. PINEWOOD FURNITURE: Members & Creditors Receive Wind-Up Report -------------------------------------------------------------- The members and creditors of Pinewood Furniture Pty Ltd met on December 3, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. R. Vince Vince and Associates 51 Robinson Street Dandenong Victoria Australia About Pinewood Furniture Pinewood Furniture Pty Ltd, which is also trading as Pinewood Furniture, operates furniture stores. The company is located at Clayton, in Victoria, Australia. RG ELECTRONICS: Members Opt to Shut Down Business ------------------------------------------------- During a general meeting held on June 29, 2007, the members of RG Electronics Pty Ltd agreed to voluntarily liquidate the company's business. David H. Scott was appointed as liquidator. The Liquidator can be reached at: David H. Scott Scott Partners Consulting Level 1, 173 Burke Road Glen Iris, Victoria 3146 Australia About RG Electronics RG Electronics Pty Ltd is a distributor of electrical appliances, television and radio sets. The company is located at Dandenong, in Victoria, Australia. SYMBION HEALTH: Sees 10% EBIT Growth by the End of FY2007 --------------------------------------------------------- Symbion Health Ltd. expects at least 10% earnings growth by the end of the current year, in line with market forecasts, on a strong performance in pharmacies and growth in pathology, Sonali Paul writes for Reuters. According to the report, Symbion's chairman, Paul Mcclintock, during the company's annual meeting, highlighted the growth outlook while urging shareholders to reject Primary Health Care Ltd.'s AU$2.7 billion takeover offer. The company's outlook for the 10% EBIT growth is in line with analysts' forecasts for earnings of around AU$222.6 billion for the year ended June 2008, relates Reuters. Chief Executive Robert Cooke is quoted as saying, "Our pharmacies business is just sensational, consumer's real strong, and pathology's showing really encouraging signs of gathering some momentum as well." Mr. McClintock, through a filing with the Australian Stock Exchange says, "The Healthscope and IAC transaction would have realized significant value, as well as ongoing benefits for Symbion Health shareholders." Primary Makes Offer Unconditional Bruce Hextal of Thomson Financial writes that Primary declared its AU$2.65 billion cash offer unconditional if it gets at least 50.1% of acceptances on December 10. Ben Wilson of Reuters writes that by the Dec. 10 deadline, shares held under an acceptance facility, which allows institutions to withdraw their acceptances, had risen to 12.67%, up from 9.72%, giving Primary a total interest of 32.86%. However, the Sybmion board, states Thomson Financial, continues to reject Primary's offer saying that the diagnostics services businesses that Primary covets are far more valuable to Primary than its offer implies. Primary's chief executive officer, Edmund Bateman, said his company's all cash offer was at an attractive premium to the top end of the independent expert's valuation range for Symbion of AU$3.52-AU$3.91 per share, relates Thomson Financial. About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ AGILE PROPERTY: Acquires 4 Land Sites in Guangzhou for CNY920MM --------------------------------------------------------------- Agile Property has bought four land sites at Huadu District in the southern Chinese city of Guangzhou for CNY920 million (US$124.2 million), Reuters reports, citing the company's statement on Friday. According to the report, the total land site area is 283,000 square meters, with a gross floor area of 529,000 square meters, giving an average GFA cost of CNY1,740 per square meter, which the Hong Kong-listed Agile said was competitive in the market. Agile, Reuters relates, plans to develop the land into a community with schools and commercial facilities. The land is in a prime location, with convenient facilities and good transport connections. With principal offices in Kowloon, Hong Kong, Agile Property Holdings Limited -- http://www.agile.com.cn-- is a land developer of Guangdong Province, China. It was established in 1985 as a furniture maker in Zhongshan City, and entered the property business in 1992. On December 15, 2005, Agile Property was listed on the Hong Kong Stock Exchange. Agile holds a range of properties, such as villas, duplexes, apartments and condominiums. Besides residential property business, Agile is also engaged in the development of commercial properties, including retail shops and commercial complexes. The Troubled Company Reporter-Asia Pacific reported on Nov. 5, 2007, that Moody's Investors Service assigned its Ba3 rating to Agile Property Holding's proposed senior unsecured notes of up to US$400 million. At the same time, Moody's affirmed Agile's Ba3 corporate family rating. The TCR-AP also reported that Standard & Poor's Ratings Services assigned its 'BB' issue rating to Agile's proposed issue of up to US$400 million in senior unsecured notes. AGRICULTURAL BANK: May Write Off NPLs with Own Capital or Profit ---------------------------------------------------------------- The Agricultural Bank of China will get rid of its non- performing loans in the same manner as other major state-owned banks did, AFX News Limited reports, citing the Shanghai Securities News. As reported by the press, Agricultural Bank is the only one of the �big four� state banks that remains unlisted. All the other three major state-owned banks -- the Industrial & Commercial Bank of China, Bank of China, and China Construction Bank -- either wrote off their NPLs with their own capital, profit and provisions or put them on auction before their initial public offers, AFX Limited recounts. Moreover, all three also received capital injections from the central government prior to their listing, the report adds. AFX mentions that earlier press reports indicated that China Central Huijin, the Chinese central bank's investment arm, will inject US$40 billion into Agricultural Bank ahead of its listing, and the central bank and the finance ministry will take over the task of disposing of its non-performing assets. According to the report, China Banking and Regulatory Commission's vice chairman, Jiang Dingzhi, said that factors particular to banking in rural areas should also be taken into account, without elaborating further. The bank said in August 2007 that its non-performing loan ratio as of June 30 fell 2.09 percentage points from the 23.43% reported at the end of 2006, the report adds. The exact number of NPLs in the bank is unknown yet, but independent analysts have estimated them at around US$100 billion, AFX relates. The Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. ASIA SPORTS: Commences Liquidation Proceedings ---------------------------------------------- Asia Sports Development Limited commenced liquidation proceedings on November 30, 2007. The company's liquidators are: Chiu Soo Ching, Katherine Yui Yat Cheong 3806 Central Plaza 18 Harbour Road Wanchai, Hong Kong CSL UNITED: Appoints New Liquidators ------------------------------------ The members of CSL United Personalcom Limited appointed Grant Andrew Jamieson and Edward Simon Middleton as the company's liquidators. The Liquidators can be reached at: Grant Andrew Jamieson Edward Simon Middleton KPMG 8th Floor, Prince's Building 10 Charter Road, Central Hong Kong DANA CORP: Affinia Still Involved in Company's Bankruptcy --------------------------------------------------------- Affinia Group Intermediate Holdings Inc. continues to be involved in Dana Corp.'s bankruptcy, which includes asbestos- related matters. On March 3, 2006, Dana and 40 of its domestic subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, Southern District of New York (Case No. 06-10354). On Sept. 26, 2007, Dana filed an adversary complaint against Company subsidiaries Affinia Group Inc. and Affinia Canada Corp. (Adv. Pr. No. 07-02059) seeking turnover under the Purchase Agreement and section 542(a) of the Bankruptcy Code of a tax refund in the amount of US$32.5 million. Dana alleges that the tax refund is an excluded asset that was not transferred under the Purchase Agreement. In addition, on Oct. 3, 2007, Dana filed a motion under section 365 of the Bankruptcy Code to reject both the Stock and Asset Purchase Agreement and the Spicer Trademark License Agreement, the rejection of which would enable Dana to disavow and abandon its obligations under these agreements. Under these agreements, Dana is contractually obligated to: (a) indemnify the Company for specified liabilities; including, (i) liabilities arising out of legal proceedings commenced prior to the Acquisition, and (ii) liabilities for death, personal injury or other injury to persons (including, but not limited to, such liabilities that result from human exposure to asbestos) or property damage occurring prior to the Acquisition relating to the use or exposure to any of Dana's products designed, manufactured, served or sold by Dana; and (b) license the Company's use of the "Spicer" trademark. Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007 the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) DANA CORP: Urges Court to Disallow 1,064 Claims ----------------------------------------------- Dana Corp. asks the U.S. Bankruptcy Court for the Southern District of New York to disallow 1,064 claims, totaling US$52,663,000, because these claims are Asbestos Personal Injury Claims and will be reinstated under the Plan. The Asbestos Personal Injury Claims include: -- Roy Adair (Claim No. 12079 - US$200,000) -- Gregorio Aguirre (Claim No. 11968 - US$200,000) -- David Alber (Claim No. 12043 - US$200,000) -- John Alexander (Claim No. 11989 - US$200,000) -- Clarence Allen (Claim No. 12371 - US$200,000) -- Naomi Ammerman (Claim No. 12076 - US$200,000) -- Johnnie Apodaca (Claim No. 11992 - US$200,000) -- Linda Atchley (Claim No. 12372 - US$200,000) -- Joseph Baca (Claim No. 11938 - US$200,000) -- Haroldine Bartlett (Claim No. 11977 - US$200,000) -- Walter Becker (Claim No. 12311 - US$200,000) -- Joseph Boutot (Claim No. 11991 - US$200,000) -- Leonard Chavez (Claim No. 11964 - US$200,000) -- Lyle Covington (Claim No. 1227 - US$200,000) -- Claude Dawson (Claim No. 11985 - US$200,000) Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007 the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) EMPIRE TOYS: Creditors Final Meeting Slated for December 18 ----------------------------------------------------------- The creditors of Empire Toys (Hong Kong) Limited will have their final general meeting on December 18, 2007, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the Hong Kong Club Building, 3A Charter Road, in Central Hong Kong. FELIX TSANG: To Pay Second Ordinary Dividend on Dec. 14 ------------------------------------------------------- Felix Tsang & Partners Limited, which is in liquidation, will pay its second ordinary dividend on December 14, 2007. The company's liquidator is Wong Che Man. FIAT SPA: Commits EUR70 Mln for Pomigliano Plant Integration ------------------------------------------------------------ Fiat S.p.A. decided to commit itself to complete the integration of the Pomigliano plant into the Fiat Group Automobiles manufacturing system. According to the company, the commitment will be realized through a plan of technological investments worth a total of EUR70 million. The investments will be flanked by intensive training programs for employees and they are in addition to the other EUR40 million in extra costs stemming from the suspension of production necessary to realize the plan. Fiat's objective is to bring this plant to best-in-class performance levels and ensure that it will be able to meet the conditions necessary for the allocation of production of new future models. Normal working activities at the plant will be suspended for around two months, from Jan. 7 to March 2, 2008, in order to process in accordance with the world class manufacturing principles currently applied at all the group's facilities. In the same period, employees will receive training. Fiat group will bear all costs of the temporary shutdown, including wages and associated social security contributions. As regards the manufacturing process, the plant organization will be thoroughly rationalized, eliminating the trim shop and incorporating all vehicle prep areas in the final assembly line. Closure panel hemming, Alfa 159 body framing and all quality activities will be housed in a single building. In the next twelve to fifteen months, the company will make investments aimed at boosting efficiency at the plant and improving workers' safety and the facilities provided to them. The work called for by the plan will be carried out by outside contractors, and is expected to involve over 900 contractor employees. With this initiative, the Fiat underscores its strong determination to do everything possible, in organizational and financial terms, to guarantee that the plant can continue to exist, and continue to grow. At the same time, the contribution of all employees is absolutely essential to achieve our development objectives. Fiat expects that in 2008, once the operation is completed, Pomigliano to have turned into a manufacturing plant which can go head to head with its best competitors. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term corporate family rating of Ba1 and probability of default rating of Ba1 with positive outlook. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. GOLDEN BRIDGE: Creditors Final Meeting Slated for December 18 ------------------------------------------------------------- The creditors of Golden Bridge International Finance Limited will have their final general meeting on December 18, 2007, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at 14th Floor, Hong Kong Club Building,3A Charter Road, Central Hong Kong. HEXCEL CORP: Expects Double Digit Sales Growth in 2008 ------------------------------------------------------ Hexcel Corporation has discussed its guidance for 2008 and outlook for the future. Mr. David Berges, summarizing Hexcel's prospects, commented, "For 2008 we see the continuation of growth in all of our core markets and an increasing significance of Airbus A380 and Boeing 787 sales. We expect our fifth year in a row of double digit sales growth led by commercial aerospace and wind energy markets. Global demand is lifting build rates for aircraft and wind turbines and we believe that this trend will continue for the foreseeable future. In addition, the ramp-ups for the Airbus A380 and Boeing 787 programs accelerate the secular penetration story for composites in commercial aerospace." "We expect that we will achieve our margin targets for 2007 and the sales growth will lead to an increased rate of operating margin and earnings expansion in 2008. Our expectations are for improvement of about 100 basis points in operating margin in 2008 despite continued cost pressures from high oil costs and unfavorable foreign exchange rates." "Our 2007 sale of non-core reinforcements businesses both improved our prospects for consistent growth and helped put our balance sheet in the best shape it has been in for years. Entering 2008, we expect debt to be less than two times EBITDA and we expect our capital investment program to be funded from operations." Revenue Commercial Aerospace With continued increases in aircraft production and the contribution of A380 and B787 ramp up, total 2008 commercial aerospace revenues are projected to grow in the range of 12% - 15% as compared to 2007. At currently projected build rates, the A380 and B787 programs could contribute over US$200 million more in revenues to Hexcel in 2010 than 2007. Combined with industry projections of other aircraft build increases, the three year revenue trend for Airbus and Boeing programs could result in average revenue growth in the high-teens for the three year period. Space & Defense The company expects its Space & Defense revenues to maintain their long-term growth trend of 8%-10% per year. A key driver near term will be continued strong growth in rotorcraft, particularly the ramp-up of the V-22 Osprey. It is hoped that sales to the new A400M transport will offset the possible decline of the C-17 program. Longer term, the F-35 Joint Strike Fighter program will be a key growth contributor. Industrial Led by the strong growth in wind energy revenues, industrial sales growth should return to the mid-teens. After a year of portfolio pruning in "other industrial" and a weak year of recreational sales, non-wind related sales will show some modest improvement. Longer term, the company expects continued growth of wind energy as well as the addition of over US$40 million per year in new material sales for the American Centrifuge Program and other new industrial opportunities by 2010. Consolidated Revenues In total, the company anticipates 2008 consolidated revenues to grow in a range of 10%-15% year-on-year, assuming the average Euro and British pound exchange rates in 2008 are comparable to 2007. Based on its current mix of sales, while a weaker US dollar would inflate revenues, operating income would not increase, and as a result, margin percentages would compress. Operating Margin The company should see continued improvement in operating margin percentage through leverage on incremental sales, productivity gains, cost reductions, increased pricing and carbon fiber expansion. These improvements will be partially offset by the continuing cost pressures from the collateral impact of oil costs and the weak dollar. In 2008, its target-operating margin is 12-12.5% of sales, which will be an improvement of about 100 basis points from 2007 levels (excluding business consolidation and restructuring expenses). However, the company expects first quarter operating margin to be slightly lower than the 2008 average due to the start-up activities at its new manufacturing facilities and the usual timing associated with its stock compensation expense. Included within its 2008 operating margin assumptions is an US$8-US$10 million increase in depreciation expense from 2007 levels. Diluted EPS The company expects 2008 earnings per share to be in the range of US$0.90 to US$0.95, excluding any possible impact from non- recurring items. For example, the previously disclosed settlement expense for the termination of the US defined pension plan (about US$0.08 per share), will primarily be recorded in the fourth quarter of 2007, but the company expects about US$0.02 of this charge to occur in early 2008. This EPS estimate is based upon an implied tax rate of 38% for the year and an estimated diluted share count of 97.5-98.5 million. Hexcel's effective tax rate is sensitive to the mix of taxable income from its U.S. and European operations and the volatility inherent in FIN 48. Cash Flows Capital expenditures are expected to be approximately US$150 million as the company moves ahead with its previously announced expansion of carbon fiber production capacity. Cash flows from operations are expected to be sufficient to cover the capital spending plans. New program wins will determine future capital spending levels, but the company currently expects US$120-US$150 million per year to be a pace that would support most growth scenarios for a number of years. About Hexcel Corp. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. JUST YIELD: Members Final Meeting Fixed for January 14 ------------------------------------------------------ The members of Just Yield Limited will have their final general meeting on January 14, 2008, at 3:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at 10th Floor, New World Tower 1, 1 8 Queen's Road Central Hong Kong. NM AGENCY: Commences Liquidation Proceedings -------------------------------------------- NM Agency Leaders Association Limited commenced liquidation proceedings on November 23, 2007. The company's liquidator is: Shom Chun Po Room A, 19th Floor Tung Hip Commercial Building 248 Des Voeux Road Central, Hong Kong PETROLEOS DE VENEZUELA: Unit Establishes Four Joint Ventures ------------------------------------------------------------ Venezuelan state-run oil firm Petroleos de Venezuela SA's unit Corporacion Venezolana de Petroleo has concluded the creation of four joint ventures, Business News Americas reports. BNamericas relates that the joint ventures are: -- Petropiar, -- Petrocedeno, -- Petrosucre, and -- Petroparia. The legal process to for the conversion of the four partnerships into joint ventures was completed on Thursday, El Universal says, citing the Venezuelan energy and petroleum ministry. El Universal relates that the joint ventures were nationalized on May 1, 2007. Petroleos de Venezuela took over the majority share in the accords with foreign oil firms through Corporacion Venezolana. According to BNamericas, Corporacion Venezolana has 70% and U.S.-based Chevron owns 30% of Petropiar. Corporacion Venezolana holds 60%, France's Total owns 30.3% and Norway's Statoil has 9.7% in Petrocedeno. Corporacion Venezolana has 76% and Italy's Eni owns the balance in Petrosucre. Corporacion Venezolana also owns 60% of Petroparia with Chinese oil company Sinopec and Ine Paria holding 32% and 8% respectively. The joint ventures are aimed at giving Petroleos de Venezuela at least 60% of the nation's oil projects, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s 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. * Euler Hermes Signs Agreement with Bank of China Insurance ----------------------------------------------------------- Euler Hermes, the world's leading trade credit insurer and member of the Allianz group, and the Bank of China Insurance Co. Ltd. have signed a trade credit insurance cooperation agreement. The agreement is designed to give corporate clients of the Bank of China access to easy financing options by signing an insurance contract with their group insurance company BOCI. Euler Hermes will provide BOCI with reinsurance cover. As a next step, Euler Hermes' multinational clients will benefit from this cooperation program. BOCI was formerly the Shenzhen Branch of Bank of China Group Insurance Company Limited. In 2005, BOCI was founded in Shenzhen and the headquarters moved to Beijing in 2006. Now BOCI holds a nationwide insurance license in China. BOCI currently counts eleven branch offices in the main provinces of China. By the end of this year, BOCI will have opened five additional branches. BOCI is a member of the Bank of China group and one of the fastest growing insurance companies in China. Bank of China, China's third largest bank, is listed on the Hong Kong and Shanghai stock exchanges. "We are delighted to have found such a strong partner as BOCI, in addition to our fruitful partnership with Allianz in China", says Clemens von Weichs, Chairman of the Euler Hermes management board. "Euler Hermes already holds a strong position in Asia. Every further step in this promising region allows us to improve the service and support for our clients.� Euler Hermes is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections. With 5,800 employees in 49 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of EUR2.01 billion in 2006. Euler Hermes ACI is the U.S. subsidiary of the Euler Hermes Group, headquartered in Owings Mills, MD, with offices located throughout the United States. Euler Hermes, a subsidiary of AGF and a member of the Allianz group, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor's. ========= I N D I A ========= DECCAN AVIATION: Board Considers Hiving Off of Charter Services --------------------------------------------------------------- Deccan Aviation Ltd confirmed that its board of directors has considered and approved in principle the proposal to hive off the airline's charter services into a separate entity thorough a wholly owned subsidiary and formation of a company for the same. The move is still subject to approval of the company's shareholders. With the board's in-principle approval, studies are now ongoing to consider the move. However, the company makes it clear that no concrete steps have been taken and will only be taken after outcome of these studies is presented to the board and consequently disclosed to the exchange. Bangalore, India-based Deccan Aviation Limited -- http://www.deccanair.com/-- is a charter aviation company in the private sector. Deccan Aviation provides company charters, tourism, medical evacuation, off-shore logistics and a host of other services. In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41- billion loss incurred in FY 2006. GENERAL MOTORS: Mulls Production Cuts Due to Low November Sales --------------------------------------------------------------- General Motors Corp. and Ford Motor Company disclosed that due to low November sales, the carmakers intend to slash vehicle production in the first quarter of 2008, various sources report. GM said earlier this week that to avoid a deluge of inventory, it will shutter three pickup truck plants for two weeks in January. Aside from that, GM plants will also be closed over the holiday, according to Josee Valcourt, Terry Kosdrosky and Mike Spector of the Wall Street Journal. GM anticipates a production of 950,000 vehicles from January through March, down 11% from the same period in 2007, while Ford plans a 7% car production decrease in the first quarter, expecting to produce only 685,000 vehicles, Nick Bunkley of The New York Times relates. As reported in the Troubled Company Reporter on Dec. 4, 2007, GM dealers in the U.S. delivered 263,654 vehicles in November, down 11%, after three consecutive monthly increases, compared with a year ago, reflecting continuing reductions in daily rental sales and softening industry demand. However, GM's retail car deliveries increased, based on the strength of the all-new Chevrolet Malibu, 2008 Cadillac CTS and fuel-efficient Chevrolet Aveo, Cobalt, Pontiac G5 and G6. According to the Associated Press, analysts anticipate low annual sales in 2008, a drop in U.S. light vehicle sales to 3% to 15.6 million units, a record low since 1998. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GERDAU SA: Socopo Puts Hold Recommendation on Firm's Shares ----------------------------------------------------------- Brazilian brokerage Socopa has assigned a "hold" rating on Gerdau SA's shares, after the steel company disclosed plans of investing about US$400 million in a new heavy plate rolling plant, Business News Americas reports. Socopa said in its report, "We consider Gerdau's plans to be positive, for the installation of a heavy plate rolling operation diversifies its product mix and takes advantage of existing marketing know-how." "The company gains competitiveness to face competition from Usiminas and Arcelor," Socopa commented to BNamericas. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook, following the announcement of an agreement to acquire the specialty steel operations of Quanex Corporation, mainly represented by its MacSteel division for some US$1.46 billion in cash. All other ratings related to the company were affirmed. Ratings affirmed are: Issuer: Gerdau S.A. -- Ba1 Global Local Currency Corporate Family Rating -- US$600 million Senior Unsecured Guaranteed Perpetual Notes: Ba1 Foreign Currency Rating Issuer: Gerdau Brazil (fictitious entity representing the Brazilian operations of Gerdau S.A. comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A.). -- Ba1 Global Local Currency Corporate Family Rating Issuer: Gerdau Ameristeel Corporation -- Ba1 Probability of Default Rating -- Ba1 Corporate Family Rating -- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59% Issuer: Jacksonville Economic Development Comm. -- US$23 million Senior Unsecured Revenue Bonds guaranteed by Gerdau Ameristeel: Ba1, LGD4 59% Outlook for all ratings: stable ICICI BANK: Mulls Strategic Tie-Up With Janashakthi Insurance ------------------------------------------------------------- ICICI Bank Ltd and Sri Lanka's Janashakthi Insurance has recently concluded discussions for a bancassurance channel pact, reports say. With the possible tie-up, ICICI Bank customers in Sri Lanka can expect to receive an assortment of financial services at the bank premises itself, The Island Online Edition says. Janashakthi customers too will receive exclusive banking solutions from our bank partner ICICI Bank", the insurer's General Manager Sales & Marketing Ravi Liyanage told The Island. The Island quoted Head of ICICI Bank Sri Lanka, Prem Thampi, as saying, "We are exploring the business model that was suggested by Janashakthi Insurance. We definitely feel that ICICI Bank customers will benefit from such innovative insurance products and ICICI Bank, in turn, would be able to reach out to all Janashakthi customers and offer them world class banking products along with special offers from time to time. ICICI Bank in India has successful bancassurance tie-ups with ICICI Lombard in the general insurance sector, and ICICI Prudential in the life insurance sector which are the leading private sector insurance companies in India". Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. NOVELL INC: SEC Inquiries Prompt Delay in 2007 Earnings Release --------------------------------------------------------------- Novell Inc. has decided to postpone its fourth quarter and full- year 2007 earnings release and conference call. The release of its fourth quarter and full-year results was initially scheduled Wednesday, Dec. 5, 2007. Novell received a comment letter from the U.S. Securities and Exchange Commission, dated Aug. 7, 2007, regarding Novell's Form 10-K for the fiscal year ended Oct. 31, 2006, and its Form 10-Q for the quarterly period ended April 30, 2007. Novell delivered a response letter to the SEC on Sept. 20, 2007. On Oct. 18, 2007, Novell received a second comment letter from the SEC indicating that the SEC had reviewed Novell's response to the Aug. 7, 2007, letter. The second comment letter was limited to certain accounting matters. Novell responded to the SEC's second comment letter on Nov. 7, 2007, and is awaiting a response. "We are confident of our accounting and are working diligently with the SEC to respond to their inquiries," said Dana C. Russell, chief financial officer of Novell. "In an abundance of caution, we have chosen to postpone our earnings release. We look forward to completing our dialogue with the SEC." Novell intends to release its fourth quarter and full-year 2007 earnings upon the completion of the SEC's review. Novell is unable to estimate when the process will be completed, but currently expects to file its Form 10-K for the fiscal year ended Oct. 31, 2007, on or before its due date of Dec. 31, 2007. Last May 23, 2007, Novell Inc. disclosed that it completed its self-initiated, voluntary review of the company's historical stock-based compensation practices and determined the related accounting impact. The scope of the review covered approximately 400 grant actions from Nov. 1, 1996, through Sept. 12, 2006. As a result of the review, Novell delayed the filing of its quarterly reports on Form 10-Q for the fiscal quarters ended July 31, 2006, and Jan. 31, 2007, and its annual report on Form 10-K for the fiscal year ended Oct. 31, 2006. The Audit Committee, together with its independent outside legal counsel, did not find any evidence of intentional wrongdoing by any former or current Novell employees, officers or directors. Novell determined, however, that it utilized incorrect measurement dates for some of the stock-based compensation awards granted during the review period. About Novell Inc. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. TATA MOTORS: Submits Revised Offer for Jaguar and Land Rover ------------------------------------------------------------ Tata Motors Ltd has submitted a revised bid for Ford Motor Co's Jaguar and Land Rover brands, Reuters said, citing a CNBC-TV18 News report as source. Competing bidder, Mahindra & Mahindra Ltd also submitted an amended offer. According to the TV Channel, Tata Motors and Mahindra now made a higher offer compared to their initial bids that were in the range of US$1.8-US$2 billion. As previously reported in the Troubled Company Reporter-Asia Pacific, Tata Motors is in the race to buy the two Ford brands. Tata Motors is now one of those who made it to the list of final bidders. The other firms who got it to the list are Mahindra & Mahindra in collaboration with buyout firm Apollo, and One Equity Partners. However, it looks like Tata Motors is racing ahead of its rivals with the backing of the workers unions. Late November, about 60 senior shop stewards representing workers of Jaguar and Land Rover voted in favor of a resolution supporting Tata's bid. Sudha Ramachandran of the Asia Times related that Tata Motors managing director Ravi Kant, in its presentation to workers of the two brands, assured the union that the company had no plans to outsource British jobs to India and that executives were free to stay if they wanted to. Tata Motors also has the edge in the bidding for the two brands because of its size, its deal-making record and its familiarity with the U.K. market, Rina Chandran of Reuters, cites bankers and analysts as saying. Tata's joining the race also drew criticisms, one from U.S. private equity firm Ripplewood. Ripplewood questioned what a maker of cheap cars know about running a luxury icon. Ford is expected to name the winning bidder by January. 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 US$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. ================= I N D O N E S I A ================= BEARINGPOINT INC: Sept. 30 Balance Sheet Upside-Down by US$362MM --------------------------------------------------------------- Bearingpoint Inc. reported financial results for the quarter ended Sept. 30, 2007. At Sept. 30, 2007, the company's balance sheet total assets of US$116.0 million and total liabilities o fUS$2.4 billion, resulting in a stockholders' deficit of US$362.5 million. The company reported a net loss of US$68.0 million on US$861.8 million revenues for the quarter ended Sept. 30, 2007, compared with a net loss of US$29.6 million on US$843.2 million revenues for the quarter ended Sept. 30, 2006. The change in net loss was primarily attributable to: * a decrease in gross profit of US$26.3 million; * an increase in interest expense of US$8.9 million in the third quarter of 2007, due to interest attributable to our 2007 Credit Facility; and * an increase in income tax expense of US$11.6 million in the third quarter of 2007. The increase in net loss was partially offset by a decrease in SG&A expenses of US$13.0 million in the third quarter of 2007. Nine Months Financial Results During the nine months ended Sept. 30, 2007, the company realized a net loss of US$193.7 million, representing an increase of US$88.5 million over a net loss of US$105.2 million during the nine months ended Sept. 30, 2006. This change in net loss was primarily attributable to: * a decrease in gross profit of US$41.8 million; * the recognition of US$38.0 million in other income in the first quarter of 2006 in connection with insurance settlement payments made on behalf of the company in connection with the settlement of our contract with Hawaiian Telcom Communications, Inc.; * an increase in interest expense of US$17.6 million in the nine months ended Sept. 30, 2007, due to interest attributable to our 2007 Credit Facility and the acceleration of debt issuance costs resulting from the termination of the 2005 Credit Facility; and * an increase in income tax expense of US$11.8 million in the nine months ended Sept. 30, 2007. The increase in net loss was partially offset by a decrease in SG&A expenses o fUS$26.3 million in the nine months ended Sept. 30, 2007. About BearingPoint Inc. Headquartered in McLean, Virginia, BearingPoint Inc. (NYSE:BE) --http://www.BearingPoint.com/-- is a provider of management and technology consulting services to Global 2000 companies and government organizations in 60 countries. The firm has more than 17,000 employees focusing on the Public Services, Financial Services and Commercial Services industries. BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. The company's service offerings are designed to help its clients generate revenue, increase cost- effectiveness, manage regulatory compliance, integrate information and transition to "next-generation" technology. BearingPoint has global locations including in Indonesia, Australia, Austria, China, India, Japan, Mexico, Portugal, Singapore and Thailand. * * * Moody's Investor Service placed BearingPoint Inc.'s long term corporate family rating at 'B2' in December 2006 and its probability of default rating at 'B1' in September 2006. Both ratings still hold to date. CILIANDRA PERKASA: Moody's Changes Ratings Outlook to Positive -------------------------------------------------------------- Moody's Investors Service has changed to positive from stable the outlook for PT Ciliandra Perkasa's B2 corporate family rating and secured rating on its US$160 million notes. This rating action follows First Resources Limited's announcement of an IPO to raise approximately SGD192.5 million of this sum, approximately SGD110 million will be used to fund Ciliandra's new plantings, constructing crushing mills and for working capital and general corporate purposes. Ciliandra will remain as the flagship company of First Resources. "The IPO of the parent company will improve the disclosure and transparency of the group, while the additional funding to be provided to Ciliandra will enhance its liquidity profile and financial flexibility as it pursues its growth strategy through the industry cycle," says Wonnie Chu, Moody's lead analyst for Ciliandra. "Furthermore, Ciliandra is benefiting from the strong crude palm oil price and from its young plantation maturity profile with an average age of 7.8 years. Its year-to-date operating performance is also ahead of expectations," say Chu. Any rating upgrade will depend upon the company successfully executing its expansion plan and improving its home-grown production yield while maintaining its financial discipline. The key credit metrics that Moody's would consider for an upgrade include Debt/EBITDA lower than 3.0-3.5x and EBITDA/Interest greater than 3.5-4.5x on a sustained basis. On the other hand, the rating outlook will revert to stable if evidence emerges of: -- cash leakages from Ciliandra to its parent, such as through aggressive cash dividends; -- further aggressive debt-funded acquisitions/investments; and/or -- prices of crude palm oil falling beyond Moody's expectations, such that Ciliandra's credit metrics deteriorate with Debt/EBITDA increasing to 4.0-4.5x and EBITDA/Interest declining to 2.5-3.0x. Established and incorporated in Indonesia in 1992, PT Ciliandra Perkasa is an oil palm upstream operator based in Riau, Sumatera. The company owns 13 oil palm plantations totaling over 80,000 and 100,000 of planted hectares and unplanted hectares respectively as at the end of 2007. The company also has 6 palm oil crushing mills built between 1998 and 2006 with a total annual capacity of 2.1 million tonnes of fresh fruit bunches. CENTRAL PROTEINAPRIMA: To Spend US$242MM on Shrimp Production ------------------------------------------------------------- PT Central Proteinaprima (CP Prima) will spend up to US$242 million to boost the shrimp production of its two subsidiaries in Tulang Bawang, Lampung, various reports say. CP Pima Chief Financial Officer Gunawan Taslim told Antara News that they would set out on a program to revitalize PT Wachyubni Mandira and PT Aruna Wijaya Sakti, formerly called PT Dipasena Citra Dharmaja. CP Prima, The Jakarta Post recounts, acquired Dipasena Citra in May after the government announced that the aquaculture firm could not pay its debts to the state. The firm first got into trouble following the Indonesia's financial crisis of 1998, the report adds. The Post notes that Dipasena Citra resumed operations soon after being acquired by CP Prima. According to the Post, the revitalization, which will include the refurbishment of machinery and the reopening of abandoned shrimp ponds, will be conducted in stages up until the middle of 2009. Mr. Taslim said "The revitalization program for Wachyuni Mandira will be completed by the end of this year, while that for Aruna Wijaya will begin in January 2008, and will be completed within 12 and 16 months.", the Post relates. About Central Proteinaprima PT Central Proteinaprima Tbk headquartered in Jakarta Indonesia is an Indonesia-based agribusiness company that is part of Charoen Pokphand Group. The Company is engaged in the animal husbandry sector, producing animal feed for fish, shrimp and poultry, as well as shrimp farming activity. Its subsidiaries include Isodoro Holding BV, which is engaged in the financial sector; PT Centralpertiwi Bahari and PT Centralwindu Sejati, which are engaged in the agribusiness sector; PT Marindo Lab Pratama, which is engaged in the production of dietary supplement containing bacteria or yeast and Blue Ocean Resources Pte Ltd, which is a trading company. As of May 22, 2007, the Company has acquired PT Central Panganpertiwi, which is engaged in the production of fish feed. As reported by the Troubled Company Reporter-Asia Pacific on July 13, 2007, Moody's Investors Service has affirmed its B1 long-term foreign currency rating of the US$325 million guaranteed senior notes due 2012, as issued by Blue Ocean Resources Pte Ltd and guaranteed by Central Proteinaprima. On July 5, 2007, Fitch Ratings has assigned a final rating of 'B+' and a final recovery rating of 'RR4' to the US$325 million senior notes due 2012 issued by Blue Ocean Resources Pte. Ltd. and guaranteed by Central Proteinaprima Tbk (CPP, rated 'B+'/Stable). CENTRAL PROTEINAPRIMA: Sets FY 2007 and 2008 Revenue Target ----------------------------------------------------------- PT Central Proteinaprima Tbk has targeted to get IDR10 trillion in revenue in 2008, up from the projected revenue of IDR6.5 trillion in 2007, Reuters Investing Keys reports citing Bisnis Indonesia. According to Reuters Estimates, analysts on average expect the company's revenue in 2008 IDR10,504,500 million and in 2007 to be IDR5,616,900 million. PT Central Proteinaprima Tbk headquartered in Jakarta Indonesia is an Indonesia-based agribusiness company that is part of Charoen Pokphand Group. The Company is engaged in the animal husbandry sector, producing animal feed for fish, shrimp and poultry, as well as shrimp farming activity. Its subsidiaries include Isodoro Holding BV, which is engaged in the financial sector; PT Centralpertiwi Bahari and PT Centralwindu Sejati, which are engaged in the agribusiness sector; PT Marindo Lab Pratama, which is engaged in the production of dietary supplement containing bacteria or yeast and Blue Ocean Resources Pte Ltd, which is a trading company. As of May 22, 2007, the Company has acquired PT Central Panganpertiwi, which is engaged in the production of fish feed. As reported by the Troubled Company Reporter-Asia Pacific on July 13, 2007, Moody's Investors Service has affirmed its B1 long-term foreign currency rating of the US$325 million guaranteed senior notes due 2012, as issued by Blue Ocean Resources Pte Ltd and guaranteed by Central Proteinaprima. On July 5, 2007, Fitch Ratings has assigned a final rating of 'B+' and a final recovery rating of 'RR4' to the US$325 million senior notes due 2012 issued by Blue Ocean Resources Pte. Ltd. and guaranteed by Central Proteinaprima Tbk (CPP, rated 'B+'/Stable). CENTRAL PROTEINAPRIMA: To Sell Two Power Plants for IDR780 Bil. --------------------------------------------------------------- PT Central Proteinaprima Tbk will sell two units of power plant to CDE for a total amount of IDR780 billion, Reuters Investing Keys reports. According to the report, the company will sell its 63 and 87.30 megawatt power plants, which include the buildings, machines and equipment. The power plants, the report relates, are located at Rawa Jitu Timur sub-district in Tulang Bawang, Lampung and Sungai Menang sub-district in Ogan Komering Ilir, South Sumatera. PT Central Proteinaprima Tbk headquartered in Jakarta Indonesia is an Indonesia-based agribusiness company that is part of Charoen Pokphand Group. The Company is engaged in the animal husbandry sector, producing animal feed for fish, shrimp and poultry, as well as shrimp farming activity. Its subsidiaries include Isodoro Holding BV, which is engaged in the financial sector; PT Centralpertiwi Bahari and PT Centralwindu Sejati, which are engaged in the agribusiness sector; PT Marindo Lab Pratama, which is engaged in the production of dietary supplement containing bacteria or yeast and Blue Ocean Resources Pte Ltd, which is a trading company. As of May 22, 2007, the Company has acquired PT Central Panganpertiwi, which is engaged in the production of fish feed. As reported by the Troubled Company Reporter-Asia Pacific on July 13, 2007, Moody's Investors Service has affirmed its B1 long-term foreign currency rating of the US$325 million guaranteed senior notes due 2012, as issued by Blue Ocean Resources Pte Ltd and guaranteed by Central Proteinaprima. On July 5, 2007, Fitch Ratings has assigned a final rating of 'B+' and a final recovery rating of 'RR4' to the US$325 million senior notes due 2012 issued by Blue Ocean Resources Pte. Ltd. and guaranteed by Central Proteinaprima Tbk (CPP, rated 'B+'/Stable). GARUDA INDONESIA: To Connect Chennai-Medan Daily from April 2008 ---------------------------------------------------------------- PT Garuda Indonesia will start flying daily on the Chennai-Medan route from April 2008, TravelBiz Monitor News reports, citing Dharmendra Gursahani, Garuda general sales agent in India. According to the report, Garuda Indonesia will deploy a B737-500 aircraft that will connect Chennai to Medan and fly onward to Singapore. "Indian passengers will also be able to opt for connecting flights from Medan to Denpasar and Jakarta," Mr. Gursahani told the news agency. The ASEAN agreement, the report explains, ensures that the airline faces no bilateral agreement constraints and can enhance operations to India at its will. The airline is expecting delivery of long-range aircraft in the next three years, the report adds. Mr. Gursahani told the news agency that Garuda has signed an interline agreement with Jet Airways, which will provide for feeder traffic from other cities into Chennai. Its ground handling operations will be managed by Air India, and is on the Billing Settlement Plan, he added. Garuda had been looking to start operations on the route since quite some time but was not able to materialize its plan due to lack of aircraft, the report adds. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. GOODYEAR TIRE: Noteholders Tender US$346-MM Convertible Notes ------------------------------------------------------------- The Goodyear Tire & Rubber Company disclosed the results of a offer to exchange its outstanding 4% Convertible Senior Notes due June 15, 2034, for a cash payment and shares of its common stock. Noteholders tendered approximately US$346 million aggregate principal amount of convertible notes in exchange for approximately 28.7 million shares of common stock plus a total cash payment of approximately US$23 million. Approximately 99% of the principal amount of the outstanding convertible notes was tendered in the exchange offer. A total of approximately US$4 million principal amount of convertible notes remains outstanding. "This successful exchange offer eliminates approximately US$346 million in debt from our balance sheet and reduces our annual interest expense by approximately US$14 million," W. Mark Schmitz, executive vice president and chief financial officer, said. "This exchange is another step in our debt reduction process and helps us move closer to our next stage metrics." The exchange offer, which expired at 5 p.m. New York City time on Dec. 5, 2007, allowed note holders to receive the same number of shares of Goodyear's common stock as they would have received upon conversion of the convertible notes in accordance with their current terms, plus a cash payment, including accrued and unpaid interest. The exchange offer was made pursuant to a prospectus, dated Nov. 30, 2007, contained in a registration statement filed by Goodyear with the Securities and Exchange Commission, which was declared effective on Nov. 20, 2007. Copies of the prospectus contained in the registration statement may be obtained from the exchange agent: Wells Fargo Bank, N.A. Corporate Trust Operations Sixth and Marquette, MAC N0303-121 Minneapolis, Minn. 55479 Telephone (800) 344-5128 Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. These ratings still apply as of Dec. 4, 2007. ========= J A P A N ========= KOJIMA CO: Violates Recycling Law for the Second Time ----------------------------------------------------- Kojima Co. has been ordered by The Environment Ministry and the Ministry of Economy, Trade and Industry to improve on its recycling law compliance for the second time, reports Kyodo News. According to the report, Kojima failed to transfer 76,745 used products to their manufacturers after collecting them from consumers nationwide. Kyodo News writes that the Home Appliance Recycling Law requires retailers to collect recycling fees from customers when receiving used air conditioners, television sets, washing machines and refrigerators, and send the used products back to their manufacturers. Kojima, states the report, claims that some of the collected products were stolen and that the company is currently investigating the whereabouts of the rest of the products. However, the two ministries believe that the latest misconduct was carried out on an extensive scale and has been carried out between April 2004 and September this year, relates Kyodo News. Kyodo notes that both ministries demanded the electric appliance retailer to report the cause of the misconduct and how it is dealing with the recycling charges collected from consumers in cases where the used products have not been passed on to their manufacturers. The total amount collected by Kojima is estimated to exceed JPY270 million and Kojima, according to Kyodo News, said it is refunding customers who are known to have paid recycling fees. Kojima President Akio Kojima is quoted as saying in a news conference, "We feel very sorry for causing trouble for our customers." Of the 76,745 home appliances Kojima did not pass on to the manufacturers, 54,537 were air conditioners, 17,769 TVs, 2,313 refrigerators and 2,126 washing machines, adds Kyodo News. The report recalls that Kojima was among the 10 stores in Aichi and Gifu prefectures reprimanded in October for a similar misconduct. About Kojima Co. Kojima Co., Ltd., -- http://www.kojima.net/-- headquartered in Tochigi Prefecture, is a Japan-based retailer of home electric appliances. The Company sells computers and peripheral equipment, computer software, audiovisual (AV) equipment, information devises, health equipment, lighting, clocks, office equipment, games and others. The Company also offers its products through its own online retail stores. Through its subsidiaries, Kojima is also engaged in the operation of halls and the provision of restaurant services, as well as the travel, real estate leasing, life and non-life insurance agency and advertising businesses. 2-1-8 Hoshigaoka Utsunomiya-shi, TCG 320-8528 JPN +81-28-6210001 (Phone) * * * The Troubled Company Reporter-Asia Pacific reported on December 4, 2007, that Rating and Investment Information Inc. has downgraded the issuer rating of Kojima from 'BBB-' to 'BB+' with a stable outlook. According to R&I, the company has undertaken reforms for improving its competitiveness through consolidation and elimination of outlets and opening large stores. However, sales have not grown despite the expanded sales floor areas, and recovery of profit is lagging behind. SEIYU LTD: Wal-Mart to Buy Remaining 45% Shares for JPY93.4 Bil. ---------------------------------------------------------------- Wal-Mart Stores has raised its stake in Seiyu Ltd. to 95.1%, various reports say. Wal-Mart already owns 50.9% of Seiyu. In a Reuters report, Nathan Layne writes that Wal-Mart said that the buyout would cost JPY93.4 billion, offering JPY140 per share, in which the settlement will be made on December 11. In addition to this, Reuters relates that Wal-Mart will also take steps to acquire the remaining shares and delist Seiyu from the Tokyo Stock Exchange. Arkansas-based Wal-Mart announced in October that it intended to buy the remaining 49% stake of Seiyu, which it did not already own, The Associated Press notes. According to AP, Wal-Mart's move is part of its strategy of taking a lead in speeding up management changes to turn around Tokyo-based Seiyu's struggling business and ending doubts whether it will exit Japan. Wal-Mart, Reuters notes, has already invested more than US$1 billion in Seiyu since 2002, but has yet to see anything more than temporary upswings in sales amid tough competition with rivals such as Aeon Co. About Seiyu Ltd. Tokyo-based, The Seiyu, Ltd. -- http://www.seiyu.co.jp/-- is a Japanese company that is involved in two business segments. The Retailing segment, together with its subsidiaries, develops daily products, operates general merchandise stores (GMSs), supermarkets and shopping malls and provides information and services. This segment is also engaged in the prepared food business, the operation of specialty stores for mobile phones, the procurement of overseas original products, as well as the provision of recruitment services and the ordering of gift products. The Real Estate segment is involved in the leasing of real estate properties, in addition to the development and management of properties, such as commercial facilities. The Seiyu has 17 subsidiaries and two associated companies. * * * The Troubled Company Reporter-Asia Pacific reported on April 21, 2006, that United States-based retailer Wal-Mart Stores, Inc., is successfully rehabilitating its Japanese unit, Seiyu Limited. According to press reports, Seiyu has not made a profit since Wal-Mart first took a stake in the Japanese retailer in 2002. A TCR-AP report on Feb. 21, 2006, stated that Seiyu incurred a net loss of JPY17.77 billion in the year ended December 31, 2005, versus a loss of JPY12.32 billion in 2004. SOFTBANK CORP: Beats Rivals in Nov. Gains from Switching Users -------------------------------------------------------------- Softbank Corp. led gains in users who switched carriers last month, Masaki Kondo writes for Bloomberg News. According to the report, Softbank won 33,000 customers from rival operators, KDDI Corp. and NTT DoCoMo Inc., after a rule change in 2006 allowed customers to move to another carrier without having to alter their phone numbers. KDDI gained 15,100, while NTT lost 58,100 to rivals, relates the report. Based in Tokyo, Japan, Softbank Corporation -- http://www.softbank.co.jp/-- is a leading Japanese telecommunications and media corporation. SoftBank was established on September 3, 1981. The company operates in eight business segments: * Broadband Infrastructure Segment * Fixed-line Telecommunications Segment * e-Commerce Segment * Internet Culture Segment * Broadmedia Segment * Technology Services Segment * Media & Marketing Segment * Overseas Funds Segment Softbank is also involved with leisure and service operations, e-finance, holding company functions for overseas operations, and back-office services in Japan. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. In 2006, SoftBank bought Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. As of March 31, 2007, the company's paid-in capital was JPY163.3 billion. * * * The Troubled Company Reporter-Asia Pacific reported on June 7, 2007, that Standard & Poor's Rating Agency lifted its long-term corporate credit and senior unsecured debt ratings to BB from BB- in light of the company's increasing earnings stability. The outlook for the long-term credit rating is stable. Moody's Investors Service, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K.K. * Japan's Consumer Prices Rise 0.1% in October 2007 --------------------------------------------------- The statistics bureau said that Japan's consumer prices unexpectedly rose for the first time since December 2006 as oil and raw materials costs surged, Mayumi Otsuma writes for Bloomberg News. Mr. Otsuma writes that core consumer prices, excluding fresh food, climbed 0.1% in October from a year earlier. Despite the gain, Bank of Japan will not probably raise interest rates because falling wages are curbing consumer spending and economic growth, relates Boomberg. Deputy Governor Toshiro Muto, according to Bloomberg, said it that the month of November that the U.S. housing recession and market turmoil made it "difficult" to decide when to raise the key rate from 0.5%, which is the lowest among major economies. Bloomberg quotes Azusa Kato, an economist at BNP Paribas Securities Japan Ltd. as saying, "Mounting risks for the economy are already reducing the chance of a rate hike. he improvement in core prices won't provide much support for the central bank's attempt to raise rates." Interest Rates Bloomberg relates that expectations of a rate increase are already receding as yields on the benchmark 10-year government bond fell to a two-year low last week. Yasunari Ueno, chief market economist at Mizuho Securities, expressed to Bloomberg, "Financial markets will keep gyrating, probably more frequently than we've seen. It'll take time before fears about a credit crunch and economic recession ease and markets regain a more optimistic outlook." Rising prices of crude oil, wheat and aluminum are squeezing profits and prompting more companies to pass on costs to customers, says Bloomberg. "The weight of food in the consumer price index is small, and higher costs of daily necessities tend to prompt consumers to cut down non-essential spending. Price gains won't accelerate without wage increases," says Seiji Adachi, a senior economist at Deutsche Securities Inc. in Tokyo. According to Seiji Nakamura, a Bank of Japan policy maker, companies "are extremely cautious about raising prices" because Japanese consumers have built up a "strong resistance" to increase after years of deflation. Mr. Nakamura, states Bloomberg, added that some supermarkets saw sales decline after raising prices and had to cut them again. ========= K O R E A ========= ARROW ELECTRONICS: Arrow ECS Merges Distribution Biz with ATI ------------------------------------------------------------- The Enterprise Computing Solutions business of Arrow Electronics Inc. is transitioning its software distribution business to Arrow's subsidiary, Alternative Technology Inc., creating a software business in excess of US$1 billion. Through this arrangement, ATI will gain eight additional product lines that were part of Arrow ECS' Software Group and will oversee partner relationships and internal staff for that business. Product lines that will be transferred to ATI include Bakbone, BEA, CA, CommVault, McAfee, Novell, Oracle and Symantec. Arrow ECS' storage, HP and IBM businesses will not change. "Arrow ECS is committed to increasing the depth of our offerings in high- growth sectors, including software and security," Kevin Gilroy, president of Arrow ECS, said. "In addition, Arrow ECS is focused on delivering comprehensive solutions to our partners. This initiative enables Arrow ECS to best serve our software suppliers and partners by providing focused support and dedicated resources to grow their business." It is anticipated that the suppliers will be transitioned to ATI by the end of Arrow's first quarter in 2008. A team comprising representatives from both Arrow ECS and ATI will manage the integration process. "This integration best enables Arrow ECS and ATI to share and apply best practices within our respective software businesses," Bill Botti, president and chief executive officer of ATI, said. "Partners will benefit from enhanced complementary product lines and a full suite of professional services available through ATI." ATI represents more than 30 software and security suppliers, including Citrix and VMware. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. Arrow Enterprise Computing Solutions is a Englewood, Colorado- based business unit of Arrow Electronics Inc. that provides enterprise and midrange computing products, services and solutions to value-added resellers, system integrators, and independent software vendors. Alternative Technology Inc. is a Englewood, Colorado-based wholly owned subsidiary of Arrow Enterprise Computing Solutions, that provides end-to-end solutions, presales support, order management and marketing services to more than 3,000 partners. Established in 1986, ATI also offers a robust portfolio of processional services for partners, including onsite engineering, security assessments and technical call support. Alternative Technology Inc. has offices in Ft. Lauderdale, Florida, Carlsbad, California, and Mississauga, Canada. * * * Arrow Electronics' senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. EUGENE SCIENCE: Completes Move to Larger Facility ------------------------------------------------- Eugene Science, Inc. has completed its move into a newly constructed corporate headquarters and production facility in Seoul, Korea. The move to the larger facility will enable the Company to double its CZ(TM)plant sterol production capacity to a maximum of 100 tons monthly. The higher production capacity will increase the company's gross revenue capability to approximately US$5 million per month, at a relatively minimal capital expenditure. The company expects its increased production capacity to immediately enhance its ability to secure additional mass market orders for CZ(TM). The new facility is approximately twice the size of the Company's former property and was custom built to meet Eugene Science's requirements with the Kyonggi-Do State Government subsidizing the vast majority of the construction costs as well as payments on the initial 20-year lease under local economic development programs. The Company's new facility includes 22,000 square feet of specially designed office, R&D and production space on six acres of land offering future additional build-out potential. "The move into the new facility with higher production capacity represents a significant milestone in our growth strategy," said Seung Kwon Noh, Eugene Science's Chairman and Chief Executive Officer. "With awareness and demand for our CholZero(TM) product line growing, the company is well positioned for strong growth in 2008 and beyond." The property is located in Jang-An Industrial Complex, Haw Sung City, Kyonggi-Do, about 40 miles south of Seoul and ten miles from Pyungtaek Port, an important and emerging industrial harbor servicing the capital city of Seoul. Eugene Science expects to sell its former corporate headquarters office in Seoul with the proceeds to be used to reduce debt. About Eugene Science Based in Kyonggi Do, South Korea, Eugene Science, Inc., fka Ezomm Enterprises, Inc. (OTCBB: EUSI), is a global biotechnology company that develops, manufactures and markets nutraceuticals, or functional foods that offer health-promoting advantages beyond that of nutrition. Plant sterols are the Company's primary products, which include CZTM Series of food additives and CholZeroTM branded beverages and capsules. In June 2005, the Company received regulatory approval for certain health claims associated with the Company's products from government agencies in the Republic of Korea. As reported in the Troubled Company Reporter - Asia Pacific on November 22, 2006, Eugence Science's independent accountants expressed substantial doubt on the company's ability to continue as a going concern. The independent accountants pointed to recurring losses from operations and working capital deficiencies as of September 30, 2006 and 2005. LG TELECOM: To Provide Customers w/ Open Mobile Internet Policy --------------------------------------------------------------- LG Telecom Ltd. planned to introduce open mobile Internet business next year, the Korean Times reports. According to the report, the "open" mobile phone platforms has become a global trend, since Google formed a worldwide consortium for the mobile Internet business and Verizon pledged to open its network to any device next year. South Korean telecom firms, the report relates, have been reluctant in doing so, but LG Telecom said it has decided to go that way. The company's CEO Jung Il-jae made it clear that the firm's priority for next year will be the open mobile Internet business, the report relates. Its main strategy is to open its phone platform, the Times notes, enabling any Internet or software company to freely make and sell mobile Internet services - like any software programmers can make and sell computer programs that run on Microsoft's Windows operating system for PCs. The Times notes that telecom companies in Korea have been preparing for such a service, but did not seriously commercialize it until LG Telecom said that it would launch a number of full-browsing phones in the first half of next year. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and Musicon is a popular instant messenger. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 14, 2006, Fitch Ratings upgraded LG Telecom's foreign currency Issuer Default rating to 'BB+' from 'BB.' On March 27, 2007, Moody's Investors Service upgraded LG Telecom's foreign currency corporate family rating and senior unsecured bond rating to Ba1 from Ba2. The outlook on the rating is stable. HANAROTELECOM: Telecom Firms Protests SK Telecom's Acquisition -------------------------------------------------------------- KTF, LG Telecom, LG Dacom and LG Powercom have joined up in an anti-SK Telecom front, demanding the government halt SK Telecom's expansion into the fixed-line telephone and Internet market, The Korean Times reports. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 4, 2007, SK Telecom had agreed to buy hanarotelecom Inc. for KRW1.09 trillion in cash, a near 50% premium on pre- acquisition talks. According to the TCR-AP, hanaro would give SK Telecom access to a quarter of online users in a market where nine out of 10 homes have high-speed Internet connections. The purchase, subject to regulatory approval, would also enable SK Telecom to expand into markets such as Internet television programming and offer products that combine fixed-line and wireless services, the report notes. Cho Jin-seo of the Times writes that the four telecom firms did not specify what measures the government should consider, saying that they will have more discussions regarding this issue. LG Telecom CEO Jung Il-jae told The Hankyoreh that they are very concerned about the deal. "The government should consider ways to reduce anti-competitive market conditions that could be triggered by the takeover deal," he added. According to Hankyoreh, market observers say SK Telecom's tie-up with hanaro will help strengthen its market dominance both in the mobile and fixed-line sectors at a time when the two services are rapidly converging. Smaller operators, however, say that the consolidation could threaten their existence as SK Telecom could use its dominance in the mobile communications sector and in the fixed-line communications area where companies compete fiercely for customers, Hankyoreh points out. As reported by the TCR-AP on Nov. 30, 2007, South Korea's corporate regulator is studying the possible effects of SK Telecom's plan to purchase hanaro. The TCR-AP noted that Vice Chairman of the Fair Trade Commission Kim Byung-bae said they are currently collecting data and studying how a possible deal (between the two companies) could affect the telecommunications market and monopolization. The possible deal, if signed, must be reviewed and approved by the commission in order to go into effect, The TCR-AP added. 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 de