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 Thursday, December 20, 2007, Vol. 10, No. 252 Headlines A U S T R A L I A BOXALL PROPERTIES: Placed Under Voluntary Liquidation C.F. & G.M.: Holds Final Meeting CENTRO PROPERTIES: Will Not Pay Dividends for the H1 of FY07 CHRYSLER LLC: In Talks With Nissan on Bilateral Supply Deal CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale FINANCE RELATIONSHIP: Declares First Dividend FINCORP GROUP: Founder Asserts AU$3 Million Claim GRAHAM PROPERTIES: Members Receive Wind-Up Report LAFAYETTE MINING: Goes Into Voluntary Administration C H I N A , H O N G K O N G & T A I W A N ASSOCIATION OF CERTIFIED: Commences Liquidation Proceedings BEIHAIL GOLF: Liquidator to Present Wind-Up Report on Jan. 18 BEAUTY SQUARE: Appoints Chan Kin Hang Danvil as Liquidator CHAROEN POKPHAND CATERING: Members to Receive Report on Jan. 18 CHAROEN POKPHAND INTERTRADE: Members' Final Meeting on Jan. 18 CHINA CHILDREN: Members' Final General Meeting Set for Jan. 15 CHINA EASTERN: Air China Not Keen on SIA-Temasek Deal CITY LAND DEVELOPMENT: Liquidator to Present Report on Jan. 18 COASTAL GREENLAND: Moody's Affirms B1 Corporate Family Rating DAEWOO DIGITAL: Members' General Meeting Set for Jan. 18 DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating FIAT SPA: Names Luca De Meo as Alfa Romeo's Chief Executive FIAT SPA: Extends Buy Back Program to April 30, 2008 FILMKO PICTURES: Members & Creditors' Meeting Set for Dec. 27 GOLD SPRING: Members to Receive Wind-Up Report on Jan. 18 GOOD VANTAGE: Members' Final General Meeting Set for Jan. 15 HENTON ENTERPRISES: Commences Liquidation Proceedings HUNTER PENCIL: Creditors' Meeting Set for January 18 HYUNDAI DIGITAL: Members' Final General Meeting Set for Jan. 18 K SOLUTIONS: Members' Final General Meeting Set for Jan. 14 LOYAL BUSINESS: Members & Creditors' Meeting Set for Jan. 15 MERRY VIEW: Proofs of Debt Due by January 14 NHJ (HK) Limited: Members & Creditors' Meeting Set for Jan. 3 PENAR LIMITED: Members' Final General Meeting Set for Jan. 15 PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt PLENTY POWER: Members' Final General Meeting Set for Jan. 15 RESOLUTIONS OF THE WORLD: Creditors Receive Wind-Up Report SENIKU LIMITED: Commences Liquidation Proceedings SCIENCE ESTHETIC: Proofs of Debt Due by December 29 STAR CRUISES: Moody's Continues to Review B1 Rating STAR CRUISES: S&P Cuts Long-Term Corporate Credit Rating to B I N D I A DECCAN AVIATION: Accenture Recommends Kingfisher-Deccan Merger GENERAL MOTORS: Commodity Costs Spark Price Increase on '08 Cars GENERAL MOTORS: Begins 1st Phase of UAW Attrition Program GENERAL MOTORS: Lays Off 800 Tonawanda Workers Before Schedule GLOBAL BROADCAST: Consolidates w/ Hindi News Channel IBN-7 IFCI LTD: Board Rejects Sterlite-Morgan Stanley Consortium Offer KINETIC ENGINEERING: To Raise INR100.01 Cr. for Expenses NAVISTAR INT'L: Unit Names Steve Bruford as Vice President NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members RPG LIFE: Bombay Court Approves Scheme of Arrangement I N D O N E S I A INDOSAT: Temasek Files Appeal Against Court Ruling MEDCO ENERGI: Consortium Finishes Execution of Project Contracts TELKOM INDONESIA: Unit to Buy 80% of Sigma Cipta J A P A N ALITALIA SPA: Air France Offers EUR750 Million Capital Injection ALITALIA SPA: Outlines Criteria for Selecting Preferred Buyer ALL NIPPON: Inks MOU with Nippon Express and Kintetsu World CASTOR TRUST: S&P Assigns BB Rating on Class D Certificate EBARA CORP: To Sue Former Vice-president Over Anomalous Deal FORD MOTOR: Names J. Hinrichs as Global Manufacturing Vice Pres. ICONIX BRAND: Completes US$60 Million Starter Brand Acquisition INT'L RECTIFIER: Promotes Rick Sivan to Vice President for R&D SPANSION INC: Amends Merger Agreement With Saifun Semiconductors * Japan's Corporate Bankruptcies Increase 11.2% Year-on-Year K O R E A DAEWOO ELECTRONICS: Attracts 10 Foreign Bidders for Stake Sale HANARO: SK Telecom Applies for Purchase Approval from Government M A L A Y S I A MERGE ENERGY: Earns MYR3.7 Mil. in Quarter Ended Oct. 31 INDUSTRIAS METALURGICAS: Will Upgrade Acaray II Plant VERIFONE HOLDINGS: Purchases EFTPOS Services Business N E W Z E A L A N D CASA ROCA: Subject to CIR's Wind-Up Petition CLEAR CHANNEL: Launches Tender Offer & Solicitation for Notes CRAWLER TRACTOR: Wind-Up Petition Hearing Set for Feb. 5 G & H BUILDING: Court to Hear Wind-Up Petition on March 13 GOOD OLD BOY'S: Fixes Jan. 15 as Last Day to File Claims M.J. WATSON: Names Rodewald & Neilson as Liquidators PORIRUA MULTIPLEX: Appoints Shephard & Dunphy as Liquidators PRACTIV (NZ): Faces CIR's Wind-Up Petition VALENZIA LTD: Fixes February 29 as Last Day to File Claims WEIGHT WATCHERS: Declares US$0.175 Per Share Quarterly Dividend P H I L I P P I N E S LAND O'LAKES: Posts US$2.8 Million Net Loss in 3rd Quarter 2007 FEDERAL-MOGUL: Plan's Effective Date Set for December 27 S I N G A P O R E ADVANCED MICRO: Goodwill Recorded After ATI Buy Likely Impaired SEA CONTAINERS: Posts US$19.4MM Net Loss in Month Ended Oct. 31 - - - - - - - - ================= A U S T R A L I A ================= BOXALL PROPERTIES: Placed Under Voluntary Liquidation ----------------------------------------------------- During a general meeting held on October 31, 2007, members of Boxall Properties Pty Ltd resolved to voluntarily wind up the company's operations. John Langford was appointed as liquidator. The Liquidator can be reached at: John Langford Macquarie Accounting Pty Ltd 18 Elizabeth Street, Level 2 Hobart, Tasmania 7000 Australia About Boxall Properties Located at Lindisfarne, in Tasmania, Australia, Boxall Properties Pty Ltd is an investor relation company. C.F. & G.M.: Holds Final Meeting -------------------------------- C.F. & G.M. Mildwaters Pty Ltd, which is in liquidation, held their final meeting on December 12, 2007. The company's liquidator is: Shaun Boyle summerscorporate Next Building, Level 5 16 Milligan Street Perth, Western Australia 6000 Australia About C.F. & G.M. Located at Waggrakine, in Western Australia, Australia, C.F. & G.M. Mildwaters Pty Ltd is an investor relation company. CENTRO PROPERTIES: Will Not Pay Dividends for the H1 of FY07 ------------------------------------------------------------ Following the request from the Centro Properties Group for a trading halt on Thursday, December 13, 2007, Centro has reviewed its earnings projections and completed certain refinancing arrangements. Impact on Earnings Increased costs associated with the extension of the debt facilities and expected costs of the refinancing will have an adverse effect on Centro’s earnings and forecast distributions. In addition, restrictions imposed on Centro’s capital expenditure under the terms of the financing extension will restrict Centro from carrying out some of its growth plans in the United States, which had been expected to generate higher earnings. As a result, Centro’s operating distributable profit per security has been revised downward from 47.0 cents per security to 40.6 cents per security. This represents a slight increase of 2.1% on the FY07 DPS of 39.8 cents per security. In addition, for prudence in the current circumstances and in order to ensure the broadest possible range of long term financing options, Centro will not pay a distribution for the half year ending December 31, 2007. A decision as to when distributions will be reinstated will be made following the outcome of the strategic review. Refinancing Update Centro is continuing to negotiate the refinancing of AU$1.3 billion in Centro maturing facilities, and has obtained an interim extension until February 15, 2008, of all facilities maturing prior to that date. In addition, U.S. joint venture facilities have also been similarly extended. Tightened credit conditions have, however, had the effect that negotiation of a comprehensive refinancing package of these short-term facilities has not yet occurred. It has become clear that to secure longer term financing in the current illiquid credit market, Centro will need to reduce its gearing level significantly. The funding extension will allow Centro’s Board and Management to undertake a review of options available to secure the long term capital structure of Centro and its managed funds and to reduce the current gearing levels. These options may include asset sales, joint ventures and equity injections. A complete review of the overall structure of the Group will also be undertaken. The restructure and refinancing is forecast to incur a one off cost of AU$40 million. These have been excluded from the FY08 forecast operating distributable profit. In the meantime, Centro’s AU$26.6 billion managed property portfolio is performing well and in line with expectations, reflective of the strong cashflows and defensive characteristics of nondiscretionary food and convenience based retail property. Brian Healey, Centro Chairman, said: "While all at Centro are extremely disappointed not to declare a distribution for the current period, we believe that over the medium to long term, it is the correct decision to make in order to preserve value for securityholders. "Recent turbulence in international credit markets, in particular in the US, has resulted in a tougher environment in raising debt and refinancing existing debt facilities that are maturing. "In August, the Centro Board and management took the view that the long-term refinancing of our debt obligations would be available with attractive funding terms through the US CMBS markets. "We never expected nor could reasonably anticipate that the sources of funding that have historically been available to us and many other companies would shut for business. "Even following the onset of turbulence in international credit markets, we completed a US$300 million, 10 year CMBS issue was completed on reasonable terms, reinforcing our confidence that it would be more cost effective to wait for the debt markets to settle. "Up until late last week, we were of the view that our short term debt obligations could be refinanced on a long term basis. "While we understand the difficulty that this presents to our securityholders, the underlying retail property assets and performance of the business remains strong. The Board and management are working hard to find an enduring solution to its financing requirements and preserving value for securityholders." Property Portfolio Continues to Perform Strongly Centro’s underlying business remains strong with its AU$26.6 billion managed property portfolio performing well and slightly above budget. The Australian managed portfolio has occupancy levels in excess of 99% and property income growth for FY08 is forecast to exceed 4%. The US managed portfolio is performing in line with expectations with results underpinned by the non-discretionary nature of Centro’s shopping centers and the security of income from leases to tenants such as Kroger, TJ Maxx and Wal-Mart. About Centro Properties Centro Properties Group -- http://www.centro.com.au/ -- is an Australia-based company that comprises the operations of Centro Property Trust (the Trust) and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust (New Plan), Heritage Property Investment Trust (Heritage) and Galileo Funds Management, as well as assumed full ownership of its United States management operations. * * * The Troubled Company Reporter-Asia Pacific reported on December 18, 2007, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'BB+' with negative implications. CHRYSLER LLC: In Talks With Nissan on Bilateral Supply Deal ----------------------------------------------------------- Chrysler LLC is discussing terms of a bilateral supply deal with Nissan Motor Co., various reports say citing Japanese newspaper Nikkei. Chrysler is keen on distributing Nissan's compact cars and Nissan wants access to Chrysler's medium and large-sized vehicles. Reports relate that the carmakers are reportedly negotiating prices and model types to be manufactured. As reported in the Troubled Company Reporter on Dec. 4, 2007, Chrysler LLC dealers delivered 161,088 new vehicles to U.S. customers in November 2007, down 2% compared with a year ago. Chrysler brand car sales were led by the Sebring Convertible, which increased sales to 2,039 units compared with 195 units a year ago, up 946%. Chrysler Town & Country sales rose 10% to 12,629 units versus November 2006 with 11,507 units. High fuel prices impacted Jeep(R) brand results, down 2% versus November of last year. Large SUVs saw the greatest impact with Jeep(R) Commander down 45% at 4,391 units versus November 2006. Dodge brand car sales increased 75% over last year by steady sales of the Dodge Charger with 10,341 units delivered. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. The outlook is negative. CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale --------------------------------------------------------------- Constellation Brands Inc. has completed the acquisition of the Fortune Brands, Inc. United States wine portfolio for a purchase price of US$885 million. Coupled with the sale earlier this year of two wine brands to E. & J. Gallo Winery, Fortune Brands has realized total consideration for its wine unit well in excess of US$900 million. "This acquisition is another significant step to expand our excellent portfolio of fine wine in the fast-growing super- premium and luxury segments of the U.S. market," stated Constellation Brands president and chief executive officer, Rob Sands. "We are pleased that we have been able to take advantage of this opportunity to strengthen our position as the premium wine leader in the U.S. marketplace and improve our ability to meet wine trade-up consumer trends." "The sale of our wine business will help us drive shareholder value in a couple of meaningful ways," said Norm Wesley, chairman and chief executive officer of Fortune Brands. "It will help enhance the already high returns in our premium spirits business, which is the segment that generates our largest profit. Naturally, it will also increase our financial flexibility to focus resources on value-creating opportunities." The wine brands in the transaction with Constellation -- which include Clos du Bois, Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell -- had sales in 2006 of 2.6 million 9- liter cases and revenues of US$214 million including excise taxes. In addition to the wine brands, the transaction also included the associated vineyards, winemaking assets and sales organization. The previous transaction with Gallo included the William Hill and Canyon Road wine brands and related assets. In connection with this acquisition, the company financed the transaction using net proceeds from its Dec. 5, 2007, sale of US$500 million 8 3/8% Senior Notes due 2014 together with borrowings under the revolving portion of the company's senior credit facility. Constellation Brands is formulating an integration plan for the acquired assets and will announce details when the plan is finalized. Fortune Brands was advised on the transaction by Citi and Credit Suisse as financial advisors and Pillsbury Winthrop Shaw Pittman as legal advisor. About Fortune Brands Headquartered in Deerfield, Illinois, Fortune Brands Inc. is a leading consumer brands company with annual sales exceeding US$8 billion. Its operating companies have premier brands and leading market positions in spirits and wine, home and hardware products, and golf equipment. Beam Global Spirits & Wine, Inc. is the company's spirits and wine business. Major spirits brands include Jim Beam and Maker's Mark bourbons, Sauza tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper cordials, Starbucks(TM) liqueurs and Laphroaig single malt Scotch. Home and hardware brands include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma- Tru door systems, Simonton windows, Master Lock padlocks and Waterloo tool storage sold by units of Fortune Brands Home & Hardware LLC. Acushnet Company's golf brands include Titleist, Cobra and FootJoy. The company is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index, the MSCI World Index and the Ocean Tomo 300(TM) Patent Index. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ) -- http://www.cbrands.com/-- is a producer and marketer of beverage alcohol in the wine, spirits and imported beer categories, with market presence in the U.S., Canada, Chile, U.K., Australia and New Zealand. The company has more than 250 brands in its portfolio, sales in 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note registered by Constellation Brands Inc. to fund the purchase price of Beam Wine Estates Inc., a subsidiary of Fortune Brands Inc: US$500 million 8.375% senior unsecured note due Dec. 15, 2014. Fitch said the rating outlook is negative. FINANCE RELATIONSHIP: Declares First Dividend --------------------------------------------- Finance Relationship Consultants Pty Ltd, which is in liquidation, declared its first dividend on December 7, 2007. Only creditors who were able to file their proofs of debt by November 23, 2007, will be included in the company's dividend distribution. The company's liquidator is: Kim Holbrook Holbrook & Associates Chartered Accountants Level 2, 19 Pier Street GPO Box M925 Perth, Western Australia 6001 Australia About Finance Relationship Finance Relationship Consultants Pty Ltd is a distributor of durable goods. The company is located at Victoria Park, in Western Australia, Australia. FINCORP GROUP: Founder Asserts AU$3 Million Claim ------------------------------------------------- Fincorp Group's dispute with its founder and owner Eric Krecichwost over the return of up to AU$3 million in loans is still ongoing, Danny John of The Sydney Morning Herald reports. The Herald relates that Fincorp's former Chairman, Peter Pengilley, disclosed during a liquidator's examination hearing at the New South Wales Supreme Court that he was given the task of getting back the money from Mr. Krecichwost, after former Chief Executive Officer Craig Stubbs presented to him a shareholder loan report some time in August and September last year. Mr. Pengilley, the report notes, disclosed during the hearing that Mr. Stubbs' report detailed various Fincorp credits and debits covering loans made to and by Mr. Krecichwost but that the conclusion was that he actually owed the group money. Mr. Krecichwost, Fincorp's sole shareholder, did not respond to Mr. Pengilley's telephone calls even though he was given 90 days to pay up or face legal action, the Herald relates. Mr. Pengilley related that just five weeks before Fincorp collapsed, he had a "robust discussion" with Mr. Krecichwost regarding pursuing the money, but Mr. Krecichwost continued to argue that he was owed AU$3 million by Fincorp -- a claim which appeared to be substantiated by the company's 2005 accounts, the newspaper reported. About Fincorp Fincorp Group -- http://www.fincorp.com.au/-- in its current structure was established in July 2005. The company is a boutique funds management and property development business that focuses on mortgage-backed and property products. It is based in Grosvenor Place, Sydney, with around 40 employees across New South Wales, Victoria, and Queensland. Two companies with the Fincorp Group (Fincorp Financial Services Limited and Fincorp Managed Investments Limited) hold Australian Financial Services Licenses and act as Responsible Entities under the Corporations Act 2001. Fincorp and its Funds are regulated by the Australian Securities and Investment Commission. * * * On March 27, 2007, the Troubled Company Reporter-Asia Pacific reported that Fincorp Group went into administration with AU$290 million in debt, of which AU$200 million were owed to investors and AU$90 million to external financiers. David Winterbottom was appointed as administrator together with Mark Korda and Lachlan McIntosh, partners at corporate recovery firm KordaMentha. Fincorp Group has reportedly been struggling under heavy inter- company debt loads and negative cashflow, the TCR-AP cited a report from The Australian, published on March 26, 2007. GRAHAM PROPERTIES: Members Receive Wind-Up Report ------------------------------------------------- Members of Graham Properties Pty Ltd met on December 17, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: A. A. Gaffney c/o RSM Bird Cameron Chartered Accountants 8 St George's Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9261 9100 About Graham Properties Located at Mandurah, in Western Australia, Australia, Graham Properties Pty Ltd is an investor relation company. LAFAYETTE MINING: Goes Into Voluntary Administration ---------------------------------------------------- The Board of Directors of Lafayette Mining Limited appointed Messrs. Rod Sutton and Peter McCluskey of Ferrier Hodgson as joint and several Administrators of the Company pursuant to section 436A of the Corporations Act 2001. The Administrators will immediately take control of the Company’s business, property and affairs. The Company has been working for several months with key stakeholders to restructure and recapitalize the Company, which has a 74% interest in Rapu-Rapu Processing, Inc., located in the Philippines. On October 4, 2007, non-binding term sheets were executed by the Company and the banks with a Special Purpose Vehicle (SPV) owned by a prospective Cornerstone Investor and the South East Asian Strategic Asset Fund (SEASAF). These term sheets outlined the basis of a series of transactions, which could have recapitalized and restructured the Company. As part of these arrangements, a binding Option Deed was executed by the banks and the SPV under which the SPV was granted the right, but not the obligation, to purchase the bank debt exposure at a price, which represented a discount to the face value of the debt. For a variety of reasons, the SPV elected not to exercise the option, which expired on November 30, 2007. Since that date, the Company and the banks have received a further proposal from SEASAF and a new group of financial investors. This proposal was similar in structure to the proposal announced on October 4, 2007, and since the date of its receipt it has been the subject of review by the banks. As time has elapsed, the level of certainty that the series of agreements between the prospective investors, the banks and Lafayette (and other project and Company stakeholders), that are needed to ensure that Lafayette could continue to meet its obligations as an when they fell due, has diminished to a level that the Board of Directors of Lafayette no longer considers that they have reasonable grounds to continue to hold this view. The Administration process will allow all options for either the sale of the operations or a restructure and recapitalization of the Lafayette group to be fully explored. It is expected that further details of the Administration process will be announced to the ASX by the Administrators in the near future. About Lafayette Lafayette Mining Philippines, Incorporated, is a subsidiary ofAustralian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. TCR-AP's "Large Companies with Insolvent Balance Sheets" column on December 14, 2007, reflected Lafayette Mining Limited as having US$190.86 million equity deficit, on total assets of US$105.24 million. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ASSOCIATION OF CERTIFIED: Commences Liquidation Proceedings ---------------------------------------------------------- Association of Certified Fraud Examiners, Hong Kong Chapter Limited commenced liquidation proceedings on November 29, 2007. BEIHAIL GOLF: Liquidator to Present Wind-Up Report on Jan. 18 ------------------------------------------------------------- Members of Behai Golf Club (HK) Company Limited will have their final general meeting on January 18, 2008, at 9:20 a. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central Hong Kong BEAUTY SQUARE: Appoints Chan Kin Hang Danvil as Liquidator ---------------------------------------------------------- Members of Beauty Square Limited appointed Chan Kin Hang Danvil as the company's liquidator. The Liquidator can be reached at: Chan Kin Hang Danvil Ginza Square, Room 2301, 23rd Floor 565-567 Nathan Road Yaumatei, Kowloon Hong Kong CHAROEN POKPHAND CATERING: Members to Receive Report on Jan. 18 --------------------------------------------------------------- Members of Charoen Pokphand Catering Services Company Limited will have their final general meeting on January 18, 2008, at 9:40 a. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central Hong Kong CHAROEN POKPHAND INTERTRADE: Members' Final Meeting on Jan. 18 -------------------------------------------------------------- Members of Charoen Pokphand Intertrade Company Limited will have their final general meeting on January 18, 2008, at 10:20 a. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central Hong Kong CHINA CHILDREN: Members' Final General Meeting Set for Jan. 15 -------------------------------------------------------------- Members of China Children and Teenagers (Hong Kong) Fund Limited will meet on January 15, 2008, at 10:00 a. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Winbase Centre, 20th Floor 208 Queen's Road Central Hong Kong CHINA EASTERN: Air China Not Keen on SIA-Temasek Deal ----------------------------------------------------- China Eastern Airlines Corporation Ltd did not get the support of shareholder Air China on the sale of a 24% stake in the company to Singapore Airlines Ltd and Temasek Holdings, various reports say. SIA will buy 15.73%, while Temasek Holdings 8.27%, of China Eastern's shares at HK$3.80 per share, paying a total of HK$7.16 billion. Reuters, citing as source the Shanghai Securities News, related that Air China did not express support for the deal during a three-hour meeting on Wednesday with China Eastern executives. According to Xinhua News, Air China's parent, China National Aviation Holding Co, is to vote against the planned sale. Air China's parent holds a 12.07% stake in China Eastern. The news of non-support, however, is contrary to China Eastern's statement that Air China is supportive of the deal. “[T]he CEA management team has met with Air China's top management in Hong Kong and Beijing, and the latter has expressed understanding of and support to the deal,” China Eastern said in a media release yesterday. The shareholders will vote on the proposed stake sale at an extraordinary general meeting on Jan. 8. After a week's investor roadshow to Hong Kong, Singapore and Beijing, China Eastern exudes confidence that it will win shareholders' support at the meeting meeting where resolutions will be passed to approve the strategic cooperation plan with SIA and Temasek, the company said in the release. According to China Eastern the deal has the Chinese government's blessing as it will promote a healthy development of China's aviation industry. The release further quoted China Eastern Chairman Li Fenghua as saying, "On our roadshow, investors started to realize why Air China wouldn't, and couldn't, oppose our deal. We start to gain more and more understanding and in fact, quite a few investors have already indicated they would vote "for" at the forthcoming EGM." Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CITY LAND DEVELOPMENT: Liquidator to Present Report on Jan. 18 -------------------------------------------------------------- Members of City Land Development Company Limited will have their final general meeting on January 18, 2008, at 14:00 p.m. [sic.], to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central Hong Kong COASTAL GREENLAND: Moody's Affirms B1 Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service has affirmed Coastal Greenland Limited's (CGL) B1 corporate family rating. At the same time, Moody's has affirmed CGL's B2 senior unsecured bond rating. These affirmations follow the successful closing of CGL's US$150 million bond issuance. Both ratings have had their provisional status removed and their outlook is stable. Coastal Greenland Limited is a Chinese property developer focusing on medium to high-end market residential and commercial property developments. It has an attributable land bank of 4.3 million sqm in six major economic areas in China. Founded in 1990, the company was listed on the Hong Kong stock exchange in 1997 and has a current market capitalization of around HK$4 billion. DAEWOO DIGITAL: Members' General Meeting Set for Jan. 18 -------------------------------------------------------- Members of Daewoo Digital (Hong Kong) Limited will meet on January 18, 2008, at 11:00 a. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meetign will be held at: 6307 Central Plaza 18 Harbour Road Wanchai, Hong Kong DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered ---------------------------------------------------------------- Rhodes Development Company, LLC is interested in purchasing the Cape Girardeau property at a higher purchase price, and is asking Dana Corp. and its debtor-affiliates to consider its offer. Rhode says that is willing to participate in any reasonable auction format established for the sale of the Property. As reported in the Troubled Company Reporter on Dec. 14, 2007, the Debtors sought authority from the U.S. Bankruptcy Court for the Southern District of New York the to sell a 15-acre parcel of real estate and a 150,000 square-foot building located at 2075 Corporate Circle in Cape Girardeau, Missouri, to Schaefer's Power Panels, Inc., for US$2,841,750. The Debtors currently use the property for manufacturing, and they are in the process of closing the manufacturing operations, Corinne Ball, Esq., at Jones Day, in New York related. Request to Delay Sale Approval Furthermore, Rhodes asks the Court to delay the approval of the sale of the Property pending further discussions among the interested parties. In a separate filing, the Official Committee of Unsecured Creditors asks the Debtors to immediately put in place auction procedures for the sale of the Property to ensure that the Property is sold at a maximum value. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 66; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating ------------------------------------------------------------ Moody's Investors Service does not expect Epicor Software Corporation's announced agreement to acquire NSB Retail Systems PLC for approximately GBP160 million to impact the company's B1 corporate family rating or stable outlook. As mentioned previously, the company's ratings reflect an expectation of measured acquisition activity as the company looks for opportunities to expand its market share within specific industry verticals. Although the proposed NSB Retail acquisition will increase debt levels, pro forma leverage is expected to remain at or below 4.0. Additionally, the combination of NSB Retail with Epicor's CRS retail product suite is expected to enhance Epicor Software's retail ERP market position. Moody's expects to analyze the company's new capital structure and integration plans as details become available. Headquartered in Irvine, California, Epicor Software Corporation -- http://www.epicor.com/www/-- is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide. Epicor Software has worldwide locations in China, Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the United Kingdom, among others. FIAT SPA: Names Luca De Meo as Alfa Romeo's Chief Executive ----------------------------------------------------------- Fiat S.p.A. disclosed that Luca De Meo took on the role as Alfa Romeo Automobiles' CEO on Dec. 11, 2007, replacing Antonio Baravalle, who left the group on his request. Mr. De Meo will keep his current position as chief marketing officer of the Fiat Group, with responsibility for all marketing related activities across all Fiat Group Sectors, as well as his post of CEO of Abarth. Mr. De Meo's simultaneous commitment to the development of the Alfa brand and to the promotion of marketing activities puts him in an ideal position to follow one of the most important projects of the brand, its return to the U.S. market. Fiat Group thanked Antonio Baravalle for his precious professional cooperation and his valuable contribution throughout these years. "The commitment, passion and determination with which Luca De Meo faces great challenges is the best guarantee for Alfa Romeo's relaunch plan and the development of marketing activities across all Fiat Group brands. I thank Antonio Baravalle, who always worked with intelligence and dedication, and wish him all the best for his future activities," Sergio Marchionne, Fiat Group CEO commented. 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. FIAT SPA: Extends Buy Back Program to April 30, 2008 ---------------------------------------------------- Fiat S.p.A. decided to extend the buy back program from Dec. 31, 2007, to April 30, 2008. At a stockholders meeting on April 5, 2007, Fiat authorized the purchase of treasury shares from the aggregate three classes of stock, which shall not exceed in the aggregate 10% of the capital stock and maximum amount of EUR1.4 billion. The authorization will last 18 months from April 5, 2007, and will therefore expire on Oct. 5, 2008. The stockholders authorization does not compel Fiat to complete the buy back up to the maximum EUR1.4 billion amount and therefore the buy back may be executed in the whole or in part. Additionally, pursuant to the applicable regulations which require that any buy back program be announced to the market, on April 5, 2007, after the stockholders' authorization, Fiat disclosed the details of its buy back program, aimed at servicing stock option plans and the investment of excess liquidity, which would expire on Dec. 31, 2007. As already stated, the company will execute share repurchases in its total and complete discretion including the choice of timing, quantum and share price levels. In so doing, the company will be guided by the principle that it will only repurchase its shares if such repurchase is value accretive to the shareholders of Fiat, and subject to any negative repercussions a given repurchase may have on its credit ratings. The buy back will be carried out on the regulated markets as: -- it will end on April 30, 2008, or once the maximum amount of EUR1.4 billion or a number of shares equal to 10% of the capital stock is reached; -- the maximum purchase price will not exceed 10% of the reference price reported on the stock exchange on the day before the purchase is made; and -- the maximum number of shares purchased daily will not exceed 20% of the total daily trading volume for each class of shares. Should purchases be carried out, Fiat will maintain its daily communication program to the market and competent authorities, detailing the number of shares purchased, the average price, the total number of purchased shares as of the date of the communication and the total invested amount as of such date. As of December 12, 2007 Fiat has repurchased 20.482 billion Fiat ordinary shares for a total aggregate amount of EUR426 million. 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. FILMKO PICTURES: Members & Creditors' Meeting Set for Dec. 27 ------------------------------------------------------------- Members and creditors of Filmko Pictures Limited will meet on December 27, 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: Ginza Square, Room 2301, 23rd Floor 565-567 Nathan Road Kowloon, Hong Kong The company's liquidator is: Chan Kin Hang, Danvil Ginza Square, Room 2301, 23rd Floor 565-567 Nathan Road, Yaumatei Kowloon, Hong Kong GOLD SPRING: Members to Receive Wind-Up Report on Jan. 18 --------------------------------------------------------- Members of Gold Spring Consultant & Management Limited will have their final general meeting on January 18, 2008, at 15:20 p. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central Hong Kong GOOD VANTAGE: Members' Final General Meeting Set for Jan. 15 ------------------------------------------------------------ Members of Good Vantage Limited will meet on January 15, 2008, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Dominion Centre, Room 1307-8 43-59 Queen's Road East Wanchai, Hong Kong HENTON ENTERPRISES: Commences Liquidation Proceedings ----------------------------------------------------- Henton Enterprises Limited commenced liquidation proceedings on December 3, 2007. The company's liquidators are: Ho Man Kit Kong Sze Man Unit 511, 5th Floor Tower 1, Silvercord No. 30 Canton Road Tsimhatsui, Kowloon Hong Kong HUNTER PENCIL: Creditors' Meeting Set for January 18 ---------------------------------------------------- Creditors of Hunter Pencil Case Manufactory Limited will meet on January 18, 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: Richmond Commercial Building, 8th Floor 109 Argyle Street Mongkok, Kowloon Hong Kong HYUNDAI DIGITAL: Members' Final General Meeting Set for Jan. 18 --------------------------------------------------------------- Members of Hyundai Digital (HK) Limited will meet on January 18, 2008, 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: 6307 Central Plaza 18 Harbour Road Wanchai, Hong Kong K SOLUTIONS: Members' Final General Meeting Set for Jan. 14 ----------------------------------------------------------- Members of K Solutions Limited will meet on January 14, 2008, at 2:00 p. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Kiu Fu Commercial Building, Office B, 4th Floor 300 Lockhart Road Wanchai, Hong Kong LOYAL BUSINESS: Members & Creditors' Meeting Set for Jan. 15 ------------------------------------------------------------ Members and creditors of Loyal Business Limited will meet on January 15, 2008, at 6:00 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Malaysia Building, Unit 30, 3rd Floor 50 Gloucester Road Wanchai, Hong Kong MERRY VIEW: Proofs of Debt Due by January 14 -------------------------------------------- Creditors of Merry View Investment Limited are required to file their proofs of debt by January 14, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 4, 2007. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce Gloucester Tower, 8th Floor The Landmark 15 Queen's Road Central Hong Kong NHJ (HK) Limited: Members & Creditors' Meeting Set for Jan. 3 ------------------------------------------------------------- Members and creditors of NHJ (HK) Limited will meet on Jan. 3, 2008, at 2:30 p. m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Gloucester Tower, 13th Floor The Landmark 15 Queen's Road Central, Hong Kong PENAR LIMITED: Members' Final General Meeting Set for Jan. 15 ------------------------------------------------------------- Members of Penar Limited will meet on January 15, 2008, 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 Center, 31st Floor 99 Queen's Road Central Hong Kong PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt --------------------------------------------------------------- Petroleos de Venezuela S.A. has prepaid in full on Dec. 14, 2007, all of the outstanding senior indebtedness of the Hamaca heavy oil project in the Faja region of Venezuela. A final prepayment of principal in an aggregate amount of approximately US$340 million, plus interest, was made on December 14, after an initial prepayment of principal in an aggregate amount of US$400 million, plus interest, was made on Nov. 30, 2007. Prepayments were made out of project funds by Corpoguanipa, S.A., a wholly owned subsidiary of PDVSA, and Texaco Orinoco Resources Company, a wholly owned subsidiary of Chevron Corporation. The senior indebtedness consisted of a syndicated bank credit facility, with BNP Paribas as administrative agent, and a bank credit facility guaranteed by the Export-Import Bank of the United States, with Barclays Bank as facility agent. About PDVSA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PLENTY POWER: Members' Final General Meeting Set for Jan. 15 ------------------------------------------------------------ Members of Plenty Power Limited will meet on January 15, 2008, 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: Highgrade Building, Room 402 117 Chatman Road Tsim Shat Sui, Kowloon Hong Kong RESOLUTIONS OF THE WORLD: Creditors Receive Wind-Up Report ---------------------------------------------------------- Creditors of Resolutions of the World Association for Chinese Church Music Limited met on December 7, 2007, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yeung Pak Lun David Room 1701, 17th Floor Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong SENIKU LIMITED: Commences Liquidation Proceedings ------------------------------------------------- Seniku Limited commenced liquidation proceedings on December 3, 2007. The company's liquidators are: Ho man Kit Kong Sze Man, Simone Unit 511, 5th Floor Tower 1, Silvercord No. 30 Canton Road Tsimshatsui, Kowloon Hong Kong SCIENCE ESTHETIC: Proofs of Debt Due by December 29 --------------------------------------------------- Creditors of Science Esthetic Solutions Limited are required to file proofs of debt by December 29, 2007, to be included in the company's dividend distribution. The company's liquidator is: Sytske Helena Maria Teppema Suite 1306, 13th Floor ING Tower 308 Des Voeux Road Central, Hong Kong STAR CRUISES: Moody's Continues to Review B1 Rating --------------------------------------------------- Moody's Investors Service said yesterday it will continue to review the B1 corporate family rating of Star Cruises Limited (SCL) with direction uncertain, pending the final closing of Apollo Management LP's (Apollo) US$1 billion cash investment in NCL Corporation Limited (NCL) for a 50% equity interest. As part of the transaction, Apollo will name a majority of the NCL board, while SCL, which will continue to own the remaining 50% of NCL, will retain certain consent rights. The cash proceeds of the transaction will be used to repay NCL's existing debt and fund upcoming new builds. "Moody's will expect to confirm SCL's B1 corporate family rating with a stable outlook upon completion of the transaction early next year," says Kaven Tsang, Moody's lead analyst for SCL. "The confirmation reflects SCL's improved key financial metrics as a result of the pro-rata consolidation -- rather than full consolidation -- of NCL and, at the same time, factors in the implied support of its major shareholders, particularly Genting Berhad (rated Baa1/Stable)," says Tsang. In its assessment, Moody's -- on a pro-rata basis -- consolidates 50% of NCL into SCL's financial position, given the lower equity interest but, at the same time, incorporates the expectation that NCL will remain a key asset of the company. SCL's projected adjusted debt/EBITDA of around 5.5-6.5x and adjusted EBITDA interest coverage of around 2.5-3x are comparable with mid-B rated companies. The final B1 rating reflects Moody's view of ongoing support, if necessary, for SCL from its shareholders, including Genting, through Resort World Bhd, as the company remains strategically important to the group. Its diversification into gaming in Macau is consistent with the business direction and strategy of the overall group. However, Moody's considers that a one-notch uplift will be more appropriate in view of the continuous reduction in Genting's effective equity interest in SCL. Star Cruises Limited, publicly listed in Hong Kong, is 19.3% owned by Resorts World Bhd, which is, in turn, 49.2% owned by Genting Berhad. SCL operates 21 ships with some 33,300 lower berths under five brands: Star Cruises and Cruise Ferries, which service Asia Pacific, and three brands under NCL. STAR CRUISES: S&P Cuts Long-Term Corporate Credit Rating to B ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Hong Kong-based cruise operator Star Cruises Ltd. to 'B' from 'BB-'. Standard & Poor's also lowered its long-term corporate credit rating on U.S.-based cruise operator NCL Corp. Ltd. (NCL) to 'B' from 'BB-', and its foreign currency rating on NCL's senior unsecured debt of US$250 million due 2014 to 'CCC+' from 'B'. All these ratings remain on CreditWatch with negative implications. "The downgrades reflect Standard & Poor's view that the economic incentive of Malaysia's Genting Bhd. (BBB/Stable/--), to continue supporting them financially is significantly reduced," said Standard & Poor's credit analyst Manuel Guerena. "Standard & Poor's considers that both Star Cruises and NCL have more financial flexibility than their financial figures suggest, and that NCL's financial profile will benefit from the incoming capitalization from Apollo Management L.P. However, these factors only partially offset our perception of the decreased potential support from Genting due to a change in its investment priorities as a result of its interest in the Sentosa Integrated Resort. In August 2007, Star Cruises agreed to a US$1 billion equity injection in NCL by Apollo Management in exchange for a 50% equity interest, with these proceeds to be used to pay down debt. Once the transaction materializes, NCL will cease to be consolidated into Star Cruises and will be accounted for using the equity method. Star Cruises and Apollo Management have also agreed to evaluate the commercial viability of NCL's U.S.-flag Hawaiian cruise operation (with three ships deployed) by no later than Dec. 31, 2008. Genting indirectly owns 19.6% of Star Cruises, while NCL is, until the agreement with Apollo Management materializes, a fully-owned subsidiary of Star Cruises. Star Cruises is the third-largest cruise operator globally, with 22 ships and about 34,700 lower berths. For the nine months ended Sept. 30, 2007, Star Cruises reported consolidated revenues of US$1.96 billion, and a net loss of US$77 million. Of these 22 ships, NCL operates 15, with 29,000 lower berths. For the nine months ended Sept. 30, 2007, NCL had revenues of US$1.72 billion and a net loss of US$94 million. The ratings on Star Cruises and NCL will remain on CreditWatch with negative implications due to the potential consequences of the agreed, but not yet finalized, transaction with Apollo Management. The CreditWatch also reflects these companies' leveraged financial profiles, their vessels replacement needs, and the strong pressure from competitors. "These ratings are expected to be removed from CreditWatch after the materialization of Apollo Management's deal (and subsequent capitalization of NCL and its deconsolidation from Star Cruises) and Standard & Poor's further evaluation of each of these companies' operating and financial evolution," Mr. Guerena noted. "At that point, the ratings on Star Cruises are likely to be affirmed with a stable outlook, while those on NCL are likely to be affirmed with a negative outlook, due to the latter's higher investment requirements." ========= I N D I A ========= DECCAN AVIATION: Accenture Recommends Kingfisher-Deccan Merger -------------------------------------------------------------- Management consultancy firm Accenture, in a report, has recommended the merger of Deccan Aviation Ltd with UB Group's Kingfisher Airlines Ltd, India's The Economic Times reports, citing “sources close to the development.” As previously reported by the Troubled Company Reporter-Asia Pacific, the consulting firm was tapped to find operational synergies between the two airlines. According to The Economic Times, Accenture recommended a merger to fully exploit the two carriers' synergies. The board of UB Group, which owns nearly 46% stake in Deccan, reportedly will be naming a financial consultant to decide on the modalities of the deal. The Times reports its sources discounted the possibility of a reverse merger -- Kingfisher merging into Deccan -- because of tax implications. Accenture's report further proposed to spun off Deccan’s charter division into a separate company, the news agency adds. In a meeting yesterday, the UB Group board, after considering the report, decided that Kingfisher will absorb Deccan, Bloomberg News reports. The merged entity, 51% of which UB holding will own after the merger, will be traded as Kingfisher Airlines, Bloomberg says, citing Vijay Mallya, chairman of the UB Group, as saying. Mr. Mallya told the news agency that the stock-swap ratio of the merger, which combination is expected to be completed by March 31, is to be decided after the valuation is complete in four-five weeks. 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: Commodity Costs Spark Price Increase on '08 Cars ---------------------------------------------------------------- General Motors Corp. disclosed a price adjustment on most of its 2008 model year vehicles to partially recover increasing steel and commodity costs. The price increases, averaging about 1.5%, are effective with vehicles invoiced to dealers on and after Dec. 19, 2007. “This targeted price increase is designed to partially recover ever-increasing commodity costs,” Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing, said. “While most cars and trucks in our portfolio will go up between 100 to 500 dollars, in hotly contested segments, many vehicles such as the Saturn Aura four-cylinder and the all-new Malibu LS will have no increase. With our award-winning designs and the best warranty coverage of any full-line manufacturer, our 2008 vehicles remain the best value in the market place.” Price increases will range from US$0 on the 2008 Chevrolet Malibu LS to US$1,500 on the Cadillac XLR luxury sports coupe. Importantly, this price increase will not affect vehicles already in dealer inventory, which continue to be available to customers until the end of the year during the GM Red Tag Event. 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. GENERAL MOTORS: Begins 1st Phase of UAW Attrition Program --------------------------------------------------------- General Motors Corp. and the United Auto Workers union have reached an agreement on the first phase of a comprehensive special attrition program. The agreement is a key step in the implementation of the 2007 GM-UAW national contract. In the first phase, the attrition program will be offered to all UAW-represented hourly employees working at GM’s Service Parts and Operations facilities across the country. The program also will be offered to hourly employees at GM’s metal stamping plant in Pittsburgh, Pennsylvania, casting plant in Massena, New York and to all hourly employees currently assigned to JOBS Banks in Oklahoma City, Oklahoma, Linden, New Jersey and Rancho Cucamonga, California. Special attrition program details for UAW-represented hourly employees who work in GM’s assembly, stamping, powertrain and engineering facilities will follow in early 2008. "We continue to work closely with our UAW partners to improve our competitiveness in the currently challenging U.S. market conditions, while also investing in future products and technologies critical to support our leadership in fuel economy," Rick Wagoner, GM Chairman and CEO, said. "This first phase of a comprehensive attrition program, designed in conformance with the 2007 UAW national labor agreement, provides our employees with attractive options to consider." The attrition program will include a combination of early retirement incentives and other considerations similar to the special attrition program that GM, the UAW and Delphi implemented in 2006. Specific program details will be rolled out to affected employees beginning in January 2008. 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. GENERAL MOTORS: Lays Off 800 Tonawanda Workers Before Schedule -------------------------------------------------------------- The tentative displacement of 800 hourly production workers at General Motors Corp.'s Powertrain engine plant in the town of Tonawanda in New York, came a week before its scheduled shuttering for the holidays from Dec. 22, 2007 to Jan. 2, 2008, various reports say. Papers say that GM spokeswoman Mary Anne Brown assured salaried and skilled trade workers were not included in the lay-offs. GM relates that low market demand for car parts is the cause of the carmaker's streamlining action, reports disclose. As reported in the Troubled Company Reporter on Dec. 7, 2007, to avoid a deluge of inventory, GM will close three pickup truck plants for two weeks in January. Aside from that, GM plants will also be closed over the holiday. GM anticipates a production of 950,000 vehicles from January through March, down 11% from the same period in 2007. 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. Cash Incentives GM is initiating a cash incentive program for pickups and sports utility vehicles to increase sales, various papers relate. The program offers US$1,000 cash on 2008 models of GMC Yukon, Pontiac Torrent SUVs and Chevrolet Silverado pickups, Greg Bensinger of Bloomberg News reports citing GM spokesman John McDonald. As reported in the Troubled Company Reporter on Dec. 4, 2007, after three consecutive monthly increases, General Motors Corp. dealers in the United States delivered 263,654 vehicles in November, down 11% compared with a year ago, reflecting continuing reductions in daily rental sales and softening industry demand. About GM 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. GLOBAL BROADCAST: Consolidates w/ Hindi News Channel IBN-7 ---------------------------------------------------------- Global Broadcast News Ltd's board of directors, at a meeting yesterday, approved the consolidation with 24-hour Hindi news channel IBN-7 with the company pursuant to a Scheme of Arrangement with BK Fincap Pvt Ltd and Jagran TV Pvt Ltd (the owner and broadcaster of 24hrs Hindi news channel). The company disclosed the complete consolidation of the IBN-7 Channel with the company. The Channel is currently housed in a joint venture with Gupta family, the promoters of Dainik Jagran. BMR Advisors acted as the transaction and financial advisors for the consolidation, which is still subject to relevant regulatory and stakeholder approvals. Pursuant to the consolidation, 1,467,390 equity shares of INR10 each of the company (being 4.45% at the company's Capital on a fully diluted basis after effect of the Scheme and the exercise of 3,000,000 warrants by the promoters) will be issued to the Gupta family in consideration of the consolidation. A further 1,793,478 equity shares of INR10 each of the company will be held in a Trust -- which Trust will be capable of monetizing the stake, for the benefit of the company's shareholders. The board also gave its nod to the proposal to split the nominal value of the equity share of the company from the present INR10 per share to INR2 per equity share, resulting in a 5 for 1 stock split. The stock split will be subject to shareholders approval, which will be sought through a postal ballot and will then apply in respect of the shares to be issued on the consolidation as well. The company, currently listed on the Bombay Stock Exchange and National Stock Exchange, owns and operates one of India's leading 24-hour English language news and current affairs channel, CNN IBN, and is a market leader in this category. The Company is also entering the regional news space with the launch of a Marathi news channel with Lolcniat Group. The consolidation is part of the vision of the company to emerge as an integrated player in the Indian General News Broadcasting Segment having news and current affairs channels in various languages. Headquartered in New Delhi, Global Broadcast News Limited -- http://www.ibnlive.com/-- owns and operates a 24-hour English language news and current affairs channel called CNN-IBN. CNN- IBN was launched in December 2005. The Company has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce, inter alia, the CNN name and principal logo. It also has news services agreement with Turner for production and broadcasting services. It is also part of the TV 18 group, which owns and operates some business channels and Internet portals. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Global Broadcast had a stockholders' deficit of US$30.6 million. IFCI LTD: Board Rejects Sterlite-Morgan Stanley Consortium Offer --------------------------------------------------------------- IFCI Ltd's board of directors, at its recent meeting, rejected the financial proposal submitted consortium of Sterlite Industries and Morgan Stanley and Co. for the 26% stake in the company, a filing with the Bombay Stock Exchange revealed. According to the company, the consortium's offer was conditional and the board unanimously decided that the conditional offer is not acceptable. The rejection came after news that the Sterlite-led consortium has emerged as the front-runner to acquire 26% stake. The Economic Times, citing unnamed sources close to the development, previously reported that the consortium offered a INR107-per- share minimum price at which institutional shareholders will convert their debt into equity. According to ET's sources, the Sterlite consortium was the only bidder to be invited on Monday evening for discussions since the bids made by the other two consortia have many conditions attached. The Troubled Company Reporter-Asia Pacific reported on Dec. 5, 2007, that four bidders for the stake, including the Sterlite- Morgan Stanley consortium, have carried out due diligence. The three other firms were: -- WL Ross, US Capital Partners VI Fund, Standard Chartered Bank and HDFC. -- Cargill Financial Services Corporation and Texas Pacific Group -- Shinsei Bank Ltd, PNB and JC Flowers & Co. From four, the number of bidders later narrowed down to three after the consortium led by WL Ross opted out without submitting a financial bid, ET relates. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. KINETIC ENGINEERING: To Raise INR100.01 Cr. for Expenses -------------------------------------------------------- Kinetic Engineering Ltd's board of directors has decided, at its meeting on Dec. 18, 2007, to raise INR100.01 crore by issuing convertible securities on preferential basis and/or convertible securities in foreign currency, a filing with the Bombay Stock Exchange discloses. According to the company, the funds will be used to meet the company's requirement of funds for capital expenditure and working capital. Accordingly, the board has formed a committee of board members, authorizing it to take all decisions regarding the plan. The committee will schedule a general meeting of the company's shareholders to seek their approval of the move. Subject to obtaining approval from shareholders, the board intends to issue Optionally Convertible Cumulative Preference shares to M/S Micro Age Instrument Pvt Ltd on preferential basis as per the SEBI Guideline for a value of INR13.50 crore. Also during the Dec. 18 meeting, the board approved to extend the company's current financial by an additional three months, so as to end it on March 31, 2008. The board has deferred considering a scheme of merger between the company and Jay Hind Sciaky Ltd (JHS) for next board meeting. India-based Kinetic Engineering Ltd. -- http://www.kineticindia.com/-- is an automobile manufacturer, which specializes in two wheelers. The company has sold over 6 million vehicles in India. Kinetic has brought to India technologies, such as four valve engines, electric start on scooters and motorcycles, v-twin engines and upside down (USD) forks. The company offers top-end bikes, such as Comet and Aquila. It has a nationwide network of nearly 450 dealers and over 1,000 service centers. Kinetic exports vehicles to the United States, Canada, Latin America, Europe, Africa, Middle East and South Asia. For the 15 months ended Dec. 30, 2006, the company booked a net loss of INR432.9 million. For the period Apr. 1, 2004, to Sept. 30, 2005, the company incurred a net loss of INR549.6 million. NAVISTAR INT'L: Unit Names Steve Bruford as Vice President ---------------------------------------------------------- International Truck and Engine Corporation, a subsidiary of Navistar International Corporation, has appointed Steve Bruford as its vice president of global product creation for its truck group. Bruford will provide engineering and product development leadership for all of Navistar's truck product lines and will reside at Navistar's Truck Development and Technology Center in Fort Wayne, Ind. He will report to Ramin Younessi, vice president, business and product operations. "Steve brings to our company a distinguished reputation in the field of automotive and commercial vehicle engineering," said Dee Kapur, president, Truck Group, International Truck and Engine Corporation. "His extensive product development knowledge and experience in global program management will help us continue to develop great products for customers all over the world." With more than 29 years of global product development experience in all fields of automotive engineering and commercial vehicle design as well as the defense industry, Bruford has performed in a number of executive level assignments prior to joining Navistar. He has served in supplier roles as well as a vertically integrated OEM and holds 19 design patents. Bruford received his bachelor's degree in mechanical engineering from Loughborough University in Loughborough, England. In addition, he holds a master's in science from Hertfordshire University in Hatfield, England. About International Truck A wholly owned subsidiary of Navistar International Corporation (Other OTC: NAVZ), International Truck and Engine Corporation is a leading producer of medium trucks, heavy trucks, severe service vehicles, MaxxForce brand diesel engines, parts and service. International and its affiliates sell their products, parts and services through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico and from more than 60 dealers in 90 countries throughout the world. About Navistar International Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members --------------------------------------------------------------- The seven-week strike against International Truck and Engine Corporation, a subsidiary of Navistar International Corporation, ended on Dec. 16, 2007, as members of the United Auto Workers approved new three-year labor agreements that will yield operational flexibility and cost improvements at nine company locations. The contract was ratified by a majority of UAW members in a vote conducted this weekend. The new contracts take effect immediately and run until Oct. 1, 2010. "We expect the new agreements to result in operational and cost improvements at these facilities while maintaining a good quality of life for our employees and retirees," Dan Ustian, chairman, president and chief executive officer of Navistar, said. "This deal represents a positive step forward for these facilities." The agreements were ratified after more than two years of periodic negotiations between company and UAW leaders. The UAW chose to strike on Oct. 23, 2007, and the company utilized its diversified operations and resources effectively so that customers were unaffected by the UAW strike. "With extraordinary efforts and planning, we met all delivery schedules and as a result, we are well positioned as a business going forward," Mr. Ustian said. Navistar's preliminary unaudited manufacturing cash and marketable securities balance as of Oct. 31, 2007 was US$695 million. "We have maintained our focus on executing our business strategies," Mr. Ustian said. "We have the liquidity and lines of credit available to continue to fund our growth plans to capitalize on market opportunities. The new contract will help the company to reach its previously announced goals for 2009 revenues and operating segment margins." Outstanding products and a competitive cost structure will be the basis for Navistar's continued success, Mr. Ustian continued. "All our operations must be structured to succeed against any competitor and in any market condition. Our ability to compete effectively is important to both our shareholders and to our employees. True job security comes only through competitiveness." These summarizes some key competitive changes and provisions in the new contracts: * significant improvements in operational flexibility and cost structure, while maintaining operational improvements from prior contracts; * elimination of restrictive and costly minimum employment level requirements; * increased health care cost sharing; * ability to shed non-core work; * improved new hire package; * ability to close/sell specific locations if business needs dictate; and * "Living Operating Agreement" that facilitates ongoing improvements. In addition, the UAW has dropped all unfair labor practice charges previously filed with the National Labor Relations Board, which the UAW communicated were the basis of its strike. The UAW represents approximately 3,700 employees at nine International facilities in Indianapolis, Indiana (engine assembly and foundry), Melrose Park, Illinois (engine assembly and engine engineering), Springfield, Ohio (truck assembly), Atlanta, York (Pennsylvania) and Dallas (parts distribution centers) and Fort Wayne, Indiana (truck engineering). Total worldwide employment at the company is more than 16,000. About International Truck and Engine International Truck and Engine Corporation, a wholly owned subsidiary of Navistar International Corporation, produces medium trucks, heavy trucks, severe service vehicles, MaxxForce brand diesel engines, parts and service. International and its affiliates sell their products, parts and services through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico and from more than 60 dealers in 90 countries throughout the world. About Navistar International Headquartered in Warrenville, Illinois, Navistar International Corporation (Other OTC: NAVZ) -- http://www.navistar.com/-- is a holding company whose wholly owned subsidiaries produce International(R) brand commercial trucks, MaxxForce brand diesel engines, IC brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. RPG LIFE: Bombay Court Approves Scheme of Arrangement ----------------------------------------------------- The Bombay High Court has sanctioned the the Scheme of Arrangement entered into among RPG Life Sciences Ltd, RPG Pharmaceuticals Ltd, Instant holdings Ltd and Instant Trading and Investment Company Ltd, the company informed the Bombay Stock Exchange. A copy of the order, however, is yet to be received, RPG Life noted. The Scheme will took effect after the receipt of the copy of the Bombay Court order. The scheme, according to a TCR-Asia Pacific report on June 28, 2007, provides for these terms: 1. Sale of pharmaceuticals business to RPG Pharmaceuticals for INR46 crore. This consideration will be discharged in the form of equity shares of INR11,49,50,800 representing 1,43,68,850 equity shares of INR8 each fully paid-up at an aggregate premium of INR34,50,49,200. The appointed date for the same is April 2, 2007. The shares of RPG Pharmaceuticals will be issued to the members of the company in the ratio of 1:1. 2. Sale of investments of the company to Instant Holdings for a consideration of INR53 crore. This consideration will be discharged by Instant Holdings in the form of equity shares of INR9,95,00,000 representing 99,50,000 equity shares of INR10 each fully paid-up at an aggregate premium of INR43,05,00,000. The appointed date for the same is April 1, 2007. These shares will be issued to the company. 3. Merger of Instant Trading with Instant Holdings. Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. ================= I N D O N E S I A ================= INDOSAT: Temasek Files Appeal Against Court Ruling -------------------------------------------------- PT Indosat Tbk's shareholder, Singapore state investment arm Temasek Holdings, filed an appeal against an Indonesian court ruling that said it broke antitrust laws through stakes in the country's two biggest mobile-phone operators, various reports say. An analyst at DBS Vickers Research Singapore told Bloomberg News that Temasek will use the legal process to appeal the ruling and the worst-case scenario is a tariff cut will be imposed on the Indonesian mobile-phone companies. According to Reuters, Temasek Managing Director of Corporate Affairs Myrna Thomas said the appeal was filed with the District Court of Central Jakarta and a ruling is expected within 30 days. As reported by the Troubled Company Reporter-Asia pacific on Nov. 23, 2007, Temasek Holdings was found guilty by the Business Competition Monitoring Commission (KPPU) of violating Indonesia's anti-monopoly laws. Temasek violated the country's anti-monopoly laws through its ownership in PT Indosat Tbk and PT Telekomunikasi Selular Indonesia. The TCR-AP related that KPPU ruled that Temasek must sell its minority stake in either Telekomunikasi Selular or Indosat. Syamsul Maarif, KPPU commission assembly chairman, reportedly said the shares must be sold within two years at the maximum since the decision has legal grounds. Bloomberg notes that Todung Mulya Lubis, the Jakarta-based lawyer representing Temasek, said Indonesia's regulator has "no legal authority" to order the divestment of the stakes. KPPU also ruled that Temasek's units should also pay IDR25 billion in fines. Furthermore, Mr. Maarif said Temasek should also let go of the voting rights and the right to install a commissioner director in one of the companies to be released. Temasek told Agence France-Presse that it is not guilty of breaking anti-monopoly laws and vowed to fight the KPPU ruling. Furthermore, Kevin Lim of Reuters writes that Temasek disputed the findings, noting its indirect stake in Telkomsel is smaller than the Indonesian government's. Ms. Thomas was quoted by AFP as saying, "The case against Temasek is baseless and totally without merit. We are filing an appeal to demonstrate that there is no basis for the KPPU decision and to ensure that Temasek's legal rights under the laws of Indonesia are respected at all times." About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. MEDCO ENERGI: Consortium Finishes Execution of Project Contracts ---------------------------------------------------------------- The Medco-Ormat-Itochu Consortium, which consists of Medco Energi Internasional Tbk; Ormat International Inc., a subsidiary of Ormat Technologies, Inc.; and the Itochu Corporation, completed the execution of the project documents for the 340 MW Sarulla Geothermal Project in Indonesia. The Consortium signed an Amendment to the Joint Operating Contract with PT Pertamina Geothermal Energy, a wholly owned subsidiary of the Indonesian state-owned oil and gas company PT Pertamina, and, together with PGE, signed the Amendment to the Energy Sales Contract with PT Perusahaan Listrik Negara. The Consortium and PLN executed a Deed of Assignment, whereby PLN assigned and transferred to the Consortium the rights and obligations under the JOC and ESC. The Project, located in Tapanuli Utara, North Sumatra, represents the largest single-contract geothermal power project to date, and is a reflection of the large scale, high productivity and potential of Indonesian geothermal resources. The Project will be owned and operated by the Consortium members under the framework of the JOC with PGE, and is to be constructed in three phases, consisting of Ormat designed and supplied power generating units of 110 to 120 MW each, over the next five years. The first unit is scheduled to commence operation within 30 months of financial close, which is expected by the end of 2008. The remaining two units are scheduled to commence operation in stages within 18 months after the first unit's scheduled commissioning. The total project cost is expected to be approximately US$800 million, and it is expected that the Japan Bank for International Corporation will provide the majority of the project financing based on the Umbrella Note of Mutual Understanding signed between the Ministry of Finance of Indonesia and JBIC. Ormat's equity participation shall initially be 25%, and may be reduced to not less than 12.75%. Power delivered by the project will serve the base load of PLN's North Sumatra -- Aceh grid system and annual electricity sales revenue from the project is anticipated to be approximately US$115 million when the full capacity is attained. The value of Ormat's scope of supply for the project is expected to be over US$250 million. Lucien Bronicki, Chairman and CTO of Ormat Technologies, stated, "The execution of the Sarulla project documents is an important landmark for Ormat, as we will be providing our technology to Indonesia for the first time. We congratulate the teams of PLN and Pertamina, as well as our Consortium partners Medco and Itochu, and express our appreciation for their efforts that have contributed to the Consortium achieving this milestone. Our commitment to the development of geothermal resources in Indonesia is strong and we are pleased to be sharing our long experience in constructing and operating geothermal plants. Ormat's air-cooled geothermal Combined Cycle technology, well proven over the last 15 years, is particularly suited to assure maximum utilization of the Sarulla resource in a sustainable manner." Dita Bronicki, CEO of Ormat Technologies, added, "The signing today of the project documents is a significant milestone in the development of the Sarulla project. While the project is still subject to the uncertainty of the closing of financing, encouraged by the interest shown in financing this project by JBIC and other institutions, the Consortium shall make pre- development investments estimated at approximately $15 million before financial closing." About Ormat Technologies Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal and recovered energy- based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by more than 70 patents. Ormat currently operates the following geothermal and recovered energy-based power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna, Steamboat and OREG 1; in Guatemala -- Zunil and Amatitlan; in Kenya -- Olkaria; and in Nicaragua -- Momotombo. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). TELKOM INDONESIA: Unit to Buy 80% of Sigma Cipta ------------------------------------------------ PT Telekomunikasi Indonesia's unit PT Multimedia Nusantara has signed a sale and purchase deal to buy an 80% stake in PT Sigma Cipta Caraka, Thomson Financial reports. According to the report, Sigma Cipta specializes in providing services like software development and customization, network and system integration, and Internet access mainly for the banking sector. Telkom told the news agency that the legal closing of the deal is expected to be completed in February 2008. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings affirmed Telekomunikasi Indonesia's Long-term foreign and local currency Issuer Default Ratings at 'BB-'. ========= J A P A N ========= ALITALIA SPA: Air France Offers EUR750 Million Capital Injection ---------------------------------------------------------------- Air France-KLM confirms its determination to support Alitalia S.p.A. in its recovery and to relaunch it as a strong national flag carrier with world coverage. The enlarged Group will then be able to rely on three strong, complementary brands providing customers with an unparalleled network. Air France confirms that it has made a non-binding offer: -- to acquire 100% of the shares of Alitalia through an exchange offer; -- to acquire 100% of Alitalia convertible bonds; and -- to immediately inject at least EUR750 million into Alitalia through a capital increase that will be open to all shareholders and be fully underwritten by Air France. A large part of this investment will be used to support a huge relaunch program with cabin reconfiguration at the top of in flight products (seats, interior design, entertainment,) and ground services to restore Alitalia's international image as a major airline and to convey the Italian flag and values all over the world. As the world's leading airline group, with a strong commercial position in most regions, Air France will support Alitalia in restoring and recovering its natural position and market share. In addition, Alitalia's fleet renewal is Air France's top priority and the Group has assessed that it will proceed with the full renewal of the MD80 short/medium-haul fleet and the B767 long-haul fleet. After the recovery phase, further investments will ensure the growth of the fleet, and enable Alitalia to expand its network from a healthy position. Air France's Recovery and Relaunch Plan will not add any more redundancies to Alitalia's current plan. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Outlines Criteria for Selecting Preferred Buyer ------------------------------------------------------------- The Italian Stock Exchange Controller CONSOB requested Alitalia S.p.A., to disclose details regarding the task of examining the non-binding offers received by the advisor Citi and presented at the latest Board meeting. Alitalia says the appraisal of the offers will focus primarily on their industrial content, as well as on the financial contents of the offers. In particular, Alitalia's attention will focus on these main aspects: -- the ability to carry out the restructuring of Alitalia creating conditions of sustainability for the Company in the medium-long term, together with a fast inversion of the current loss trend, w