T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, December 21, 2007, Vol. 10, No. 253 Headlines A U S T R A L I A AUSTAR UNITED: Posts AU$46 Million EBITDA for 3rd Quarter CARDNO LTD: Expects Profit to Rise 30% to 40% CENTRO NP: Fitch Junks Issuer Default Rating CENTRO PROPERTY: Funds Suspend Applications and Withdrawals CROWN CASTLE: S&P Downgrades Corporate Credit Rating to BB- FORTESCUE METALS: Seeks Loans From Chinese Banks for Expansion FORTESCUE METALS: Solomon Project to Yield 700M Tonnes Iron Ore FORTESCUE METALS: Shareholders OK Share Split to Aid Liquidity MOBIUS FINANCIAL: Fitch Holds AU$12.1MM Class D Notes' BB Rating MOBIUS FINANCIAL: Fitch Holds AU$7.7MM Class F Notes' B Rating SCO GROUP: Names Jeff Hunsaker as SCO Operations President & COO ZINIFEX LTD: Strike Ends at Two Nyrstar Belgian Plants C H I N A , H O N G K O N G & T A I W A N BEST RESOUORCES: Creditors' Proofs of Debt Due on December 28 CHINA SOUTHERN: Raises Fuel Surcharge on International Routes CITICHEM INT'L: Members Will Hold Final Meeting Today CONMAT ARCHITECTS: Court to Hear Wind-Up Proceedings on Jan. 2 CUMMINS INC: Components Group President Rick Mills Will Retire CUMMINS INC: Urges Shareholders to Reject Mini-Tender Offer DP EDUCATION: Members' Final General Meeting Set for January 14 FUJIAN PROVINCE: Pays Final Preferential Dividend GREENTOWN CHINA: Buys 58% of Zhoushan Project for CNY331 Million JOWIN ELECTRONICS: Court to Hear Wind-Up Proceedings on Jan. 2 KING DRAGON: Court to Hear Wind-Up Proceedings on Jan. 9 PETROLEOS DE VENEZUELA: Forming Joint Venture With Eni & Ine REXEL SA: Confirms EUR3.1 Bln Recommended Offer for Hagemeyer NV SOCIETE GENERALE: Members' General Meeting Set for Jan. 15 WAH SZE: Court to Hear Wind-Up Proceedings on Jan. 2 WENG HENG: Pays Final Dividend WISE LINKAGE: Members' Final General Meeting Set for Jan. 15 YES CLUB: Members & Creditors' General Meeting Set for Jan. 15 * Moody's Sees Stable Outlook for Taiwanese P&C Insurers I N D I A AGILENT: Maspro TV-Receiver Design to Use Genesys & GX Software ARTSON ENGINEERING: BIFR Approves Draft Rehabilitation Scheme DECCAN AVIATION: Board Unanimously Approves Kingfisher Merger DRESSER-RAND GROUP: Inks US$50MM Blanket Purchase Order w/ PEMEX IFCI LTD: Calls Off 26% Stake Sale; Shares Plummet NOVELL INC: Posts US$13MM Loss for Quarter Ended Oct. 31 QUEBECOR WORLD: S&P Lowers Long-Term Corp. Credit Rating to CCC QUEBECOR WORLD: Jacques Mallette Succeeds Wes Lucas as CEO TATA TELESERVICES: Finance Panel OKs US$6.1MM Bond Conversion I N D O N E S I A AFC ENTERPRISES: James Lyons Leaves Chief Operating Officer Post AVNET INC: Completes Acal IT Solution Acquisition for US$200MM BANK NISP: Fitch Affirms Long-Term Currency IDR at 'BB-' BANK UOB: Fitch Affirms Short-Term Foreign Currency IDR at 'B' BERLIAN LAJU: Fitch Downgrades Long-Term Currency IDR to 'B+' BERLIN LAJU: Gets Go Signal to Acquire Chembulk Tanker CA INC: Fitch Affirms Issuer Default & Debt Ratings at BB+ HILTON HOTELS: Unit Hires Joseph Palmieri as General Manager INDOSAT: Government Gets Chance to Buy Back Company Stake MEDCO ENERGI: Signs Joint Venture Deal to Build LNG Plant PAKUWON JATI: Fitch Affirms Issuer Default Ratings at 'B' PHILLIPS-VAN: Good Performance Cues Moody's to Hold Ratings J A P A N FLOWSERVE CORP: Gayla Delly Joins Board of Directors JAPAN AIRLINES: Speeds Up Restructuring Programs KOBE STEEL: Waning Net Debt Cues Fitch to Raise Ratings to BBB- SANWA FINANCE: S&P Cuts Rating on Pylos II Notes to 'BB+' K O R E A ARROW ELECTRONICS: Expands Distribution Agreement With Delta DYNCORP INT'L: Bags Airlift Wing Support Contract for US$357.9MM LG TELECOM: To Invest KRW346.7 Billion on Network Improvement M A L A Y S I A HARVEST COURT: Shareholders OK All Resolutions Presented at EGM MERGE ENERGY: Discloses Change in Audit Committee N E W Z E A L A N D AIR NEW ZEALAND: To Launch In-Flight Concierge Service in April P H I L I P P I N E S ATLAS CONSOLIDATED: Acquires 809.162 Mil. Common Shares in Unit BANCO DE ORO-EPCI: Sees PHP7-Billion Net Income for 2007 BANCO DE ORO-EPCI: To Refinance US$200-Mil. Senior Notes in 2008 BENGUET CORP: Major Stockholders to Acquire Additional Shares CHIQUITA BRANDS: Discloses Rule 10b5-1 Stock Trading Plan MANILA ELECTRIC: ERC Bars Proposed Increase in Cost of Capital METROPOLITAN BANK: Ties Up With Aboitiz to Build Power Plant NAT'L POWER: PSALM Postpones Sale of Two Plants for Next Year S I N G A P O R E AAA CORP: Releases Second Quarter Financial Report for FY2008 AFFYMETRIX INC: Invests US$75MM to Acquire USB Corporation CHEMTURA CORP: Will Review Strategic Alternatives T H A I L A N D DOLE FOOD: Weak Performance Prompts Moody's to Rewiew Ratings ITV PCL: Court Questions Government's Takeover of Assets * Moody's Says Liquidity May Weaken Asia Credit Quality * Fitch Says AP Structured Finance Outlook Largely Stable in '08 * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= AUSTAR UNITED: Posts AU$46 Million EBITDA for 3rd Quarter --------------------------------------------------------- Austar United Communications released its unaudited results for the third quarter, ended September 30, 2007, demonstrating exceptional growth in both financial and operational metrics. For the three months ended September 30, 2007: * Revenue increased 13% to AU$145 million; * Gross margin increased 11% to AU$79 million; * EBITDA increased 33% to AU$46 million; * Net gain of 18,959 subscribers; * Total residential television ARPU up 2.5% to AU$76.33; and * Quarterly churn down 0.05% to 1.10%. AUSTAR continued to attract new customers in regional Australia, with total television subscribers increasing by 18,959 to 658,087 for the quarter. ARPU increased 2.5 percent to AU$76.33 compared with the same period last year. Churn, meanwhile, dropped to one of its lowest levels in over five years, to just 1.10%. Chief Executive Officer, John Porter, said: "Three consecutive quarters of over 18,000 customer additions demonstrates strong and sustainable growth; not only are we attracting new customers but our current base is clearly with us for the long term. "We recognize that continuous innovation and improvement are key elements to ensuring our customers stay satisfied," he continued. "In the fourth quarter we will introduce three new channels to the service: premium drama channel, Showcase, international sports provider, Setanta, and the national indigenous channel, NITV." Earnings before interest, taxation, depreciation and amortization (EBITDA) for the three months increased by 33% to AU$46 million compared to the previous corresponding period, reflecting an 11 percent increase in gross margin to AU$79 million and a 9 percent decrease in operating expenses to AU$32 million. Mr. Porter continued, "Disciplined cost control has long been a key part of AUSTAR’s business strategy. Our ability to acquire new subscribers using more cost-effective channels such as online, as well as our use of technology to drive down service costs, has resulted in a significant decrease in operating expenses for the quarter. We expect to keep operating expense growth on par with, or below, CPI for 2007." Profit before interest, tax and significant items was AU$26 million for the three months, a 23 percent increase on the same period in 2006. The 27 percent increase in capital expenditure for the quarter reflects continued investment in future earnings with the majority of expenditure relating to subscriber growth, upgrades to satellite equipment and pre- purchase of MyStar boxes prior to its launch later this year. Operating cashflow for the 9 months ending September 30 was up 16 percent to AU$98 million. AUSTAR has meanwhile recently announced an historic arrangement with each of its commercial network colleagues, which will give MyStar customers all the benefits of the digital experience for their local commercial channels as well as their AUSTAR channels. Mr. Porter said, "Australia’s free-to-air networks will provide information for MyStar’s digital Electronic Program Guide, meaning that for the first time, customers who subscribe to MyStar will be able to enjoy its technical benefits, such as one-touch record, live-pause and playback, with their local free-to-air channels. We genuinely value our relationship with each of these channels, and look forward to a long working relationship with them. "As a direct result of this agreement, regional Australians will have the ability to view their local, free-to-air digital channels seamlessly with their AUSTAR." About Austar United New South Wales, Australia-based Austar United Communications Limited -- http://www.austarunited.com.au/-- is a subscription television provider, offering primarily digital satellite services to customers in regional and rural areas in Australia. AUSTAR also offers dial-up Internet and mobile phone services. The company has two business segments: Subscription services and Radio spectrum licenses. Subscription services represent subscription television distribution operations, Internet, interactive television and mobile telephony operations and license fee income. Radio spectrum licenses represent income and gains earned from the leasing of radio spectrum licenses. As of September 30, 2006, the company had a net debt standing of AU$486.4 million. The Troubled Company Reporter-Asia Pacific, on December 14, 2007, included in its "Large Companies With Insolvent Balance Sheets" Column, Austar United Communications Ltd., with US$411.16 million in assets and US$43.72 million in stockholders' equity deficit. CARDNO LTD: Expects Profit to Rise 30% to 40% --------------------------------------------- Cardno Limited expects to report a 30% to 40% increase in net profit after tax for the half year ending December 2007, in comparison with the AU$8.3 million result for the corresponding period in 2006. The current profit estimate is based on unaudited management results and current forecasts. Cardno Managing Director Andrew Buckley said that the improved profit performance was based on the continuation of strong trading conditions and the contribution from acquisitions completed in the previous financial year. John Winters of Egoli News reports that Cardno's newly acquired business, Cardno Buckland, was expected to contribute more than AU$6 million in revenue annually. Cardno earlier in the year acquired Buckland Engineers, a Perth-based structural and civil engineering consultancy, Mr. Winters relates. Egoli adds that Cardno completed in November a share placement to raise AU$42 million to be used to strengthen the company's capacity and flexibility to pursue its acquisition and growth strategy and to reduce debt. About Cardno Ltd. Headquartered in Queensland, Australia, Cardno Limited -- http://www.cardno.com.au/-- is an integrated professional services provider in the physical and social infrastructure sectors. The Company's services include civil engineering consultancy, management and environmental services, as well as project management of international development assistance programs. Its physical infrastructure capabilities include building and property; coastal, ocean and marine; environment and water; urban development; transport, and water and wastewater management. Its social infrastructure services include solutions in education, governance, healthcare, environmental and natural resource management, and post-conflict restoration. During the fiscal year ended June 30, 2006, it acquired EOP Holdings Pty Ltd, Agrisystems Limited, Barton Enterprises Pty Ltd and its subsidiaries. In April 2006, the Company acquired the professional services firm, Forbes Rigby, and in September 2006, it acquired Stanwill Consulting Engineers. The Troubled Company Reporter-Asia Pacific's December 4, 2007, Distressed Bonds column listed Cardno Limited's bond with a 9.000% coupon, a June 30, 2008 maturity date, and a trading price of AU$7.50. CENTRO NP: Fitch Junks Issuer Default Rating -------------------------------------------- Fitch Ratings has downgraded the ratings for Centro NP LLC (formerly New Plan Excel Realty Trust): -- Issuer Default Rating (IDR) to 'CCC' from 'BBB+'; -- US$350 million revolving bank credit facility to 'CC/RR6' from 'BBB+'; -- US$830 million senior unsecured notes to 'CC/RR6' from 'BBB+'. Centro NP LLC remains on Rating Watch Negative by Fitch. Fitch has withdrawn its New Plan Excel Realty Trust preferred stock rating as these securities were redeemed in connection with the acquisition of New Plan by affiliates of Centro Property Group. The downgrade of Centro NP LLC ratings is due to the financial difficulties of the entity's Australian based parent company Centro Property Group (CNP) in connection with the refinancing of over US$2.3 billion of indebtedness due to dislocations in the credit markets. CNP has negotiated an extension on its maturing facilities to Feb. 15, 2008; however, given the current state of the credit markets, there is a great deal of uncertainty surrounding CNP's ability to refinance this indebtedness. Centro NP bondholders are protected by several financial covenants in its bond indentures including total debt to total historical book assets less than 65%; debt service coverage ratio greater than 1.5 times (x); secured debt to total historical book assets under 40% and unencumbered historical book assets to unsecured debt greater than 1.0x. However, Fitch is concerned that Centro NP assets could be consolidated in a CNP liquidation scenario and the covenants waived. The ratings concerns center on CNP liquidity issues and do not pertain to the operating performance of Centro NP. The portfolio of needs-based, grocery-anchored shopping centers across the U.S. is performing well and expected to be well positioned in an economic slowdown. The strong geographic and tenant diversity of the portfolio helps insulate the company from regional downturns or tenant credit deterioration. Furthermore the company has seasoned executive and regional management teams and a strong regional infrastructure. Fitch expects the Rating Watch Negative will be resolved once there is more clarity regarding CNP's financial stability. Centro NP is a US$5.9 billion total assets real estate company focusing on the ownership, management and development of community and neighborhood shopping centers. Centro NP operates a national portfolio of community and neighborhood shopping centers across the U.S. with approximately 67 million square feet of GLA. Centro Properties Group is a Melbourne-based company (ASX: CNP) focusing on the ownership, management, and development of retail shopping centers. Centro has AU$26.6 billion of retail property assets. Fitch's Recovery Ratings (RR) are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. 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. CENTRO PROPERTY: Funds Suspend Applications and Withdrawals ----------------------------------------------------------- Centro MCS Manager Limited, as Responsible Entity for Centro Direct Property Fund and Centro Direct Property Fund International, has suspended applications and withdrawals from both Funds as a result of announcements made by Centro Properties Group. The Responsible Entity believes this to be in the best interests of investors in the Funds. Both the DPF and the DPFI currently have significant investments in Centro’s managed funds. The issues outlined in Centro’s ASX announcement may lead to a significant increase in withdrawals from the Funds, which could have a material impact on each Fund’s liquidity. The Responsible Entity will act in accordance with its withdrawal policy as outlined in Section 7.5 of the current Product Disclosure Statement: * Valid withdrawal requests received up to the close of business (5:00 pm AEST) Friday, December 14, 2007 will be processed and paid in full; and * All withdrawal requests received on and after Monday, December 17, 2007 will not be processed, and withdrawals from each of the Funds will be suspended until further notice. While the suspension applies, investors have the option of selling their units in the Funds to other investors, subject to Responsible Entity approval. Valid application requests for both DPF and DPFI received as at the close of business on Thursday, December 13, 2007 (5:00 pm AEST) have been processed based on the unit price applicable on that day. Applications received from Friday December 14, 2007 onwards will be returned to investors and no further applications will be processed until further notice. Centro has advised that its shopping center portfolio is performing well. As a result of Centro’s announcement, the Responsible Entity will undertake a review of the quarterly distributions for DPF and DPFI. The Funds will continue to provide a daily unit price to investors. 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. CROWN CASTLE: S&P Downgrades Corporate Credit Rating to BB- ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Houston, Texas-based tower operator Crown Castle International Corp., including its corporate credit rating, which was cut to 'BB-' from 'BB'. The outlook is negative. The company had about $6 billion of funded debt outstanding as of Sept. 30, 2007. "The downgrade reflects our current expectation that Crown Castle's management is comfortable operating at a higher level of leverage than was anticipated in our previous rating even though we had expected the company to remain aggressive in repurchasing common stock," said Standard & Poor's credit analyst Catherine Cosentino. Management had indicated in their third-quarter earnings call on Oct. 31, 2007, that they expect leverage to be at the higher end of their 6x-8x target, which equates to about 9x under our adjusted leverage calculation. S&P previously said that the ratings would be lowered if the company was not able to reduce debt to the low-8x area in 2008. The ratings on Crown Castle reflect the company's aggressive financial policy, which anticipates substantial repurchases of common stock and attendant high leverage, which was about 9x debt to annualized EBITDA, adjusted for operating leases, for the three months ended Sept. 30, 2007 (9.3x, including redeemable preferred stock). Such high financial risk overshadows the company's strong business. A good portion of the assumed stock repurchases likely will be funded with additional debt, mostly in the form of securitized revenue notes, which can be issued subject to a 2x minimum securitization fixed-charge coverage ratio at the Crown Castle legacy securitization, and could exceed $1 billion over the next several years. About Crown Castle Based in Houston, Crown Castle International Corp. (NYSE: CCI) -- http://www.crowncastle.com/-- engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers. Crown Castle offers significant wireless communications coverage to 91 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and over 1,400 wireless communication sites in the US and Australia, respectively. FORTESCUE METALS: Seeks Loans From Chinese Banks for Expansion -------------------------------------------------------------- Fortescue Metals Group Ltd. is seeking at least AU$1 billion in loans from Chinese banks to fund its iron ore expansion, two bankers involved in the talks told Xiao Yu and Jesse Riseborough of Bloomberg News. According to Bloomberg, Julian Tapp, Fortescue's government relations manager, confirmed that chief executive officer Andrew Forrest was in China discussing financial matters with Chinese bank executives for low-interest loans to fund the expansion that will supply Chinese steelmakers. Mr. Tapp is quoted by Bloomberg as saying, "This is absolutely at a preliminary stage and we haven't got to the stage of talking about how much at the moment." The unnamed bankers told Bloomberg that Fortescue, which plans to start output at its existing 45 million-ton-a-year project in May next year, aims to obtain funds from China as early as January. The loans would be linked to its sales of iron ore to China, the report added. The report noted that Fortescue has already signed sales agreement with Chinese steel mills including Baosteel Group Corp., Tangshan Iron & Steel Co., and Hangzhou Iron & Steel Group. Partners With Shipping Groups Mr. Riseborough, citing the Australian Financial Review in a separate report, wrote that the Perth-based mining company is seeking to form partnerships with Chinese shipping groups to help export the firm's iron ore from next year. The AFF, states Bloomberg, said that Fortescue has set up a team based in Shanghai under executive Russell Scrimshaw to study options like leasing ships or forming joint ventures. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. FORTESCUE METALS: Solomon Project to Yield 700M Tonnes Iron Ore --------------------------------------------------------------- Fortescue Metals Group Ltd. disclosed the first estimate of Inferred Resources of iron ore totaling 700 million tonnes (Mt) of 56% Fe for the Solomon East area comprising the eastern portion of its Solomon Project area. These resources are additional to the 1 billion tonnes (Bt) announced for the Serenity area, 30 km to the west, in November. The Solomon Project is located approximately 60 kilometers north of Tom Price township in the Pilbara region of Western Australia. Fortescue is continuing to drill targets in the Solomon Project area and expects to announce additional resources in the area in the first half of 2008. It is anticipated that these announcements will include some quantities of high-grade bedded Brockman mineralization. Fortescue identified the Solomon East area as being prospective for channel iron deposit (CID) minrealization in a valley up to 2 km wide and about 35 km in length. Drilling commenced in July of this year. During this drilling program it became apparent that iron mineralization occurs in four separate geological units. Some areas of the channel have not been included in this estimate due to insufficient drilling density available at the time of the estimation. When sufficient drill data is available these parts of the Solomon East area may add a further amount of up to approximately 25% of the tonnage announced here. A copy of the summarization of the quantities of mineralization estimate and a further geological detail of the Solomon East can be viewed for free at the company's website at: http://fmgl.com.au/IRM/content/invest_asx.htm The Australian Associated Press interviewed Fortescue's executive director Graeme Rowley, who said he was confident that the project would meet a resource target greater than 2.5 million tonnes. Mr. Rowley, according to the AAP, said a further resource upgrade would likely occur towards the end of the first quarter of calendar 2008. The estimate, states AAP, does not include some parts of the Solomon East area due to insufficient drilling data; but when available, Fortescue expects to add about another 175 million tonnes to the resource area. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. FORTESCUE METALS: Shareholders OK Share Split to Aid Liquidity -------------------------------------------------------------- Fortescue Metals Group Ltd. shareholders have approved plans for a one-for-ten share split at the company's general meeting, the Australian Associated Press reports. The share split, which will pave the way for making its shares more affordable to investors, would also improve trading liquidity while reducing price volatility, relates the AAP. The report states that the number of Fortescue shares will increase from 280.155 million shares to 2.081 billion. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. MOBIUS FINANCIAL: Fitch Holds AU$12.1MM Class D Notes' BB Rating ---------------------------------------------------------------- Fitch Ratings has taken rating actions on notes issued by J.P Morgan Trust Australia Limited as trustee of the Mobius NCM-03 Trust: -- AU$385,000,000 Class A1 affirmed at 'AAA' -- AU$85,250,000 Class A2 affirmed at 'AAA' -- AU$45,100,000 Class B affirmed at 'A' -- AU$12,650,000 Class C affirmed at 'BBB' -- AU$12,100,000 Class D affirmed at 'BB' -- AU$6,600,000 Class E rated 'B' and placed on Rating Watch Negative (RWN) This transaction is collateralized by a pool of non-conforming residential mortgages originated by Mobius Financial Services Pty. Limited. The transaction has paid down from initial liabilities of AU$550 million to current liabilities of approximately AU$194 million. To date, all principal receipts have paid down the Class A notes to approximately 24.3% of their initial amount. Fitch has reviewed the transaction's performance and modelled forward the prospective outlook for the transaction, taking into account the fact that whilst no charge-offs of notes have occurred to date, there are significant 90+ day arrears within the remaining pool that may negatively impact the transaction in future. In placing the Class E notes on RWN, there is concern with the performance of loans originated by HLP Mortgage Company Pty Ltd (HLP), which comprised approximately 75% of the original pool and currently comprise 58% of the remaining pool. Fitch notes that this transaction has seen approximately 7.6% of loans foreclosed, of which nearly all are HLP loans. At November 30, 2007, loans with payments in arrears greater than 30 days represent approximately 21% of the portfolio while arrears greater than 90 days are running at approximately 16% of the pool. HLP loans feature prominently amongst the loans in arrears and additional foreclosure losses are anticipated. In assessing the impact of the potential losses that may arise from the anticipated foreclosures, Fitch has requested Mobius to supply additional information on current values of security properties backing the loans in the portfolio. Fitch anticipates this additional information will be provided by Mobius during the month of January 2008. Fitch also anticipates that this transaction may be impacted by seasonal stresses, which arise around the calendar year-end that may result in additional loan arrears. Fitch expects to resolve the RWN soon after receipt of this additional information. MOBIUS FINANCIAL: Fitch Holds AU$7.7MM Class F Notes' B Rating -------------------------------------------------------------- Fitch Ratings has taken rating actions on notes issued by J.P Morgan Trust Australia Limited as trustee of the Mobius NCM-04 Trust: -- AU$266,000,000 Class A1 affirmed at 'AAA' -- AU$93,600,000 Class A2 affirmed at 'AAA' -- AU$23,300,000 Class B affirmed at 'AA' -- AU$27,800,000 Class C affirmed at 'A' -- AU$18,900,000 Class D affirmed at 'BBB' -- AU$8,600,000 Class E affirmed at 'BB' -- AU$7,700,000 Class F rated 'B' and placed on Rating Watch Negative (RWN) This transaction is collateralized by a pool of non-conforming residential mortgages originated by Mobius Financial Services Pty. Limited. The transaction has paid down from initial liabilities of AU$450 million to current liabilities of approximately AU$299 million. To date, all principal receipts have paid down the Class A notes to approximately 58% of their initial amount. Fitch has reviewed the transaction's performance and modelled forward the prospective outlook for the transaction, taking into account the fact that whilst no charge-offs of notes have occurred to date, there are significant 90+ day arrears within the remaining pool that may negatively impact the transaction in future. In placing the Class F notes on RWN, there is concern with the performance of the loans originated by HLP and Lawteal, which comprised approximately 39% and 10.7%, respectively, of the original pool. Fitch notes that both these originators have seen significant arrears and foreclosures. This transaction has seen approximately 1.1% of loans foreclosed with limited losses to date that have been covered within the transaction by excess income. Nearly all losses are HLP or Lawteal originated loans. At November 30, 2007, loans with payments in arrears greater than 30 days represent approximately 28% of the portfolio while arrears greater than 90 days are running at approximately 22% of the pool and additional foreclosure losses are anticipated. In assessing the impact of the potential losses that may arise from the anticipated foreclosures, Fitch has requested Mobius to supply additional information on current values of security properties backing the loans in the portfolio. Fitch anticipates this additional information will be provided during the month of January 2008. Fitch also anticipates that this transaction may be impacted by seasonal stresses, which arise around the calendar year-end that may result in loan arrears in excess of those experienced at present. Fitch expects to resolve the RWN soon after receipt of this additional information. SCO GROUP: Names Jeff Hunsaker as SCO Operations President & COO ---------------------------------------------------------------- The SCO Group, Inc. has appointed Jeff Hunsaker to President and Chief Operating Officer of SCO Operations, effective immediately. Mr. Hunsaker will report directly to Darl McBride, President and Chief Executive Officer of The SCO Group. "For the past two years, Jeff has spearheaded the mobile business unit at SCO bringing a number of exciting mobile products to market," said SCO Group CEO, Mr. McBride. "He has also spent several years running our UNIX operations and worldwide sales organization, which gives him a unique blend of expertise with our core UNIX business and our growing mobile operations. His results-driven leadership style, combined with his strong emphasis on customer service, will prove invaluable in the growth of SCO's next-level business." Previously, Mr. Hunsaker was the General Manager and Senior Vice-President of SCO's mobile business. Before that, Mr. Hunsaker spent over seven years in SCO's UNIX business, serving as Senior Vice-President of worldwide sales, Senior Vice- President of worldwide marketing and Senior Vice- President/General Manager of the UNIX division. Prior to joining the company in 2000, Mr. Hunsaker worked for several high-tech companies, including Baan Corporation, Corel Corporation, Novell Inc., and WordPerfect Corporation. "We are at a crossroads for the company and I am pleased to work with Darl and the management team to drive our UNIX and mobile businesses forward," said President and COO of SCO Operations, Mr. Hunsaker. "SCO has a strong history of providing unparalleled stability and reliability with its UNIX platform of products. We will continue to provide UNIX upgrades to the market by listening to the needs and requirements of our customers; we will also continue to develop innovative mobile applications for consumers and business professionals alike." Former president of SCO Operations, Sandy Gupta, has left the company to pursue other opportunities. The company thanks Mr. Gupta for his many contributions and years of service. About SCO Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. * * * The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. ZINIFEX LTD: Strike Ends at Two Nyrstar Belgian Plants ------------------------------------------------------ Zinifex Ltd.'s joint venture with Umicore, Nyrstar, said the strike at its plants in Balen and nearby Overpelt, Belgium has ended and normal operations have resumed. The strike began on Dec. 10. Nyrstar and its unions reached a compromise on Dec. 12 on the issue of the social elections for combined Works Councils (and Health and Safety Committees) of the Balen and Overpelt operations. Nyrstar said its production has not been affected by the action, while customer deliveries have resumed. The industrial action was triggered by a dispute over Nyrstar’s proposal to combine Balen and Overpelt’s Work Councils (and Safety Committees) into the one Work Council (and Safety Committee) for both operations. Nyrstar believes that with the ever increasing complexity of many of the issues that the Work Councils advise on, in particular health and safety regulations, a single Work Council for both sites would enhance the ability to effectively implement appropriate standards. This is particularly apposite at Balen and Overpelt, due to the plants close proximity and the operational integration of the businesses. Nyrstar was formed through the combination of the Umicore zinc smelting and alloying operations and the Zinifex zinc and lead smelting and alloying operations on August 31, 2007. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ BEST RESOUORCES: Creditors' Proofs of Debt Due on December 28 ------------------------------------------------------------- Creditors of Best Resources Development Limited, which is in liquidation, are required to file proofs of debt by December 28, 2007, to be included in the company's dividend distribution. The company's liquidators are: Victor Chui Tsang Fan Wan Club Lusitano, 8th Floor 16 Ice House Street Central, Hong Kong CHINA SOUTHERN: Raises Fuel Surcharge on International Routes ------------------------------------------------------------- China Knowledge reports that China Southern Airlines has raised the fuel surcharge of its international routes. The report relates that China Southern increased the fuel surcharge to: -- US$55 from US$40 for flights from Southeast Asian countries to China, except for the Bangkok-Guangzhou route; and -- US$80 from US$60 for routes from Africa, America, Australia, Europe and Middle East to China. According to China Knowledge, its sources said China Southern raised its international fuel surcharge to offset pressure of crude oil price hike in those departure places. Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter-Asia Pacific reported in April 2006 that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. CITICHEM INT'L: Members Will Hold Final Meeting Today ----------------------------------------------------- Contributors and creditors of Citichem International Limited will hold their final general meeting on December 21, 2007, at 4:00 p.m. and 4:30 p.m. respectively, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: Ginza Square, 17th Floor 565-567 Nathan Road Kowloon, Hong Kong CONMAT ARCHITECTS: Court to Hear Wind-Up Proceedings on Jan. 2 -------------------------------------------------------------- On August 24, 2007, Yao Hong Bo filed a petition to have Conmat Architects Engineering & Development Consultant Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 2, 2007, to hear the petition. The petitioners' solicitor can be reached at: K. B. Cahu & Co. Wing Lung Bank Building, 16th Floor 45 Des Voeux Road Central Hong Kong CUMMINS INC: Components Group President Rick Mills Will Retire -------------------------------------------------------------- Cummins Inc. disclosed that Rick Mills, president of the Components Group, will retire effective at the end of March 2008 after more than 36 years with the company. Rich Freeland, President of the Distribution Business, will assume Mills' role as leader of the Components Group, while Pamela Carter, President of Cummins Filtration, a business within the Components Group, will become head of the Distribution Business. Ms. Carter's successor will be named in the near future. "Rick has been a mainstay of the Cummins organization for more than three decades," said Tim Solso, Cummins Chairman and CEO. "We have counted on him for much, and have particularly valued his contributions in the area of leadership. It's tough to say good-bye to someone like Rick, who has been such an important member of our management team." Mr. Mills served in a variety of financial roles before being named Vice President and General Manager of Atlas Inc., a former Cummins business that manufactured crankshafts, in 1988. He became President of Atlas in 1990 and was in that role for three years. He served as Vice President of the Pacific Rim and Latin America operations for Cummins Filtration (formerly Fleetguard Inc.) before being named Corporate Controller in 1996. Mr. Mills was appointed head of the Filtration Business from 2000 to 2005, when he was tapped to lead the Components Group, which includes Cummins filtration, turbocharger, emission solutions and fuel systems businesses. Mr. Freeland joined Cummins in 1979 and served in a number of plant and parts distribution functions before being named manager of the Columbus Engine Plant in 1996 -- a role he held for three years. He was named an officer in 1999, serving as Vice President, Heavy Duty Operations and Fuel Systems. He became Vice President and General Manager of Cummins Distribution and parts business in 2004, and assumed the role of President of the Distribution Business in 2005. "Rich has brought exceptional business and leadership skills to Cummins, and we are pleased he will be taking on this new and very important responsibility for us," said Cummins President Joe Loughrey. Mr. Freeland will assume his new role effective Feb. 1. Ms. Carter had a distinguished legal and political career, including a term as Attorney General for the State of Indiana, before joining Cummins in 1997. She was General Counsel from 1997 to 2000 and has held leadership roles in the Cummins Filtration business for the last seven years. She was named President of Cummins Filtration in 2005. "We're very excited to have someone as experienced and talented as Pamela step into the Distribution leadership role," Mr. Loughrey said. "Along with the Components Group, Distribution is a critical part of our strategy going forward, and we are counting on Pamela and Rich to make these two businesses even more successful in the future." Ms. Carter will assume her new role effective Feb. 1. Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI) -- http://www.cummins.com/-- designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins has Latin-American operations, particularly in Venezuela, Brazil, Peru, Colombia, and Argentina. Its operations in the Asia-Pacific are found in China, Japan and Korea. Its also has facilities in Europe, particularly in the United Kingdom. * * * Cummins' Junior Convertible Subordinated Debentures carry Fitch's 'BB' rating with a stable outlook. Moody's Investors Service raised Cummins' convertible preferred stock rating to Ba1 from Ba2 and withdrew the company's SGL-1 Speculative Grade Liquidity rating and its Ba1 Corporate Family Rating. CUMMINS INC: Urges Shareholders to Reject Mini-Tender Offer ----------------------------------------------------------- Cummins Inc. has been notified of an unsolicited mini-tender offer by TRC Capital Corp. of Toronto for TRC to purchase up to 1,000,000 shares of Cummins' stock at a price of US$115.00 per share in cash. This represents a 2.7 percent discount below Cummins' closing price on Dec. 11, the day prior to the date of the offer, and a 6 percent discount below Cummins' closing price on Dec. 14. Cummins is in no way associated with TRC, this mini-tender offer or the offer documentation. Cummins does not endorse TRC's unsolicited mini-tender offer and recommends that stockholders not tender their shares in response to this offer. CMI urges investors to obtain current market quotes on Cummins' stock, consult with their financial advisors and exercise caution in examining the mini-tender offer, which represents less than 1 percent of the Cummins' shares outstanding. Shareholders should be aware that this mini-tender offer is highly conditional. The conditions allow TRC to change the terms of its offer -- such as the price offered per share -- in the event of various occurrences, including a stock split. As a reminder, CMI announced a two-for-one stock split, effective Jan. 2, 2008, for shareholders of record on Dec. 21, 2007. The U.S. Securities and Exchange Commission has issued an investor alert regarding mini-tender offers, noting that some bidders make such offers at below market prices hoping they will catch investors off guard if the investors do not compare the offer price to the current market price. The SEC advises that mini-tender offers -- those offers made for less than 5 percent of a company's stock -- typically do not provide the same disclosure and procedural protections that larger, traditional tender offers provide. The SEC's mini-tender offer tips may be found at http://www.sec.gov/investor/pubs/minitend.htm Cummins' shareholders who have already tendered are advised that they may withdraw their shares by providing the written notice described in the TRC Capital offering documents prior to the expiration of the offer currently scheduled for 12:01 a.m. (EST) on Jan. 11, 2008. About Cummins Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI) -- http://www.cummins.com/-- designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins has Latin-American operations, particularly in Venezuela, Brazil, Peru, Colombia, and Argentina. Its operations in the Asia-Pacific are found in China, Japan and Korea. Its also has facilities in Europe, particularly in the United Kingdom. * * * Cummins' Junior Convertible Subordinated Debentures carry Fitch's 'BB' rating with a stable outlook. Moody's Investors Service raised Cummins' convertible preferred stock rating to Ba1 from Ba2 and withdrew the company's SGL-1 Speculative Grade Liquidity rating and its Ba1 Corporate Family Rating. DP EDUCATION: Members' Final General Meeting Set for January 14 --------------------------------------------------------------- Members of DP Education Limited will meet on January 14, 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: Hang Seng North Point Building, Room 2305-8, 23rd Floor 341 King's Road Hong Kong FUJIAN PROVINCE: Pays Final Preferential Dividend ------------------------------------------------- Fujian Province Zhong Fu (Group) Ltd, which is in compulsory liquidation, paid its first and final dividend on December 14, 2007. The dividend is payable at: Wing On Centre, 29th Floor 111 Connaught Road Central, Hong Kong GREENTOWN CHINA: Buys 58% of Zhoushan Project for CNY331 Million ---------------------------------------------------------------- Greentown China Holdings Ltd. bought a 58.13 percent stake in Urban Construction Sino-Stately (Zhejiang) Enterprise Development Co Ltd for CNY331 million, XFN-ASIA reports. According to XFN-ASIA, Urban Construction Sino-Stately owns a property project in Zhoushan city, in China's eastern Zhejiang province. "The site, located between the city and a tourist belt, measures 440 hectares in total area. The project will include high-end residential community, commercial centres, recreational tourist zone, rehabilitation resort and schools." XFN-ASIA relates that construction work on the project is scheduled to start in the second half of 2008. "The first phase of low-density residential units will be offered for sale in mid-2009." Zhoushan is a major Chinese port city and tourist destination in the southern wing of Yangtze Delta, the report notes. Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. JOWIN ELECTRONICS: Court to Hear Wind-Up Proceedings on Jan. 2 -------------------------------------------------------------- On October 17, 2007, Wu FU-Yuan filed a petition to have Jowin Electronics Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 2, 2008, to hear the petition. The petitioners' counsel can be reached at: Bough & Company Nan Fung Tower, Room 2401, 24th Floor 173 Des Vouex Road Central, Hong Kong KING DRAGON: Court to Hear Wind-Up Proceedings on Jan. 9 -------------------------------------------------------- On October 29, 2007, Yip Kay filed a petition to have King Dragon Engineering Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 9, 2007, to hear the petition. The petitioners' solicitor can be reached at: Chong Yan-tung Chris Hopewell Centre, 34th Floor 183 Queen's Road East Wanchai, Hong Kong PETROLEOS DE VENEZUELA: Forming Joint Venture With Eni & Ine ------------------------------------------------------------ Venezuelan state-run oil firm Petroleos de Venezuela SA said in a statement that its unit Corporacion Venezolana de Petroleo has signed an accord with Italy's Eni and Venezuela's Ine Paria to create joint venture Petrolera Guiria. Business News Americas relates that Petrolera Guiria replaces JV Golfo de Paria Central, a division of the former Golfo de Paria Este JV that ran: -- block 6, -- block 8, -- block 10, -- Delfin 1x field, and -- Punta Sur field. Petroleos de Venezuela said in a statement, "These blocks, which have high growth potential, contain virgin areas that will be developed by this new joint venture." Corporacion Venezolana owns 64.25% of Petrolera Guiria. Eni Venezuela holds a 19.50% stake in the joint venture, while Ine Paria has a 16.25% stake. The joint venture is part of Venezuela's nationalization process, BNamericas states. About Eni Eni is an integrated energy company operating in the oil and gas, electricity generation and sale, petrochemicals, oilfield services construction and engineering industries. Eni is active in around 70 countries with a staff of 73.000 employees. 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. REXEL SA: Confirms EUR3.1 Bln Recommended Offer for Hagemeyer NV ---------------------------------------------------------------- Rexel SA, in agreement with Sonepar, has confirmed its intended recommended offer for Hagemeyer NV after discussions with management on the Ceteco Holding NV case. As previously reported in the TCR-Europe report on Nov. 15, 2007, Hagemeyer and Rexel have agreed to exclusive negotiations aimed at finalizing an agreement under which Rexel would make an all cash offer of EUR4.85 per Hagemeyer share, approximately EUR3.1 billion in total (US$4.5 billion), and Hagemeyer's Management and Supervisory Boards would recommend this revised proposed offer. According to a report carried by Modern Distribution Management, the offer is up from Rexel's original EUR4.60 per share bid, which had valued the company at US$4.3 billion. As part of the envisaged transaction Rexel has entered into an agreement with Sonepar to sell certain activities of Hagemeyer to Sonepar, following successful completion of the proposed offer. Ceteco Litigation On Wednesday, Dec. 12, 2007, the court in Utrecht rendered its judgment in the Ceteco litigation. The court allowed the claim of the receivers of Ceteco and ordered Hagemeyer as well as the former members of the Board of Management and the Supervisory Board of Ceteco to pay a still to be determined amount of damages and referred the parties to a separate proceeding to determine the amount of the damages. In addition Hagemeyer and the former members of Ceteco's Board of Management and Supervisory Board were jointly ordered to make an advance payment of damages of EUR50 million. Hagemeyer will appeal this judgment and has confidence in the outcome of the appeal. During this appeal the advance payment is not payable immediately. Hagemeyer did not establish a specific provision for this claim. This judgment is the first ruling of the court since October 2003, when the receivers of Ceteco -- which went into bankruptcy in 1998 -- commenced proceedings against Hagemeyer and the former members of the Board of Management and Supervisory Board and the accountant of Ceteco. In October 2003, receivers of Ceteco filed in court up to EUR200 million (US$234.2 million) in financial compensation. The court-appointed receivers took up their cause in October 2002 claiming Hayemer is liable for the bankruptcy of Ceteco and that it had acted negligently with respect to Ceteco and its creditors. However, Hagemeyer rejected any liability for Ceteco's bankruptcy and the deficiency in its assets, on good grounds. According to Hagemeyer, this rejection is supported by a thorough analysis of its actual position as major shareholder of Ceteco. Hagemeyer said nothing in either the receivers' report or the counter report drawn up on behalf of parties involved, which was submitted to the receivers, provides grounds for believing that Hagemeyer has any liability in this matter, a TCR-Europe report relates. About Rexel SA Headquartered in Paris, France, Rexel SA -- http://www.rexel.com/-- distributes more than one million kinds of electrical parts and supplies, including wiring devices, cabling systems, circuit protectors, lighting products, automation equipment, hand tools, climate control equipment, and electronic security components. For the twelve months ended Dec. 31, 2006, Rexel reported total sales and EBITDA of EUR9,299 million and EUR637 million, respectively. Rexel has operations in China. SOCIETE GENERALE: Members' General Meeting Set for Jan. 15 ---------------------------------------------------------- Members of Societe Generale Asia Limited will meet on Jan. 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: Alexandra House 18 charter Road Central, Hong Kong WAH SZE: Court to Hear Wind-Up Proceedings on Jan. 2 ---------------------------------------------------- On September 13, 2007, Master Capital International Limited filed a petition to have Wah Sze International Development Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 2, 2008, to hear the petition. The petitioner's solicitor can be reached at: Anthony So & Co. Amtel Building, 9th Floor, Unit A 144-148 Des Voeux Road Central, Hong Kong WENG HENG: Pays Final Dividend ------------------------------ Weng Heng Investment Limited, which is in compulsory liquidation, paid its first and final dividend on December 17, 2007. WISE LINKAGE: Members' Final General Meeting Set for Jan. 15 ------------------------------------------------------------ Members of Wise Linkage Limited will meet on January 15, 2008, at 11:30 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 Tsimshatsui Kowloon, Hong Kong YES CLUB: Members & Creditors' General Meeting Set for Jan. 15 -------------------------------------------------------------- Members and creditors of Yes Club Limited will meet on Jan. 15, 2008, at 10:30 a. m., and 11:30 a. m., respectively, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meetings will be held at: Ritz Plaza, 12th Floor, Suite A 122 Austin Road Tsimshatsui Kowloon, Hong Kong * Moody's Sees Stable Outlook for Taiwanese P&C Insurers -------------------------------------------------------- Moody's Investors Service is maintaining a stable outlook for the Taiwanese property and casualty insurance industry, given that it is supported by a solid level of capitalization, built up by good organic profitability. In addition, Moody's -- in a new report -- sees growth opportunities arising from foreign expansion, and the opening up of the short-term health insurance market. The report, authored by Sally Yim, a Moody's Analyst, and Daniel Wong, an Associate Analyst, examines the outlook for P&C insurers in Taiwan, including trends and rating drivers. "With asset quality, this remains weak when compared to that of global peers as Taiwan's P&C insurers hold large investments in equity and real estate. Admittedly, the quality of the investment portfolios may improve, given upcoming regulatory changes on foreign investment caps from 35% to 45%, starting in 2008," says Yim. "But such regulatory changes will also be more beneficial for large-scale P&C insurers whose foreign investments are already at or close to the previous ceiling of 35% as the regulators want a gradual implementation of the new rule," says Yim. As most insurers have not reached the prior ceiling, the benefits are limited generally for smaller players, which lack the expertise and resources for managing a foreign investment portfolio, the report says. "In addition, against the backdrop of declining motor sales, the absence of large infrastructure projects, and a competitive market, Moody's believes the industry will find it a challenge to grow its business domestically. As such, it will likely undergo further consolidation through M&As over the next 12-18 months," says Wong. The report also notes that amidst intense competition, those P&C insurers affiliated with financial holding companies and large established foreign parents are likely to be better positioned. This is due to the availability of cross-selling opportunities as well as the potential transfer of underwriting expertise and technical resources. "This could be a differentiation in the competitive landscape in view of the low domestic premium growth expected," says Wong. The report is entitled "Taiwanese Property & Casualty Insurance: Industry Outlook", and can be found on http://www.moodys.com/ ========= I N D I A ========= AGILENT: Maspro TV-Receiver Design to Use Genesys & GX Software --------------------------------------------------------------- Agilent Technologies Inc. disclosed that Maspro Denkoh Corp. has selected Agilent's Genesys and Momentum GX software to develop its TV-receiver and satellite-broadcast equipment. The agreement includes multiple licenses and an optional upgrade path to other Agilent EEsof EDA products. Maspro is Japan's leading provider of TV-receiving equipment such as antennas, satellite receivers and broadcasting repeater devices, which often use frequencies greater than 10 GHz. The company's designers were encountering performance issues when slight changes were made to the printed circuit board (PCB) design, requiring several design re-spins to understand and correct the problems. To solve these problems and reduce re-spins in their design process, Maspro added circuit and electromagnetic simulation to its design flow to improve efficiency. After evaluating EDA tools on the market, Maspro chose Agilent's Genesys and Momentum GX EDA software. Maspro engineers who performed the tools evaluation chose Genesys because it provided the highest return on investment and the highest degree of accuracy, which Maspro needed to avoid the risk of design re-spins. They determined that the Genesys solution would help the most in improving their R&D efficiencies. They also preferred Genesys because it is available in Japanese and several other languages. "Our application engineers worked closely with key Maspro designers to improve design efficiency for their high-frequency PC board design," said Mounir Adada, product marketing manager with Agilent's EEsof EDA division. "I'm pleased that this leading equipment supplier in Japan has chosen our Genesys and Momentum circuit and EM simulation tools, and I look forward to working with them." About Genesys Eagleware-Elanix, the originator of Genesys, was acquired by Agilent Technologies in 2005. Agilent EEsof EDA continues to build on and enhance the Genesys platform, an integrated EDA software package for self-supporting RF and microwave designers and workgroups. From initial system architecture through final documentation, Genesys provides state-of-the-art performance in a single easy-to-use design environment that is fast, powerful and accurate. About Agilent Tech Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of US$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. ARTSON ENGINEERING: BIFR Approves Draft Rehabilitation Scheme ------------------------------------------------------------- India's Bureau of Industrial and Financial Reconstruction sanctioned on Tuesday the Draft Rehabilitation Scheme submitted by Artson Engineering Ltd. To take on record the BIFR Order sanctioning the Scheme, Artson's board of directors will hold a meeting on Dec. 26, 2007. During the meeting, the board will also decide what plan of action to take pursuant to the BIFR Order. Headquartered in Mumbai, India, Artson Engineering Limited -- http://www.artson.net/-- is a niche engineering company, active in specialized area of refineries, ports and airports. The company was referred to the Board for Industrial and Financial Reconstruction as a sick company. DECCAN AVIATION: Board Unanimously Approves Kingfisher Merger ------------------------------------------------------------- Deccan Aviation Ltd's board of directors at its meeting on Wednesday, unanimously approved the merger of the scheduled airline business undertaking of Kingfisher Airlines Ltd into the company, the airline informed the Bombay Stock Exchange in a regulatory filing. The board's nod came after management consultancy firm Accenture, which was tasked to find operational synergies between the two airlines, recommended the merger. With the merger, Decann Aviation's name will be changed to Kingfisher Airlines Ltd, the regulatory filing states. Vijay Mallya will be the Chairman & CEO and Captain Gopinath will be the Vice-Chairman of the merged entity. Deccan's charter business will be spun off into a separate entity to be jointly owned by Captain Gopinath and the UB Group, which currently hold 46% stake in Deccan. Capt Gopinath will be the Chairman and CEO and Dr. Vijay Mallya will be the Vice Chairman of the said entity. KPMG and Dalal and Shah have been appointed as independent valuers to recommend the methodology, process and valuation for the entire process. With the merger, Deccan, a low-cost airline, will fly to countries that can be serviced using A320 planes; and Kingfisher, a premium carrier, will operate the long-range routes with its specialized planes, Reuters quotes UB group Chief Financial Officer Ravi Nedungadi as saying. The merger will also help Kingfisher to meet Indian regulatory requirement of five year's operation to fly overseas since Deccan was started in 2003 and will be eligible to offer overseas flights by mid-2008, he added, the report stated. Mr. Nedungadi told the news agency that the combined operations will need about US$250-300 million over the next two quarters and it may look at private placement of shares. The merger is still subject to statutory approvals including that of the shareholders. 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. DRESSER-RAND GROUP: Inks US$50MM Blanket Purchase Order w/ PEMEX ---------------------------------------------------------------- Dresser-Rand Group Inc. has signed a blanket purchase order with Petroleos Mexicanos valued at approximately US$50 million. The order covers all aftermarket parts and services and came through Dresser-Rand's long established strategic alliance frame agreements with this national oil company. As previously disclosed, the aftermarket bookings trends for two of the company's national oil company clients had slowed during the early part of the year due to order process changes. Consistent with comments made by the company at the time of its third quarter 2007 earnings conference call, this order will help streamline transacting business with Petroleos Mexicanos. "The blanket purchase order is a very positive step forward," said Dresser-Rand president and Chief Executive Officer, Vincent R. Volpe, Jr. "We expect that cycle times from inquiry to order will now be reduced and expect our aftermarket bookings run rates to return to traditional levels this quarter and stay strong going forward." About Petroleos Mexicanos Petroleos Mexicanos (aka PEMEX) is Mexico's state-owned oil company. The integrated company's operations, spread throughout Mexico, range from exploration and production to refining and petrochemicals. the company's P.M.I. Comercio Internacional subsidiary manages the company's trading operations outside the country. The company has estimated proved reserves of 15.5 billion barrels of oil equivalent. In 2006 the company produced about 3.3 million barrels of crude oil per day. About Dresser-Rand Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). IFCI LTD: Calls Off 26% Stake Sale; Shares Plummet -------------------------------------------------- IFCI Ltd has called of its plan to sell 26% of the company's shares after it rejected the financial proposal submitted by the consortium of Sterlite Industries and Morgan Stanley and Co., various reports say. As reported yesterday by the Troubled Company Reporter-Asia Pacific, IFCI's board of directors turned down the bid of Sterlite-Morgan Stanley for the 26% stake, saying that the conditional offer is unacceptable. The Sterlite-led consortium emerged as the front-runner in the race for the stake. Other bidders include the consortia of Cargill Financial Services Corporation and Texas Pacific Group; and Shinsei Bank Ltd, PNB and JC Flowers & Co. The Economic Times, citing unnamed sources close to the development, previously reported that the Sterlite consortium offered a INR107-per-share minimum price at which institutional shareholders will convert their debt into equity. The management control was the reason behind deal being called off, moneycontrol.com quoted CNBC-TV18 in a report. Thomson Financial News, citing the Times, relates that the Sterlite-led consortium was seeking a guarantee from IFCI to ensure that any further dilution in IFCI stake be undertaken with their consent, which was unacceptable to IFCI. After IFCI made clear that it is not going to pursue sale talks with any bidders, scrapping the entire stake-sale plan, its shares price plummetted to what Bloomberg News described as “the biggest drop in more than a decade.” IFCI shares fell INR23.3, or 23%, to INR76.75 at the close on the Bombay Stock Exchange on Dec. 20, wiping out INR12.9 billion (US$325 million) from the company's market value, Bloomberg reported. 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. NOVELL INC: Posts US$13MM Loss for Quarter Ended Oct. 31 -------------------------------------------------------- Novell, Inc. has released financial results for its fourth fiscal quarter and full fiscal year ended Oct. 31, 2007. For the quarter, the company reported net revenue of US$245 million, which excludes US$6 million of revenue from its Swiss-based business consulting unit, which the company agreed to sell during the quarter. This compares to net revenue of US$234 million for the fourth fiscal quarter 2006. The loss from operations for the fourth fiscal quarter 2007 was US$13 million, compared to income from operations of US$4 million for the fourth fiscal quarter 2006. The loss available to common stockholders from continuing operations in the fourth fiscal quarter 2007 was US$9 million, or US$0.03 loss per common share. This compares to income available to common stockholders from continuing operations of US$21 million, or US$0.05 per diluted common share, for the fourth fiscal quarter 2006. Foreign currency exchange rates favorably impacted total revenue by approximately US$6 million and did not materially impact the loss from operations year-over-year. On a non-GAAP basis, adjusted income from operations for the fourth fiscal quarter 2007 was US$20 million. This compares to non-GAAP adjusted income from operations of US$18 million in the year-ago quarter. Non-GAAP adjusted income available to common stockholders from continuing operations for the fourth fiscal quarter 2007 was US$20 million, or US$0.06 per adjusted diluted common share. This compares to non-GAAP adjusted income available to common stockholders from continuing operations of US$20 million, or US$0.05 per adjusted diluted common share, for the fourth fiscal quarter 2006. In the fourth fiscal quarter 2007, the company entered into an agreement to sell its Swiss-based business consulting unit. Accordingly, all financial results for this unit were excluded from Novell's continuing operations for income statement reporting purposes and are reported as discontinued operations. For the full fiscal year 2007, the company reported net revenue of US$932 million and a loss available to common stockholders from continuing operations of US$26 million, or US$0.08 loss per common share. Comparatively, net revenue for the full fiscal year 2006 was US$919 million and income available to common stockholders from continuing operations was US$4 million, or US$0.01 per diluted common share. Foreign currency exchange rates favorably impacted total revenue by approximately US$15 million and negatively impacted the loss from operations by US$5 million year-over-year. For the fourth fiscal quarter 2007, the company reported US$23 million of revenue from Open Platform Solutions, of which US$22 million was from Linux Platform Products, up 69 percent year- over-year. Linux Platform Products invoicing was US$46 million during the quarter, up 108 percent year-over-year. Revenue from Identity and Security Management was US$33 million, of which Identity and Access Management was US$30 million, up 27 percent year-over-year. Revenue from Systems and Resource Management was US$36 million, up 5 percent year-over-year. Workgroup revenue of US$88 million was up 1 percent year-over-year. "We are pleased with our overall results for 2007. While undergoing transformational change, we grew revenue and exceeded our operating targets. We are on the right path to long-term, sustainable profitability," said Novell president and Chief Executive Officer, Ron Hovsepian. Cash, cash equivalents and short-term investments were US$1.9 billion at Oct. 31, 2007, up from US$1.5 billion last year. Days sales outstanding in accounts receivable was 77 days at the end of the fourth fiscal quarter 2007, down from 86 days at the end of the year-ago quarter. Total deferred revenue was US$768 million at the end of the fourth fiscal quarter 2007, up US$341 million, or 80 percent, from Oct. 31, 2006. Cash flow from operations was US$77 million for the fourth fiscal quarter 2007, compared to US$62 million in the fourth fiscal quarter 2006. Financial Outlook Novell management issues these financial guidance: For the full fiscal year 2008: -- Net revenue is expected to be between US$920 million and US$945 million. -- Non-GAAP adjusted operating margin is expected to be between 7 and 9 percent. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. QUEBECOR WORLD: S&P Lowers Long-Term Corp. Credit Rating to CCC --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Montreal-based printing company Quebecor World Inc. by two notches to 'CCC' from 'B-'. In addition, S&P lowered the senior unsecured debt rating on the company by three notches to 'CCC-' from 'B-', reflecting the junior position of the notes in relation to the company's US$750 million revolving credit facility (unrated), which is fully guaranteed and partially secured, and the high likelihood that the company's debt level will increase in the near term. The ratings remain on CreditWatch with negative implications, where they were placed Aug. 9, 2007, due to concerns over the company's weak operating performance and financial flexibility in a challenging operating environment and difficult credit market. "The downgrade reflects the significant deterioration in Quebecor World's financial flexibility and liquidity following the company's withdrawal of its announced recapitalization plan in November, and last week's cancellation of the company's announced sale of a significant portion of its European operation because the deal didn't receive the required shareholder approval," said S&P's credit analyst Lori Harris. "The company continues to face insufficient near-term liquidity, potential covenant violations, and an uncertain financial restructuring," Ms. Harris added. To address the necessary refinancing of the private notes in September 2007, the company used its revolving credit facility; however, the company agreed at that time to reduce the authorized facility amount of the revolver to US$750 million from US$1 billion, which put a premium on completing the previously mentioned transactions. In addition to this, Quebecor World's European accounts receivable securitization program was wound down in October 2007, requiring the company to rely even more heavily on the reduced revolving credit facility. As a result, S&P expects the company's bank debt balances at year-end 2007 to be materially higher than previously planned. Quebecor World will likely not meet all of the recently loosened bank loan covenants for fourth-quarter 2007. The company also failed to make its declared dividend payments on the series 3 and series 5 preferred shares, which were due Dec. 1, 2007, because it might not satisfy the capital adequacy test under the Canada Business Corporations Act. At present, the company doesn't have sufficient confirmed sources of cash or liquidity to meet its expected near-term operational requirements. The firm recently hired independent financial advisors to help it deal with its liquidity crunch by evaluating alternatives for raising cash, while also devising a longer term restructuring solution. However, as yet a formal action plan hasn't been announced or approved for either issue. S&P is very concerned that the near-term outlook for the business' sustainability is unclear at present time. The ratings will remain on CreditWatch with negative implications until S&P is comfortable that the company has addressed its near-term liquidity issues. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. QUEBECOR WORLD: Jacques Mallette Succeeds Wes Lucas as CEO ---------------------------------------------------------- Quebecor World Inc. has appointed Jacques Mallette as president and CEO effective immediately. Mr. Mallete replaces Wes Lucas, who is leaving the company to pursue other opportunities. The board of directors believes that Mr. Mallette's backround, leadership and experience are important to ensuring the company is executing its business plan. Jacques Mallette has been executive vice-president and chief financial officer of Quebecor World since September 2005 and has been involved in all aspects of the corporation including operations and customer relations. Mr. Mallette first joined Quebecor as executive vice president and chief financial officer of Quebecor Inc. and Quebecor Media in March 2003. Previously, he held the position of president and chief executive officer of Cascades Boxboard Group Inc. During his 8- year tenure at Cascades, he also held the positions of executive vice president and chief financial officer. He holds a Bachelors Degree from the University of Montreal and is a member of the Order of Chartered Accountants of Quebec. Mr. Lucas joined Quebecor World in May 2006 and is leaving the company to pursue other opportunities in the United States and Quebecor World wishes him well in his future endeavors. The board of directors has accepted the resignation of Reginald Brack as a director, for personal reasons and is appointing Jean La Couture as a director of the corporation. Mr. La Couture is a fellow of the Quebec Order of Chartered Accountants. He was managing director of a major Canadian accounting firm before becoming president and chief executive officer of The Guarantee Company of North America. In 1995, he created Huis Clos Ltd. which specializes in management mediation well as in civil commercial negotiations. He also serves as a member of the board of Quebecor Inc., the Board of Innergex Power Trust (chairman of the fiduciary council, acquisitions committee, audit committee and corporate governance committee) and Immunotec Inc. (chairman of the audit committee). About Quebecor World Inc. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. * * * On Dec. 18, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Montreal-based printing company Quebecor World Inc. by two notches to 'CCC' from 'B-'. In addition, S&P lowered the senior unsecured debt rating on the company by three notches to 'CCC-' from 'B-', reflecting the junior position of the notes in relation to the company's US$750 million revolving credit facility (unrated), which is fully guaranteed and partially secured, and the high likelihood that the company's debt level will increase in the near term. TATA TELESERVICES: Finance Panel OKs US$6.1MM Bond Conversion ------------------------------------------------------------- The finance committee of Tata Teleservices (Maharashtra) Ltd's board of directors has approved the issue and allotment of shares totaling 1,10,61,697 shares of INR10 each to investors who exercised their right to convert Foreign Currency Convertible Bonds aggregating US$6,100,000. The shares have been issued at a premium of INR14.49 a piece (i.e., at an issue price of INR24.49 per share) in accordance with the terms of the FCCB Issue. Previously, the conversion price was INR24.96 per share but was adjusted to INR24.49 per share after the company's rights issue in January 2007. The deemed date of allotment of the shares is Dec. 14, 2007. Out of the total FCCBs of US$125 million issued by the company in June 2004, FCCBs aggregating US$108.37 million have so far been converted into 19,43,50,346 equity shares (including this 19th Tranche). Tata Group's holding stands marginally reduced to 65.85% as a consequence of the latest allotment. A subsidiary of Tata Sons Limited, Tata Teleservices (Maharashtra) Limited, is an Indian company engaged in the business of providing telecommunication services. The company provides services in about 357 towns and cities in the States of Maharashtra and Goa through its telephone exchanges. The company has incurred at least two years of consecutive net losses -- INR3.15 billion in fiscal year ended Mar. 31, 2007, and INR5.41 billion in FY2006. ================= I N D O N E S I A ================= AFC ENTERPRISES: James Lyons Leaves Chief Operating Officer Post ---------------------------------------------------------------- AFC Enterprises, Inc., the franchisor and operator of Popeyes(R) Chicken & Biscuits, has announced the resignation of James W. Lyons as chief operating officer to pursue another business opportunity. He will remain with the company through the end of December to assist with key transition activities. AFC Chief Executive Officer Cheryl Bachelder stated, "Jim has done an outstanding job since joining Popeyes in 2004. We thank him for his many significant contributions to the Company and we wish him much success in the future." Headquartered in Atlanta, Georgia, AFC Enterprises Inc. (NASDAQ: AFCE) -- http://www.afce.com/-- owns, operates and franchises Popeyes Chicken & Biscuits quick service restaurants. As of July 15, 2007, AFC owned and operated 61 restaurants and franchised 1,817 restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 23 foreign countries, inclusing Indonesia. The Popeyes concept features a New Orleans Cajun- style menu, with regional items such as spicy fried chicken pieces, chicken sandwiches and strips, fried shrimp, jambalaya and red beans & rice. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2007, Moody's Investors Service changed AFC Enterprises Inc.'s rating outlook to stable from positive. Concurrently, Moody's affirmed all the debt ratings of AFC, including its B1 corporate family rating and probability of default rating at B2, while upgrading the senior secured credit facilities rating to Ba3 from B1. AVNET INC: Completes Acal IT Solution Acquisition for US$200MM -------------------------------------------------------------- Avnet Inc. has completed its acquisition of the IT Solutions Division of Acal plc. The acquired business, which has annual revenues of approximately US$200 million, is a leading European value-added distributor for Storage Networking, Networking, Security, Electronic Document Management, as well as managed and professional services. The division, which has operations in the UK, the Netherlands, Belgium, Germany, France and Sweden, will be integrated into Avnet Technology Solutions' EMEA business. Dick Borsboom, President of Avnet Technology Solutions EMEA, commented, "This acquisition extends our depth of expertise in the IT solutions and services arena by adding new competencies in high growth areas and expanding our ability to deliver multi- vendor solutions. The addition of 200 skilled employees and 2000 Acal resellers broadens our solutions-selling portfolio and creates additional opportunities for cross selling." Following on the recently completed acquisition of the Magirus Enterprise Division, Avnet Technology Solutions is substantially building its market presence in the areas of managed and professional services, SAN, Networking and Security solutions. The acquisition also opens new markets to Avnet Technology Solutions, such as Electronic Document Management today operating under the name Headway Technologies. "We are executing well on our goal to be the premier, value-add distributor in Europe", added Mr. Borsboom "The acquisition of Acal is another clear affirmation of our vision to be the leader in delivering solutions that can accelerate the growth of our trading partners." About Avnet Electronics Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company. Avnet Electronics Marketing serves electronic original equipment manufacturers and electronic manufacturing services providers in more than 70 countries, distributing electronic components from leading manufacturers and providing associated design-chain and supply-chain services. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. BANK NISP: Fitch Affirms Long-Term Currency IDR at 'BB-' -------------------------------------------------------- Fitch Ratings has affirmed all the ratings of PT Bank NISP Tbk: -- Long-term foreign and local currency Issuer Default Ratings at 'BB-'with a Positive Outlook, -- Short-term foreign currency IDR 'B', National Long-term 'AA+(idn) with a Stable outlook', -- Individual 'C/D' and Support '3'. The ratings reflect the bank's satisfactory profitability and reasonably strong balance sheet, as well as the support from its financially strong parent, Singapore-based Oversea-Chinese Banking Corporation. NISP is tapping on the financial and technical resources of its parent to further expand its commercial and consumer operations and become a more sizeable player in the Indonesian banking market. The bank also intends to raise the share of its better-yielding commercial (a traditional stronghold) and consumer loans to a combined share of 80-85%. Pre-provision profit improved to 1.9% of average assets in 9M07 on higher net interest margin and fee income but was still below the peer average of 3.9% (6M07 data). Absolute NPLs have risen quite sharply in 2006 and 9M07 but came from a low base with NPLs at 2.5% of gross loans at end-Q307 (industry average: 5.8%). Provision cover appears low at 51% of NPLs but is mitigated by the emphasis on secured lending. Capital ratios also improved with tier 1 and total capital ratios at 14.3% and 17.3% respectively at end-Q307, following a rights issue in May 2007. About Bank NISP PT Bank NISP Tbk -- http://www.banknisp.com/english/index.html -- categorizes its products into two groups: Funding, which consists of savings and deposits, and Lending, consisting of working capital loans, investment loans and consumer loans. In addition, the bank has three service categories: Individual, Corporate and Others. As of January 18, 2006, the bank has 29 branch offices, 101 representative offices and 26 cash offices throughout the country. The Bank is headquartered in Jakarta, Indonesia. BANK UOB: Fitch Affirms Short-Term Foreign Currency IDR at 'B' -------------------------------------------------------------- Fitch Ratings has affirmed PT Bank UOB Buana Tbk's (Buana) ratings: -- Long-term foreign and local currency Issuer Default Ratings at 'BB-'with a Positive Outlook, -- Short-term foreign currency IDR at 'B', -- National Long-term at 'AA+(idn)' with a Stable Outlook, -- Individual at 'C/D' and Support at '3'. The ratings reflect the support from Buana's financially strong Singapore-based parent, United Overseas Bank, its own solid capital position and profitability, as well as its position as a small, established niche bank serving small Indonesian-Chinese merchants in Indonesia. Buana intends to leverage on the parent's financial and technical resources to diversify into the consumer banking segment which partly explained the name change to Bank UOB Buana in early 2007, given the parent's stronger branding regionally. Net interest margins remained strong at 6.8% over end-September 2007, which helped to offset the increase in operating expenses, and kept ROA at 2.8% in 9M07 (2006: 2.5%). Lending picked up to 17% yoy in 9M07 with commercial loans as a core focus, accounting for 67% of total loans at end-9M07. NPLs declined to 3.5% of gross loans at end-September 2007 from 4.4% at end-2006; Buana's provision cover at 50% of NPLs is at the lower end of the peer average (85% at end-2006) but reflects its focus on secured lending. New capital from an IDR800 billion rights issue in 2006 and profit retention kept Total CAR and Tier 1 strong at 28.4% and 20.3%, respectively, at end-September 2007. About Bank UOB Buana Headquartered in Jakarta, PT Bank UOB Buana Tbk., formerly PT Bank Buana Indonesia Tbk. -- http://www.bankbuana.com-- provides public deposits, investment portfolio, and other financial services, including: demand, savings and time deposits, Bank Indonesia promissory notes, bonds, consumer loans, retail commercial loans, and corporate loans. Other financial services include exports, imports, transfers, collection, issuing of bank guarantees and foreign currency transactions. BERLIAN LAJU: Fitch Downgrades Long-Term Currency IDR to 'B+' ------------------------------------------------------------- Fitch Ratings has downgraded Indonesia-based PT Berlian Laju Tanker Tbk's Long-term foreign and local currency Issuer Default Ratings to 'B+' from 'BB-'. The Outlook on the ratings is Stable. Meanwhile, Fitch has also downgraded the senior unsecured rating of the US$400 million notes due in 2014 issued by BLT Finance B.V and guaranteed by BLT to 'B+' from 'BB-, and assigned it a Recovery Rating of 'RR4'. These rating actions resolve the Rating Watch Negative that was applied to BLT on 14 October 2007 following its announcement to acquire Chembulk Tankers LLC, a Marshall Islands-registered chemical tanker company for US$850 million, mostly funded by debt. The rating downgrades are driven primarily by BLT's expected high financial leverage level post acquisition, with new debt totalling US$750 million raised at both BLT and Chembulk levels. Fitch estimates that BLT's financial leverage, as measured by the net adjusted debt/EBITDAR ratio (which adjusts the leverage by capitalising operating lease payments), will rise to around 5.5x in 2007 on a proforma basis from the annualized 4.1x level recorded during the nine months ending September 2007. While this financial leverage level suggests a more than one notch downgrade, Fitch expects the combined entity to generate stronger operating cash flow given the enhanced fleet size, and anticipates an overall stable to positive outlook for the chemical tanker segment supported by its growing seaborne trade. The agency estimates that if chemical tanker charter rates improve modestly, BLT's net adjusted debt/EBITDAR ratio may improve to below 4.5x by the end of 2008. The ratings also take into account BLT's ongoing measures to reduce its net debt such as the disposal of five of its older oil tankers. While BLT is in the process of selling and leasing back four of its newly built chemical tankers, Fitch views this as a credit neutral event as it capitalises operating lease payments in its measure of financial leverage. BLT may also access the equity capital market and deleverage via the conversion of outstanding convertible bonds and warrants in 2008. However, Fitch has not factored these events into its analysis as they are subject to equity market conditions. On the operational front, Fitch views the acquisition of Chembulk as modestly positive as it will further enhance BLT's scale with a large and modern fleet to meet increasingly stringent industry regulations, as well as geographical diversification to the untapped North and South American markets. Post acquisition, BLT will become the third largest chemical tanker operator in the world. The Stable Outlook reflects Fitch's expectation that the deleveraging process will begin once the transaction is completed, aided by the strong industry fundamentals. If BLT's net adjusted debt/EBITDAR ratio remains above 5.0x at the end of 2008 and 4.5x at the end of 2009, a negative rating action may be taken. Furthermore, the senior unsecured debt rating of the USD400m notes may be notched down from the IDR if the company does not reduce the secured debt raised for the transaction. Conversely, net adjusted debt/EBITDAR sustained below 3.5x may result in a positive rating action. BLT is an Indonesia-based shipping company, focusing on liquid bulk cargo, with operations primarily in Asia. Its other markets are the Middle East and Europe. In the first nine months of 2007, BLT recorded revenue amounting to USD294m, EBITDA of USD132m and net income of USD54m. The founder, Mr Hadi Surya has a 52.4% beneficial interest in BLT. BERLIN LAJU: Gets Go Signal to Acquire Chembulk Tanker ------------------------------------------------------ PT Berlian Laju Tanker Tbk received the go signal from shareholders to acquire U.S.-based Chembulk Tankers LCC, Reuters reports citing Berlian President Director Widiharja Tanudjaj. The Troubled Company Reporter-Asia Pacific reported on Oct. 18, 2007, that Berlian Laju agreed to buy Chembulk Tankers LLC for US$850 million. According to the TCR-AP, the purchase of Chembulk will be funded by cash and loans from several banks, and will be immediately accretive to the company's earnings. Harry Suhartono of Reuters writes that Mr. Tanudjaj said the company would finance the acquisition through US$750 million of bank loans from a consortium of foreign banks, namely Fortis Bank, DnB NOR, ING and Nordic NIB, while the rest would come from internal cash. The TCR-AP added that Berlian Laju Tanker plans to raise up to US$350 million via asset sales and a convertible bond or equity issue to repay debt linked to the acquisition. About PT Berlian Laju PT Berlian Laju Tanker Tbk is the largest Indonesian shipping company, focusing on liquid bulk cargo, with operations primarily in Asia with some expansion into the Middle East and Europe. In 2006, BLT achieved revenue of US$335 million, EBITDA of US$154 million and net income of US$107 million. The founder, Hadi Surya, has a 48.7% beneficial interest in BLT. The Troubled Company Reporter-Asia Pacific reported on Oct. 17, 2007, that Standard & Poor's Ratings Services lowered its ratings on PT Berlian Laju Tanker Tbk to 'B+' from 'BB-' and placed them on CreditWatch with negative implications. At the same time, Standard & Poor's lowered the issue ratings on US$400 million senior unsecured notes due 2014 and on a US$125 million five-year convertible bond due 2012, issued earlier this year by BL TFinance B.V., a wholly owned subsidiary of BLT, were also lowered to 'B+' from 'BB-' and placed on CreditWatch with negative implications. BLT guarantees both issues; BLT's covered subsidiaries also guarantee the senior notes. On Dec. 19, 2007, Fitch Ratings downgraded Indonesia-based PT Berlian Laju Tanker Tbk's Long-term foreign and local currency Issuer Default Ratings to 'B+' from 'BB-'. The Outlook on the ratings is Stable. Fitch also downgraded the senior unsecured rating of the US$400 million notes due in 2014 issued by BLT Finance B.V and guaranteed by BLT to 'B+' from 'BB-, and assigned it a Recovery Rating of 'RR4'. These rating actions resolve the Rating Watch Negative that was applied to BLT on 14 October 2007 following its announcement to acquire Chembulk Tankers LLC, a Marshall Islands-registered chemical tanker company for US$850 million, mostly funded by debt. CA INC: Fitch Affirms Issuer Default & Debt Ratings at BB+ ---------------------------------------------------------- Fitch Ratings has affirmed these ratings of CA, Inc.: -- Issuer Default Rating at 'BB+' -- Senior unsecured revolving credit facility at 'BB+' -- Senior unsecured debt at 'BB+' Additionally, Fitch has revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US