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 Wednesday, December 26, 2007, Vol. 10, No. 254 Headlines A U S T R A L I A CHALLENGER FINANCIAL: S&P Assigns BB Rating on Class C Notes INTERNATIONAL POWER: Fitch Affirms BB Issuer Default Rating LAFAYETTE MINING: Philippines Units Seek Court Protection STADIUM AUSTRALIA: ANZ Obtains Naming Rights for AU$31.5 Million * Moody's Says Negative Australian Corporate Trend to Persist C H I N A , H O N G K O N G & T A I W A N BEANEAR LIMITED: Members to Receive Wind-Up Report on Jan. 18 CAMTEL COMPANY: Liquidator to Present Wind-Up Report on Jan. 18 CHIA TAI CONSUMER PRODUCTS: Members to Receive Report on Jan. 18 CHIA TAI HENAN INVESTMENT: Liquidator to Present Wind-Up Report CHIA TAI INTERNATIONAL: Members to Receive Wind-Up Report CHIA TAI SOYBEAN: Members to Receive Wind-Up Report on Jan. 18 CHIA TAI TELECOMUNICATION: Liquidator to Present Wind-Up Report CITIC PACIFIC: S&P Affirms 'BB+' Corporate Credit Rating CITY TELECOM: S&P Raises Corporate Credit Rating to B+ C.P. FOODS: Liquidator to Present Wind-Up Report on Jan. 18 THE WAH FUNG: Members’ Final General Meeting Set for Jan. 18 I N D I A AGILENT TECH: Reports Biggest Instrument Sale in India to Date IFCI LTD: Invites Bids to Value & Buy Stake in Unlisted Firms ITI LTD: Ties Up With U.S.-Based Alphion Corp. KINETIC ENGINEERING: To Raise as Much as US$18MM in FCCB Issue QUEBECOR WORLD: Moody's Cuts Corporate Family Rating to Caa2 I N D O N E S I A ALCATEL-LUCENT SA: Sells Draka Comteq Stake for EUR209 Million BANK INTERNASIONAL: Bank Indonesia Gets Compliance from Temasek BANK LIPPO: Bank Indonesia Gets Compliance from Khazanah BANK MANDIRI: Aims to Increase Micro Loans BANK MANDIRI: Signs Business Deal With Lippo Cikarang EXCELCOMINDO PRATAMA: Gets IDR4-Million Loan from Bank Mandiri GOODYEAR TIRE: Jean-Claude Kihn Replaces Joseph Gingo as Sr. VP NORTEL NETWORKS: Sues Vonage Holdings for Patent Infringement PERUSAHAAN GAS: S&P Raises Corporate Credit Ratings to 'BB-' REXAM PLC: Weak US Dollar to Impact 2007 Second Half Results J A P A N IHI CORP: President Sees Strong Recovery Next Fiscal Year NIS GROUP: TPG Alliance Cues S&P to Put Ratings on CreditWatch NUANCE COMM: Prices Public Offering of 7,000,000 Common Shares SAPPORO HOLDINGS: To Raise Shipment & Beer Prices in FY2008 * Moody's Report Say Japanese Firms Retain Financial Profiles * Japanese Railroads' Outlook Moderately Positive, Moody's Says K O R E A ACTUANT CORP: Earns US$27.4 Mil. in First Quarter Ended Nov. 30 DURA AUTO: Resolves Magna Objections to Reorganization Plan DURA AUTO: Wants to Pay Lenders US$358K to Ignore Violations UAL CORP: Names New VP of Base Maintenance for United Services M A L A Y S I A AMBANK BHD: Fitch Maintains 'BB' Rating on Hybrid Securities VERIFONE HOLDINGS: Special Interest to Accrue on 1.375% Notes N E W Z E A L A N D CLEAR CHANNEL: Fitch to Cut IDR to B Upon Transaction Closing CLEAR CHANNEL: S&P Cuts Rating on US$6.32 Billion Notes to B- PSIS LTD: S&P Assigns 'BB+/B' Issuer Credit Ratings P H I L I P P I N E S IPVG CORP: Links Up With GMA to Form Online Gaming Joint Venture METROPOLITAN BANK: Gets Retail Management Award for CMR Efforts PHILCOMSAT: Poblador-Locsin Group Protests Rival's Takeover PHIL. LONG DISTANCE: Wants to Clear Up Foreign Ownership Issues SAN MIGUEL: Enters New Packaging Supply Deal with Hong Kong Unit S I N G A P O R E CHEMTURA CORP: Moody's Reviews Ratings for Possible Downgrade CHEMTURA CORP: S&P Places BB+ Corp. Rating on Watch Developing INTERMEC TECH: Names David Jones as Global Services Vice Pres. SYNIVERSE TECHNOLOGIES: Completes BSG Wireless Acquisition T H A I L A N D TOTAL ACCESS: Eyes Major Investments in 2008 TRUE CORP: Moody's Affirms B1 Corporate Family & Bond Ratings TRUE MOVE: Moody's Affirms B1 Corporate Family & Bond Ratings * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= CHALLENGER FINANCIAL: S&P Assigns BB Rating on Class C Notes ------------------------------------------------------------ Standard & Poor's Ratings Services assigned ratings to the residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Victoria Ltd. as trustee for Challenger Millennium Warehouse H Trust. The complete ratings are as follows: Class Rating A AA- B BBB C BB D Unrated This transaction has four tranches of notes. The Class A, Class B and Class C notes have been rated. The fourth tranche, Class D, is unrated. The ratings assigned largely reflect the: -- Credit quality of the underlying mortgage loans, and the credit support provided, including lenders mortgage insurance and subordinated notes. It should be noted that the pool includes both mortgage insured and non-mortgage insured loans; -- Asset level liquidity support; and -- Yield sufficiency. A full rating report for this transaction will not be published, at the request of the issuer. Challenger Financial Services Group Limited -- http://www.challenger.com.au -- is a financial services company. The Company, along with its subsidiaries, is principally engaged in the provision of financial services, in particular mortgage management, which involves commercial and residential lending and securitization business; funds management, which funds management business; asset management, which structures and manages assets to generate long term income streams, and financial planning, which involves financial planning and funds administration business. In September 2007, the Company acquired Choice Aggregation Services, including Choice Home Loans, a mortgage aggregator/broker in the Australian market. Challenger has also acquired a 19% stake in FAST, a national mortgage aggregator headquartered in Western Australia. INTERNATIONAL POWER: Fitch Affirms BB Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed International Power plc's Long-term Issuer Default Rating at 'BB' with Stable Outlook. IPR is a UK holding company for a portfolio of international power assets. The ratings reflect IPR's relatively conservative debt levels and management's prudent approach to expansion of the business and to financing. Unlike several of its peers, IPR has not aggressively pursued double leverage - the use of holding company debt to fund the "equity" in subsidiaries, associates or joint ventures which are, themselves, predominantly debt- funded. The Stable Outlook reflects Fitch's expectation that management will maintain its prudent acquisition and financing strategy. Since the last credit review, IPR has enlarged its engagement in renewable energy sources with its acquisition of Levanto, Maestrale and Schkortleben wind farm portfolios. Further acquisitions included the oil-fired OCGT Indian Queens peaking plant in Cornwall, England and the purchase of the 50% remaining stake in a partnership with Energy Australia. IPR also strengthened its cooperation with Mitsui by creating a common ownership platform for its UK assets in June 2007. Debt finance at the subsidiaries is of non-recourse nature to IPR and almost all of the group's assets are project-financed. For groups financed in this manner, Fitch focuses on debt and cash-flows at the holding company rather than for the consolidated group, since the holding company has limited access to the subsidiaries' assets other than the dividends and has no, or limited, liability associated with the subsidiaries' debts. About International Power International Power plc -- http://www.internationalpowerplc.co... -- is a United Kingdom- based public limited company. The principal activity of the Company is to act as the holding company for a group of companies and a number of associated companies and joint ventures. Its principal activities are the generation and sale of electricity. International Power's primary business is the generation of electricity, and related district heating and desalination. It has interests in 32,000 megawatt (gross) of power generating capacity in 20 countries. The Company's business is focused in five core regions: North America, Europe, Middle East, Australia and Asia. On January 22, 2006, along with its partners Suez Energy International of France and Sumitomo Corporation of Japan, it signed an agreement to acquire the Hidd independent power and water project in Bahrain, 40% owned by the Company, 30% by Suez Energy International and 30% by Sumitomo Corporation. In May 2006, it acquired a 30% stake in Oxford Power Holdings Ltd. LAFAYETTE MINING: Philippines Units Seek Court Protection --------------------------------------------------------- After going into voluntary administration, Lafayette Mining Ltd.'s Philippine units are seeking court protection from creditors to continue normal operations in its Rapu-Rapu project, reports Agence France-Presse. James Regan and Carmel Crimmins of Reuters relates that Carlos Dominguez, chairman of Lafayette's Philippine operations, said the mine and its 1,000 strong workforce would continue working until the Australia-based administrators would tell them otherwise and as long as the mine is still profitable. The Rapu-Rapu project is located 350 km. southeast of Manila, states Reuters. Tom Green, executive director of risk consultancy Pacific Strategies and Assessments, told Reuters, "Mining companies always have lessons learned and cautionary tales and Lafayette always comes up." Reuters relates that Lafayette was the first foreign company to operate a mine in the Philippines after a law granting full foreign ownership of local projects was upheld in 2004. The Troubled Company Reporter-Asia Pacific reported on Oct. 25, 2007, that the Rapu-Rapu project has been forecasted to generate revenues of AU$350 million a year from annual production of 10,000 tonnes of copper in concentrate, 14,000 tonnes of zinc in concentrate, 50,000 ounces of gold and 600,000 ounces of silver. About Lafayette Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. TCR-AP's "Large Companies with Insolvent Balance Sheets" column on December 14, 2007, reflected Lafayette Mining Limited as having US$190.86 million equity deficit, on total assets of US$105.24 million. STADIUM AUSTRALIA: ANZ Obtains Naming Rights for AU$31.5 Million ---------------------------------------------------------------- Stadium Australia Group confirmed that it will have a new name and a new logo from January 1, 2008, after ANZ Bank secured the naming rights of the sports and entertainment venue for AU$31.5 million. The Australian Associated Press reports that the stadium, which is currently known as Telstra Stadium, will be renamed as ANZ Stadium, after Telstra cut short its nine-and-a-half-year deal by two years. According to the AAP, an investment trust owned by ANZ, the Diversified Infrastructure Trust, acquired the stadium in April 2007. The AAP relates that ANZ will pay AU$4.5 million annually for seven years, which is AU$1.5 million more than what Telstra currently forks out. SAG Managing Director and CEO Ken Edwards said that the partnership with ANZ is a great step for the company. The company, in a statement, claims that ANZ's AU$31.5 million sponsorship will be Australia's biggest stadium naming rights agreement ever seen in sports and entertainment history. About Stadium Australia Stadium Australia Group -– http://www.telstrastadium.com.au-- owns and operates Telstra Stadium, which comprise Stadium Australia Trust (SAT) and Stadium Australia Management Limited (SAM). SAG's principal activities include the operation, management and maintenance of Telstra Stadium. The Telstra Stadium has a seating capacity of 80,000 approximately. During the year ended December 31, 2005, the Company hosted 27 events. In 2005, it has rebranded Telstra Stadium as Australia's Home Ground. During the same period, SAG hosted Australia's three national football teams, the Wallabies, the Kangaroos and the Socceroos. During 2005, the Company has signed hiring agreements with Australian Rugby Union, NSW Rugby Union, Bulldogs and South Sydney Rabbitohs. In January 2007, Stadium Investments Pty Limited acquired a relevant interest in more than 50% of the stapled securities of SAG. The Troubled Company Reporter-Asia Pacific, on April 20, 2007, included in its "Large Companies With Insolvent Balance Sheets" Column Stadium Australia Group, with US$137.64 million in assets and US$47.57 million in stockholders' equity deficit. * Moody's Says Negative Australian Corporate Trend to Persist ------------------------------------------------------------- Moody's Investors Service says Australian corporates in 2007 showed a clear negative credit trend -- driven by M&A activities and the resultant aggressive use of debt -- and this situation is likely to persist into 2008. At present, 20% of the Australian/New Zealand portfolio are either on review for downgrade or on negative outlook, compared to 6% with positive indications. "Due to the fallout from the US sub-prime crisis, Australian rated companies -- when compared with Asian corporates -- face more exposures as they, as well as the banking sector, are more reliant on capital market funding," says Clara Lau, a Moody's SVP and Chief Credit Officer. The report reviews credit conditions throughout Asia Pacific (ex-Japan) in 2007 and the outlook for 2008. Going into 2008, the disruption in the cross border debt markets caused by the sub-prime crisis and the contagion effects on the rest of the capital markets, including equity markets, will remain a major concern, the report says in reference to Australia and the Asia Pacific region overall. Liquidity management remains a key credit risk and will need to be monitored closely. "At present, most Australian banks and corporates -- in this context -- do not seem to have major issues rolling over CPs, though at higher costs; but potential challenges are anticipated if the sub-prime situation worsens," says Lau. Moreover, an economic slowdown in the US, depending on its severity, could, at a minimum, affect issuers that generate revenue from the US, like technology and trading companies, some Australian consumer products companies and listed property trusts, the report says. "In comparison to the relative balance and stability noted in Moody's Asian portfolio, Australian non-financial rated corporates displayed a clear negative trend in 2007," says Lau, adding, "Negative rating actions dominated positive rating actions by a factor of four." The negative trend in Austalia was mainly driven by M&A activities, and mostly felt in the utilities and metals and mining sectors. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ BEANEAR LIMITED: Members to Receive Wind-Up Report on Jan. 18 ------------------------------------------------------------- Members of Bearner Limited will have their final general meeting on January 18, 2008, at 9:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CAMTEL COMPANY: Liquidator to Present Wind-Up Report on Jan. 18 --------------------------------------------------------------- Members of Camtel Company Limited will have their final general meeting on January 18, 2008, at 15:40 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CHIA TAI CONSUMER PRODUCTS: Members to Receive Report on Jan. 18 ---------------------------------------------------------------- Members of Chia Tai Consumer Products Company Limited will have their final general meeting on January 18, 2008, at 11:20 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CHIA TAI HENAN INVESTMENT: Liquidator to Present Wind-Up Report --------------------------------------------------------------- Members of Chia Tai Henan Investment Company Limited will have their final general meeting on January 18, 2008, at 12:20 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CHIA TAI INTERNATIONAL: Members to Receive Wind-Up Report --------------------------------------------------------- Members of Chia Tai International Trading Limited will have their final general meeting on January 18, 2008, at 12:40 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CHIA TAI SOYBEAN: Members to Receive Wind-Up Report on Jan. 18 -------------------------------------------------------------- Members of Chia Tai Soybean Oil Extraction Company Limited will have their final general meeting on January 18, 2008, at 14:20 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CHIA TAI TELECOMUNICATION: Liquidator to Present Wind-Up Report --------------------------------------------------------------- Members of Chia Tai Telecommunication Company Limited will have their final general meeting on January 18, 2008, at 14:40 p.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong CITIC PACIFIC: S&P Affirms 'BB+' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services, on Dec. 24, 2007, affirmed its 'BB+' corporate credit rating on CITIC Pacific Ltd. (CITIC Pacific). The outlook is stable. At the same time, Standard & Poor's affirmed the 'BB+' issue rating on senior unsecured notes issued by CITIC Pacific Finance (2001) Ltd. and guaranteed by CITIC Pacific. "The rating affirmations recognize the group's diversified operations and the strong asset value of many investments, which support its financial flexibility and liquidity," said Standard & Poor's credit analyst Lawrence Lu. While elements of CITIC Pacific's business profile are sound, the rating affirmations recognize the company's weak financial metrics and its shift in focus toward two core businesses: property and steel. These segments are exposed to high underlying industry risks and are susceptible to volatile operating conditions. In addition, the benefits of operating across a number of separate businesses are offset by the ongoing streamlining of the group's operations toward core businesses, combined with the company's opaque strategic commitment to other business activities and investments. CITIC Pacific's recent operating results continued to improve, although bottom line profits continue to be volatile and were materially affected by nonrecurring items relating to the ongoing restructuring of many of its businesses. Significant development and expansion of its core businesses -- namely property, steel, and mining -- and the high prospect of further business and investment divestment also moderate the visibility of recurring revenue generation and limit clarity about the group's longer-term debt requirements. CITY TELECOM: S&P Raises Corporate Credit Rating to B+ ------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on City Telecom (H.K.) Ltd. (CTI) to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised its issue rating on CTI's US$125 million senior unsecured notes due 2015 to 'B+' from 'B'. "The rating actions reflect CTI's improved financial and operating performances in fiscal 2007, driven by a change in business strategy to capture revenue market share instead of subscriber market share," said Standard & Poor's credit analyst Lawrence Lu. The rating actions also reflect the company's increased reliance on a self-built network rather than third- party capacity; and its cost containment program, implemented during fiscal 2006. The rating on CTI also reflects the company's small size and weak market position in Hong Kong's highly competitive fixed- line telecommunications industry, and its aggressive financial position. These weaknesses are balanced by its sound liquidity, modern network which is attractive to customers and would take a few years to replicate by competitors, and efficient cost structure. CTI's total subscriber base in the fixed telecom network services (FTNS) segment increased 11% to 683,000 in fiscal 2007. Most new and renewing subscribers now have standard 24-month contracts, bringing transparency to the company's order book, which is also supportive to cash flow stability. CTI derives significant competitive advantages from its low-cost and fast, modern Ethernet network, which covers about 1.4 million households in Hong Kong (about two-thirds of total coverage) The company aims to increase its network coverage to about 2 million households by spending about Hong Kong dollar (HK$) 850 million over the next three years. CTI is the only new entrant with its own end-to-end network. This gives it a potential edge over other new entrants, which are currently more reliant on the existing network of incumbent operator PCCW-HKT Telephone Ltd. (PCCW-HKT; BBB/Positive/--), to which mandatory access will be removed by June 2008. C.P. FOODS: Liquidator to Present Wind-Up Report on Jan. 18 ----------------------------------------------------------- Members of C.P. Foods Company Limited will have their final general meeting on January 18, 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: China Merchants Building, Room 804 152-155 Connaught Road Central, Hong Kong THE WAH FUNG: Members’ Final General Meeting Set for Jan. 18 ------------------------------------------------------------ Members of The Wah Fung Productions Limited will meet on January 18, 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: Chinachem Century Tower, 31st Floor 178 Gloucester Road Wanchai, Hong Kong ========= I N D I A ========= AGILENT TECH: Reports Biggest Instrument Sale in India to Date -------------------------------------------------------------- Agilent Technologies Inc. has disclosed its biggest sale to date of analytical instrumentation in India. The sale includes more than 50 instruments, mainly Rapid Resolution Liquid Chromatography systems, plus gas chromatography systems and headspace samplers to Orchid Chemicals & Pharmaceuticals Ltd., one of the top 15 companies in the Indian pharmaceutical industry. In addition to being Agilent's biggest sale in India, this is also Orchid's largest order from any chromatography manufacturer. "We were interested in the RRLC system when Agilent introduced it to us," said Dr. P.Y. Naidu, Orchid vice president, QC and R&D, "and subsequent demonstrations at our site proved its worthiness. Instrument reliability is a factor in this decision, along with our trust in Agilent based on our long association with district manager Mr. Gopala Krishnan. He properly understood our requirements at each and every point, and this helped guide our decision." "This type of investment is based on much more than price," said Sanjiv Dhar, Agilent country operations manager, India. "First, the instruments must deliver consistently good results, year-in and year-out. Second, they must easily integrate into existing workflows. Third, they must be extremely reliable. We're pleased that Orchid recognized these qualities in Agilent products and support services in this highly competitive environment." The Agilent 1200 Series RRLC system provides up to 20 times faster analysis and 60-percent higher resolution than conventional HPLC, without sacrificing precision or sensitivity. It is designed to provide the highest analysis speed and resolution while keeping system pressure at a minimum. The result is higher performance coupled with the robustness of conventional HPLC. Agilent is the clear global leader in gas chromatography, and the new 7890A GC, which Orchid purchased, is the latest generation of 40 years of innovation. It delivers advanced separation capabilities, powerful productivity enhancements, and real-time self-monitoring and diagnostic intelligence. Faster oven cool-down and robust backflushing let users analyze more samples in less time. Fifth-generation electronic pneumatics control and digital electronics set a new standard for pressure setpoint and retention time locking precision. 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 has assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of USUS$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. IFCI LTD: Invites Bids to Value & Buy Stake in Unlisted Firms ------------------------------------------------------------- IFCI Ltd has invited bids from merchant bankers to value and buy its shares in unlisted firms to enable the company to sell them, various reports say. The move came after the finance firm called off its plan to sell 26% of the company to what would have been a strategic partner. As previously reported by the Troubled Company Reporter-Asia Pacific, IFCI cancelled the stake sale after its board of directors rejected the financial proposal submitted by the consortium of Sterlite Industries and Morgan Stanley and Co, saying that the conditional offer is unacceptable. The Economic Times, citing unnamed sources close to the development, said that the Sterlite consortium offered a INR107- per-share minimum price at which institutional shareholders will convert their debt into equity. Management control was the reason behind deal being called off, moneycontrol.com quoted CNBC-TV18 in a report. Thomson Financial News, citing the Times, reported 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. Last week, right after the sale was called off, the press quoted an unnamed IFCI official as saying that the finance institution has identified 100 companies where it would like to sell off its stake. Merchant bankers and other interested parties reportedly have until January 10, 2008, to submit their bids. IFCI had over time acquired stake in many companies either directly or in lieu of debt, the Press Trust of India cited its source as saying. 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. ITI LTD: Ties Up With U.S.-Based Alphion Corp. ---------------------------------------------- Alphion Corporation, a privately held company that develops, manufactures and markets communication systems, sub-systems, and integrated photonic components based on its proprietary QLight technology, has struck an alliance with ITI Limited for the manufacture and distribution of its family of GPON products. The AOLT-4000 Optical Line Terminal (OLT) reflects the state-of- the-art in GPON OLT equipment, with high-density 40 GPON ports per shelf, ultra-fast 200 gigabit per second backplane, and 56 gigabit per second uplink capacity. The platform supports PON architectures with path and equipment redundancy. The product family includes Optical Network Terminals for single family residences (AONT-100), small businesses (AONT-200), and multiple dwelling units (AONT-300). "This alliance with ITI Limited is an exciting step and Alphion will be able to support ITI from our existing research, development and customer support centers in India," commented Dr. Bharat P. Dave, Alphion Chairman, President and CEO. "We are looking forward to close cooperation with ITI Limited as we begin addressing the needs for advanced FTTH networks in Asia." "ITI will be the first Indian company to acquire GPON technology-based FTTH products and will be manufacturing them at our Rae Bareli Plant," says Shri S K Chatterjee, Chairman and Managing Director of ITI. "The GPON equipment manufactured in Rae Bareli, besides meeting the domestic market requirements, also has potential for overseas sales." The collaboration between Alphion and ITI strengthens both parties, combining Alphion’s expertise in access technologies with ITI’s manufacturing skills and presence in India. ITI is acknowledged as the leading provider in India for turnkey solutions in the telecommunications marketplace. The Alphion AOLT-4000 and AONT-100/200/300 family were developed in full compliance with the International Telecommunications Union’s standard for FTTx equipment (ITU-T G.984). This ensures that the Alphion product family meets the stringent carrier- class requirements and interoperates with a broad spectrum of other manufacturers’ GPON equipment. ITI Limited -- http://www.itiltd-india.com/-- is a telecom company, which manufactures a range of telecom equipment, including switching products; transmission systems, such as satellite communication systems, optical line terminating equipments and digital microwave systems; access products, such as fixed wireless local loop systems and digital local loop carriers; terminal equipment, such as telephones, integrated services digital network products and video conferencing systems; microelectronic products and software; information technology products and telecom products for the defense sector, and other products, including solar power systems and bank mechanizing products. It also provides value- added services, such as shared hub very-small aperture terminal services, and public mobile radio trunked services and turnkey solutions. Its customers include The Department of Telecommunications, defense, railways, oil sector and corporates in India, and certain African and South Asian nations. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 23, 2007, Credit Analysis & Research Ltd. revised the rating assigned to the 'L' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structured Obligation)] from CARE AAA (SO) [Triple A (Structured Obligation))] with Credit Watch. The rating revision took into account the delay in the interest payment of the above said bond issue. The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned final National ratings of 'D(ind)(SO)' to ITI's INR550 million 'J-1' Series long-term bonds. ITI has incurred losses for at least two consecutive years -- INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The company is a sick company as per provisions of India's Sick Industrial Companies Act 1985. KINETIC ENGINEERING: To Raise as Much as US$18MM in FCCB Issue -------------------------------------------------------------- The committee of Kinetic Engineering Ltd's board of directors at its meeting on Dec. 21, 2007, agreed to raise as much as US$18 million via international offerings of securities including foreign currency convertible bonds, the company disclosed to the Bombay Stock Exchange. As decided during the meeting, the price of the equity shares so issued on conversion will not be less than INR156 (including premium of INR146) per equity shares of INR10 each. According to Reuters, the amount raised would be used in the production of gearboxes for Tata Motors Ltd's small car, scheduled to be launched in 2008. The committee has also decided to issue and allot, by way of a preferential issue, up to 19,23,077 Compulsorily Convertible Cumulative Preference shares of INR156 each convertible in full into a maximum 19,23,077 of the company's INR10 each shares at a price of INR156 per share (including premium of INR146) to these AIG Entities: -- AIG Asian Opportunity Fund II; -- L P (AOF II); -- American International Assurance Company (Bermuda) Ltd [AIA(B)] -- American International Assurance Company Ltd (AIA); -- Ashoka Investment Holding Ltd (AIHL); and -- Ambadevi Mauritius Holding Ltd (AMHL). To seek the shareholders' approval of the move, the company has scheduled an extraordinary general meeting on Jan. 22, 2008. India-based Kinetic Engineering Ltd. -- http://www.kineticindia.com/-- is an automobile manufacturer, which specializes in two wheelers. The company has sold over 6 million vehicles in India. Kinetic has brought to India technologies, such as four valve engines, electric start on scooters and motorcycles, v-twin engines and upside down (USD) forks. The company offers top-end bikes, such as Comet and Aquila. It has a nationwide network of nearly 450 dealers and over 1,000 service centers. Kinetic exports vehicles to the United States, Canada, Latin America, Europe, Africa, Middle East and South Asia. For the 15 months ended Dec. 30, 2006, the company booked a net loss of INR432.9 million. For the period Apr. 1, 2004, to Sept. 30, 2005, the company incurred a net loss of INR549.6 million. QUEBECOR WORLD: Moody's Cuts Corporate Family Rating to Caa2 ------------------------------------------------------------ Moody's Investors Service has downgraded Quebecor World Inc.'s corporate family rating by two notches to Caa2. The company's debt instruments and those of related companies, Quebecor World Capital Corporation and Quebecor World Capital ULC, were also downgraded and the related ratings outlooks were changed to negative. Quebecor World Inc.'s speculative grade liquidity rating remains at SGL-4, indicating poor liquidity. The rating action concludes a review initiated on Nov. 23, 2007, and reflects increased default risk as the company looks to renegotiate bank credit facility arrangements in advance of potential financial covenant defaults that could occur when year-end compliance is tested. The company's ability to manage the situation has been adversely impacted by cancellation of a previously announced sale of the company's European operations. This complicates an already difficult situation, and in light of the tight time frame, increases execution risks. In addition, without the benefit of sales proceeds from the cancelled European transaction, it is not clear whether the company may require more than mere financial covenant adjustments. However, even including the relatively weak European operations, Moody's expects the company to be modestly cash flow positive during 2008. Accordingly, the revised ratings' levels reflect the impact of liquidity related risks. Over the recent past, Quebecor World has depended heavily on third party financing to augment cash flow from operations. This has created significant reliance on the company's bank credit facility and has strained both the CFR and SGL ratings. Consequently, until such time as Quebecor World can validate its restructuring activities by way of significant cash flow self- sufficiency, the close linkage between the SGL and CFR ratings will continue to prevail, and over the near-term, liquidity related milestones will trigger ratings activity and will determine ratings outcomes. Since resolution of the current situation depends on events that the company cannot control, the ratings outlook is negative. Downgrades: Issuer: Quebecor World, Inc. -- Corporate Family Rating, Downgraded to Caa2 from B3 -- Probability of Default Rating, Downgraded to Caa2 from B3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD4, 67) from Caa1 (LGD4, 66) Issuer: Quebecor World Capital Corporation -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD4, 67) from Caa1 (LGD4, 66) Issuer: Quebecor World Capital ULC -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD4, 67) from Caa1 (LGD4, 66) Outlook Actions: -- Quebecor World, Inc.: Outlook, Changed To Negative From Rating Under Review -- Quebecor World Capital Corporation: Outlook, Changed To Negative From Rating Under Review -- Quebecor World Capital ULC: Outlook, Changed To Negative From Rating Under Review 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. ================= I N D O N E S I A ================= ALCATEL-LUCENT SA: Sells Draka Comteq Stake for EUR209 Million -------------------------------------------------------------- Alcatel-Lucent S.A. has reached an agreement with Draka Holding N.V. to sell its 49.9% share in Draka Comteq B.V. against payment of an aggregate cash purchase price of EUR209 million. Under this transaction, Draka acquires full ownership of Draka Comteq. Draka Comteq B.V. is a leader in the field of optical fibre and optical fibre cable, created on July 1, 2004 by combining the worldwide optical fibre and communication cable activities of Draka and Alcatel-Lucent. Since the initial establishment of the joint venture, Draka Comteq has been controlled by Draka and its results have been consolidated in full in the Draka consolidated financial statements. It is expected that the transaction completed by the end of 2007. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BANK INTERNASIONAL: Bank Indonesia Gets Compliance from Temasek --------------------------------------------------------------- Bank Indonesia received statements of compliance from PT Bank Internasional Indonesia Tbk's shareholder, Temasek Holdings, Antara News reports citing BI Banking Research and Regulation Director Halim Alamsyah. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 17, 2007, Temasek, through Fullerton Financial Holdings Pte. Ltd, is the majority shareholder of Sorak Consortium, which in turn holds 56.13% of Bank Internasional shares. According to Antara News, under Bank Indonesia's single-presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. Bank Indonesia, the report noted, set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. The TCR-AP added that Temasek Holdings plans to merge the bank with PT Bank Danamon Indonesia Tbk, pending the approval from banking regulatory bodies. Mr. Alamsyah told the news agency that Bank Indonesia would study the policies of the two holding companies with regard to their share ownership in the Indonesian banks. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter-Asia Pacific reported on October 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Internasional Indonesia Tbk. -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2 -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of Bank Internasional as follows: * Long term foreign currency IDR at 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4', Support Rating Floor 'B' and * National Rating 'AA-(idn)'. BANK LIPPO: Bank Indonesia Gets Compliance from Khazanah -------------------------------------------------------- Bank Indonesia received statements of compliance from PT Lippo Bank Tbk's shareholder, Khazanah Nasional Bhd, Antara News reports citing BI Banking Research and Regulation Director Halim Alamsyah. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 19, 2007, Khazanah Nasional is looking into the possibility of merging Lippo Bank and PT Bank Niaga given the synergy involved, and also to comply with Indonesia's single presence policy. According to Antara News, under Bank Indonesia's single-presence policy, foreign parties cannot own a controlling stake in more than one Indonesian bank and must submit statements of compliance to this rule. Bank Indonesia, the report noted, set an end-2007 deadline for affected bank owners to decide on how they would comply with the rule. Khazanah, the holding company of CIMB Group, has an 86.52% stake in Bank Lippo through Santubong Investment BV, while CIMB Group itself owns 62% of Bank Niaga`s shares through its subsidiary, Bumiputra Commerece, Antara News disclosed. Under the single presence policy, CIMB group and Khazanah were deemed as a single shareholder because Khazanah has a 19.7% stake in CIMB, The Edge notes. Foreigners controlling Indonesian banks have three options to comply with the single presence policy introduced by Bank of Indonesia, the TCR-AP related: -- merge the banks, -- set up a holding company for the banks, or -- sell down their stakes. Mr. Alamsyah told the news agency that Bank Indonesia would study the policies of the two holding companies with regard to their share ownership in the Indonesian banks. About Bank Lippo Headquartered in Jakarta, Indonesia, PT Lippo Bank Tbk -- http://www.lippobank.co.id/-- offers two product segments: Consumer Products, comprised of personal accounts, debit cards, distribution cards, VIP banking, credit cards, loans, bancassurance, payment services, loyalty programs and safe deposit boxes, and Corporate Products, consisting of LippoKredit, LippoTrade, LippoGiro, LippoDeposit, e-LippoLink and MFTS. The bank is supported by 134 branch offices, 21 sub branch offices, 238 cash offices and four payment service offices nationwide. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Lippo Bank Tbk. The detailed ratings are: -- The issuer/foreign currency subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating and D BFSR were unaffected. On Sept. 11, 2007, Fitch Ratings upgraded the Individual Ratings of PT Bank Lippo Tbk to 'C/D' from 'D. At the same time, the agency upgraded Bank Lippo's National Long-term Rating to 'AA-' from 'A+'. The Outlook remains Stable. All other ratings have been affirmed: * Long-term foreign currency IDR at 'BB-' with Positive Outlook, * Short-term foreign currency Rating at 'B', * Support Rating at 4 and Support Rating Floor at 'B', On July 12, 2007, Standard & Poor's Ratings Services assigned 'B+' long-term and 'B' short-term counterparty credit ratings to Indonesia-base Lippo Bank. The outlook is stable. Standard & Poor's also assigned its 'D' bank fundamental strength rating to the bank. At the same time, Standard & Poor's assigned its 'B-' issue rating to Lippo Bank's US$200 million subordinated notes due in 2016. The differential between the 'B+' counterparty credit rating on Lippo Bank and the 'B-' rating on its subordinated notes reflects the subordinated feature of the notes. BANK MANDIRI: Aims to Increase Micro Loans ------------------------------------------ PT Bank Mandiri plans to boost its lending to micro businesses by opening up to 300 more micro units next year to add to the existing 311, The Jakarta Post reports. Bank Indonesia, the report relates, categorizes loans of up to IDR50 million as micro, from IDR50 million to IDR500 million as small, and from IDR500 million to IDR5 billion as medium. Of the 300 new micro units, 104 would be in Jakarta, 60 in Sumatra, 25 in West Java, 24 in Central Java and Yogyakarta, 30 in East Java, 12 in Bali, 20 in Kalimantan and 25 in Sulawesi and Papua, the report notes. The report noted that Mandiri's lending to micro business during the first nine months of this year amounted to IDR1.12 trillion, less than 1% of its total loan book of IDR121.7 trillion. Still, it reflects an increase of 4% from last year's IDR982 billion, the report added. In addition to providing more loans to micro businesses, the Post relates, Mandiri is also stepping up its efforts to boost its housing loan portfolio, taking advantage of rising demand on the back of declining interest rates. PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The Outlook on the National rating remains Stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. BANK MANDIRI: Signs Business Deal With Lippo Cikarang ----------------------------------------------------- PT Bank Mandiri signed an agreement with PT Lippo Cikarang, pursuant to which every buyer of a home or shophouse in Lippo Cikarang that has been purchased with a loan from Mandiri will get a fixed 7.77% interest rate during the first two years, The Jakarta Post reports. Bank Director for Consumer Finance Omar S. Anwar was quoted by The Post as saying, "We are offering loans ranging from IDR25 million to IDR5 billion for customers who use Bank Mandiri's housing loan scheme. PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The Outlook on the National rating remains Stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. EXCELCOMINDO PRATAMA: Gets IDR4-Million Loan from Bank Mandiri -------------------------------------------------------------- PT Excelcomindo Pratama obtained a IDR4 trillion loan from Bank Mandiri to expand its network, various reports say. The Jakarta Post relates that President Director Hasnul Suhaimi said the funds will be used to build transmission towers and fiber optic cabling. The company, Reuters notes, signed the agreement on December 19. The loan will be repaid in five years, The Post adds citing a company statement. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/ -- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider (ISP) and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its all centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. Excelcomindo is Indonesia's third-largest cellular operator; as at the first quarter of 2006 the company had 8.2 million subscribers representing total market share of around 15% but with cellular revenue market share of approximately 10%. TM and its parent Khazanah together hold 73.7% in XL. * * * The Troubled Company Reporter-Asia Pacific reported on Dec 12, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit ratings on Indonesian cellular operator, PT Excelcomindo Pratama Tbk, and removed them from CreditWatch with negative implications. The outlook is stable. The 'BB-' ratings on all foreign currency senior unsecured debt were also affirmed. In October 2007, Moody's Investors Service upgraded Excelcomindo Finance Company B.V.'s foreign currency senior unsecured bond rating to Ba2 from Ba3. The bond is irrevocably and unconditionally guaranteed by Excelcomindo Pratama. At the same time, Moody's affirmed the Ba2 local currency corporate family rating of XL with a positive outlook. In May 2007, Fitch Ratings affirmed PT Excelcomindo Pratama Tbk's Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'BB-'. The Outlook remains Stable. At the same time, Fitch affirmed the 'BB-' rating on its senior unsecured notes programme. GOODYEAR TIRE: Jean-Claude Kihn Replaces Joseph Gingo as Sr. VP --------------------------------------------------------------- The Goodyear Tire & Rubber Company has appointed Jean-Claude Kihn as its senior vice president and chief technical officer, effective Jan. 1, 2008. Mr. Kihn, who currently is general director of Goodyear's Technical Center in Akron, will replace Joseph M. Gingo, who is retiring from Goodyear after 41 years to become chief executive officer of A. Schulman Inc. The announcement of Mr. Kihn is evidence of the broad and deep capabilities that have been built on Goodyear's technical leadership team according to Robert J. Keegan, Goodyear's chairman and chief executive officer. "Jean-Claude has demonstrated excellent leadership throughout the time I have known him and worked with him," said Mr. Keegan. "He has gained the trust of our business leaders in Europe, Latin America and North America through his recent assignments in those businesses. "I have a tremendous amount of confidence in Jean-Claude, and the entire organization, to continue the positive trajectory that we have driven over the course of the past several years," Mr. Keegan added. "Our new product engine is now the best in the industry." Mr. Kihn joined Goodyear in 1988 at the Goodyear Technical Center in Luxembourg as a compounder working in passenger tires. In subsequent years, he held several positions with Goodyear's Asian and Latin American business units before being promoted to general director of GTC*A in 2005. Mr. Kihn is a chemical engineer and has a Ph.D. from the University of Louvain in Belgium. He is fluent in English, French, German, Spanish and Luxembourgish. "I am extremely honored to be thought of as someone who can fill Joe's shoes. However, I am also very confident of our future capabilities - thanks in large part to the tremendous leadership team that has been developed throughout the organization," said Mr. Kihn. Along with the appointment of Mr. Kihn, Goodyear announced other leadership changes in the technical and research areas of the company: * William M. Hopkins, currently the vice president of technology and strategic initiatives, has been named vice president of advanced concepts. In his new role, he will establish and lead a team responsible for "break-through" concepts that will drive the development of innovative product and process technologies. * Joseph Zekoski, currently the general director of the Goodyear Technical Center in Luxembourg, has been named to the newly created position of vice president of global product development and technical center operations. He will be responsible for product development designed to assure the timely and cost-effective delivery of innovative new products. * Surendra Chawla, currently the director of corporate tire research, has been named to the position of senior director of external science and technology programs. Mr. Chawla will be responsible for discovering and assessing innovative new technologies applicable to its product and business needs. * Marc Junio, currently director of technology, consumer tires in Goodyear's European Union and Eastern Europe, Middle East and Africa tire business segments, has been named general director of GTC*A, replacing Mr. Kihn. Goodyear is one of the world's largest tire companies. The company employs about 70,000 people and manufactures its products in more than 60 facilities in 26 countries around the world. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. These ratings still apply as of Dec. 4, 2007. NORTEL NETWORKS: Sues Vonage Holdings for Patent Infringement ------------------------------------------------------------- Nortel Networks Corp. sued Vonage Holdings Corp. alleging that Vonage is infringing 12 patents covering technology used in managing telephone data, Jeff St.Onge and Amy Thomson at Bloomberg News report. According to Bloomberg, Nortel's lawsuit came after Vonage sued Nortel's U.S. unit in August seeking to invalidate three of the patents, arguing that the patents shouldn't have been issued by the U.S. Patent and Trademark Office. Nortel denied the allegations and claimed that Vonage is violating the three patents and nine others, Bloomberg relates. The Delaware case is Vonage Holdings Corp. v. Nortel Networks Inc., 07CV507, U.S. District Court, Delaware (Wilmington). About Vonage Headquartered in Holmdel, New Jersey, Vonage Holdings Corp. (NYSE:VG) -- http://www.vonage.com/-- provides broadband telephone services with over 1.4 million subscriber lines as of February 8, 2006. Utilizing its voice over Internet protocol technology platform, the company offers feature-rich, low-cost communications services with a call quality comparable to traditional telephone services. While customers in the United States represent over 95% of its subscriber lines, Vonage continues to expand internationally, having launched its service in Canada in November 2004, and in the United Kingdom in May 2005. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Nortel Networks Corp. still carries Moody's Investors Service 'B3' Senior Unsecured Debt rating, which was placed on March 22, 2007. PERUSAHAAN GAS: S&P Raises Corporate Credit Ratings to 'BB-' ------------------------------------------------------------ Standard & Poor's Ratings Services has raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. The upgrade factors in expectation of an improving financial profile in the short to medium term, with revenue increasing as a result of the completion of the two new major transmission lines from South Sumatra into West Java (SSWJ1 and SSWJ2) and the ongoing expansion of its distribution network. The transmission lines and distribution expansion are expected to be completed toward the end of 2008 and 2009, respectively. "The rating reflects the company's dominant market position, minimal price and volume risk for its transmission business, aggressive capital expenditure, high concentration on industrial customers, gas supply constraints, and mismatch of gas sales contract length and country and regulatory risks," said Standard & Poor's credit analyst Wee Lee Cheng. "The stable outlook reflects the expectation of an improving financial profile in the short to medium term, with revenue increasing as a result of the completion of the two new major transmission lines from South Sumatra into West Java and the ongoing expansion of its distribution network in West Java," Mr. Cheng added. "The outlook or rating could face downward pressure if there is a significant decline in gas exploration and production activities resulting in lower gas supply reliability, reduction in government support, decrease in pipeline utilization rates, or if significant delays or cost overruns in PGN's capital expenditure plan results in FFO to debt falling below 25% and debt-to-EBITDA ratio rising above 3x." PGN is a 55% government-owned Indonesian gas utility involved in the transmission, distribution, wholesaling, and retailing of gas. For the first six months of 2007, PGN generated total revenue of IDR3.85 trillion (US$419 million) and EBITDA of IDR1.76 trillion. The company had total assets of IDR19 trillion as of June 30, 2007. REXAM PLC: Weak US Dollar to Impact 2007 Second Half Results ------------------------------------------------------------ Rexax plc provided a pre-close trading update for the second half of 2007. Underlying trading for the second half of 2007 is anticipated to be broadly in line with management's expectations at the time of Rexam's Interim Results announcement, excluding the impacts of foreign exchange and a one-off fair value inventory adjustment arising on the acquisition of O-I Plastics. Beverage Cans is performing well, driven by strong volume growth in Europe and South America, with good pricing and improved mix in Europe. Volume growth in Brazil has been mitigated by the Brazilian Real which has strengthened against the US dollar by approximately 10% in the second half, which increased local currency costs on translation. The North American business is recovering from the effects of the strike in the first half. The company's growth capex program is well on track, despite start up delays in its new end manufacturing plant in Manaus, Brazil. Plastic Packaging is seeing a continuation of the trends experienced in the first half. Growth in Pharma is driving performance in the Healthcare division. In Personal Care, the strong performance in Dispensing Systems and the recovery of Make up partially offset softer volumes in Home and Personal Care. Lower demand in North America is affecting trading in the Closures division. In the second half, the US dollar has continued to weaken against sterling, and this will affect the company's reported results due to the translation impact on its US dollar earnings. In addition, energy and freight costs have been affected by the higher price of oil and this is expected to continue into 2008. The integration of O-I Plastics, acquired in July 2007, is proceeding well and is set to deliver the expected synergies from 2008 onwards. However, the 2007 operating profit for O-I Plastics will be affected by an estimated additional GBP5 million fair value inventory accounting charge arising on acquisition. Rexam will announce its preliminary results for the year ending Dec. 31, 2007 on Feb. 20, 2008. Headquartered in London, England, Rexam Plc -- http://www.rexam.com/-- is a global consumer packaging company and a beverage can maker. Rexam serves the beverage, beauty, pharmaceuticals and food markets with around 100 manufacturing operations in more than 20 countries, including Brazil and Indonesia and generated revenues of GBP3.7 billion. * * * In June 2007, Moody's Investors Service assigned a provisional (P)Ba2 rating to the proposed issuance of capital securities by Rexam Plc rated Baa3 for senior unsecured debt. The assigned rating and the basket designation will be subject to satisfactory final documentation. Moody's said the outlook for the ratings is stable. ========= J A P A N ========= IHI CORP: President Sees Strong Recovery Next Fiscal Year --------------------------------------------------------- http://www.japancorp.net/Article.Asp?Art_ID=16465 Azela/3rd Party IHI Corp. President Kazuaki Kama is confident that the company will make a strong recovery in the next fiscal year starting April 1, 2008, Jiji Press reports. After revising its financial statement for fiscal 2006 and lowering its earnings to an estimated loss of JPY15 billion for this year, IHI, according to Jiji Press, is expected to log a group operating profit of some JPY40 billion for the next fiscal year. Earlier this month, IHI, whose shares are being monitored by the Tokyo Stock Exchange for delisting, estimated that its energy plant division will incur a loss of JPY54 billion for the current year, the report added. The ships and heavy machinery is expected to regain a JPY4-JPY5 billion profit, thanks to a decline in the number of loss-making projects overseas and cost control, Mr. Kama told Jiji Press. Mr. Kama, relates Jiji Press, notes that its aircraft engine supply and shipbuilding are growing steadily. About IHI Corp. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on July 13, 2007, that Standard & Poors Rating Agency affirmed its BB+ long- term corporate credit rating with a positive outlook. NIS GROUP: TPG Alliance Cues S&P to Put Ratings on CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB-' long-term counterparty credit rating and long-term senior unsecured debt rating on NIS Group Co. Ltd. remain on CreditWatch with negative implications, where they were placed on Oct. 3, 2007. The realization of the recently announced capital and business alliance with TPG Capital L.P. will likely have a positive effect on NIS Group's credit quality. However, Standard & Poor's believes it is appropriate to reassess the ratings on NIS Group after continued monitoring of the business environment, since the impact of the transaction on the company's financing and future business plans have not yet been clarified. The ratings on NIS Group were lowered and placed on CreditWatch mainly due to increasing concerns over the credit quality of the finance industry as a whole, and the resultant heightening of precautionary measures by financial institutions. NIS Group's issuance of new shares to TPG worth JPY20 billion scheduled for Feb. 20, 2008, will boost the company's capital ratio by around 4% from 19.3%, as of Sept. 30, 2007, providing stronger credit quality. On the other hand, TPG's planned investment of JPY102.5 million in NIS Group's Chinese subsidiary, Nissin Leasing (China) Co. Ltd., will have limited impact on the company in terms of credit quality. This is because of the diluted contribution the subsidiary makes to NIS Group and the restrictive conditions of the transaction. TPG has yet to clearly specify the concrete steps it plans to take to improve the corporate value of NIS Group. In the meantime, the company is challenged to maintain stable financing and continues to rely on multiple financial institutions to raise funds. The extent to which the alliance will support such efforts is currently unclear. Standard & Poor's will resolve its CreditWatch listing after analyzing the following factors: -- NIS Group's financing conditions, including the stance taken by financial institutions with respect to credit lines; -- Progress of the company's alliance with TPG; -- The company's business plans; and -- Business profitability, including NPL trends. Standard & Poor's will most likely resolve its CreditWatch listing after the capital increase, but there is a possibility it will occur before that depending on various circumstances. Headquartered in Ehime Prefecture, Japan, NIS Group Co., Ltd., formerly Nissin Co., Ltd., -- http://www.nisgroup.jp/japanese/ind... -- is mainly engaged in the provision of secured and unsecured loans to individuals, including small business owners, consumers, small- and medium- sized enterprises in Japan. The Company operates in four business segments. The Integrated Loan Services segment is engaged in the provision of secured and unsecured loans, trust assurance, leasing and securities services to individuals and corporate clients. The Debt Management and Collection segment is engaged in the purchase, management and collection of debts. The Real Estate segment is engaged in the purchase, sale and development of real estate, as well as the asset management business. The Others segment is engaged in the provision of construction services and enterprise support services, among others. The Company has 54 subsidiaries and 10 associated companies. NUANCE COMM: Prices Public Offering of 7,000,000 Common Shares -------------------------------------------------------------- Nuance Communications Inc. has priced a public offering of 7.0 million shares of its common stock at US$17.50 per share. Nuance is selling 6,773,000 shares in the offering and certain members of Nuance management are selling an additional 227,000 shares in the offering. The public offering price of US$17.50 per share will result in gross proceeds of US$118.5 million and net proceeds, after underwriting commissions and other offering expenses, of approximately US$112.8 million to Nuance. The company also granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of its common stock to cover over-allotments, if any. Citi and Goldman, Sachs and Co. are acting as the joint book- running managers of the offering. Lehman Brothers and Thomas Weisel Partners will act as the lead managers of the offering and Craig-Hallum Capital Group, Needham & Company and Raymond James Financial will act as co-managers of the offering. Printed copies of the prospectus may be obtained from: Citi Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 Tel: (718) 765-6732 Fax: (718) 765-6734 -- or -- Goldman, Sachs & Co. Attn: Prospectus Department 85 Broad Street NY, New York 10004 Fax: (212) 902-9316 The offering is being made pursuant to an effective registration statement filed by Nuance with the U.S. Securities and Exchange Commission on Nov. 29, 2007. About Nuance Communications Based in Burlington, Massachusetts, Nuance Communications Inc. (NASDAQ: NUAN), fka ScanSoft Inc., -- http://www.nuance.com/-- provides speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services that help users interact with information, and create, share and use documents. The company has offices in Australia, Belgium, Japan, Korea, Hong Kong, India, Mexico, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Burlington, Massachusetts-based Nuance Communications Inc. and assigned its 'B-' rating to Nuance's proposed USUS$150 million senior unsecured convertible notes due 2027. Proceeds from the notes will be used to partially fund the previously announced acquisition of Tegic Communications Inc. S&P said the outlook is positive. SAPPORO HOLDINGS: To Raise Shipment & Beer Prices in FY2008 ----------------------------------------------------------- Sapporo Holdings Ltd.'s unit will raise the shipment prices of its beer and quasi-beer products on April 1, 2008, due to rising material prices, Jiji Press reports. Retail prices for its beer and beer-like drinks are also expected to rise by 3% to 5% from the current levels, notes Jiji Press. Sapporo Breweries Ltd. officials, relates Jiji Press, said that malt and hop prices are shooting up amid growing global demand for biofuels, while higher crude oil prices are pushing up the prices of aluminum cans. Kyodo News quotes Sapporo as saying, "Our own efforts alone would not suffice to make up for the cost increases." In line with this, the company expects material costs to increase JPY3 billion form the next fiscal year compared to this year, states Jiji Press. The brewery, according to the reports, did not disclose the margin of the price hike. About Sapporo Holdings Sapporo Holdings Limited -- http://www.sapporoholdings.jp/-- formerly known as Sapporo Breweries, brews beer and operates more than 200 beer halls and restaurants. Sapporo is one of Japan's oldest brewers, and is Japan's third largest brewing company, with brews ranging from its flagship Black Label to the pricier Yebisu. Sapporo also makes the low-malt happoshu brew. The company sells Guinness beer in Japan through its Sapporo Guinness Company and owns a beverage company that makes canned coffee, bottled water, and soft drinks. * * * As of May 16, 2007, the company carries Standard & Poor's Rating Service's 'BB' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings that were issued on February 6, 2006; and Fitch Ratings' 'B' Short-term Foreign and Local Currency Issuer Default Ratings that were issued on March 14, 2006. * Moody's Report Say Japanese Firms Retain Financial Profiles ------------------------------------------------------------- According to a report by Moody's Investors Services, in 2007, Japanese companies continued their aggressive and strategic investments, although they were still financially conservative. "Positive rating actions dominated in 2007. While we expect upgrades to continue into 2008, the number will decrease," writes Emiko Otsuki, Moody's SVP, Chief Credit Officer in Japan's Corporate Finance Group, and author of the report. "Companies will still have very strong credit profiles, but earnings are expected to come under pressure." On the downside, many of the 2008 earnings projections are weaker due to a number of challenges, including passing on additional hikes in the cost of raw materials and fuel. Still, Japanese companies have improved their tolerance for potential risk, and we believe that any negative impact on Japanese companies' ratings should be limited, according to the report, entitled "Corporate Japan -- Credit Insights & Highlights: 2007 Review & 2008 Outlook." Thus, ratings should remain stable in 2008. Of the total rated debt by Moody's, US$271 billion (87% of rated debt), have currently stable rating outlooks. Because of aggressive investments, funding needs have increased. In 2007, funding in Japan's bond markets increased -- to the highest level since 1998. And the appetite for strategic investments will remain strong, according to Otsuki. "With interest rates likely to stay at their current low levels, companies will increasingly use leverage, which had improved in the past. Debt may increase, but the companies will try to avoid any material deterioration in financial ratios." Among the challenges Japanese companies face are a slowdown of the US economy, which would cloud the outlook for Japanese companies' activities in the US. Also, a stronger yen is negative for exporters with a substantial percentage of sales outside of Japan, although they should be able to minimize the negative impact with global production management measures. Furthermore, the exporters are better prepared for potential risks, given that their portfolios, cost structures, and balance sheets are stronger than they were ten years ago. If overall financial profiles deteriorate due to greater than expected earnings pressure, ratings may face downward pressure. Significant market activity, such as M&A, could also lead to downward pressure, depending on how such activities are carried out. * Japanese Railroads' Outlook Moderately Positive, Moody's Says --------------------------------------------------------------- The ratings outlooks of Moody's Investors Services' universe of Japanese railroad companies are stable to positive. Non-rail business restructuring continues, leading to improved credit quality, says Moody's in a report. In 2007, Moody's changed the ratings outlook to positive from stable for East Japan Railway (Aa2) and Central Japan Railway (Aa2) in May, and for Keio Electric Railway (A2) and Tokyu Corporation (Baa3) in June. The ratings outlook for Kansai Rapid Railway (Aa2), Keihin Electric Express Railway (A3), Hankyu Hanshin Holdings (Baa1), Kintetsu Corporation (Baa2), and Sagami Railway (Baa2) remain stable. "We also published one new rating in the sector -- Kansai Rapid Railway (KRR, Aa2) -- bringing the total number of rated railroad companies in Japan to nine," says Kazusada Hirose, Moody's Vice President/Senior Analyst and author of the report. The report, entitled "Japan's Railroad Companies," comments that, despite lower railroad passenger numbers, the rated companies have been able to control costs and stabilize profitability. Moody's expects that railroad business cash flow will continue to support company ratings. "Although we expect railroad revenues will be pressured, the decline is set to be slow and predictable, and the railroad companies should be able to implement effective countermeasures," Hirose writes. "We believe that the companies will be able to continue cutting operating costs and control their capital expenditures, leading to stable cash flow from the railroad business." The rated companies have improved overall cash flow by restructuring their non-rail operations, namely retail and real estate, to varying extents. This restructuring and the resulting overall improvement to profitability have led to improved leverage. In the near future, some companies may increase their capital expenditures for transportation safety and station areas redevelopment, as well as for real estate and retail. Still, Moody's believes the railroad companies in general will control their debt even as they continue improving their financial profiles. The credit ratings of Japan's railroad companies are likely to improve, supported by stabilized cash flow and improved leverage. ========= K O R E A ========= ACTUANT CORP: Earns US$27.4 Mil. in First Quarter Ended Nov. 30 --------------------------------------------------------------- Actuant Corporation reported first quarter fiscal 2008 net earnings of US$27.4 million compared to prior year net earnings of US$25.1 million. Fiscal 2008 first quarter results include a US$5.5 million (US$0.09 per diluted share) charge covering a portion of the company's previously announced European Electrical restructuring, versus US$0.1 million in the first quarter of fiscal 2007. Excluding these restructuring charges, first quarter EPS increased 27% year-over-year from US$0.41 to US$0.52. For the first quarter ended Nov. 30, 2007, the company's net sales increased 21% to US$415 million from US$343 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (5%) and acquisitions (13%), core sales growth was 3%. Both the Industrial and Engineered Products segments generated double-digit core sales growth. Robert Arzbaecher, President and CEO of Actuant commented, "Actuant is off to a solid start in fiscal 2008 with core sales growth slightly ahead of expectations and excellent conversion to earnings. Robust Industrial segment sales as well as continued strength in the European truck market had a favorable impact on our core sales growth in the quarter. These results reinforce the benefits of Actuant's end market, geographic and customer diversification. Excluding restructuring charges, first quarter EPS increased 27% from last year, driven by higher sales, the benefit of acquisitions and margin expansion. We were especially pleased with the breadth of the year-over-year EBITDA margin increase as all of our business segments contributed to the improvement." Excluding European Electrical restructuring charges, operating margins in the first quarter improved 90 basis points, to 13.6% from 12.7% in the prior year. Higher gross profit margins as well as controlled selling, administrative and engineering spending were the primary drivers. The gross profit margin expansion reflects higher volume, favorable sales mix and the Company's continuous improvement initiatives including Lean Enterprise Across Discipline. Financial Position Net debt at Nov. 30, 2007, was US$505 million (total debt of US$574 million less US$69 million of cash), an increase of US$30 million from the beginning of the quarter. Strong cash flow in the quarter was used to fund the US$47 million investment in TK Simplex as well as US$9 million of capital expenditures. Actuant's first quarter cash flow was impacted by seasonal trends including working capital growth and the payment of prior year employee incentive compensation. Outlook The company also announced that it has increased its full year sales and earnings guidance and provided guidance for the second quarter of fiscal 2008. Mr. Arzbaecher stated, "We expect second quarter sales and EPS to be lower than the first quarter due to normal seasonality, but do anticipate year-over-year growth. Excluding future acquisition activity and European Electrical restructuring charges, we are projecting second quarter sales and EPS to be in the range of US$385 - 395 million, and US$0.39-0.42 per share, respectively." Mr. Arzbaecher continued "Our full year fiscal 2008 sales and earnings outlook, excluding future acquisitions and European Electrical restructuring charges, is being increased to reflect actual first quarter results, the weaker US dollar and current business conditions. Our increased guidance is for sales and EPS in the range of US$1.625-1.660 billion and US$1.95-2.05 per share, respectively. This translates to 13-18% EPS growth over the US$1.73 fiscal 2007 EPS, excluding 2007 tax gains and European Electrical restructuring charges. We are pleased with our first quarter performance and remain committed to delivering outstanding customer and shareholder value." About Actuant Corp. Headquartered in Butler, Wis., Actuant Corp. (NYSE: ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. The company employs a workforce of more than 6,700 worldwide. * * * As reported in the Troubled Company Reporter-Latin America on June 6, 2007, Moody's Investors Service assigned a Ba2 (LGD3, 43%) rating to Actuant Corporation's USUS$250 million senior unsecured notes and affirmed the company's Ba2 Corporate Family Rating. Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed USUS$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. DURA AUTO: Resolves Magna Objections to Reorganization Plan ----------------------------------------------------------- DURA Automotive Systems, Inc., and its debtor-affiliates and Magna Donnelly Corporation have decided to resolve a lift automatic stay issue and certain related issues related to the Debtors' Plan of Reorganization. In March 2007, the Debtors commenced a lawsuit against Magna in the United States Court for the Eastern District of Michigan, which alleges, among other things, that Magna infringed on certain of the Debtors' patents and misappropriated trade secrets. Magna wanted to lift the automatic stay to ensure that the Debtors' Plan of Reorganization does not restrict its ability to pursue its counterclaim against the Debtors. Thus, in a Court-approved stipulation, the parties agree, among other things, that: (a) the automatic stay will be immediately lifted to allow the District Court action to proceed and for Magna to assert and pursue its counterclaim and any other claims against the Debtors; and (b) Magna will be allowed to liquidate and enforce any damage claims against the Debtors, whether pre- or post- confirmation, and the District Court will have the sole and exclusive jurisdiction over the liquidation, provided, however, the Bankruptcy Court will have sole and exclusive jurisdiction over the enforcement of any monetary damage award related to prepetition monetary claims that Magna may have against the Debtors. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 41 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTO: Wants to Pay Lenders US$358K to Ignore Violations ------------------------------------------------------------ DURA Automotive Systems, Inc., and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to pay postpetition lenders US$358,000 to overlook loan covenant violations. As reported in the Troubled Company Reporter on Nov. 22, 2006, the Debtors entered into a US$300 million of debtor-in- possession financing facility with Goldman Sachs Capital Partners L.P., General Electric Capital Corporation, and other lender parties. Under the DIP Credit Agreement, the Debtors are required to comply with certain financial covenants. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that Dura Operating Corp., as borrower, and its debtor-affiliates, as guarantors, have agreed to enter into amendments to the Postpetition Revolving Credit Agreement dated Nov. 30, 2006, and Postpetition Term Loan Agreement dated Oct. 31, 2006, to avoid violating certain negative covenants in the DIP Facility as a result of the Debtors' entry into Court-approved agreements with Johnson Controls Systems, Inc., its affiliates and subsidiaries, and Bridgewater Interiors LLC. Mr. DeFranceschi says the $358,000 fee is equal to 0.05% of the aggregate outstanding "Revolving Commitment provided by each of the consenting Postpetition Lender or 0.25% of the aggregate outstanding principal amount of "Loans" of each consenting Postpetition Lender. Anthony C. Flanagan, managing director of AlixPartners, LLP, financial advisors to the Debtors, asserts that the aggregate amount of the Amendment Fees is small and reasonable in comparison to the benefits of the JCI Agreements to the Debtors' estates. The Debtors, in February 2007, negotiated the JCI Agreements to obtain improvements in the commercial terms of its existing supply contracts with JCI. DURA management believes that the JCI Agreements contain: (a) favorable commercial terms adjustments and resourcing limitations; (b) certain commitments by the Debtors to protect JCI from supply disruptions; (c) purchase options for JCI in the event of a default by the Debtors or of a sale of the Debtors' facility in Stockton, Illinois, where the Debtors predominantly manufacture automotive components, including seat racks, for JCI; and (d) a general release of any existing claims of the Debtors against JCI. Over the course of approximately 5 years, the Debtors expect that the commercial term adjustments contained in the JCI Agreements will result in an increase in EBITDA. Mr. Flanagan, however, redacted the projected EBITDA from the statement he filed with the Court. Under the JCI Agreements, JCI commits that it will not resource parts produced at the Stockton Facility for one year, allowing the Debtors time to enhance an already strong relationship with JCI. The Debtors asked the Court to convene an emergency hearing on their request on Dec. 27, 2007, at 1:30 p.m. (ET). Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 41 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). UAL CORP: Names New VP of Base Maintenance for United Services -------------------------------------------------------------- UAL Corporation, the holding company whose primary subsidiary is United Airlines Inc., has named Tracy M. Elving vice president of Base Maintenance for United Services. Joining the company from General Electric, Ms. Elving will be responsible for engine, components and airframe maintenance for United Airline's fleet, customer work at the San Francisco Base and oversight of all outsourced airframe maintenance worldwide. "Tracy's experience and proven track record in developing continuous improvement initiatives and her experience with supply chain will be a great complement to our current team," says United Services senior vice president, Bill Norman. "We are thrilled to have her join our team as we focus on providing the highest quality maintenance service to United and our customers." Ms. Elving brings more than 20 years experience in aviation engineering and manufacturing to United. Most recently, she served as the vice president, Lockheed Martin Account for General Electric, where she was responsible for all GE Aviation Systems products to Lockheed Martin and the development plans for all GE Aviation Systems product lines. Ms. Elving also held leadership positions at United Technologies Corporation and Northrop Grumman Corporation. "It is a very exciting time in the MRO business, and I look forward to working with the team to expand our continuous improvement efforts," Ms. Elving said. Ms. Elving will assume her role on Jan. 7, 2008, and will report directly to Mr. Norman. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * As reported in the Troubled Company Reporter on Nov. 29, 2007, Moody's Investors Service affirmed the ratings of UAL Corp. debt -- corporate family rating at B2 -- following the company's announced plans to amend its US$2.055 billion bank credit facilities (comprising a term loan facility of US$1.8 billion and a revolving credit facility of US$255 million) to provide the flexibility to implement up to US$500 million of shareholder initiatives. This level of shareholder initiatives would likely be within United's anticipated free cash flow and should still preserve the company's adequate level of liquidity. Moody's said the outlook remains stable. Standard & Poor's Ratings Services meanwhile affirmed its 'B' corporate credit rating on UAL Corp. and subsidiary United Air Lines Inc. following disclosure of a proposed amendment to United's bank credit agreement that would permit UAL to pursue "shareholder initiatives" (which could include a special dividend or share repurchases) of up to US$500 million. S&P said the outlook remains stable. =============== M A L A Y S I A =============== AMBANK BHD: Fitch Maintains 'BB' Rating on Hybrid Securities ------------------------------------------------------------ Fitch Ratings has revised the Outlook on Malaysia-based AmBank (M) Berhad's ratings to Positive from Stable. Concurrently, the agency has affirmed the bank's Long-term foreign currency Issuer Default Rating at 'BBB-' with a Stable Outlook, Short-term foreign currency IDR at 'F3', Individual rating at 'C/D', Support rating at '3' and Support Rating Floor at 'BB'. Fitch has also affirmed the 'BB' rating on the bank's hybrid securities. The ratings reflect the bank's improved, but still weak, balance sheet strength and moderate profitability as well as the benefits from its new strategic partner, the Australian and New Zealand Banking Group Limited (ANZ; ANZ National Bank Limited is rated 'AA-' (AA minus)). With ANZ's involvement in AmBank's strategic direction and operational matters, AmBank's financial strength and market position is expected to improve further over the longer term. Most of ANZ's seconded managerial personnel have been designated to focus on AmBank's retail strategy and risk management. The bank's asset quality has improved considerably over the past two to three years, thanks to its concerted recovery initiatives and write-offs. At end-H1FY08, its gross NPL ratio stood at 7.9% (industry: 6%). Loan loss reserve over NPLs doubled to 65% (industry: 70%) from 30% at end-FY05; the bulk of additional provisions was incurred in FY07 in view of the capital injection by ANZ. Notwithstanding the hefty provisions - which resulted in FY07 being a loss-making year - AmBank's Total CAR remained at 12% thanks to ANZ's capital injection; Tier 1 CAR stood at 6.3% at end-H1FY08. The bank has emerged on a stronger footing as reflected by its lower net NPL to equity ratio of 38% at end- H1FY08 (FY05: 139%). Nonetheless, AmBank's current capital position only permits a modest loan expansion, unless fresh capital is injected. Excluding the one-off hefty provision, AmBank's underlying performance has remained stable, driven by its consumer-led lending activities. This segment, with auto financing being the largest, along with SME lending will continue to be the bank's main growth engine with an increasing emphasis on fee income. However, given that higher loan loss coverage over NPLs is expected, credit costs are likely to limit the bank's profitability in the near term. With a network of 176 branches, 260 ATMs and 56 Electronic Banking Centres, AmBank has a sizeable presence in the consumer market with a notable franchise in car hire-purchase financing. The commercial bank is part of the AMMB Holdings Berhad (AHB) group, whose two major shareholders are AmCorpGroup Berhad (owned by the Non-Executive Chairman, Tan Sri Azman Hashim with 18.1% shareholding), and ANZ with a shareholding of 14.1%. Subject to regulatory approvals, ANZ's shareholding can increase up to 24.9% through the exercise of conversion option attached to the convertible and exchange instruments that it had injected into the group. VERIFONE HOLDINGS: Special Interest to Accrue on 1.375% Notes ------------------------------------------------------------- VeriFone Holdings Inc. said that beginning Dec. 20, 2007, special interest accrued on its 1.375% convertible notes due 2012 at a rate of 0.25% per annum. Special interest will accrue on the convertible notes pursuant to the registration rights agreement and the indenture relating to the convertible notes until a registration statement relating to the convertible notes is declared effective. VeriFone expects to file a registration statement relating to the convertible notes following the completion of its previously announced restatement and the filing of its annual report on Form 10-K for the fiscal year ended Oct. 31, 2007. The convertible notes were previously issued through offerings to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. No registration