T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, January 4, 2008, Vol. 11, No. 3 Headlines A U S T R A L I A CENTRO PROPERTIES: S&P Lowers Ratings to CCC+ CENTRO PROPERTIES: Funds to Pay Lower Dividend for Q4 of FY2007 CENTRO PROPERTIES: Invites Expressions of Interest CHRYSLER LLC: CEO Provides Confidence in Operations & Finances SCO GROUP: Gets Nasdaq Delisting Notice Due to Bankruptcy Filing WESTPOINT GROUP: Government to Fund Case Against AU Tax Office C H I N A , H O N G K O N G & T A I W A N ANDREW CORP: Completes US$2.65BB Merger Deal with CommScope Inc. BIO-RAD LABS: Earns US$28 Mil. in Third Quarter Ended Sept. 30 CHINA EASTERN: Air China to Vote Against Singapore Air Tie-Up DOUBLE SOUTH: Proofs of Debt Due on March 31 E-FORCE: Proofs of Debt Due on January 22 FIAT SPA: Withdraws From Nanjing Automobile Joint Venture FIAT SPA: Names Gianni Coda to Head Fiat Group Purchasing FRESH MIND: Proofs of Debt Due on January 22 FORTUNE CENTRAL: Appoints New Liquidator FORTUNE REALTY: Liquidators Quit Post GAMMA SHIPPING: Commences Liquidation Proceedings GLITTERING Mechanical: Court to Hear Wind-Up Petition on Jan. 30 HARMONY MOULD: Liquidators Quit Post HONG KONG WINE: Commences Liquidation Proceedings HKZZ COMPANY: Appoints New Liquidators KENFLEX ELECTRONICS: Appoints New Liquidators KIENVER CONSTRUCTION: Members Receive Wind-Up Report LORDSWORTH LIMITED: Appoints New Liquidators MAK WAH: Appoints New Liquidators NEHLSEN HONG KONG: Creditors to Receive Wind-Up Report PACIFIC WORLD: Commences Liquidation Proceedings PETROLEOS DE VENEZUELA: Prices Cash Tender Offer for Bonds PETROLEOS DE VENEZUELA: Reports 26.5B Barrels of Oil in Junin 1 RICHBEST TRADING: Creditors to Receive Wind-Up Report SABW CORPORATE: Members to Receive Wind-Up Report on Jan. 15 TERMSISSUE LIMITED: Proofs of Debt Due on January 21 TONG REN TANG: Members to Receive Wind-Up Report on Jan. 22 I N D I A BALLY TECHNOLOGIES: Earns US$21 Mil. in Qtr. Ended September 30 HINDUSTAN COPPER: Members OK Preferential Allotment to President HINDUSTAN ORGANIC: Seeks Partners for Joint Venture Projects IFCI LTD: Foreign Investors May Buy Up To 74% Stake, RBI Says LML LTD: Loss Narrows to INR112.5-Mil. in Qtr. Ended June 30 LML LTD: Books INR566.1-Mil. Loss in Year Ended Sept. 30, 2007 LML LTD: Sets 32nd Annual General Meeting on March 28 TATA MOTORS: Named Preffered Bidder for Ford Jaguar & Land Rover TATA MOTORS: December 2007 Sales Declines by 2% I N D O N E S I A AVNET INC: Operating Unit Signs Distribution Deal with Zarlink BANK UOB: Pefindo Upgrades Company Ratings to "idAA-" BANK RAKYAT: Pefindo Upgrades Company Ratings to "idAA+" FREEPORT-MCMORAN: Declares Dividends on Preferred, Common Stocks NORTEL NETWORKS: Settles Patent Dispute With Vonage Holdings NORTEL: Unit Commences Exchange Offer for 3 Senior Notes PERUSAHAAN: Two Power Plants' Output Halved Due to Shortage J A P A N ALITALIA SPA: Group Posts EUR1.19 Billion Net Debt for November ALITALIA SPA: November 2007 Passenger Traffic Up by 0.7% ALITALIA SPA: Sells Heathrow Slots for EUR92 Million ALITALIA SPA: Italy Starts Exclusive Sale Talks with Air France ATARI INC: Has Until March 20 to Comply with Nasdaq Rules DELPHI CORP: Court Approves Sale of Steering Biz for US$447MM DELPHI CORP: Ct. Extends Exclusive Plan-Filing Period JAPAN AIRLINES: To Beef Up Air Cargo Operations K O R E A BHK INC: Amends Seventh Bonds with Warrants BHK INC: Enters Into Strategic Alliance with Schem Co. CHONGKUNDANG CORP: Declares Stock Dividend CHOROKBAEM MEDIA: To Dispose 6 Million Shares of Common Stock CORECROSS INC: Acquires Smart Card Adapter Patent M A L A Y S I A HARVEST COURT: Exempted from Undertaking Offer for Shares SHAW GROUP: Gets SEC Letter Over Informal Inquiry Completion TENGGARA OIL: Creditors Voluntarily Wind Up Subsidiaries TENGGARA OIL: Fails to Pay MYR20.58MM Debt as of Dec. 31, 2007 N E W Z E A L A N D AIR NEW ZEALAND: Charged on EU Cargo Rates & Surcharges Probe P H I L I P P I N E S MERALCO: Seeks ERC OK to Collect PHP5BB in Transmission Charges METROPOLITAN BANK: Tier-2 Notes Get “Deal of the Year” Award PHILIPPINE LONG DISTANCE: Lists 400 New Shares in Local Bourse SAN MIGUEL: Closes AU$235-Mil. Sale of James Boag to Lion Nathan VICTORIAS MILLING: Annual Stockholders' Meeting Set For Feb. 8 S I N G A P O R E CHINA AVIATION: Completes Partial 80% Divestment of Equity Stake RED HAT: Says LatAm Ops Account for Up to 5% of Global Revenues RED HAT: Developing Open Source Software with Synapsis T H A I L A N D ABICO HOLDINGS: Requests SEC for Leniency on Special Audit FEDERAL-MOGUL: Emerges From Bankruptcy Protection in Delaware KUANG PEI SAN: Third Quarter Net Loss Dips 70% to THB11.352 Mil. KUANG PEI SAN: Sathit Limpongan Resigns as Independent Director SR TELECOM: Sells Airstar and SR500 Product Lines to Duons Group * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= CENTRO PROPERTIES: S&P Lowers Ratings to CCC+ --------------------------------------------- Standard & Poor's Ratings Services had lowered its issuer credit rating on Centro NP LLC to 'CCC+' from 'BB+'. At the same time, the senior-unsecured debt and preferred stock ratings on Centro NP were lowered to 'CCC+' and 'CCC-', respectively, from 'BB+' and 'BB-'. All the ratings were placed on CreditWatch with developing implications and removed from CreditWatch with negative implications, where they were initially placed on Dec. 13, 2007. The downgrades reflect: * The potential for the group's assets to be sold in softening market conditions, particularly in the U.S.; * Amendments to Centro NP's revolving credit facility on Dec. 18, 2007, which now links default at Centro NP to its affiliates; and * The Feb. 15, 2008 deadline for rollover of substantial debt facilities at Centro Properties Group. "These events substantially increase the near-term probability that Centro NP could be put into default by its creditors, notwithstanding that the operating assets remain of good quality," Standard & Poor's credit analyst Craig Parker said. "The potential sale process is being conducted in some real estate markets that recently have become more favorable to buyers. Together with volatile credit market conditions, this heightens the risk of default for the Centro NP creditors. However, we believe that the recovery prospects for creditors at Centro NP are reasonable given that the assets are performing within our expectations." Standard & Poor's also notes that Centro NP has also become embroiled in the extension of CNP's short-term liquidity. CNP's US$350 million revolving credit facility that matured on Dec. 31, 2007 was recently extended to Feb. 15, 2008. Altogether, the CNP bank financiers agreed to extend the group's AU$2.7 billion short-term debt until Feb. 15, 2008. Mr. Parker added: "The increased interest cost associated with the extension of the revolving debt facilities, and extension costs of US$3.3 million associated with the refinancing, will adversely affect Centro NP's earnings and financial flexibility. In addition, the amendments to Centro NP's revolving credit facility could accelerate the debt maturities at Centro NP should the company's parent, Super LLC, be unable to extend its bridge loan beyond Feb. 15, 2008. Previously, Standard & Poor's had felt that Centro NP's credit quality may be partially insulated from the deteriorating credit quality at CNP provided Centro NP continued to operate within its debt covenant package. The amendments to the revolving credit facility mean that the credit quality of Centro NP is linked to CNP." Given the uncertainty and urgency facing the group, we believe that the issuer rating on Centro NP could move either up or down from 'CCC+'. A further downgrade would be precipitated by Centro NP not being able to seek an extension of its debt facility beyond Feb. 15, 2008. There is also a prospect that some lenders within the CNP group may selectively rollover facilities that have recourse to favorable assets, while other lenders may seek repayment on Feb. 15, 2008. On the other hand, the ratings could be raised if CNP and Centro NP are able to present a strategic plan that satisfies the bank lenders and facilitates an extension of the debt facilities. This may provide CNP and Centro NP with adequate time to reduce debt levels while enabling the assets to be managed and retain their market value. The cash-flow impact of the increased interest margins on CNP's debt facilities and the reduced likelihood that the business model will continue in its current form following this renegotiation process means that the ratings may be raised up to the low 'BB' category. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is an Australia-based company that comprises the operations of Centro Property Trust (the Trust) and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust (New Plan), Heritage Property Investment Trust (Heritage) and Galileo Funds Management, as well as assumed full ownership of its United States management operations. CENTRO PROPERTIES: Funds to Pay Lower Dividend for Q4 of FY2007 --------------------------------------------------------------- Centro MCS Manager Limited, as responsible entity for the Centro Direct Property Fund and the Centro Direct Property Fund International, confirms that the Funds will pay a distribution for the December 2007 quarter. Alan Hayden, Manager Direct Property Funds said "Both DPF and DPFI will pay a distribution for the December 2007 quarter, although it is anticipated that this will be lower than the September 2007 quarterly distributions. This is mainly due to the impact of Centro Properties Group and Centro Retail Trust announcing that they will not be paying a distribution for the half year ending December 31, 2007." The distributions are expected to be paid in early February 2008 for both Funds. Investments in Centro Properties Group and Centro Retail Trust Further to the announcements made by Centro Properties Group and Centro Retail Trust on December 17, 2007, the Responsible Entity provides an update to investors in the Funds regarding the impact on the unit price of each Fund, reflecting the impact of those announcements and subsequent events. As of December 24, 2007, the withdrawal unit prices of the Funds were: * DPF: AU$1.4187, compared to AU$1.4912 on December 13 * DPFI: AU$0.9566 compared to AU$1.0812 on December 13 The unit prices have been mainly impacted as a result of the Funds’ investments in CNP and CER. Further details are set out below. * Both the DPF and DPFI have a small proportion of their investments directly invested into CNP and CER. As at December 13, 2007, this represented: -- DPF - 3.6% of net assets -- DPFI - 1.9% of net assets These investments form part of each Fund’s listed property trust portfolio. For daily unit pricing purposes, these investments are valued daily based on the trading price on the Australian Stock Exchange. CNP and CER prices dropped sharply following the commencement of trading on December 17. * Both the DPF and DPFI also have a proportion of their assets invested in Centro Retail Investment Trust (“CRIT”). This investment delivers exposure to the underlying assets of CER. As at December 13, 2007, this represented: -- DPF - 11.5% of net assets -- DPFI - 38.1% of net assets "Given the recent announcements by CNP and CER, the Responsible Entity has deemed it prudent to reduce the valuation of both DPF and DPFI’s investment into CRIT, until further clarification on the CER funding position is determined," added Mr. Hayden. The Responsible Entity has also taken into account other variables which may impact upon the value of CER’s asset portfolio, including the overall state of the economy in both the United States and Australia. variety of Centro syndicates and wholesale funds. The valuation The other assets of DPF and DPFI are largely invested into a of these investments will continue to be carried at the net asset backing or unit price published by each of the funds. It should be noted that the Centro syndicates have recently published their provisional NABs of their respective syndicate portfolios as at December 31, 2007. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is an Australia-based company that comprises the operations of Centro Property Trust (the Trust) and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust (New Plan), Heritage Property Investment Trust (Heritage) and Galileo Funds Management, as well as assumed full ownership of its United States management operations. Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CENTRO PROPERTIES: Invites Expressions of Interest -------------------------------------------------- The board and the management of Centro Properties Group are seeking expressions of interest from companies after undertaking a strategic review process with its advisers. This review includes evaluating options to secure the financial structure of Centro and its related entities, including Centro Retail Trust, on a timetable consistent with that agreed with the group's banks. Centro Chairman Brian Healey said, "In recent days, we have received a significant number of unsolicited expressions of interest from a range of strategic and financial investors in potential investments in the group and certain of our assets. "This will enable interested parties to substantiate their interest, and for all such proposals to be evaluated from the perspective of the best interests of all Centro stakeholders." The Board, according to Mr. Healey, believes that it is appropriate to adopt a process that allows the effective evaluation of any expression of interest on an equal basis and to ensure consideration of a wide range of alternatives for the best interests of all stakeholders. Expressions of interest are therefore being sought for either or both: * A whole of group review, including a recapitalization, equity issuance or acquisition of Centro; or * The acquisition of the group’s interests in its Australian and US wholesale funds. Parties wishing to participate in this process should contact Centro or its advisers, Lazard Carnegie Wylie. Interested Buyers John Snowden, head of property securities at Centro's largest shareholder, Colonial First State, expressed to Laura Cochrane of Bloomberg News that the possible suitors for Centro's assets may include Westfield Group, Morgan Stanley, Brookfield Asset Managment Inc. and Stockland. Fayen Wong of Reuters cites the Australian Financial Review as reporting that U.S. investors Blackstone Group and Citadel Investment Group have sent teams to Australis to discuss taking a stake in Centro. According to Reuters, AFF, citing unidentified bankers for Centro, includes AMP, Colonial First State, and DBRREEF Trust as among those companies who has also expressed interest in investing in the property firm. In a telephone interview, Bloomberg quotes Centro Chief Executive Officer Andrew Scott as saying, "In relation to a sale of specific assets or parts of the group, we think the two areas that are appropriate to look at are the two wholesale funds." The two wholesale funds, as stated by Bloomberg, are Centro Australia Wholesale Fund and Centro America Fund. Bloomberg relates that Centro Australia Wholesale Fund has AU$2.6 billion of assets and investments in 28 malls in Australia and New Zealand. Centro holds a 50% stake in the fund, with the remainder owned by Centro's Direct Property Fund, also half owned by the parent. Centro America Fund has AU$1.1 billion in assets and investments in 32 U.S. shopping centers and Centro owns 41% of the fund, says Bloomberg. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is an Australia-based company that comprises the operations of Centro Property Trust (the Trust) and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust (New Plan), Heritage Property Investment Trust (Heritage) and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CHRYSLER LLC: CEO Provides Confidence in Operations & Finances -------------------------------------------------------------- "There have been several recent media reports that have painted an inaccurate picture of Chrysler LLC's current financial position," Robert Nardelli, Chrysler LLC's Chairman and CEO, said. "Therefore, the management of Chrysler and our parent company, Cerberus Capital Management, L.P., felt it imperative to correct the record since such misinterpretations and misperceptions are misleading and could leave the wrong impression in the minds of investors and other interested parties. "First and foremost, it is important to note that Chrysler is not only meeting, but, in many cases, exceeding its financial targets heading into 2008. "Importantly, Chrysler has ample liquidity. We are fully funded with working capital to meet our present and future needs and objectives. We are doing what any other prudent company is doing during this challenging economic environment. We are trying to instill a sense of urgency throughout the workforce, putting our capital to work effectively and efficiently, streamlining inventory, improving current products and developing new and innovative vehicles. Our dealer body is quite pleased that our inventory of vehicles was down another 4% in November. "In a 13-hour meeting this week with the Cerberus board of directors, Cerberus praised and was highly complimentary of Chrysler's progress to date and unanimously approved our 2008 plan. We have a solid strategic direction to return the company to long-term profitability. We are on target and have the unwavering support of Cerberus, as well as our other key partner, Daimler AG. "Cerberus met with its investors on Dec. 20, 2007, to share the progress that has been made and to convey to these investors that the company was meeting -- and in many cases -- exceeding its targets. The report was well received. "Like many companies in today's uncertain economic environment, Chrysler is moving aggressively to improve its business. We recognized in advance the increasingly competitive vehicle market heading into 2008. With that, we have been moving aggressively to make our company leaner. The steps we are taking include previously announced volume-related reductions at several North American assembly and powertrain plants and the elimination of four products from our lineup, which is very customary in the auto industry. "However, we are very excited about the new products coming in 2008. These include the legendary Dodge Ram pickup truck, the Dodge Journey crossover, the relaunch of the historic Dodge Challenger -- which has already generated 8,851 customer orders -- and two, all-new, large hybrid SUVs, the Chrysler Aspen and the Dodge Durango, demonstrating our support for the environment and more fuel-efficient vehicles. "For our current vehicle line-up we have already approved more than 260 line item improvements to enhance our products -- most for the 2008 calendar year. "The recently completed national labor agreement with the United Auto Workers -- which includes the establishment of an independent retiree health care trust -- provides a framework to improve the long-term competitiveness of the company. "Since August and the first day of the new company, the management team has been working to improve Chrysler's working capital, disposing of non-core (or non-earning) assets and reinvesting this cash into product development, new technology and new innovations for our customers." Mr. Nardelli's statement can be attributed to Mark Neporent, Chief Operating Officer and General Counsel of Cerberus Capital Management L.P.: "We remain extremely enthusiastic about our investment in Chrysler. Our underwriting assumed, and fully planned, that Chrysler would incur losses in the near term. Under the leadership of Bob Nardelli, Tom LaSorda and Jim Press, Chrysler is already on track to exceed its multi-year restructuring and recovery plan on virtually all-key metrics. We met with the management team this week and fully endorse their strategic direction and their plan to meet the challenges of the current environment. We are confident that Bob, Jim and Tom are taking the right steps to bring Chrysler to profitability. Our mutual resolve to restore Chrysler to its leadership position as an iconic brand is unwavering." About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 11, 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's US$2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for meaningful (50% to 70%) recovery in the event of a payment default, from '4'. SCO GROUP: Gets Nasdaq Delisting Notice Due to Bankruptcy Filing ---------------------------------------------------------------- The SCO Group, Inc., received a Nasdaq Staff Determination letter on Dec. 21, 2007, indicating that as a result of having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Listing Qualifications Panel has determined to delist the company's securities from the Nasdaq Stock Market and has suspended trading of the securities effective at the open of business on Dec. 27, 2007. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. WESTPOINT GROUP: Government to Fund Case Against AU Tax Office -------------------------------------------------------------- The Federal Department of Education, Employment and Workplace Relations has agreed to fund liquidators of Westpoint Corporation in a legal action against the Australian Taxation Office over more than AU$4 million of payments made in the group's last months before it collapsed, TheWest reports. According to the report, liquidator Simon Read of the accounting firm McGrathNicol+Partners said his lawyers were in the final stages of preparing litigation against the tax office under laws that allow insolvency accountants to claw back so-called preference payments made in the dying days of companies. Mr. Read, relates TheWest, said DEEWR had agreed to fund the litigation after he had been unable to negotiate a deal with the tax office to return about AU$4.1 million in payments of old tax debts by Westpoint while it was insolvent between June and November 2005. TheWest states that Mr. Read's investigations revealed that Westpoint had entered into repayment arrangements with the tax office in late 2004 for overdue tax bills. However, that agreement was terminated because the property group had failed to lodge tax returns in a timely manner. Mr. Read, adds the daily, said Westpoint and the tax office entered into further negotiations that culminated in the company agreeing in June 2005 to make payments of AU$250,000-a-fortnight to clear old tax debts totaling to AU$4.1 million in the lead-up to the collapse. The report further adds that Mr. Daily believes he has a strong case against the tax office which could help bankroll plans to investigate other potential legal actions to get some more cash back for the group's unsecured creditors. The Federal Government’s employment agency is becoming involved in the litigation after putting more than AU$1.6 million into the property group to help pay wages, annual leave and other entitlements of employees left empty handed by the property group’s implosion in November 2005, notes the daily. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ANDREW CORP: Completes US$2.65BB Merger Deal with CommScope Inc. ---------------------------------------------------------------- Andrew Corporation has completed its acquisition agreement with CommScope Inc. The transaction was valued for approximately $2.65 billion. Andrew will become a wholly owned subsidiary of CommScope. "We are delighted with the closing of the Andrew transaction, which marks a new chapter in the history of our company," said Frank M. Drendel, chairman and chief executive officer of CommScope. "We believe this combination will further enhance CommScope's position as a worldwide leader in 'last mile' solutions.” “Combining our innovative technologies, premier brands and a top- tier customer base, we expect to expand our global service model and create an enhanced offering of communications infrastructure solutions that addresses a broader spectrum of customer needs,” Mr. Drendel added. “With this acquisition, we are advancing CommScope's stated global 'last mile' strategy while creating important cost reduction and growth opportunities that we believe will drive increased shareholder value.” "We look forward to working with Andrew's talented team to quickly and smoothly integrate their operations into CommScope,” Mr. Drendel continued. “As we continue to invest in the combined business for profitable growth, the talented and dedicated employees of both Andrew and CommScope will continue to play a critical role in the success of the combined company. CommScope is a proven and successful integrator of strategic transactions and we expect to begin realizing the benefits of this combination immediately and enjoy them fully over the next few years." Andrew stockholders will receive, for each Andrew share, $13.50 in cash and 0.031543 shares of CommScope common stock. This fractional share of CommScope common stock was calculated according to the terms of the merger agreement by dividing $1.50 by $47.554, which was the volume weighted average of the closing sale prices for a share of CommScope common stock over the ten consecutive trading days ending on Dec. 24, 2007. Financing and Interest Rate Swap CommScope funded the transaction through a combination of senior secured credit facilities and available cash on hand. The $2.5 billion senior secured credit facilities consist of: -- a $1.35 billion seven-year senior secured term loan facility with an interest rate of London Interbank Offered Rate plus 250 basis points; -- a $750 million six-year senior secured term loan facility with an initial interest rate of LIBOR plus 225 basis points; and -- a $400 million six-year senior secured revolving credit facility with an initial interest rate of LIBOR plus 225 basis points. These debt commitments provide for a weighted average initial, variable interest rate of LIBOR plus approximately 241 basis points on the senior secured term loans. At closing, no funds had been borrowed from the revolving credit facility. CommScope also has entered into an interest rate swap in order to fix the LIBOR interest rate for an initial $1.5 billion of the overall credit facility. Through this swap CommScope fixed these amounts at a LIBOR rate of 4.07750%: -- $1.5 billion from Dec. 27, 2007 through Dec. 31, 2008; -- $1.3 billion from Jan. 1, 2009 through Dec. 31, 2009; -- $1.0 billion from Jan. 2, 2010 through Dec. 31, 2010; and -- $400 million from Jan. 1, 2011 through Dec. 31, 2011. Banc of America Securities LLC acted as financial advisor to CommScope in connection with this acquisition and Duff & Phelps LLC provided a fairness opinion to CommScope. Fried, Frank, Harris, Shriver & Jacobson LLP, Baker & McKenzie LLP and Robinson, Bradshaw & Hinson, P.A. acted as CommScope's outside legal counsel. Citi acted as the primary financial advisor to Andrew, and Merrill Lynch provided a fairness opinion. Mayer Brown LLP acted as Andrew's primary outside legal counsel. Banc of America Securities LLC and Wachovia Capital Markets, LLC acted as Joint Lead Arrangers and Joint Bookrunners in connection with the credit facilities. About CommScope Inc. Based in Hickory, North Carolina, CommScope Inc. (NYSE:CTV) -- http://www.commscope.com/-- is into infrastructure solutions for communication networks. CommScope's structured cabling systems for business enterprise applications includes SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands. It is also the manufacturer of coaxial cable for hybrid fiber coaxial applications. About Andrew Corporation Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ:ANDW) –- http://www.andrew.com/-- designs, manufactures and delivers innovative and essential equipment and solutions for the communications infrastructure market. Founded in 1937, the company serves operators and original equipment manufacturers from facilities in 35 countries, including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings on CommScope Inc. and Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The outlook is stable. BIO-RAD LABS: Earns US$28 Mil. in Third Quarter Ended Sept. 30 -------------------------------------------------------------- Bio-Rad Laboratories Inc. reported net income of US$28.0 million for the third quarter ended Sept. 30, 2007, compared to net income of US$23.2 million reported for the same period in 2006. Third-quarter net income in 2006 benefited from a pre-tax investment gain of US$4.7 million. Third-quarter gross margin was 55.4% compared to 54.7% in the third quarter last year. Third-quarter revenues were US$339.7 million in 2007, up 11.5% compared to US$304.8 million reported for the same period in 2006. These results were driven by continued growth across product areas in both the Life Science and Clinical Diagnostics segments. On a currency-neutral basis, revenues increased 8.0% compared to the same period last year. Year-to-date revenues grew by 7.6% to US$1.0 billion compared to the first three quarters in 2006. Normalizing for the impact of currency effects, growth was 3.8%. Year-to-date net income for 2007 was US$80.6 million compared to US$86.6 million in the same period last year. Year-to-date results for the first three quarters in 2006 was favorably impacted by one-time additional revenue of US$11.7 million resulting from a licensing settlement agreement reached with bioMerieux as well as the aforementioned pre-tax investment gain of US$4.7 million. Year-to-date gross margin was 55.7% compared to 56.6% in the same period in 2006. "We are pleased with the company's performance during the quarter and encouraged by the success of new products," said Norman Schwartz, Bio-Rad president and chief executive officer. "As we wrap up the year, we will continue to focus on our ongoing businesses and work to integrate the recently acquired DiaMed into Bio-Rad’s organization." In the beginning of the fourth quarter of 2007, Bio-Rad completed the purchase of 77.7% of Switzerland-based DiaMed Holding AG for approximately US$409 million in cash. DiaMed develops, manufactures, and markets a complete line of reagents and instruments used in blood typing and screening and has annual sales of approximately US$200 million. DiaMed's results will be included in the company's consolidated financial statements beginning in the fourth quarter of 2007. At Sept. 30, 2007, the company's consolidated balance sheet showed US$1.71 billion in total assets, US$766.1 million in total liabilities, and US$946.3 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?2693 About Bio-Rad Headquartered in Hercules, California, Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) -- http://www.bio-rad.com/-- is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It serves more than 85,000 research and industry customers worldwide through its global network of operations. The company employs over 5,000 people globally and had revenues of nearly USUS$1.3 billion in 2006. Aside from the United State, the company maintains operations in Bulgaria, Canada, Denmark, Greece, India, Philippines, Taiwan, and The Netherlands, Brazil, El Salvador, Mexico and Puerto Rico. * * * To date, Bio-Rad Laboratories Inc. still carries Moody's Investors Service 'Ba2' long term corporate family rating and 'Ba3' senior subordinated debt rating. Moody's said the outlook is stable. CHINA EASTERN: Air China to Vote Against Singapore Air Tie-Up ------------------------------------------------------------- The Wall Street Journal, citing a person familiar with the situation, reports that China National Aviation Holding Co., the parent of Air China Ltd. and a minority shareholder in China Eastern Airlines, plans to vote against a deal China Eastern agreed to in September with Singapore Airlines Ltd. Under the deal, China Eastern will sell a 24% stake and to Singapore Air and the Singapore state-owned investment firm Temasek Holdings Pte. Ltd. for HK$7.2 billion (US$923.8 million). According to the report, Air China's management wants to lead consolidation in the industry as China girds its state-owned carriers against increasing competition from foreign airlines in the Chinese market, and made its own aborted play for China Eastern last year. China Eastern's management, meanwhile, wants to tap Singapore Airlines' expertise to more rapidly build itself up, move beyond continuous losses and remain independent. WSJ says that China National Aviation, in a statement outlining it opposition to the deal, opined that the stake sale "does not reflect the fair value of China Eastern." China National Aviation also contended that the terms of the agreement, including antidilution rights and a noncompetition clause, are unfair to other China Eastern shareholders, WSJ notes. Singapore Air and Temasek agreed to pay HK$3.80 per share for the China Eastern stake, WSJ relates. The value of China Eastern's shares, however, has risen since the deal was announced, closing up 6.2% on Dec. 31 at HK$7.71. WSJ says that Air China's opposition marks a rare public challenge by a state-owned company to a foreign investment already approved by China's cabinet. WSJ adds that Air China's parent hinted in its statement that it might consider launching a bid for the control of China Eastern. China International Capital Corp., the report notes, is advising China National Aviation on the deal. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. DOUBLE SOUTH: Proofs of Debt Due on March 31 -------------------------------------------- The creditors of Double South International Trading Company Limited are required to file proofs of debt by March 31, 2008, so they can be included in the company's dividend distribution. The company's liquidator is: Chan Chak Chung Room 1203-4, 12th Floor ING Tower, 308 Des Voeux Road Central, Sheung Wan Hong Kong E-FORCE: Proofs of Debt Due on January 22 ----------------------------------------- The creditors of E-Force Global Limited are required to file proofs of debt by January 21, 2008, to be included in the company's dividend distribution. The company appointed Lim Shyang Guey and Chan Yee Bun as the company's liquidator. FIAT SPA: Withdraws From Nanjing Automobile Joint Venture --------------------------------------------------------- Fiat Group Automobiles and Nanjing Automobile Corporation have signed the equity transfer agreement for withdrawal of Fiat from the Nanjing-Fiat joint venture on Dec. 26, 2007, so that they can concentrate on their major but independent plans to restructure the Chinese automotive business. To assure that the needs of over 160,000 customers in China are covered, the company will continue to provide technical support to the network for as long as necessary. As in the past, the network will provide spare parts and after- sale support at the highest standards. Fiat will always guarantee continuous, quality assistance in China for all of its existing and future products. Although their collaboration in the passenger cars sector has come to an end, the long-standing cooperation between the two groups will continue in the commercial vehicle and components sectors, to the great satisfaction of both partners, and will be sustained by the ongoing structural evolution of the Chinese automotive industry. "This decision gives us total freedom of action to concentrate on the restructuring of our automotive business in China," Sergio Marchionne, CEO of the Fiat Group disclosed in a separate statement. Mr. Marchionne added, "NAC remains a very important partner of ours in the commercial vehicle sector, through the joint-venture with Iveco, which has generated mutual satisfaction over the years. Furthermore, following the merger that has been announced today between Nac and Saic, which is in turn an important partner of the Fiat Group in heavy commercial vehicles, agricultural machinery and components, our businesses in China will further be strengthened." "The Chinese market is a key element of the Fiat Group project for worldwide expansion of its automotive activities. In 2008 we will initiate large-scale importation of new models to be sold by our commercial network, which we continue to support and with which we are working tirelessly to offer customers top- quality products and services. This will further improve our familiarity with the Chinese market in view of finalizing our partnership with Chery Automobiles, one of the biggest car makers in China. This will permit the opening of a new and important phase in development of our industrial and commercial activities in China," Mr. Marchionne concluded. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term corporate family rating of Ba1 and probability of default rating of Ba1 with positive outlook. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. FIAT SPA: Names Gianni Coda to Head Fiat Group Purchasing --------------------------------------------------------- Fiat S.p.A. stated that Gianni Coda assumed responsibility for Fiat Group Purchasing, the newly-created department to which purchasing activities of Fiat Group Automobiles, Iveco, CNH, Fiat Powertrain Technologies and Fast Buyer will report. Consistent with the objectives of the various Fiat group sectors, Fiat group purchasing will be in charge of defining, managing and homogenizing specific purchasing activities. The new department will organize purchasing strategies and ensure the highest level of integration among the various Fiat Group companies as well as the strengthening of partnerships with suppliers in its specific field. It will also follow the development of vendor companies through the definition of common working methods and processes so as to guarantee an adequate support to the alliance strategies of the group. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term corporate family rating of Ba1 and probability of default rating of Ba1 with positive outlook. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. FRESH MIND: Proofs of Debt Due on January 22 -------------------------------------------- The creditors of Fresh Mind Investment Limited are required to file proofs of debt by January 22, 2008, so as to be included in the company's dividend distribution. The company's liquidator is: Chang Shuk Chein, Leslie 12th Floor, 3 Lockhart Road Wanchai, Hong Kong FORTUNE CENTRAL: Appoints New Liquidator ---------------------------------------- The members of Fortune Central Enterprises Limited appointed Chan Wing Kit as the company's liquidator. FORTUNE REALTY: Liquidators Quit Post ------------------------------------ On December 11, 2007, Ng Kwok Wai and Lyn Yee Chen, Jean, stepped down as liquidators for Fortune Realty Company Limited, which is undergoing liquidation. GAMMA SHIPPING: Commences Liquidation Proceedings ------------------------------------------------- Gamma Shipping Limited commenced liquidation proceedings on December 10, 2007. The company's liquidators are: Chung Miu Yin Ying Hing Chui Level 28, Three Pacific Place 1 Queen's Road East Hong Kong GLITTERING Mechanical: Court to Hear Wind-Up Petition on Jan. 30 ---------------------------------------------------------------- On December 7, 2007, Ho Chi Wai filed a petition to have Glittering Mechanical Engineering Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 30, 2008, to hear the petition. The petitioners' solicitor can be reached at: Chong Yan-tung Chris 34th Floor, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong HARMONY MOULD: Liquidators Quit Post ------------------------------------ On December 1, 2007, Law Yui Lun and Wong Man Chung Francis stepped down as liquidators for Harmony Mould Manufactory Company Limited, which is undergoing liquidation. HONG KONG WINE: Commences Liquidation Proceedings ------------------------------------------------- Hong Kong Wine Distillers Limited commenced liquidation proceedings on August 28, 2007. The company's liquidator is: Tam Kwok Ming Banny Flat A, 16th Floor United Centre, 95 Queensway Hong Kong HKZZ COMPANY: Appoints New Liquidators -------------------------------------- The members of HKZZ Company Limited appointed Cosimo Borrelli and G Jacqueline Fangonil Walsh as the company's liquidators. The Liquidators can be reached at: Cosimo Borrelli G Jacqueline Fangonil Walsh 1401, 14th Floor, Tower 1 Admiralty Centre 18 Hartcourt Road Hong Kong KENFLEX ELECTRONICS: Appoints New Liquidators --------------------------------------------- The members of Kenflex Electronics Limited appointed Ng Kwok Wai and Lui Chi Kit as the company's liquidators. The Liquidators can be reached at: Ng Kwok Wai Lui Chi Kit Unit A, 14th Floor JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong KIENVER CONSTRUCTION: Members Receive Wind-Up Report ---------------------------------------------------- The members of Kienver Construction Company Limited will have their final general meeting on January 22, 2008, at 3:00 p.m., at the Top Floor of Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, in Kowloon, to hear the liquidator's report on the company's wind-up proceedings and property disposal. LORDSWORTH LIMITED: Appoints New Liquidators -------------------------------------------- The members of Lordsworth Limited appointed Nathalia K M Seng and Susan Y H Lo as the company's liquidators. The Liquidators can be reached at: Nathalia K M Seng Susan Y H Lo Level 28, Three Pacific place 1 Queen's Road East Hong Kong MAK WAH: Appoints New Liquidators ---------------------------------- The members of Mak Wah Securities Limited appointed Nathalia K M Seng and Susan Y H Lo as the company's liquidators. The Liquidators can be reached at: Nathalia K M Seng Susan Y H Lo Level 28, Three Pacific place 1 Queen's Road East Hong Kong NEHLSEN HONG KONG: Creditors to Receive Wind-Up Report ------------------------------------------------------ The creditors of Nehlsen Hong Kong Limited will have their meeting on January 4, 2008, at 4:00 p.m., at the office of Neil Collins Corporate Advisory Services Limited at Kin Wing Commercial Building, 24-30 Kin Wing Street, in Tuen Mun, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. PACIFIC WORLD: Commences Liquidation Proceedings ------------------------------------------------- Pacific World Packaging Limited commenced liquidation proceedings on December 10, 2007. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong PETROLEOS DE VENEZUELA: Prices Cash Tender Offer for Bonds ---------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA said in a statement that it has disclosed the pricing of its cash tender offer for outstanding bonds for its Cerro Negro heavy crude project. As reported in the Troubled Company Reporter-Latin America on Dec. 4, 2007, Petroleos de Venezuela commenced, on Nov. 29, 2007, a cash tender offer for any and all of the outstanding: -- 7.33% bonds due 2009 (CUSIP Nos. 156877AA0/G2025MAA9; ISIN No. USG2025MAA92), -- 7.90% bonds due 2020 (CUSIP Nos. 156877AB8/G2025MAB7; ISIN No. USG2025MAB75) and -- 8.03% bonds due 2028 (CUSIP Nos. 156877AC6/G2025MAC5; ISIN No. USG2025MAC58) issued by Cerro Negro Finance, Ltd. in connection with the Cerro Negro extra-heavy crude oil project in the Orinoco Belt region. Business News Americas relates that the "applicable purchase price for each US$1,000 principal amount of each validly tendered bond" before Dec. 27 and accepted for purchase by Petroleos de Venezuela will be: -- US$1,019.19 for the 2009 bonds, -- US$1,080.00 for the 2020 bonds, and -- US$1,124.95 for the 2028 bonds. According to Petroleos de Venezuela's statement, the firm had received as of Dec. 26 valid tenders and consents from holders of US$454 million in aggregate principal amount of the bonds, accounting for 96.7% of the outstanding bonds. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. PETROLEOS DE VENEZUELA: Reports 26.5B Barrels of Oil in Junin 1 --------------------------------------------------------------- Venezuelan state-owned oil company Petroleos de Venezuela SA told Rigzone.com that it found 26.5 billion barrels of oil in bloc Junin 1 at the Orinoco oil belt. As reported in the Troubled Company Reporter-Latin America on Dec. 12, 2007, Petroleos de Venezuela and Belarus' state-oil company Belarus Neft are already in partnership in Junin I block, which requires a US$120-million investment to drill nine wells. "Original onsite oil" increased 30% over the initial estimates of 20.5 billion barrels of crude oil, which would make a positive impact on the target of the Orinoco Magna Reserve Project in the Junin area, Rigzone.com reports. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. RICHBEST TRADING: Creditors to Receive Wind-Up Report ----------------------------------------------------- The creditors of Richbest Trading Limited will have their meeting on January 25, 2008, at 3:00 p. m., in Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong,to hear the liquidator's report on the company's wind-up proceedings and property disposal. SABW CORPORATE: Members to Receive Wind-Up Report on Jan. 15 ------------------------------------------------------------ The members of Sabw Corporate Services Limited will have their final general meeting on January 15, 2008, at 11:00 a. m., at the 39th Floor of the Two International Finance Centre, 8 Finance Street, in Central Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. TERMSISSUE LIMITED: Proofs of Debt Due on January 21 ---------------------------------------------------- The creditors of Termisissue Limited are required to file proofs of debt by January 21, 2008, to be included in the company's dividend distribution. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong TONG REN TANG: Members to Receive Wind-Up Report on Jan. 22 ----------------------------------------------------------- The members of Tong Ren Tang Hutchison (H.K.) Pharmaceutical Development Company Limited will have their final general meeting on January 22, 2008, at 10:00 a. m., at Level 28 of Three Pacific Place, 1 Queen's Road, in East, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= BALLY TECHNOLOGIES: Earns US$21 Mil. in Qtr. Ended September 30 --------------------------------------------------------------- Bally Technologies, Inc., released its financial results for the fiscal quarter ended Sept. 30, 2007. Net income increased to US$21.2 million, or 11% of total revenue, compared with a net loss of US$225,000 in the same period last year, as a result of improved margin and cost leverage. Total revenues increased 23% to US$189.0 million as compared with US$153.7 million for the same period last year. “We are very pleased with our continued improvement in both business momentum and margins in all the key parts of our business,” Richard M. Haddrill, the Company’s Chief Executive Officer, said. Cash and cash equivalents increased to approximately US$51.6 million at Sept. 30, 2007 as compared with approximately US$40.8 million at June 30, 2007. Selling, general and administrative expenses increased 6% to US$52.3 million and declined to 28% of total revenue from 32 percent as compared with the same period last year. Adjusted EBITDA was US$58.5 million, a 122% increase as compared with the same period last year. The company made an unscheduled US$15.0 million payment on its term loan during the first quarter of fiscal 2008. “In addition to improving our margins, the quarterly results also reflect our improving operating leverage,” Robert C. Caller, the Company’s Chief Financial Officer, said. “Our SG&A and R&D expenses were favorably impacted by better control over costs and savings from our India Development Centers.” At Sept. 30, 2007, the company's balance sheet showed total assets of US$871.0 million and total liabilities of US$647.2 million, resulting in US$222.5 million stockholders' equity. Equity, at June 30, 2007, was US$199.4 million. About Bally Technologies Inc. Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Mississippi. The company's South American operations are located in Argentina. The company also has operations in France, Germany, Macau, China, India, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings upgraded Bally Technologies' Issuer Default Rating and senior secured bank debt ratings as: IDR to 'B' from 'B-' and Secured bank credit facilities to 'BB/RR1' from 'B/RR3'. HINDUSTAN COPPER: Members OK Preferential Allotment to President ---------------------------------------------------------------- Hindustan Copper Ltd's shareholders, at their meeting on Dec. 24, authorized the company's board of directors to issue and allot 15,70,00,000 equity shares of INR5 each in the share capital of the company. The shares will be issued for cash at par, aggregating to INR78.50 crore, to the president of India on preferential allotment basis against conversion of government loan into equity for INR50 crore and plan equity support of INR28.50 crore. During the meeting, the company's shareholders also agreed to the: -- adoption of the Balance Sheet as at March 31, 2007, and the Profit and Loss Account for the year ended on that date along with the schedules, notes and Cash Flow Statement, the report of the statutory auditors and the report of the board of directors for the year ended March 31, 2007. -- to the board's fixing of the remuneration of statutory auditors for the year 2007-2008. -- appointment of Sanjiv Kumar Mittal as director of the board with effect from April 18, 2007, in terms of Ministry of Mines' order dated April 18, 2007. -- appointment of Kailash Dhar Diwan as director (Operations) with effect from Sept. 14, 2007, in terms of Ministry of Mines' order dated June 28, 2007. Based in Kolkata, India, Hindustan Copper Limited -- http://www.hindustancopper.com/-- is an undertaking of the Government of India. The company is the sole fully integrated copper manufacturer in India. On November 18, 2005, CRISIL Ratings upgraded its outstanding rating on the non-convertible bond program of Hindustan Copper Limited to 'C' from 'D'. Since July 2004, Hindustan Copper has met its interest obligations on the rated instrument on time. The upward revision in the rating is in line with CRISIL's policy of revising ratings, post-default only after monitoring timely debt servicing for a year. Hindustan Copper, however, continues to default on its interest obligations relating to its unrated debt. HINDUSTAN ORGANIC: Seeks Partners for Joint Venture Projects ------------------------------------------------------------ Hindustan Organic Chemicals Ltd is looking for partners for joint venture projects. In a filing with the Bombay Stock Exchange, the company disclosed that it has issued an advertisement in an international technical journal inviting for Expression of Interest for joint venture projects with the company by various corporate multinational companies. The company did not disclose other information regarding the planned joint ventures. Hindustan Organic Chemicals Ltd was incorporated on December 12, 1960, as a wholly owned enterprise of the Government of India. It has two manufacturing units: the phenol complex at Cochin and the integrated Nitro Aromatic Complex at Rasayani. The company produces a wide range of products including phenol, acetone, and aniline. Hindustan Organic has continuously paid dividend for over 20 years until 1997. Due to reduced protection from imports, poor market condition and excessive manpower and interest cost, the company had been reporting losses since that year. A financial restructuring package was proposed in 2002 to help the company turn its business around. The package, which has been cleared by the Cabinet Committee on Economic Affairs based on the recommendations of the Board for Reconstruction of Public Sector Enterprises, consists of grants aggregating INR750 million and subscription by way of non-cumulative redeemable preference shares aggregating INR1.75 billion by the Government of India. The future of the company isn't that bleak, however, when it turned around with a net profit of INR170.4 million in the year ended March 31, 2007. IFCI LTD: Foreign Investors May Buy Up To 74% Stake, RBI Says ------------------------------------------------------------- The Reserve Bank of India, in a media release dated Dec. 31, said that foreign institutional investors can acquire as much as 74% in IFCI Ltd. According to RBI, foreign funds can purchase IFCI shares and convertible debentures through primary markets and stock exchanges in India. The company's board of directors has already passed a resolution to this effect. As previously reported by the Troubled Company Reporter-Asia Pacific, IFCI recently canceled the 26%-stake sale plan after its board rejected the financial bid submitted by the consortium of Sterlite Industries and Morgan Stanley and Co, saying that the conditional offer is unacceptable. The Times of India said IFCI may restart the bid process but that would be after it will get the government's INR523-crore debt out of the way. Alternatively, the IFCI management wants the government to "adjust" the amount against the INR1,300 crore that the company is budgeted to get during the course of the year, the news agency added. IFCI, right after calling of the sale to the Sterlite-Morgan Stanley consortium, invited bids from merchant bankers to value and buy its shares in unlisted firms to enable the company to sell them, TCR-AP reported. The company reportedly has identified 100 companies where it would like to sell off its stake. Merchant bankers and other interested parties have until January 10, 2008, to submit their bids. 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. LML LTD: Loss Narrows to INR112.5-Mil. in Qtr. Ended June 30 ------------------------------------------------------------ LML Ltd booked a net loss of INR112.5 million in the three months ended June 30, 2007, a bit of an improvement when compared to the INR133.2-million loss incurred in the same quarter in 2006. Sales soared to INR222.5 million in the April-June 2007 period from last year's INR42.2 million. With other income of INR9.7 million, the company's revenues for the quarter aggregated INR232.2 million. The company has achieved significant improvement in its performance an has also emerged as the biggest exporter of scooters in India, LML pointed out in a note to its financial results filed with the Bombay Stock Exchange. Expenditures of INR241.8 million, however, brought the company an operating loss in the April-June 2007 quarter. The figure is a 40% rise from the INR172.2-million expenses booked in the corresponding quarter in 2006. The company also reported during the quarter interest charges of INR48 million, depreciation of INR54.5 million and INR400,000 in taxes. A copy of the company's financial results for the quarter ended June 30, 2007, is available for free at: http://ResearchArchives.com/t/s?26b9 Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. LML'S board of directors, at a meeting on Sept. 8, 2006, decided that the company has become a sick industrial company under the Sick Industrial Companies (Special Provisions Act) 1985. The company is currently working for the restructuring of its business. LML LTD: Books INR566.1-Mil. Loss in Year Ended Sept. 30, 2007 -------------------------------------------------------------- LML Ltd's audited results for the 12 months ended Sept. 30, 2007, shows a net loss of INR566.1 million on revenues of INR680.8 million. The total revenues is comprised of sales aggregating INR648 million and other income of INR32.8 million. Expenditures totaling INR826.7 million left the company an operating loss of INR145.9 million. A copy of the company's audited results for the year ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?26ba For the three months ended Sept. 30, 2007, the company cut down its net loss to INR156.3 million from the INR1.47-billion loss incurred in the same period in 2006. Total revenues rose from INR27.1 million in the April-Sept. 2006 period to the INR436 million earned in the current quarter under review. A copy of the company's financial results for the quarter ended Sept. 30, 2007, is available for free at: http://ResearchArchives.com/t/s?26bb Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. LML'S board of directors, at a meeting on Sept. 8, 2006, decided that the company has become a sick industrial company under the Sick Industrial Companies (Special Provisions Act) 1985. The company is currently working for the restructuring of its business. LML LTD: Sets 32nd Annual General Meeting on March 28 ----------------------------------------------------- LML Ltd will hold its second annual general meeting on March 28, 2008, the company informed the Bombay Stock Exchange. In that regard, the company's Register of Members & Share Transfer Books will be closed from March 22, 2008 to March 28, 2008 (both days inclusive). Headquartered in Kanpur, India, LML Limited manufactures scooters and motorcycles. The LML NV, manufactured with Piaggio, is a scooter that is loaded with features such as a large taillight, cushioned backrest, improved handlebar design and speedometer, a utility box and a large glove compartment. The Company's motorcycles, which are made in collaboration with Daelim of Korea, feature a three-valve, 109-cubic centimeter engine, a long wheelbase and broad tires. The Energy FX model features a four-speed gearbox, while the Adreno FX sports a five-speed unit. The bikes come in a large variety of colors offer other features such as disc brakes and electronic ignition. LML'S board of directors, at a meeting on Sept. 8, 2006, decided that the company has become a sick industrial company under the Sick Industrial Companies (Special Provisions Act) 1985. The company is currently working for the restructuring of its business. TATA MOTORS: Named Preffered Bidder for Ford Jaguar & Land Rover ---------------------------------------------------------------- Ford Motor Co. yesterday named Tata Motors Ltd as the front- runner bidder for its Jaguar and Land Rover Brands, media reports say. “Ford has entered into 'focused negotiations at a more detailed level' with Tata, meaning it has become the preferred bidder for the storied British automakers,” the Associated Press quotes Ford's media release. To recall, the Troubled Company Reporter-Asia Pacific reported on Dec. 27 that Ford India President Arvind Matthew found Tata's bid to be “very interesting.” Tata Motors is among the firms in the race to buy the two Ford brands. Tata Motors, who has the backing of the unions of Jaguar and Land Rover, made it to the list of final bidders along with Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. Ford EVP Lewis Booth pointed it out that there is still considerable amount of work to do. While no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA MOTORS: December 2007 Sales Declines by 2% ----------------------------------------------- Tata Motors reported a total sale of 47,678 vehicles (including exports) for the month of December 2007, a decline of 2% compared to 48,757 vehicles sold in December last year. Cumulative sales for the company were flat at 4,06,929 units. Commercial Vehicles The company's sales of commercial vehicles in December 2007 in the domestic market were 28,661 units, a growth of 2% compared to 28,179 vehicles sold in December last year. Medium &Heavy Commercial Vehicles sales stood at 15,689 units, a decline of 9% over December 2006, while Light Commercial Vehicle sales were 12,972 units, a growth of 19% over December 2006. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 2,15,530 units, a growth of 2% over last year. Cumulative M&HCV sales stood at 1,12,871 units, a decline of 7.7% over last year, while LCV sales for the fiscal were 1,02,659 units, an increase of 15% over last year. Passenger Vehicles Offtake to dealers in the month was curtailed to limit year-end stocks. The passenger vehicle business achieved total sales of 14,316 vehicles in the domestic market in December 2007, a decline of 13% over December 2006. The Indica reported sales of 9,497 units, a decline of 10% over December 2006. The Indigo family registered sales of 1,379 units, a decline of 33.6% over December 2006. The Sumo and Safari accounted for sales of 3,440 units, a decline of 10.6% over December 2006. The Safari recorded a 10% growth with sales of 1,161 units. The promotional scheme launched by the company on the occasion of the one millionth car production milestone received a very encouraging response with retails being nearly 26,000 vehicles, the highest this fiscal. Cumulative sales of passenger vehicles in the domestic market for the fiscal were 1,51,136 units, a decline of 3.7 % over the same period last year. Cumulative sales of the Indica at 100,111 units, reported a decline of 2%. Cumulative sales of the Indigo family were 20,058 units, a decline of 13.9%. Cumulative sales of Sumo and Safari were 30,967 units, a decline of 1%. The Safari recorded a 24% growth with sales of 11,856 units. Exports The company's sales from exports at 4,701 vehicles in December 2007 grew by 16% compared to 4,063 vehicles in December 2006. The cumulative sales from exports in the current period at 40,263 units have recorded a growth of 5% over the previous year. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. ================= I N D O N E S I A ================= AVNET INC: Operating Unit Signs Distribution Deal with Zarlink -------------------------------------------------------------- Avnet Inc.'s operating group, Avnet Electronics Marketing, has entered into a global distribution agreement with Zarlink Semiconductor Inc. Under the agreement, Avnet will distribute globally Zarlink's optical and telecommunications products - including timing and synchronization and voice processing devices, as well as the recently acquired Legerity voice enhancement products. "Avnet has a deep understanding of Zarlink's telecom and optical product portfolios, backed by a strong technical team and solid logistical capabilities," said Jeff Crocker, senior vice president of worldwide sales for Zarlink Semiconductor. "This translates into design expertise and support that will help Zarlink's customers successfully develop compelling solutions." "Avnet is honored to continue growing our relationship with Zarlink and expanding our semiconductor and supply chain offerings for both companies on a global basis. Zarlink's recent acquisition of Legerity voice products further expands their technical product portfolio, offering designers a comprehensive line of products for a broad line of access, residential and enterprise applications," said Ravi Kichloo, senior vice president of global semiconductor business development for Avnet Electronics Marketing. About Avnet Electronics Marketing Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company. Avnet Electronics Marketing serves electronic original equipment manufacturers (EOEMs) and electronic manufacturing services (EMS) providers in 73 countries, distributing electronic components from leading manufacturers and providing associated design-chain and supply- chain services. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. BANK UOB: Pefindo Upgrades Company Ratings to "idAA-" ---------------------------------------------------- Pefindo has upgraded its rating for PT Bank UOB Buana Tbk to "idAA-" from "idA+", while the Bank's subordinated debt I/2004 amounting to IDR300 billion is upgraded to "idA+" from "idA". A "Stable" Outlook is assigned to the above ratings. The rating upgrades reflect a strong commitment from United Overseas Bank Limited as the controlling shareholder, strong capitalization, and favorable funding structure. The ratings are offset by the Bank's limited business growth. BBIA was established in 1956 as a result of a merger Bank Pembinaan Nasional (Bandung), Bank Kesejahteraan Masyarakat (Semarang), and Bank Aman Makmur (Jakarta). The Bank is also well known for its strong franchise in trading sector. To support its activities, BBIA employs 5,969 staffs to operate its offices located in major cities in Indonesia. The Bank was owned by UOB International Investment Pte. Ltd. (UOBII, 61.13%), PT Sari Dasa Karsa (26.75%), and public (12.12%). UOBII is wholly-owned by UOB, one of the largest banks in Singapore with total assets of SGD172.2 billion as of September 2007. About Bank UOB Buana Headquartered in Jakarta, PT Bank UOB Buana Tbk., formerly PT Bank Buana Indonesia Tbk. -- http://www.bankbuana.com-- provides public deposits, investment portfolio, and other financial services, including: demand, savings and time deposits, Bank Indonesia promissory notes, bonds, consumer loans, retail commercial loans, and corporate loans. Other financial services include exports, imports, transfers, collection, issuing of bank guarantees and foreign currency transactions. * * * As reported by the Troubled Company Reporter - Asia Pacific on Dec 21, 2007, Fitch Ratings affirmed PT Bank UOB Buana Tbk's (Buana) ratings: -- Long-term foreign and local currency Issuer Default Ratings at 'BB-'with a Positive Outlook, -- Short-term foreign currency IDR at 'B', -- National Long-term at 'AA+(idn)' with a Stable Outlook, -- Individual at 'C/D' and Support at '3'. BANK RAKYAT: Pefindo Upgrades Company Ratings to "idAA+" ------------------------------------------------------- Pefindo has upgraded its rating for PT Bank Rakyat Indonesia (Persero) Tbk to "idAA+" from "idAA", while the Bank's subordinated Bond I/2003 of IDR500 billion is upgraded to "idAA" from "idAA-". Outlook of those ratings remained stable. The ratings actions reflect the Bank's superior market position, strong potential growth particularly in lending activities, and favorable profitability indicators. However, the ratings have been moderated by the Bank's average asset quality. BBRI that was established in 1895 is the oldest bank in the country and is long perceived as a bank for micro and retail businesses. To support its operation, BBRI employs 36,734 staffs located in its branches and micro units all over Indonesia. As of 3Q07, BBRI's shareholders comprised of Government of Indonesia (GOI, 56.9%) and Public (43.1%). About Bank Rakyat Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. FREEPORT-MCMORAN: Declares Dividends on Preferred, Common Stocks ---------------------------------------------------------------- Freeport-McMoRan Copper & Gold Inc. has declared these quarterly cash dividends payable on Feb. 1, 2008, to holders of record as of Jan. 15, 2008: -- US$0.4375 per share of FCX's Common Stock. -- US$1.6875 per share of FCX's 6_% Mandatory Convertible Preferred Stock. -- US$13.75 per share of FCX's 5«% Convertible Perpetual Preferred Stock. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan Copper & Gold Inc.'s outlook to positive and affirmed all of its other ratings. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba2. Ratings affirmed: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba2; -- Probability of Default Rating: Ba2; -- US$0.5 billion Senior Secured Revolving Credit facility, Baa2, LGD1, 2%; -- US$1.0 billion Senior Secured Revolving Credit Facility, Baa3, LGD2, 17%; -- US$2.45 billion Senior Secured Term Loan A, Baa3, LGD2, 17%; -- US$339.7 million 6.875% Senior Secured Notes due 2014, Baa3, LGD2, 17%; and -- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%. NORTEL NETWORKS: Settles Patent Dispute With Vonage Holdings ------------------------------------------------------------ Nortel Networks Corp. and Vonage Holdings Corp. have agreed in principle to end the litigation pending between them. The contemplated settlement involves a limited cross license to three Nortel and three Vonage patents and will not call for any monetary payments by any party. Claims relating to past damages and the remaining patents will be dismissed without prejudice. The settlement is subject to final documentation. "We are pleased to resolve this issue and enter into a productive relationship with Nortel," said Vonage Chief Legal Officer Sharon O'Leary. According to a Bloomberg report cited by the Troubled Company Reporter on Dec. 21, 2007, Nortel sued Vonage alleging infringement on 12 patents covering technology used in managing telephone data. Bloomberg's report said 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 said. 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. NORTEL: Unit Commences Exchange Offer for 3 Senior Notes -------------------------------------------------------- Nortel Networks Corporation's principal direct operating subsidiary, Nortel Networks Limited, has commenced offers to exchange: (1) any and all of the US$450,000,000 outstanding principal amount of 10.75% Senior Notes due 2016 for an equal amount of new 10.75% Senior Notes due 2016; (2) any and all of the US$550,000,000 outstanding principal amount of 10.125% Senior Notes due 2013 for an equal amount of new 10.125% Senior Notes due 2013; and (3) any and all of the US$1,000,000,000 outstanding principal amount of Floating Rate Senior Notes due 2011 for an equal amount of new Floating Rate Senior Notes due 2011. The outstanding notes are, and the new notes will be, fully and unconditionally guaranteed by Nortel Networks Corporation and initially guaranteed by Nortel Networks Inc. The terms of the new notes are substantially the same as the original notes, except that the new notes will be registered under the U.S. Securities Act of 1933, as amended, and the new notes have no transfer restrictions, rights to additional interest or registration rights, except for certain restrictions on transfers of new notes in Canada under applicable Canadian securities laws. The new notes have not been, and will not be, qualified for distribution under the securities laws of any province or territory of Canada except pursuant to available exemptions therefrom. A written prospectus providing the terms of each exchange offer may be obtained through the information agent, which can be contacted at: D.F. King & Co., Inc. 48 Wall Street New York, NY 10005 Banks and brokers call: (212) 269-5550 All others call: (800) 659-6590 The exchange offers commenced on Dec. 21 2007, and are scheduled to expire at 5:00 p.m., New York City time, on Jan. 25, 2008, unless extended. 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: Two Power Plants' Output Halved Due to Shortage ----------------------------------------------------------- PT Perusahaan Listrik Negara's power output capacity at its Tanjung Jati B and Cilacap coal-fired power plants has halved since December 31 due to a shortage of coal after inclement weather delayed coal deliveries, Thomson Financial reports. Thomson relates that the two Java-based plants have a normal power output of 1,960 megawatts combined. PLN Transmission and Distribution Director Ali Herman Ibrahim was quoted by the news agency as saying, "There was a transportation problem because of high waves that reached about 5-6 meters." Delivery of about 120,000 tons of coal for Tanjung Jati B was delayed, he added. Coal stocks at the plant currently stand at 55,000 tons, the report notes. According to the report, the Tanjung Jati B plant normally needs about 11,000 tons of coal a day while the Cilacap plant needs 6,000 tons a day. Mr. Ibrahim said PLN hopes to see the situation resolved soon as Indonesia's Meteorological and Geophysics Agency has forecast that the weather will start to normalize around January 4, the report adds. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= ALITALIA SPA: Group Posts EUR1.19 Billion Net Debt for November --------------------------------------------------------------- The Alitalia Group's net debt as of Nov. 30, 2007, amounted to EUR1.191 billion, showing a slight increase in net indebtedness of EUR9 million (+0.8%) compared to Oct. 31, 2007. The net debt of the parent company Alitalia S.p.A. including short-term financial credits for subsidiaries on Nov. 30, 2007 (including short-term financial credits of subsidiaries), amounted to EUR1.183 billion showing a slight increase of EUR4 million (+0.3%) compared to net debt as of Oct. 31, 2007. The Group's cash-to-hand and short-term financial credits as of Nov. 30, 2007, at the Group level and for Alitalia, amounted to EUR395 million and EUR403 million respectively. It should be noted that as of Nov. 30, 2007, there were several leasing contracts at the Group level whose capital share, including lease closure value, amounted to EUR96 million. By comparison, the same figure as of Oct. 31, 2007, amounted to EUR97 million; the corresponding figures for the parent company on Oct. 31, 2007, amounted to EUR84 and EUR10 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During November 2007, repayments were made of medium/long-term financing amounting to about EUR23 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Nov. 30, 2007, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, there were no outstanding sums or payment irregularities on Nov. 30, 2007, both for the parent company and for other Group companies, except for those relating to disputed situations. Regarding the latter, decisions are still pending for the petitions filed by Alitalia regarding: -- an injunction related to supposed different pricing policies, issued by a carrier for EUR6 million (two decrees); -- another injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); -- an injunction has been issued by an IT services supplier for EUR812,000; -- an injunction has been issued by an Italian subsidiary of an air carrier bankruptcy for EUR288,000; -- another injunction has been issued by a maintenance services supplier for EUR492,000; -- an injunction has been issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; -- one injunction issued by a fuel supplier for about EUR1 million. There are no other injunction orders or executive actions undertaken by creditors notified as of Nov. 30, 2007, nor are there any threats by suppliers to suspend operations. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: November 2007 Passenger Traffic Up by 0.7% -------------------------------------------------------- Alitalia S.p.A.'s November 2007 traffic data compared to the same period in 2006 showed an increase in passenger business and a decrease in cargo business. Passenger business showed an increase in terms of traffic (+0.7%) with a decrease of capacity offered by 0.7% compared with the same period of 2006. November 2007 Cargo statistics, compared to November 2006, showed a decrease in terms of goods flown (-5.3%) with capacity offered down 7.2%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, increased by 0.7% and the capacity, measured in Available Seat Kilometers, decreased by 0.7%. Therefore load factor increased by 1.0 percentage points reaching 70.3%. Alitalia carried 1.8 million passengers, up 1.1% compared to the previous year. Detailed comparisons with November 2006: -- Domestic Passenger Network: traffic increased by 4.4% with offered capacity up 3.9%. Load factor was 59.0%; -- International Passenger Network: traffic decreased by 1.0% and offered capacity decreased by 3.6%. Load factor was 63.8%; -- Intercontinental Passenger Network: traffic increased by 0.7% and capacity was in line with November 2006. Load factor was 80.0%. Cargo Operations November 2007 Cargo performance showed, compared to November 2006, a traffic decrease by 5.3% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 7.2%. Overall Load factor was 72.2% with an increase by 1.4 percentage points. Regarding the All-Cargo sector, Load factor was 80.3% with an increase by 7.3 percentage points compared with the same period of 2006.