T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, January 16, 2008, Vol. 11, No. 11 Headlines A U S T R A L I A ABLAZE METAL: Liquidator Presents Wind-Up Report BEARINGS INCORPORATED: Members & Creditors Hear Wind-Up Report CENTRO PROPERTIES: CEO Quits; Asks Payment Deadline Extension CENTRO PROPERTIES: S&P Remains CCC+ Rating on CreditWatch CHRYSLER LLC: Confirms OEM Product Agreement with Nissan Motor CHRYSLER LLC: Working with Midwest Entities in Research Project CHRYSLER: Wants Getrag Joint Venture Resumed for 2009 Opening DIGITAL JUKEBOXES: Placed Under Voluntary Liquidation ELLISON MEDICAL: Commences Liquidation Proceedings FINLAY ENGINEERING: Declares Interim Dividend GREENSKY PTY: Members Agree on Voluntary Liquidation JAMIESON FASHION: Commences Liquidation Proceedings LANDY ENGINEERING: Liquidator to Present Wind-Up Report Today LIFE THERAPEUTICS: Appoints Interim COO and Acting Secretary RON DOWSON: Members Agree on Voluntary Liquidation STATE PROPERTIES: Members Opt to Shut Down Business TL TECHNOLOGY: Placed Under Voluntary Liquidation URS CORP: Taps Thomas H. Zarges as Washington Division President * AU Bond Risk Rises, Credit-Default Swaps Show C H I N A , H O N G K O N G & T A I W A N ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais CHINA EASTERN: Mulls Share-Swap with Air China DANA CORP: Asbestos Claimants File Appeal to Dana Plan GLOBAL POWER: Elects David L. Willis as CFO & Sr. Vice Pres. PETROLEOS DE VENEZUELA: Implements Drilling Technology in RG 278 I N D I A BAGALKOT UDYOG: Appoints of V K Beswal & Associates as Auditors DCM SHRIRAM: Brings In S. B. Mathur as Independent Director EMCO LTD: Allots 17-Lakh Warrants to Promoter Shailesh Jain GARWARE POLYESTER: Reappoints Shah & Co. as Auditors JENSON & NICHOLSON: Maurya Divests 55,000 Shares MYSORE CEMENTS: To File Audited Financial Results by March 31 QUEBECOR WORLD: Gets CDN$400-Million Rescue Financing Proposal STATE BANK OF INDIA: To Increase Capital to INR650 Crore I N D O N E S I A ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti ANIXTER INTERNATIONAL: Earns US$64.8 Mil. in 2007 Third Quarter BANK MANDIRI: Plans for 20% Outstanding Loan Growth This Year DIRECTED: Signs Business Deal With UFC(R) & Top UFC Fighter EXCELCOMINDO PRATAMA: Plans to Increase 2008 Revenue by 20% GARUDA INDONESIA: 2007 Punctuality Rate in China reaches 83% PERUSAHAAN LISTRIK: To Build US$132-Mil. Coal-Fired Power Plant J A P A N ALITALIA SPA: Italy Endorses Exclusive Talks with Air France-KLM DELPHI CORP: Bank of America Opposes Confirmation of Plan COSMO OIL: Signs Pact with Masdar to Develop New Technology FORD MOTOR: Creates the Verve to Ride in Small Car Popularity FORD MOTOR: St. Thomas Plant in Ontario Starts Production FORD MOTOR: Tata May Tap Ford Exec to Head Two Luxury Brands GAP INC: December 2007 Sales Decrease by 6% to $2.2 Billion IHI CORP: Shares Rise on JFE Holdings Tie-Up Report JAPAN AIRLINES: May Cancel Card Unit Stake Sale, Insiders Say JAPAN AIRLINES: Expects First Profit in Three Years for FY2008 MITSUBISHI MOTORS: To Launch Electric Vehicle in India MITSUBISHI MOTORS: To Produce Outlander SUV in India SAPPORO HOLDINGS: Sees Beer Sales Falling 1.7% in FY2008 SAPPORO HOLDINGS: Hideyo Suzuki Becomes President of Unit SENBA KITCHO: To File for Court Protection with JPY1-Bln. Debt SOFTBANK CORP: To Offer Free Mobile-IP Phone Calls in April K O R E A ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets DAEWOO ELECTRONIC: Decides Issuance of 40th Bond With Warrants DURA AUTOMOTIVE: Posts US$12,399,000 Net Loss in November 2007 GENEXEL-SEIN: Adjusts Conversion Price of 2nd Convertible Bonds SEJI CO: Signs KRW432.3-Million Contract With IC Corporation M A L A Y S I A SOLUTIA INC: Plans to Offer US$400 Mln Senior Unsecured Notes N E W Z E A L A N D A.S.A. (NZ): Commences Liquidation Proceedings ALLTRADE AUTOPARTS: Taps Meltzer & Lamacraft as Liquidators ARTIST TRADERS: Fixes Jan. 30 as Last Day to File Claims BLUEBRIDGE HOLDINGS: Commences Liquidation Proceedings BRIDGEMAN LTD: Appoints Mason & Hayward as Liquidators CRICHEL MANAGEMENT: Appoints Parsons & Kenealy as Liquidators D BELL INSURANCE: Fixes March 18 as Last Day to File Claims DERVIN PROPERTIES: Creditors' Proofs of Debt Due on Feb. 15 FIRST DATA: Moody's Drops Untendered Stub Notes' Rating to Caa1 PUKEKOHE PROFESSIONAL: Taps Damien Grant as Liquidator SHORE FIRE: Court to Hear Wind-Up Petition on March 6 P H I L I P P I N E S EXPORT AND INDUSTRY: Lists 12 Billion New Shares in Local Bourse MANILA ELECTRIC: Seeks 10.4% Increase in Distribution Charges METROPOLITAN BANK: To Appeal Appeals Court's Ruling on Tax Case PHIL. LONG DISTANCE: Lists Additional 400 Shares with PSE SAN MIGUEL: Properties Unit Completes Sale of KSA Stake to Shang S I N G A P O R E AAR CORP: To Buyback US$16.36 Mil. Senior Notes on February 12 AF AEROSPACE: Court to Hear Wind-Up Petition on January 25 POLYONE CORP: Completes Acquisition of Ngai Hing PlastChem SNIJDER SINGAPORE: Final Meeting Slated for February 15 STATS CHIPPAC: S&P Affirms BB+ Corporate Credit Rating YEW SENG: Creditors' Proofs of Debt Due on January 25 T H A I L A N D PICNIC CORP: Court To Hear Rehabilitation Petition on March 17 * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= ABLAZE METAL: Liquidator Presents Wind-Up Report ------------------------------------------------ The members and creditors of Ablaze Metal Spinning Pty Ltd met on January 11, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: R. A. Sutcliffe Ground Floor 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 About Ablaze Metal Ablaze Metal Spinning Pty Ltd is involved in the business of sheet metalwork. The company is located at Bayswater, in Victoria, Australia. BEARINGS INCORPORATED: Members & Creditors Hear Wind-Up Report -------------------------------------------------------------- The members and creditors of Bearings Incorporated (Aust) Pty Ltd met on January 11, 2007, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Gountzos CJL Partners Level 3, 180 Flinders Lane Melbourne, Victoria 3000 Australia Telephone:(03) 9639 4779 Facsimile:(03) 9639 4773 About Bearings Incorporated Bearings Incorporated (Aust) Pty Ltd is a distributor of industrial supplies. The company is located at Moorabbin, in Victoria, Australia. CENTRO PROPERTIES: CEO Quits; Asks Payment Deadline Extension ------------------------------------------------------------- Centro Properties Group's chief executive officer, Andrew Scott, stepped down from his post and will be replaced by Glenn Rufrano, who heads Centro's business in the United States, Bloomberg News reports, citing a company statement filed with the Australian Stock Exchange. Moreover, according to Bloomberg's Laura Cochrane, Centro Properties asked its lenders to extend a Feb. 15 deadline to refinance AU$3.9 billion (US$3.5 billion) of debt. American and Australian banks are considering Centro's extension request, as are investors who bought US$450 million of Centro debt in U.S. private placements, Bloomberg cites the company as saying. Those noteholders told Centro on Jan. 11 that they were concerned the company may be in default on at least some of that debt. Ms. Cochrane notes that Centro stock has slumped 89% since a Dec. 17 announcement that the company was struggling to pay its debts. According to Bloomberg, Mr. Rufrano joined Centro after it paid US$5.2 billion in cash and assumed debt for New Plan Excel Realty Trust, the company he ran for seven years, in the biggest U.S. acquisition by an Australia-based real estate investment trust. The deal made Centro the fifth-biggest mall owner in the U.S. and boosted the company's debt to 44% of total assets. “They really do need someone who is familiar with the U.S. property market because it's a very localized market,” Bloomberg quotes John Snowden, head of property securities in Sydney at Colonial First State, Centro's largest shareholder. Rufrano was “very capable” when he ran New Excel, Mr. Snowden added. Bloomberg explains that Centro's U.S. business accounts for 65% of the company's AU$26.6-billion worth of assets under management after Mr. Scott oversaw US$9 billion of acquisitions. That left the company vulnerable when the subprime mortgage market collapsed, forcing banks to write down more than US$35 billion and driving up borrowing costs. Mr. Scott put Centro and some of its assets up for sale Jan. 2, the report recalls. Centro's traditional sources of funding in the U.S. commercial mortgage-backed securities market were “shut for business,” the company said Dec. 17. The report notes that the former CEO will receive a AU$1.5-million payout, as well as any accrued salary or other benefits, and Centro will pay him a further AU$1.5 million on March 31, 2008, provided he fulfills obligations to provide advice to the company. Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property 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, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, 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. CENTRO PROPERTIES: S&P Remains CCC+ Rating on CreditWatch --------------------------------------------------------- Standard & Poor's Ratings Services said that its 'CCC+' issuer credit ratings on Centro NP LLC remain on CreditWatch with developing implications, where they were placed on Jan. 3, 2008. The 'CCC+' senior-unsecured debt and 'CCC-' preferred stock ratings on Centro NP (formerly New Plan Excel Realty Property Trust) also remain on CreditWatch with developing implications. This CreditWatch update follows a series of announcements made earlier by Centro Properties Group on the company's refinancing plans for its maturing bank debt and progress made on the group's "strategic review". Collectively, the announcements do not have an immediate effect on the Centro NP ratings. The announcements were: * NP's U.S. private-placement noteholders, owed US$450 million, agreed with CNP not to act on rights under their note purchase agreement which could potentially accelerate repayment of this debt before Feb. 15, 2008. This is consistent with the deadline for the rollover of substantial debt facilities at CNP. * As a consequence of the inability to rollover CNP's interest-rate and foreign-exchange hedging, the company advised that its net foreign-currency equity exposure to movements in the Australian and U.S. dollars is currently US$4,473 million, of which 80.7% is hedged, from 99.2% previously. * CNP is reviewing the classification of current and non- current interest-bearing liabilities reported in CNP's audited financial statements to June 30, 2007. * The sale process—of a whole-of-group review, which may include a recapitalization, equity issuance, or acquisition of CNP, and/or the sale of the group's interest in its Australian and U.S. wholesale funds—is continuing. * The appointment of Glenn Rufrano as chief executive officer of CNP. Mr. Rufrano succeeds Andrew Scott, who resigned. "These announcements do not change the near-term probability that Centro NP could be put into default by its creditors, notwithstanding that the company's operating assets remain of good quality," Standard & Poor's credit analyst Craig Parker said. Given the uncertainty facing the group, the issuer rating on Centro NP could move either up or down from 'CCC+'. A 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. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is an Australia-based company that comprises the operations of Centro Property Trust (the Trust) and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust (New Plan), Heritage Property Investment Trust (Heritage) and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, 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: Confirms OEM Product Agreement with Nissan Motor -------------------------------------------------------------- Chrysler LLC and Nissan Motor Co., Ltd., disclosed an agreement for Nissan to supply Chrysler with a new car for limited distribution in South America. Based on the Nissan Versa sedan, the new car will be supplied to Chrysler on an Original Equipment Manufacture basis in 2009. The OEM supply agreement is the second product exchange between the two corporations, with Nissan affiliate JATCO already supplying Chrysler with transmissions since 2004. "This kind of tactical partnership allows us to maximize product offerings yet minimize costly investments, such as new plant infrastructure, tooling and R&D," Chrysler LLC President and Vice Chairman Tom LaSorda said. "This partnership will give Chrysler nearly immediate access to vehicle segments in which we do not currently compete." "Nissan has a successful track-record of win-win product exchanges and we are pleased to be entering into this second agreement with Chrysler," Carlos Tavares, Executive Vice President, Nissan Motor Company, said. The two companies have also agreed to maintain an open dialogue to explore further product-sharing opportunities. About Nissan Motor Headquartered in Tokyo, Japan, Nissan Motor Co., Ltd. -- http://www.nissan-global.com/-- provides automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault. 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'. CHRYSLER LLC: Working with Midwest Entities in Research Project --------------------------------------------------------------- Chrysler LLC is partnering with a major Midwest utility company and university researchers in a project to determine if paint solid residues from automobile manufacturing can reduce emissions of mercury from electric power plants. For the past year, Chrysler has recycled paint solid residues from its two St. Louis assembly plants for use as an alternative fuel in Ameren Corporation's nearby Meramec electric utility plant. Prior to this project, Chrysler's St. Louis plants were sending one million pounds of dried paint solids to landfill each year. Now, the paint solids replace about 570 tons of coal per year in the Ameren plant. The paint solid residues contain titanium dioxide, which has the potential to remove mercury from coal-powered plant emissions without affecting other processes in the plant. Mercury is chemically bonded with titanium oxide, a process known as chemisorption, and thus is potentially easier to trap in the plant's emissions scrubber system, research has found. "Our 'Paint to Power' program in St. Louis is a recycling success story. Rather than filling up scarce landfill space, we are using these paint wastes to produce power for St. Louis residents and businesses," said Chrysler Vice President of Regulatory Affairs, Deborah L. Morrissett. "Now we may be able to build on that success to further protect the environment from mercury emissions," Ms. Morrissett said. The effectiveness of titanium dioxide in controlling mercury emissions has been demonstrated in the laboratory and recent field studies, according to Dr. Pratim Biswas, chairperson of the Department of Energy, Environmental and Chemical Engineering at Washington University in St. Louis. Dr. Biswas is heading up the project to test the process in a full-scale power plant. Dr. Biswas and his research team have demonstrated the ability of nanostructured titanium dioxide to remove mercury with greater than 95 percent efficiency. Recently concluded tests in a pilot scale facility have further corroborated the results of the laboratory research. Mercury is released into the environment in trace quantities from the burning of coal in electric-generating plants. The amount of titanium dioxide in the paint solids from the Chrysler plants would be sufficient to remove the trace amounts of mercury from power plant emissions, Dr. Biswas said. The electric power industry is currently studying the use of various other chemicals to remove mercury from power plant emissions. The United States government has implemented the world's first requirements to cut mercury emissions from electric power plants. Through its collaboration with Chrysler's St, Louis assembly plants, Ameren Corp.'s 855-megawatt Meramec power plant is the first in the nation to generate electricity by burning paint solids recovered from an automotive manufacturing facility. In the initial phase, the project produces enough electricity to power 70 homes for a year. The project has been recognized with a pollution prevention award from the St, Louis chapter of the National Association of Environmental Managers and with an Environmental Leadership Award from Chrysler. About the Partners Chrysler LLC's two St. Louis assembly plants manufacture the Dodge Ram light- and heavy-duty pickup trucks and the Chrysler Town & Country and Dodge Grand Caravan minivans. St. Louis-based Ameren Corp. and its subsidiaries serve 2.4 million electric customers in Missouri and Illinois. Washington University in St. Louis is an internationally recognized independent teaching and research center with approximately 3,100 faculty and 11,000 students. 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'. CHRYSLER: Wants Getrag Joint Venture Resumed for 2009 Opening ------------------------------------------------------------- Chrysler LLC is anxious that work on a joint venture with Getrag Corp. will resume next week in time for the 2009 opening, various sources report. Construction of a $530 million transmission plant in Tipton County, Indiana, was suspended on Dec. 21, 2007, due to a rift between Chrysler and Getrag. As reported in the Troubled Company Reporter on June 22, 2007, Chrysler, which was still under DaimlerChrysler AG, named Tipton as the site of a new dual-clutch transmission manufacturing plant with partner company, Getrag. The $530 million investment is another step in Chrysler's "Powertrain Offensive" -- $3 billion in investments to produce more fuel-efficient engines, transmissions and axles for the carmaker. The Indianapolis Star disclosed that Chrysler has not cited particular reasons of its discord with Getrag, however, auto analysts say that the problem lies with Chrysler's streamlining strategy, affecting the number of Getrag transmissions to be produced once the plant opens in 2009. A company spokesperson related that the deal will push through, insisting that transmissions are needed for a new line of engines, Reuters reports. Government officials are hopeful that the parties will resolve their differences because the investment is likely to bring 1,400 jobs to the county. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. DIGITAL JUKEBOXES: Placed Under Voluntary Liquidation ----------------------------------------------------- During a general meeting held on November 28, 2007, the members of Digital Jukeboxes Pty Ltd resolved to voluntarily wind up the company's operations. Richard Herbert Judson was then appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson PO Box 819 Moorabbin, Victoria 3189 Australia About Digital Jukeboxes Digital Jukeboxes Pty Ltd is a distributor of durable goods. The company is located at Athelstone, in South Australia, Australia. ELLISON MEDICAL: Commences Liquidation Proceedings -------------------------------------------------- The members of Ellison Medical Pty Ltd met on November 28, 2007, and agreed to voluntarily liquidate the company's business. Richard Herbert Judson was then appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson PO Box 819 Moorabbin, Victoria 3189 Australia About Ellison Medical Ellison Medical Pty Ltd provides health and allied services. The company is located at Teneriffe, in Queensland, Australia. FINLAY ENGINEERING: Declares Interim Dividend --------------------------------------------- Finlay Engineering Co. Pty Ltd, which is in liquidation, declared its interim dividend for its outstanding employees on January 2, 2008. Only the employees who were able to file their proofs of debt by that day were included in the company's dividend distribution. The company's liquidator is: William Bernard Abeyratne Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Victoria 3205 Australia Telephone:(03) 9696 2885 About Finlay Engineering Finlay Engineering Co Pty Ltd provides engineering services. The company is located at South Melbourne, in Victoria, Australia. GREENSKY PTY: Members Agree on Voluntary Liquidation ---------------------------------------------------- During a general meeting held on November 20, 2007, the members of Greensky Pty Ltd resolved to voluntarily wind up the company's operations. Roger David Midgley Smith was tapped as liquidator. The Liquidator can be reached at: Roger David Midgley Smith 126 George Street Morwell, Victoria 3840 Australia About Greensky Pty Located at Traralgon, in Victoria, Australia, Greensky Pty Ltd is an investor relation company. JAMIESON FASHION: Commences Liquidation Proceedings --------------------------------------------------- The members of Jamieson Fashion Group Pty. Ltd. met on Nov. 28, 2007, and decided to voluntarily liquidate the company's business. Richard Herbert Judson was then tapped as liquidator. The Liquidator can be reached at: Richard Herbert Judson PO Box 819 Moorabbin, Victoria 3189 Australia About Jamieson Fashion Jamieson Fashion Group Pty Ltd, which is also trading as Coronet-Fashion@work, is a distributor of apparel and accessories. The company is located at Port Melbourne, in Victoria, Australia. LANDY ENGINEERING: Liquidator to Present Wind-Up Report Today ------------------------------------------------------------- The members and creditors of Landy Engineering Pty Ltd will have their final meeting today, January 16, 2008, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Glenn A. Crisp RSM Bird Cameron Partners Level 8, 525 Collins Street Melbourne, Victoria 3000 Australia Telephone:(03) 9286 1800 Facsimile:(03) 9286 1899 About Landy Engineering Landy Engineering Pty Ltd operates non-classifiable establishments. The company is located at Newtown, in Victoria, Australia. LIFE THERAPEUTICS: Appoints Interim COO and Acting Secretary ------------------------------------------------------------ Life Therapeutics Inc. (ASX: LFE) appointed John Carlisle as its Interim Chief Operating Officer for an initial period of three months. Barry Holman has resigned from the position of Chief Operating Officer effective December 31, 2007. As a highly experienced senior executive, Mr. Carlisle joined Life Therapeutics with a proven track record of managing plasma operations, and leading business integrations, mergers and acquisitions for Companies including Baxter Biolife LLC, Aventis Bioservices, Nabi Biopharmaceuticals and Alpha Therapeutic Corporation. Mr. Carlisle assumed operational responsibility for driving improved performance and for the business continuity of the Life Sera plasma division during the lead up to the proposed sale of the plasma business to Kedrion S.p.A. As COO, Mr. Carlisle joined LFE CFO Subhash Sarda in reporting directly to the Board of Directors. Moreover, LFE also appointed Rachel Freeman SVP Human Resources as acting Company Secretary until a permanent appointment is made. Prakash Patel resigned as Company Secretary effective November 30, 2007. About Life Therapeutics Headquartered in New South Wales, Australia, Life Therapeutics Limited -- http://www.life-therapeutics.com/-- is engaged in the collection, management and distribution of plasma-based products, and development, manufacture and sale of electrophoresis, hematology and Gradiflow products. It operates in five segments: Life Sera, which collects specialty plasma, including Anti D and Hepatitis B; Life Diagnostics, which develops, manufactures and distributes diagnostic products into the diagnostic marketplace; Life Gels, which develops, manufactures and distributes pre-cast electrophoresis gels into the laboratory market; Life Bioprocess, which markets the Gradiflow technology in both the commercial and research markets, and Life Shared Services, which conducts corporate functions of the organization. At June 30, 2006, the Life Gels and Life Bioprocess division were classed as discontinued operations. In November 2006, the Company completed the spin out of its Australian assets by transferring these assets to a wholly owned subsidiary, NuSep Ltd. The Troubled Company Reporter-Asia Reporter, in its "Large Companies with Insolvent Balance Sheets" Column on November 2, 2007, listed Life Therapeutics Limited as having total assets of US$59.00 million and total shareholders' equity deficit of US$0.38 million. The company, in its preliminary annual financial report for the year ended June 30, 2007, reported a consolidated net loss of US$15,733,000, a decrease from the US$31,459,000 net loss in the year ended June 30, 2006. RON DOWSON: Members Agree on Voluntary Liquidation -------------------------------------------------- During a general meeting held on November 28, 2007, the members of Ron Dowson Sunraysia Pest Control Pty. Ltd. agreed to voluntarily wind up the company's operations. Richard Herbert Judson was then appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson PO Box 819 Moorabbin, Victoria 3189 Australia About Ron Dowson Ron Dowson Sunraysia Pest Control Pty Ltd provides disinfecting and pest control services. The company is located at Mildura, in Victoria, Australia. STATE PROPERTIES: Members Opt to Shut Down Business --------------------------------------------------- The members of State Properties Pty. Ltd. met on November 28, 2007, and agreed to voluntarily wind up the company's operations. Richard Herbert Judson was then tapped as liquidator. The Liquidator can be reached at: Richard Herbert Judson PO Box 819 Moorabbin, Victoria 3189 Australia About State Properties State Properties Pty Ltd is an operator of non-residential buildings. The company is located at Wingfield, in South Australia, Australia. TL TECHNOLOGY: Placed Under Voluntary Liquidation ------------------------------------------------- On December 21, 2007, TL Technology Research (Aust) Pty Limited was placed under creditors' voluntary liquidation by Iris Corporation Berhad, TL Technology's mother company. Martin John Green of GHK Green Krejci Pty Ltd was then appointed as liquidator. TL Technology, which was involved in investment holding, had suffered losses from its investing activities and has become a dormant company in the financial year ended Dec. 31, 2007. The negative net book value of affected assets in TL Technology amounting to MYR8,578,500 had been provided for in the audited accounts of ICB for the financial year ended Dec. 31, 2004. TL Technology is not a major subsidiary of the ICB. The voluntary liquidation of TL Technology is not expected to have any material financial and operational impact on the ICB for the financial year ended Dec. 31, 2007. The ICB Group is not expected to incur material losses arising from the voluntary liquidation of TL Technology for the financial year ended Dec. 31, 2007. None of the directors or substantial shareholders of ICB or persons connected to them has any interest in the liquidation of TL Technology. URS CORP: Taps Thomas H. Zarges as Washington Division President ---------------------------------------------------------------- URS Corporation has appointed Thomas H. Zarges as President of the Washington Division. Mr. Zarges, who formerly served as the Division's Senior Executive Vice President for Operations, replaces Stephen G. Hanks, who is retiring from the company and resigning from the URS Board of Directors. URS' Washington Division is the former Washington Group International Inc., which URS acquired in November 2007. "Tom is an experienced executive with a comprehensive understanding of the Washington Division, gained through more than 30 years with the business," Martin M. Koffel, Chairman and Chief Executive Officer of URS, said. "He has directed Washington Group's power, engineering and construction, and industrial process businesses, and has managed all of Washington Group's operations since 2002. He is ideally suited to lead the Division as we integrate our complementary service offerings and work to capture the many new opportunities available to URS and our 55,000 employees." "I am proud to lead the Washington Division and the exceptional group of professionals that have been the key to our success," Mr. Zarges said. "Now, as part of one of the few fully integrated engineering, construction and technical services companies in our industry, our potential is greater than ever. I look forward to working with Martin and the entire URS management team and continuing to deliver results for our stockholders, customers and employees." Mr. Koffel continued, "I would like to thank Steve for helping to make the combination between URS and Washington Group a reality. The strength of the Washington Division's business and the quality and depth of its management team attest to Steve's leadership. We wish him well in the future." The appointment of Mr. Zarges as President of the Washington Division is effective immediately. Biographical Information Thomas Zarges, 59, has more than 35 years of experience in global engineering and construction. He joined Washington Group in 1991 as President of Power and Industrial/Manufacturing. He later served as President of the company's Engineering/Construction and Industrial/Process business units. He was named Senior Executive Vice President of Operations in 2002. Earlier in his career, Mr. Zarges served with United Engineers & Constructors, a predecessor firm to Washington Group, for 20 years. He is a 1970 engineering graduate of the Virginia Military Institute. About URS Corp. Headquartered in San Francisco, California, URS Corporation (NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, facilities, environmental, water/wastewater, industrial infrastructure and process, homeland security, installations and logistics, and defense systems. The company operates in more than 20 countries with approximately 29,500 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. * * * As reported in the Troubled Company Reporter on Dec. 7, 2007, Moody's Investors Service has downgraded the Corporate Family Rating of URS Corporation to Ba2 from Ba1 following the company's acquisition of Washington Group International, Inc. Moody's said the ratings outlook is stable. * AU Bond Risk Rises, Credit-Default Swaps Show ----------------------------------------------- The risk of Australian companies defaulting on their debt rose to a record, Bloomberg News reports, citing traders of credit- default swaps. Bloomberg's Laura Cochrane says that, according to prices from Citigroup Inc., the Markit iTraxx Australia Series 8 Index climbed 2.75 basis points to 91.5 basis points as of 12:20 p.m. yesterday in Sydney. The cost is the most since the benchmark began trading in September. The index contains credit-default swaps tied to 25 borrowers including Qantas Airways Ltd. and BHP Billiton Ltd. The indexes are benchmarks for protecting bonds against default and traders use them to speculate on changes in credit quality, Bloomberg explains. A basis point, or 0.01 percentage point, is worth US$1,000 on a swap that protects US$10 million of debt from default. Credit-default swaps, financial instruments based on bonds or loans, were conceived to protect bondholders by paying the buyer face value in exchange for the underlying securities should the borrower default, the report further notes. A decrease in the price indicates improving investor perceptions of credit quality and an increase suggests deterioration. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais ---------------------------------------------------------------- Aleris International, Inc. has completed the sale of its Zinc business, which operates under the name US Zinc, to affiliates of Votorantim Metais Ltda. for US$295 million with certain adjustments for working capital and other items. The company will use net proceeds from the divestiture to reduce outstanding debt. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico, Wales, and China, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent $105 million 9% senior notes due 2014, which are an add-on to the company's existing $600 million 9% senior notes due 2014. CHINA EASTERN: Mulls Share-Swap with Air China ---------------------------------------------- China Eastern Airlines and Air China are now discussing an alliance plan that involve swapping of shares, China Knowledge reports, citing sources who refused to be identified. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, shareholders of China Eastern rejected a bid by Singapore Airlines to buy a minority stake after Air China's parent, China National Aviation Holding Co., pledged a higher offer. Specifically, CNAHC vowed to pay at least HK$5.00 a share, or at least 32% more than Singapore Airlines' and Temasek Holding Pte Ltd's bid of HK$3.80 per share, or HK$7.2 billion (US$923 million) in aggregate, for a holding in China Eastern. The rejection, the TCRAP stated, paved the way for a possible counterbid for China Eastern by CNAHC. According to China Knowledge, the cross-holding plan will be suggested by CNAHC. Air China, together with Cathay Pacific Airways Ltd <293>, intend to make a tie-up with China Eastern to dominate the domestic aviation market, China Knowledge explains. The report adds that CNAHC will make an offer by January 22, and a joint venture may be proposed by the company between the two carriers and the Cathay Pacific. 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. DANA CORP: Asbestos Claimants File Appeal to Dana Plan ------------------------------------------------------ A group, known as the ad hoc committee of asbestos claimants, on Jan. 3, 2008, filed an appeal with the U.S. Bankruptcy Court in Manhattan on the confirmation of Dana Corp.'s Plan of Reorganization, Associated Press reports. This group represents "tens of thousands" of people who claim they were injured by asbestos in Dana's products. The committee has argued that Dana's bankruptcy plan did not set aside enough money to settle all the asbestos personal-injury claims against the Company. In December 2007, the Company said it had US$240 million in cash and other assets to cover future asbestos and environmental contamination liabilities. The Company said it has enough money to satisfy all the claims based on the number of active cases pending against it and the number of dismissed cases. Dana spokesman David Lilly said the appeal "was not unexpected." He said the appeal will not affect Dana's plans to emerge from Chapter 11 protection by the end of January 2008. Dana reached settlements with some asbestos personal-injury claimants as it worked its way through the bankruptcy process. The Company agreed to pay a total of US$2 million to a group of about 7,500 who claim they were injured by asbestos in Dana products. Dana's plan allows other asbestos claimants to retain their right to sue Dana once the company emerges from bankruptcy. The Company filed for bankruptcy in March 2006 amid a downturn in the vehicle manufacturing industry. Its plan was confirmed by Judge Burton Lifland in December 2007. The plan calls for unsecured creditors to be repaid between 72 percent and 86 percent on their claims. Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin American region and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed $6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court confirmed the Debtor's Plan on Dec. 26, 2007. GLOBAL POWER: Elects David L. Willis as CFO & Sr. Vice Pres. ------------------------------------------------------------ Global Power Equipment Group Inc. appointed David L. Willis to the position of senior vice president and chief financial officer, effective Jan. 28, 2008. Mr. Willis will take the place of Mike Hanson who will be leaving the company to pursue other opportunities. Mr. Hanson will remain with the company until the end of February 2008, allowing for an orderly transition of responsibilities. "With David's wealth of financial and operations experience, he is an exceptional addition to our senior management team," said John Matheson, president and chief executive officer of Global Power. "With our executive group now complete, we look forward to achieving our goals coming out of our successful reorganization while continuing our focus on running the business and servicing our customers. We also thank Mike for all of his contributions to the company and wish him well with his future plans." Mr. Willis has a broad range of leadership experience including restructuring advisory services, telecommunications and energy companies and public accounting. Most recently he was with the restructuring practice of Alvarez and Marsal, a global professional services firm, where he served clients in advisory and interim management capacities overseeing the development and implementation of initiatives to improve operational and financial performance. Prior to his restructuring practice, Mr. Willis held positions with The Williams Companies, an energy and telecommunications company, and with Ernst & Young. Mr. Willis received his Bachelor of Business Administration degree from the Price College of Business at the University of Oklahoma and holds a Master of Business Administration from the University of Tulsa. He is a Certified Public Accountant and a Certified Insolvency Restructuring Advisor. About Global Power Equipment Group Based in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham, Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M. Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq., at The Bayard Firm, represent the Debtors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. At Oct. 31, 2006, Global Power's balance sheet showed total assetsof US$177,758,000 and total debts of US$99,017,000 Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. The Official Committee of Equity Security Holders is represented by Howard L. Siegel, Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels LLP. PETROLEOS DE VENEZUELA: Implements Drilling Technology in RG 278 ---------------------------------------------------------------- Euro-Petrole reports that Venezuelan state-run oil firm Petroleos de Venezuela SA's unit PDVSA Gas has implemented a highly inclined drilling technology in the RG 278 well in the Santa Rosa oilfield in Anzoategui. Petroleos de Venezuela came up with a pilot project to drill shallow deposits and get the technical and economic feasibility to develop significant, easily accessible gas reserves of 800- 900 feet deep that had been not developed. According to Euro-Petrole, the technology will be implemented in 14 wells included in Anaco's major area. It will increase the gas production in the country by 110 million cubic feet. The new strategy will help "run two shallow deposits concomitantly, resulting in high productivity levels and profitable operations." Testing and the first stage of production of RG 278 was successful and surpassed PDVSA Gas' expectations without the need for more expenses, Euro-Petrole states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * In March 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. ========= I N D I A ========= BAGALKOT UDYOG: Appoints of V K Beswal & Associates as Auditors --------------------------------------------------------------- Bagalkot Udyog Ltd has confirmed the appointment of M/s. V K Beswal & Associates as the company's statutory auditors with the shareholders' approval of the move. The firm will hold office from the conclusion of the shareholders annual general meeting on Dec. 31, 2007, to the conclusion of the next AGM. During the Dec. 31 AGM, the shareholders also agreed to the re- appointment of M. L. Daga and L. N. Chaturvedi as directors. The shareholders also accorded to the adoption of the directors' report and the company's audited balance sheet and profit and loss account for the period ended June 30, 2007. Bagalkot Udyog Ltd manufactures cement, clinker and other by- products. The company incurred heavy losses that led to the erosion of its entire net worth. By order dated June 2, 2000, the Board for Industrial & Financial Reconstruction, New Delhi, had declared the company as a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions), Act 1985. On May 11, 2006, the operations of the company's cement plant at Bagalkot came to a total stop. The company booked net losses of INR12.68 million for the fiscal year ended March 31, 2007, and INR59.16 million in FY 2006. For the revival of Bagalkot Udyog, the BIFR sanctioned a Scheme for rehabilitation or Demerger pursuant to which the company's cement division is demerged and transferred to Bagalkot Cement & Industries Ltd on going concern basis with effect from July 1, 2007. Accounting effect for the demerger will be considered after complying with transfer formalities. DCM SHRIRAM: Brings In S. B. Mathur as Independent Director ----------------------------------------------------------- DCM Shriram Industries Ltd's board of directors has co-opted S. B. Mathur on the board as an additional director. He will be an independent director. The board made the appointment at at its meeting on Jan. 14, 2008. DCM Shriram Industries Ltd is the flagship company of the DCM Shriram Industrial Group based predominantly in Northern India, and was established in 1990, following the restructuring of the former DCM group. The group's product portfolio includes sugar, alcohol, industrial fibres, and organic chemicals. DCM Shriram has sugar and chemical plants at Daurala in Meerut district in Uttar Pradesh, and an industrial fibre unit at Kota in Rajasthan. Other DSIG companies are Daurala Food and Beverages Pvt Ltd, DCM Hyundai Ltd, and DCM Shriram and Leasing Finance Ltd. In November 2007, CRISIL revised its ratings on DCM Shriram's debenture programmes to 'BB+/Negative' from 'BBB-/Negative'. The rating revision reflects CRISIL's expectation that the weak scenario prevailing in the sugar industry will adversely affect the company's financial risk profile over the next 12 months. Moreover, the stress on cash flows, coupled with high loan repayment obligations of about INR300 million per annum over the medium term, is likely to affect the company's liquidity. EMCO LTD: Allots 17-Lakh Warrants to Promoter Shailesh Jain ----------------------------------------------------------- Emco Ltd informs the Bombay Stock Exchange that the company's Preferential Issue Committee of Directors, on Jan. 14, 2008, allotted 17-lakh warrants to Promoter and Managing Director Shailesh Jain. The warrants, which were issued at INR115 each, carries an option to subscribe to one equity share of INR10 each at a price of INR1,150 each. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the company offers metering solutions like tamper- proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Emco's senior unsecured debt carries Credit Analysis and Research Limited's BB rating, effective May 23, 2007. GARWARE POLYESTER: Reappoints Shah & Co. as Auditors ---------------------------------------------------- Garware Polyester Ltd has informed the Bombay Stock Exchange that its shareholders have agreed to the re-appointment of eight directors and of M/s. Shah & Co., Chartered Accountants, as auditors. The re-appointed executives are: -- Sonia Garware, Dilip J Thakkar, Nimish Pandya, M.Garware Modi, Gautam Doshi and N. P. Chapalgaonkar as directors; -- A. B. Bhalerao, to the office of Whole-time Director designated as director-technical for a period commencing from Oct. 1, 2006, to May 31, 2007, being the date of his retirement; and -- M. S. Adsul to the office of Whole-time Director designated as Director-Technical from Aug. 1, 2007, for a tenure of five years. Headquartered in Aurangabad, India, Garware Polyester Ltd. -- http://www.garwarepoly.com/-- produces polyester film. Its products range includes films that cater to the solar control industry, packaging industry and reprographic industry. In addition, the company's bi-axially oriented polyethylene teraphthalate film range includes sun control films, overhead projector films and film for packaging, cable insulation, audiotapes, tracing and drafting. The Troubled Company Reporter-Asia Pacific reported on July 13, 2007, that Credit Rating Information Services of India Limited has reaffirmed its 'D' rating on Garware's non-convertible debenture programme. The rating continues to indicate that the instrument is in default. The arrears on interest and principal repayments have not been entirely cleared. JENSON & NICHOLSON: Maurya Divests 55,000 Shares ------------------------------------------------- Maurya Management Pvt. Ltd. sold 55,000 shares in Jenson & Nicholson India, Ltd. on Jan. 8, 2008, Jenson & Nicholson discloses in a company disclosure. The divestment brings Maurya's holdings in the company down to 12,267,214 shares, representing a 32.78% voting right. Jenson & Nicholson India Ltd. has has a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati (near Calcutta), Sikandrabad (near Delhi) and Panvel (near Mumbai). The company reinvented itself as a completely Indian company in 1973 when the foreign holding was bought over by Mr. S. P. Sinha an industrialist with interest in cement and hotels. Jenson & Nicholson manufactures almost every type of paint for the decorative and industrial customer. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 11, 2008, the company has a stockholders' equity deficit of US$81.79 million on total assets of US$14.81 million. The Board for Industrial and Financial Reconstruction has declared the company as sick company with in the purview of SICA, Act. The company continues to suffer due to shortages of working capital. Its proposal for financial restructuring is pending with banks and financial institutions. MYSORE CEMENTS: To File Audited Financial Results by March 31 ------------------------------------------------------------- Mysore Cements Ltd. will be publishing its audited financial results for the financial year ended Dec. 31, 2007, before Mar. 31, 2008, the company said in a regulatory filing. The company also says that it will not file unaudited financial results for the last quarter ended December 31, 2007, due on Jan. 31, 2008. Mysore Cements Ltd. is engaged in the cement business. Its products include cement, sponge iron and M.S. ingots. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Mysore Cements has a stockholder's equity deficit of US$14.57 million. QUEBECOR WORLD: Gets CDN$400-Million Rescue Financing Proposal -------------------------------------------------------------- Quebecor World Inc. has received a binding proposal with respect to a potential CDN$400 million rescue financing submitted jointly by Quebecor Inc. and Tricap Partners Ltd. Quebecor Inc. is the controlling shareholder of Quebecor World holding approximately 84.5% of the voting interests and 35.5% of the equity interests in the company. Quebecor World understands that Tricap Partners is a private equity fund managed by Brookfield Asset Management Inc. Management of Quebecor World has determined, after a preliminary review with its advisors, that the submitted proposal is meaningful and serious in light of the circumstances and the company's current financial situation. Quebecor's Board of Directors has established a special committee of independent directors for the purpose, among other matters, of reviewing and considering the terms of the rescue financing proposal, and the Board, the Independent Committee and company management, together with their various financial and legal advisors, will diligently review and consider the terms of the financing proposal in the coming days. About Quebecor World Inc. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2007, Moody's Investors Service has downgraded Quebecor World Inc.'s corporate family rating by two notches to Caa2. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Montreal-based printing company Quebecor World Inc. two notches to 'CCC' from 'B-'. In addition, Standard & Poor's lowered the senior unsecured debt rating on the company by three notches to 'CCC-' from 'B-', reflecting the junior position of the notes in relation to Quebecor World's US$750 million revolving credit facility (unrated), which is fully guaranteed and partially secured, and the high likelihood that the company's debt level will increase in the near term. STATE BANK OF INDIA: To Increase Capital to INR650 Crore -------------------------------------------------------- The State Bank of India's central board has decided to increase the bank's issued capital from INR526.30 crore to INR650 crore. The bank plans to raise the capital at an aggregate amount of INR16,736.31 crore (including premium), through: -- rights issue offer to the Government of India and to other eligible existing shareholders including GDR holders; and -- issue of shares to employees of the bank under Employees Stock Purchase Scheme. Pursuant to the proposed rights issue, one share will be issued for every five shares held by eligible shareholders. The rights will be issued at INR1,590 per share (i.e., face value of INR10 each and a premium of INR1,580 per share). State Bank of India (SBI) has informed BSE that February 04, 2008 has been fixed as the Record Date for the purpose of Rights Issue. State Bank of India (SBI) has informed BSE that a meeting of the Bank's Central Board will be held on January 14, 2008, to consider the issue of increase in the Issued Capital of the Bank through Right Issue and Employees Stock Purchase Scheme (ESPS). Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Primerating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti --------------------------------------------------------------- Alcatel-Lucent SA has signed a turnkey contract with French Polynesian operator Office des Postes & Telecommunications. According to this agreement, Alcatel-Lucent will roll out a new, high-speed submarine cable network linking Tahiti in French Polynesia to Hawaii in the United States, as well as providing domestic connectivity. This new submarine network, with a value of 72.2 M Euros, has been called 'Honotua' (a Tahitian name meaning the link towards the open sea) and it will greatly increase French Polynesia's local and international connectivity. Accordingly, the French Polynesian comapny will be able to respond at more affordable costs, to the growing demand for broadband services of its business and residential users. By providing the first submarine connection in French Polynesia, this network will also help reduce the digital divide in the Pacific region. Delivering an ultimate capacity of 32x10 Gbit/s, the 'Honotua' network will be composed of an international link between Tahiti and Hawaii (4,650 km) and a domestic connection (305 km) linking some of the islands in the French Polynesian archipelago. With completion scheduled in 2010, the 'Honotua' submarine cable network will ease the availability and accessibility to high quality, innovative broadband applications such as telemedicine, e-learning and on-line tourism programs. "This is a fundamental endeavor for French Polynesia aiming to fuel economic and social viability for our community" points out French Polynesia's Minister of Culture, Post & Telecommunications, M. Jacqui Drollet. "The new broadband services and business-driven applications this network will make available will allow us to improve the quality of life for our citizens." "The adoption rates of data services are growing fast, as well as end-users' needs for bandwidth, reliability and service delivery speeds," emphasizes OPT's Chairperson of the Board, Jean-Paul Barral. "With its recognized experience, Alcatel- Lucent is a trusted technology partner as we take a new step in our communication capabilities to meet these new service demands reliably and at affordable costs." "This contract confirms Alcatel-Lucent's commitment to helping customers like OPT bridge the digital divide and spur sustainable growth", says President of Alcatel-Lucent's submarine network activity, Etienne Lafougere. "Our solutions give access to advanced technologies for delivering high added- value broadband services and applications that stimulate socio- economic development." This new contract further strengthens the long-lasting cooperation between Alcatel-Lucent and Office des Postes & Telecommunications that already deploys Alcatel-Lucent's wireless and access solutions to extend service reach in less dense and remote rural areas of the archipelago. About OPT Office des Postes & Telecommunications is a public entity fully owned by the territory of French Polynesia. Its main duty is to provide comprehensive telephony services and is committed to improve access to all forms of information all over French Polynesia, including remote islands. Its 81 postal offices are able to deliver postal and simple banking services as well. The company fully owns or controls entities such as Tikiphone for mobile GSM services, MANA for internet services, Tahiti Nui Satellite which operates 23 channels direct to home video services, Tahiti Nui Telecom for International Telephone traffic and finally, ISS as ITC in addition to providing advice, IT consultancies often implement, deploy, and administer IT systems. About the Alcatel-Lucent solution The Alcatel-Lucent submarine solution will be based on its 1620 Light Manager next-generation DWDM submarine platform, and will also include cable and submarine repeaters, providing direct connectivity to landing stations. A comprehensive suite of professional services, including permitting and project management, engineering, marine operation, installation, testing and commissioning, is part of this turnkey project. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. ANIXTER INTERNATIONAL: Earns US$64.8 Mil. in 2007 Third Quarter --------------------------------------------------------------- Anixter International Inc. reported net income of US$64.8 million for the third quarter ended Sept. 28, 2007, compared to net income of US$76.2 million for the same period ended Sept. 29, 2006. In last year's third quarter the company reported a gain of US$22.8 million arising primarily from a settlement with the Internal Revenue Service. Excluding the settlement from the prior year third quarter, net income increased 21%. For the three-month period ended Sept. 28, 2007, sales were US$1.52 billion, compared to sales of US$1.33 billion in the same period last year. Sales in the current quarter included US$31.7 million from a series of acquisitions completed in the past year. Operating income in the third quarter increased 23% to US$118.2 million as compared to US$96.1 million in the year ago quarter. For the latest quarter, operating margins were 7.8% compared to 7.2% in the third quarter of 2006. Robert Grubbs, president and chief executive officer, stated, "The 14% sales growth generated in the current quarter was particularly encouraging in light of the significant economic uncertainty that existed during the quarter, especially relating to the difficult credit environment in the U.S., our largest market. Our growth reflects the fact that we continued to see strong growth in most major geographies and end markets that we serve on a global basis. Based on our results through the first nine months we are in a good position to have another record setting year of sales and earnings." First Nine Month Results For the nine-month period ended Sept. 28, 2007, sales of US$4.36 billion produced net income of US$183.0 million. Included in the 2007 nine-month results were sales of US$105.0 million from a series of acquisitions completed in the past year. Net income in the first nine months of 2007 also includes a US$2.1 million gain primarily from the settlement of certain income tax audits occurring during the first six months of this year. In the prior year period, sales of US$3.64 billion produced net income of US$156.9 million. These results are inclusive of the third quarter 2006 income tax settlement that added US$22.8 million to the year ago results. Operating income in the first nine months of fiscal 2007 increased by 32% to US$324.7 million as compared to US$246.7 million in the year ago period. Operating margins in the first nine months of 2007 were 7.4% as compared to 6.8% in the prior year period. Cash flow generated from operations was US$10.0 million as compared to US$17.4 million used in operations in the year ago quarter. "Increased working capital requirements associated with our year-on-year sales growth, combined with two acquisitions completed in the first nine months for total consideration of US$41.7 million and the repurchase of US$162.7 million of our outstanding shares during the first quarter of 2007, have increased our debt-to-total capital ratio," said said Dennis Letham, executive vice president-finance. "At the end of the third quarter that ratio was 49.6% as compared to 45.7%. For the third quarter our weighted-average cost of borrowed capital was 4.3% as compared to 5.5% in the year ago quarter. At the end of the third quarter, approximately 78% percent of our total borrowings of US$1.03 billion had fixed interest rates, either by the terms of the borrowing agreements or through hedging contracts. We also had US$246.9 million of available, unused credit facilities at Sept. 28, 2007, which provide us with the resources to support continued strong organic growth and to pursue other strategic alternatives, such as acquisitions, in the coming quarters." Balance Sheet At Sept. 28, 2007, the company's consolidated balance sheet showed US$3.03 billion in total assets, US$1.99 billion in total liabilities, and US$1.04 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 28, 2007, are available for free at http://researcharchives.com/t/s?26f4 About Anixter Headquartered in Glenview, Illinois, Anixter International Inc. (NYSE: AXE) -- http://www.anixter.com/-- is a distributor of communication products, electrical and electronic wire & cable and a distributor of fasteners and other small parts to Original Equipment Manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and has presence in 220 cities in 45 countries, including Indonesia, Australia, China, France, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Spain, Taiwan, Thailand, and the United Kingdom. * * * To date, Anixter International Inc. carries Fitch Ratings' BB+ Issuer Default Rating and BB- Senior Unsecured Debt Rating. BANK MANDIRI: Plans for 20% Outstanding Loan Growth This Year ------------------------------------------------------------- PT Bank Mandiri Tbk plans to boost its outstanding loans by at least 20% in 2008 and is setting aside IDR1 trillion for acquisitions, Reuters reports citing Bank Director Omar Anwar. Mr. Anwar was quoted by the news agency as saying, "We will acquire a number of multi-finance companies. We have the candidates and we are aiming to make it happen in 2008. We have set aside IDR1 trillion for it." Harry Suhartono of Reuters writes that Bank Mandiri's outstanding loans between January and September grew 11.9 % from a year earlier, less than its main rivals, whose loans grew around 20%. Moreover, Mr. Anwar said Bank Mandiri will hold a roadshow for its planned US$300 million bond issue by the end of January or early February in Singapore, Hong Kong and London, the report adds. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The Outlook on the National rating remains Stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. Indonesia's Mandiri aims for 20 pct 08 loan growth DIRECTED: Signs Business Deal With UFC(R) & Top UFC Fighter ----------------------------------------------------------- Directed Electronics has signed a contract with the Ultimate Fighting Championship(R) organization to become its exclusive mobile audio partner, promoting the legendary Orion Car Audio brand through http://www.UFC.com/web advertising, point-of-purchase displays, and association with one of the UFC's top fighters, Roger "El Matador" Huerta. Directed will use innovative online promotions to channel new car audio customers to preferred Orion Octagon(TM) dealers. According to Jim Jardin, Director of Marketing for Directed: "The UFC is one of the fastest-growing and most popular sports in the world with young men -- exactly the same hardcore demographic that has made Orion a legend in high performance car audio for over 25 years. We look forward to our exclusive mobile audio partnership with the UFC and Roger Huerta as we promote the launch of the affordable Orion COBALT(R) line of speakers, amplifiers and subwoofers, and drive new car audio customers to Orion dealers." About Directed Electronics Directed Electronics, Inc. (Nasdaq: DEIX) -- http://www.directed.com/-- is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home audio, mobile audio and video, and satellite radioproducts. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking and navigation, and accessories, which are sold under its Viper(R), Clifford(R), Python(R), and other brand names. In the home audio market, Directed designs and markets Definitive Technology(R) and a/d/s/(R) premium loudspeakers. Directed's mobile audio products include speakers, subwoofers, and amplifiers. Directed also markets a variety of mobile video systems under the Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed also markets and sells certain SIRIUS- branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base. The company has Asian Sales offices, including in Indonesia, Japan, Malaysia, Singapore, Korea and Thailand. The Troubled Company Reporter-Asia Pacific reported on Dec. 3, 2007, Moody's Investors Service downgraded Directed Electronics' corporate family rating to B2 from B1 and the probability of default rating to B3 from B2 following continued softness in the company's operating performance. At the same time, the ratings on the senior secured credit facility (term loan and revolver) were also downgraded to B2 from B1 and the ratings were placed under review for further possible downgrade. LGD assessments are also subject to change. Oct. 13, 2006, Standard & Poor's Ratings Services lowered its ratings on consumer electronics maker Directed Electronics Inc. following its acquisition of Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. The corporate credit rating was lowered to B+' from 'BB-', and was removed from CreditWatch negative where it was placed on Aug. 25. EXCELCOMINDO PRATAMA: Plans to Increase 2008 Revenue by 20% --------------------------------------------------------- PT Excelcomindo Pratama Tbk aims to boost its revenue by 20% this year and lift subscriber numbers by 3-4 million, various reports say, citing President Director Hasnul Suhaimi . According to Antara News, Mr. Suhaimi said they are likely to post a 30% rise in their 2007 revenue from IDR4.7 trillion in 2006. Reuters Estimates notes that the company is set for IDR7.1 trillion in revenue in 2007 and IDR8.7 trillion for this year. Antara relates that Mr. Suhaimi said, referring to the statement of the communications and information minister, the 2008 income target was based on the expected 10-30% decline in telecommunication tariffs this year. The decline in telecommunication tariffs would have no impact on the company's operational income since it depends on market elasticity, he added. The company, Reuters notes, posted a 63.2% jump in its subscriber base to 15.5 million last year partly due to lower prepaid rates and cheaper handset prices. The firm aims to boost its subscriber base further this year by improving its network facilities, the report adds. Mr. Suhaimi told Reuters that the firm would invest US$650 million this year to increase the number of towers, BTS and improve backbone networks. Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/ -- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider (ISP) and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its all centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. Excelcomindo is Indonesia's third-largest cellular operator; as at the first quarter of 2006 the company had 8.2 million subscribers representing total market share of around 15% but with cellular revenue market share of approximately 10%. TM and its parent Khazanah together hold 73.7% in XL. * * * The Troubled Company Reporter-Asia Pacific reported on Dec 12, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit ratings on Indonesian cellular operator, PT Excelcomindo Pratama Tbk, and removed them from CreditWatch with negative implications. The outlook is stable. The 'BB-' ratings on all foreign currency senior unsecured debt were also affirmed. In October 2007, Moody's Investors Service upgraded Excelcomindo Finance Company B.V.'s foreign currency senior unsecured bond rating to Ba2 from Ba3. The bond is irrevocably and unconditionally guaranteed by Excelcomindo Pratama. At the same time, Moody's affirmed the Ba2 local currency corporate family rating of XL with a positive outlook. In May 2007, Fitch Ratings affirmed PT Excelcomindo Pratama Tbk's Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'BB-'. The Outlook remains Stable. At the same time, Fitch affirmed the 'BB-' rating on its senior unsecured notes programme. GARUDA INDONESIA: 2007 Punctuality Rate in China reaches 83% ------------------------------------------------------------ PT Garuda Indonesia's 2007 punctuality rate in China reached 83%, and the company plans to improve it this year to satisfy its passengers, Antara News reports citing General Manager in Beijing Pikri Ilham K. According to the report, Mr. Pikri said the airline continues to improve its services by, among others, guaranteeing punctuality on its flight schedules amid the tight business competition in the China-Indonesia flight route. Mr. Pikri was quoted by the news agency as saying, "We remain to provide passengers with prime services as an effort to help increase the number of tourists from Beijing who wish to visit tourist objects in Indonesia." The report adds that Garuda's markets in a number of cities in the southern part of China are big prompting it to take aggressive measures to catch the opportunity. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The Troubled Company Reporter-Asia Pacific reported on Sept. 6, 2007, that Garuda, saddled with a debt of around US$750 million including some US$475 million owed to the European Credit Agency, is in negotiations with creditors to restructure some of its debt. The carrier's debt needs to be restructured, otherwise Garuda will not be able to fly anymore as its debt is too big, the report added. The airline was affected by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. Garuda is concentrating its efforts on repaying its debt with foreign creditors under the European Credit Agency, which was due on Dec. 31, 2005. The company, until November 2006, suffered an unaudited loss of IDR390 billion, which was lower than the IDR672 billion, recorded in the same period the year before. Garuda is currently undergoing debt restructuring. The Troubled Company Reporter-Asia Pacific reported on December 20, 2006, that in line with the airline's debt restructuring, it continues to consistently pay debt interest. PERUSAHAAN LISTRIK: To Build US$132-Mil. Coal-Fired Power Plant --------------------------------------------------------------- PT Perusahaan Listrik Negara has signed an agreement with a consortium including China National Heavy Machinery Corp and Shandong Electric Power to build a US$132 million coal-fired power plant, Reuters reports. According to the report, PLN Acting Power Plant Director Fahmi Mochtar said the plant will need 600,000 tonnes of coal annually. The construction of the plant is expected to be completed by 2010, he added. Mr. Mochtar, the report notes, said the 120-MW plant will be built in Central Kalimantan, part of Borneo island. 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: Italy Endorses Exclusive Talks with Air France-KLM ---------------------------------------------------------------- Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement exclusive talks with Air France-KLM S.A. over the sale of the government's 49.9% stake in the national carrier, Agenzia Giornalistica Italia reports. As reported in the TCR-Europe on Jan. 14, 2008, Air France CEO Jean-Cyril Spinetta has held preliminary meetings with Alitalia executives, government officials and trade unions over its planned acquisition. During the meetings, Mr. Spinetta confirmed plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. Mr. Spinetta also confirmed plans to cut 1,700 jobs, Reuters relates. He, however, defended plans to downsize Alitalia's operations in Milan's Malpensa airport, and assured that the national carrier will not abandon its slots in the northern hub. Mr. Spinetta also revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Mr. Schioppa will represent the Italian government during sale talks and will evaluate whether to sell to the state's majority stake in Alitalia, Agenzia Giornalistica Italia says. 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. DELPHI CORP: Bank of America Opposes Confirmation of Plan --------------------------------------------------------- Bank of America, N.A., files an objection with the U.S. Bankruptcy Court for the Southern District of New York, opposing to confirmation of Delphi Corp. and its debtor-affiliates' First Amended Joint Plan of Reorganization. Representing Bank of America, N.A., John T. Gregg, Esq., at Barnes & Thornburg LLP, in Grand Rapids, Michigan, contends that the Plan proposes assumption and cure procedures that are contrary to Sections 1123(b)(2) and 365(b)(1) of the Bankruptcy Code. The Plan also potentially terminates the Bank of America's rights under its leases regardless of whether they are assumed or rejected, Mr. Gregg asserts. Bank of America clarifies that it does not oppose confirmation of the Plan as long as: (1) the Debtors assume the Aircraft Leases and cure any and all the potential defaults thereunder; and (2) the guaranties, liens and security agreements to which Bank of America is entitled under the Leases survive and continue in existence after confirmation of the Plan. Prior to the Petition Date, Bank of America and Delphi Automotive Systems Human Resources, LLC, were parties to two aircraft leases. In July 2006, Bank of America filed three claims against the Debtors, each for $38,127,592 plus interest, for violations of the Aircraft Leases. Bank of America subsequently agreed to withdraw its claims without prejudice pending the Debtors' decision to assume or reject the Aircraft Leases. In a Court- approved stipulation, the Debtors agreed to provide Bank of America with 10 days' prior notice of their election to assume or reject the Aircraft Leases. As of Jan. 10, 2008, the Debtors have neither assumed nor rejected the Aircraft Leases. The Debtors have also not committed to provide Bank of America with new guaranties or reaffirm the existing guaranties on the Aircraft Leases as part of their cure obligations in the event that they assume the Leases, Mr. Gregg informs the Court. "Section 1123(b) of the Bankruptcy Code provides that a plan may, subject to Section 365, provide for the assumption, rejection, or assignment of an executory contract or unexpired lease of the debtor not previously rejected under Section 365 . . . Such assumption must occur by no later than plan confirmation," Mr. Gregg reminds the Court. The Plan, however, states that the cure, as the sole requirement for assumption, will not be determined for a period of 45 days or more after confirmation. In addition, the Plan authorizes the Debtors to reject any contract or lease for a period of five days after a final Court order establishing a cure amount in excess of that which they have provided. The Plan is therefore in direct conflict with Sections 1123(b)(2) and 365(b)(1) because the Debtors are improperly attempting to extend their time to assume, reject, and provide cure and adequate assurance of future performance under assumed contracts and leases, Mr. Gregg contends. The Debtors, according to Mr. Gregg, are seeking the approval of procedures that require the Court to render an advisory opinion. The Debtors should be required to cure any breach or default under the Aircraft Leases, he maintains. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. The Court will convene the hearing to consider confirmation of the Plan on Jan. 17, 2008. (Delphi Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) COSMO OIL: Signs Pact with Masdar to Develop New Technology ----------------------------------------------------------- Cosmo Oil Co., Ltd., and Abu Dhabi's Masdar have signed a contract with the Tokyo Institute of Technology to research and develop solar tower "beam technology," reports the AME Info. Cosmo and Masdar, AME states, will each invest several million dollars in the program. According to the report, the "beam technology" is a solar thermal process that offers lower electricity generation costs and higher efficiency. Solar thermal technology on the other hand, converts solar energy into electricity via a system of mirrors and turbines. Headquartered in Tokyo, Japan, Cosmo Oil Company, Limited -- http://www.cosmo-oil.co.jp/-- is primarily an oil refining company. The company is also involved in the purchase and sale of real estate, the manufacture and sale of alpha lipoic acid (ALA) products, as well as the provision of leasing and insurance services. Moody's Investors Service, on April 18, 2007, placed under review for possible upgrade the Ba1 senior unsecured debt rating and issuer rating of Cosmo Oil Co., Ltd. (Cosmo). The rating review is prompted by Moody's expectation that Cosmo will likely be able to maintain the stability of its operating performance and capital structure, despite a rather difficult business environment, over the intermediate term through successful business diversification. FORD MOTOR: Creates the Verve to Ride in Small Car Popularity ------------------------------------------------------------- Ford Motor Company is revealing the Verve, a concept vehicle that makes clear the vision for the new small cars Ford soon will introduce in North America. The Verve is bold and sophisticated -– to help it clearly stand out from other small cars on the road. Ford is building on decades of small car leadership in Europe as it develops new small cars for North America to appeal to increasingly savvy customers who value technology, design and fuel efficiency. The Verve concept has been developed with Ford's new global product development strategy that better leverages the company's global strengths. Globally, Ford is building on its European small-car expertise to stake a bigger claim in this critically important segment. Ford’s celebrated small car lineup in Europe includes such top-sellers as the Ford Focus, Fiesta and Ka. "We're looking at every aspect of what's defined Ford as a small-car leader in Europe and working to build on this expertise in driving dynamics and design across a global family of Ford cars that are as exciting to drive as they are to look at," Derrick Kuzak, Ford’s group vice president, Global Product Development, said. "The Verve concept family provides a vision for a new world standard for quality, design and comfort in the small car segment," Mr. Kuzak added. "These concepts demonstrate how leveraging our global strengths can yield attractive benefits for our customers in markets around the world." Small Car Popularity Skyrockets in North America Momentum in small-car sales is outpacing overall industry growth worldwide. Globally, small car sales have grown from 23 million units in 2002 to an estimated 38 million in 2012. That’s nearly 45% of the total expected 85-million unit industry, a level never before achieved. In the U.S., sales of small cars likely will grow by 800,000, or 25% -– to a record 3.4 million units by 2012. In fact, small cars and crossovers are the only vehicles with projected near-term growth in the U.S. Driving the growth in the U.S. market is a group of young people aged 13 to 28 years –- dubbed "Millennials." Today, this group stands 1.7 billion strong worldwide and will represent 28% of the total U.S. population by 2010. As a group, Millennials embrace eco-friendliness, stay in constant touch using modern technology and demand best-in-class products from around the world. This group will grow from representing 19% of the driving public in 2004 to amassing 28% in 2010. Every day, 11,000 Millennials in the U.S. come of driving age. When it’s time to buy their first car, nearly half of this group shops the small-car segment. "Millennials will be the defining group of customers in the future, driving all types of consumer trends," Jim Farley, Ford's group vice president, Marketing and Communications, said. "Ford's European-based cars are a great fit for this generation of drivers, who have grown up with the Internet and mobile phones as necessities, not luxuries – believing that bigger isn't necessarily better, precision is everything and technology rules." About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. FORD MOTOR: St. Thomas Plant in Ontario Starts Production --------------------------------------------------------- The keys to Ford Motor Company's first Lincoln Town Car to roll off the assembly line at St. Thomas Assembly plant near London, Ontario were presented to local Ford Lincoln dealer Bruce Dumouchelle. "A new chapter in the history of the St. Thomas Assembly Plant has started as we've proudly begun producing the Lincoln Town Car," Mark Boldin, plant manager of the St. Thomas Assembly Plant, said. "The Lincoln Town Car is an outstanding vehicle in regards to safety with many best in class attributes -– and we're pleased to add it to our portfolio of vehicles." The Ford St. Thomas Assembly Plant opened in 1967 with the Ford Falcon as its inaugural product, and has since produced more than 10 different models including the Ford Fairmont, the Mercury Zephyr and the Ford Escort. Since 1984 the St. Thomas Assembly Plant, a 241,548 square meters (2,600,000 square foot) facility, has been the global source for the Ford Crown Victoria and Mercury Grand Marquis -- now joined by the Lincoln Town Car. Lauded for its attention to quality, environmental responsibility and commitment to the community, the St. Thomas Assembly Plant and its employees have earned numerous awards. Similarly, the Lincoln Town Car has been highlighted for high customer satisfaction and excellent safety ratings -- for example, the Lincoln Town Car was the first car in history to receive the U.S. Government's highest five-star government safety ratings for four years in a row in all five categories (2003 – 2006). "The employees here at the St. Thomas Assembly Plant have always held quality as a top priority," Scott Smith, CAW plant chair at St. Thomas Assembly Plant, said. "That same pride will be built into each Lincoln Town Car produced here." The St. Thomas Assembly Plant and the Lincoln Town Car also play a roll in Ford's commitment to sustainability and the reduction of dependence on fossil fuels -- Ford plans to continue delivering products capable of running on renewable fuels, such as ethanol. Ford has more than five million flexible fuel vehicles on the roads globally. Ford currently offers a total of 14 flexible fuel vehicles in various markets globally, and the Lincoln Town Car, Ford Crown Victoria and Mercury Grand Marquis are among that group. In 1981 the Lincoln Town Car was introduced as its own line and has seen re-designs for the 1990, 1998 and 2003 model years. Each time the Town Car has been refreshed the goal has been to enhance qualities that define the vehicle -- roominess, ride, comfort and safety -- as well as adding some unexpected luxurious touches such as a THX-certified audiophile system. "The Lincoln Town Car is a dominant player in the chauffeured transportation industry here in North America," Mark Boldin, plant manager of St. Thomas Assembly Plant, said. "The overall quality of the Town Car coupled with its reliability, tradition of a smooth ride and superb comfort, has secured a loyal customer base which has long experienced excellent customer satisfaction." About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: