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 Tuesday, January 22, 2008, Vol. 11, No. 15 Headlines A U S T R A L I A ARROW ENERGY: Tipton Joint Venture Receives Reserves Upgrade ARROW ENERGY: Changes Name to Arrow Energy Ltd. CENTRO PROPERTIES: Shares Plummet Amid Market Uncertainty CHRYSLER LLC: Appoints New Execs; Senior VP Cortez to Retire FLIGHT CENTRE: Unlikely to Pursue MFS Assets, Company Says FORTESCUE METALS: Wants Robe River Railway Open to 3rd Parties HIH INSURANCE: Founder Claims He Did Not Transfer Assets to Wife PSIVIDA LTD: Sells Food Science Subsidiary for AU$5.9 Million C H I N A , H O N G K O N G & T A I W A N ACXIOM CORP: Board Appoints John Meyer as President & CEO BEST ADVANCER: Members Meeting Fixed for February 15 BECHTEL ENTERPRISES: Creditors' Proofs of Debt Due on Jan. 25 CHINA EASTERN: Suspends Share Trading in Hong Kong and Shanghai CHINA EASTERN: Says Air China Proposal Incomplete CHINA EVERBRIGHT: FY2007 Net Profit Rises 65.6% to CNY4.6 Bln. DEEPER CHRISTIAN: Members Meeting Fixed for February 11 GATX CAPITAL: Commences Liquidation Proceedings KINGTIME (H.K.): Appoints New Liquidator OCEAN BRIGHT: Creditors' Proofs of Debt Due on Feb. 13 PETROLEOS DE VENEZUELA: Investing US$15.6 Billion in 2008 PRIMERA (ASIA): Members Meeting Fixed for February 11 SHIN HO CH'ENG: Commences Liquidation Proceedings SKYBINET LIMITED: Creditors Meeting Fixed for February 14 THE WORLD ASSOCIATION: Members Meeting Fixed for February 18 TOY BIZ INTERNATIONAL: Commences Liquidation Proceedings TRENDING INTERNATIONAL: Liquidator to Present Wind-Up Report TYSON FOODS: Inks Supply & Sponsorship Pact with Six Flags WEALTHY-ON: Commences Liquidation Proceedings I N D I A AFFILIATED COMPUTER: Tennessee Medicaid Likely to Award New Deal AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal GENERAL MOTORS: Outlines Turnaround Progress & 2008 Priorities FERTILIZERS & CHEMICALS: Board to Consider Q3 Results on Jan. 24 ICICI BANK: Reports 35% Profit Increase in Qtr. Ended Dec. 31 ICICI BANK: Director Vinod Rai Resigns From Board IFCI LTD: Net Profit Soars to INR3.19 Bil. in Qtr. Ended Dec. 31 INDUSTRIAL DEV'T BANK: Vinod Rai Leaves Director Post SUN MICROSYSTEMS: Moody's Says MySQL Buyout Won't Affect Ratings SUN MICROSYSTEMS: Caris & Co. Keeps Above-Average Rating on Firm TATA MOTORS: In Talks with Dunlop India for Tire Supply TATA POWER: Shareholders Approve Raising Addt'l Long-Term Funds I N D O N E S I A ALCATEL-LUCENT: Inks BRL2B Maintenance Pact with Brasil Telecom ALCATEL-LUCENT: SA Names Andy Williams as Services Biz Chief BANK NEGARA: Partners with IBM to Meet Customers Demands BANK RAKYAT: To Operate Shariah-Service Unit as Stand-Alone Bank BERLIAN LAJU: S&P Says Rating Remains on CreditWatch Negative FOSTER WHEELER: To Supply Heat Recovery Steam Generator in Spain GARUDA INDONESIA: To Open Direct Medan-Chennai Flight in June GARUDA INDONESIA: Targets to Fly 22,000 Passengers From Beijing GOODYEAR TIRE: Holders Can Convert 4% Sr. Notes Until March 31 TELKOMSEL: To Lease Telecommunication Towers to Other Operators J A P A N ELAN CORP: US FDA Approves TYSABRI Biologics License Application GAP INC: Names Sabrina Simmons as Chief Financial Officer HARMAN INTERNATIONAL: Promotes Ken Yasuda as Japan Manager NIPPON PAPER: Net Income Lowers to JPY4.6BB for 2007 Half-Year SANYO ELECTRIC: To Sell Mobile Phone Unit to Kyocera for JPY50BB SANYO ELECTRIC: To Introduce Age Limit for Executives in April SOFTBANK CORP: To Offer Discounts to Students on February 1 SOFTBANK CORP: Objects to Fiber-Optic Access Fee Charged by NTT K O R E A BURGER KING: Brings In Robert Perkins as Vice President LYONDELL CHEMICAL: S&P Lowers Senior Secured Debt Rating to B TRIGEM COMPUTER: Wants Toshiba's Prepetition Lawsuit Enjoined M A L A Y S I A ASPEN TECHNOLOGY: Deloitte Declines Re-Appointment as Accountant P H I L I P P I N E S FEDDERS CORP: Court Extends Plan Filing Deadline Until Feb. 29 FEDDERS CORP: Completes $7.5 Million Sale of Affiliate's Assets GEOGRACE RESOURCES: Stockholders Tap 11 New Directors for 2008 S I N G A P O R E ADVANCED MICRO: Posts US$1.7 Billion Net Loss in Fourth Quarter BENCHMARK ELECTRONICS: Moody's Puts Ba2 Rating on US$100MM Debt T H A I L A N D DOLE FOOD: Units Appoint Three New Managers FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman * BOND PRICING: For the Week 14 January to 18 January 2008 - - - - - - - - ================= A U S T R A L I A ================= ARROW ENERGY: Tipton Joint Venture Receives Reserves Upgrade ------------------------------------------------------------ Arrow Energy NL, in a disclosure with the Australian Securities Exchange, said that its Tipton West Field project has received a substantial reserves upgrade. Tipton Field 1P reserves have increased by 560% to 167 petajoules and 2P reserves for the Surat Basin Field increased by 68%. According to Arrow Energy, the reserves upgrade is predominantly a result of development drilling and continued strong production trends in the field. Arrow has a 60% interest with the project, while Beach Petroleum Ltd. has 40%. Overall, production from Arrow's Surat basin projects continues to increase with the current gross field production rates from Arrow operated fields of 38 million cubic feed per day (mmcfd) and Arrow net sales of approximately 23TJ/D. Combined Surat production levels have increased by a further 10% in the last two months. This performance will, in turn, lead to further reserve upgrades. The Tipton reserves upgrade also include Tarooms coal seam reserves in the 2P category for the first time, which is in the early stages of two pilots in the Tarooms. The two pilots are currently producing a total of nearly 2 mmcfd with the rate continuing to increase. Arrow Chief Executive Nick Davies commented on this progress saying that all of its Surat fields have surpassed field production expectations. Mr. Davies said, "We have always believed the wider spaced wells we are using in the Surat would lead to a gradual build up to a sustainable production level for optimal investment." About Arrow Energy Arrow Energy NL -- http://www.arrowenergy.com.au/-- is an Australian company engaged in the undertaking of gas exploration and development activities. The Company is focused on coal seam gas exploration and production in the Surat, Clarence-Moreton and Ipswich Basins in southeast Queensland and northern New South Wales and the Styx Basin and Nagoorin Graben in coastal central Queensland. Arrow Energy NL has been carrying out exploration/appraisal drilling (over 50 wells) and has proven a large CSG resource. The Company's projects include Kogan North, Tipton West, Moranbah, Daandine, Dundee, Mt Lindesay, Silverdale and Boyne River. The Troubled Company Reporter-Asia Pacific's Distressed Bonds Column on January 15, 2008, listed Arrow Energy's bond, with a 10.000% coupon and a March 31, 2008 maturity date, as trading at 2.56% on the AU dollar. ARROW ENERGY: Changes Name to Arrow Energy Ltd. ----------------------------------------------- Arrow Energy NL, in a disclosure with the Australian Securities Exchange, says that as of January 18, it changed to a company limited by shares and, accordingly, changed its name to Arrow Energy Ltd. Arrow Energy Ltd. -- http://www.arrowenergy.com.au/-- is an Australian company engaged in the undertaking of gas exploration and development activities. The Company is focused on coal seam gas exploration and production in the Surat, Clarence-Moreton and Ipswich Basins in southeast Queensland and northern New South Wales and the Styx Basin and Nagoorin Graben in coastal central Queensland. Arrow Energy Ltd. has been carrying out exploration/appraisal drilling (over 50 wells) and has proven a large CSG resource. The Company's projects include Kogan North, Tipton West, Moranbah, Daandine, Dundee, Mt Lindesay, Silverdale and Boyne River. The Troubled Company Reporter-Asia Pacific's Distressed Bonds Column on January 15, 2008, listed Arrow Energy's bond, with a 10.000% coupon and a March 31, 2008 maturity date, as trading at 2.56% on the AU dollar. CENTRO PROPERTIES: Shares Plummet Amid Market Uncertainty --------------------------------------------------------- Securities in Centro Properties Group continued to dive Wednesday morning as the market further digested revelations of a new chief executive officer and a bid for more time to repay its lenders, The Age reports. According to The Age, Centro shares had lost seven cents, or 11.7%, to 53 cents, by 10:55 a.m. yesterday, while its listed retail trust, Centro Retail Group, had lost three cents, or 9.23%, to 29.5 cents. The report recounts that Centro's shares have lost about 90% of their market value since mid-December 2007 when the firm first revealed that it was having trouble financing AU$3.9 billion in maturing debt. Centro's efforts at overseas expansion left it exposed to the global credit crunch, and the group now teeters at the brink of collapse, The Age notes. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 16, Centro Properties' chief executive officer, Andrew Scott, stepped down from his post and was replaced by Glenn Rufrano, who heads Centro's business in the United States. In addition, Centro asked its lenders to extend a Feb. 15 deadline to refinance AU$3.9 billion (US$3.5 billion) of debt. The Age cites Goldman Sachs JBWere analysts as saying that the best outcome for Centro would be to sell substantial equity interests where natural synergies could be realized. The analysts said in a statement that these assets are Centro Australia Wholesale Fund, Direct Property Fund, CMCS Australia and The MCS business, which, in the firm's estimates, would bring approximately AU$2.3 billion. It is believed that the big four Australian banks hold a combined AU$1 billion in unsecured Centro loans and that U.S. investment bank JPMorgan is owed more than AU$2 billion after it played lead arranger for the massive loan to buy New Plan Excel Realty Trust, The Age says. Moreover, Centro owes U.S. investors US$450 million in private placement debt and rejected claims that it might have defaulted on some of the notes. Centro added that the lenders are currently considering extending these arrangements beyond February 15. 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. CHRYSLER LLC: Appoints New Execs; Senior VP Cortez to Retire ------------------------------------------------------------ Chrysler LLC announced organizational changes and appointments in Mopar(R) and Global Alliance Operations. These moves will take immediate effect following Christine K. Cortez's announcement of her intent to retire from her position as Senior Vice President - Global Service and Parts. "Chrysler is grateful to Chris for her 31 years of dedicated service and many contributions," said Chrysler Vice Chairman and President James E. Press. "She leaves with our most sincere well wishes." Simon Boag has been appointed as President - Mopar, Global Service and Parts, reporting to Mr. Press. Mr. Boag will be responsible for Global Service, International Service and Parts, Global Parts Marketing, Service Contracts and Global Parts Supply Chain Management. Mr.Boag was recently appointed Executive Vice President - Global Alliance Operations. "As a result of Chris' decision to retire, Simon will immediately assume this critical new role," said Mr. Press. "Simon's strong background in manufacturing operations and procurement is a great fit with the needs of Mopar. It's important that he continue our focus on the customer and this incredibly strong brand." Scott R. Garberding replaces Mr. Boag and has been appointed Vice President - Global Alliance Operations, reporting to Chrysler Vice Chairman and President Thomas W. LaSorda. Mr. Garberding will lead the operations side of Chrysler's automotive alliances designed to expand the Company's global presence. Mr. Garberding will also work closely with Michael Manley, Executive Vice President - International Sales, Marketing and Business Development. Mr. Garberding most recently served as Vice President - Supplier Quality. 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'. FLIGHT CENTRE: Unlikely to Pursue MFS Assets, Company Says ---------------------------------------------------------- Flight Centre Ltd. says that it is unlikely to pursue acquiring the travel assets held by MFS Ltd, the Australian Associated Press reports. According to the Sydney Morning Herald, Flight Centre said that it was focused on opportunities that would create greater value for shareholders. The company's clarification, according to Shaw Stockbroking, follows speculation surrounding the funds manager's possible sale of its Stella tourism business. "Flight Centre has historically been reasonably disciplined in applying its acquisition strategy and has only pursued businesses that could be acquired for the right prices to create significant shareholder value," SMH quotes Flight Centre's managing director, Graham Turner, as saying. "For various reasons at this stage, we do not believe at this time that the MFS travel assets represent an attractive acquisition opportunity," Mr. Turner added. MFS according to press reports, said it had received interest from a number of parties about taking an interest in its tourism business. About Flight Centre Headquartered at Brisbane, in Queensland, Australia, Flight Centre Ltd. -- http://www.flightcentre.com/-- is an Australian owned and New Zealand-run independent retail travel group, guaranteeing the lowest prices on all airfares. It had a turnover in excess of $3 billion worldwide and 18 years of consecutive profits until its shares plunged more than 8% following the announcement of its first ever annual profit decline. The company, which in the past has reported spectacular results, hit the wall in 2004-05 with two profit downgrades. Flight Centre announced 2004-05 profit of AU$67.91 million, down 17% from the previous period. Embattled Flight Centre then launched a restructuring drive aimed at saving costs and began working towards a turnaround in 2005/06 by focusing on ongoing development of its four main networks. It has implemented changes to its customer relations programs, following a comprehensive review of its other company initiatives. FORTESCUE METALS: Wants Robe River Railway Open to 3rd Parties -------------------------------------------------------------- The Pilbara Infrastructure Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd, has lodged an application with the National Competition Council under Part IIIA of the Trade Practices Act 1974 seeking to declare Rio Tinto�s "Robe River Railway" which runs from Rio�s Mesa J (Deepdale) mine site to Rio�s port at Cape Lambert. The application to declare the Robe River Railway comes two months after TPI lodged similar declaration applications over Rio�s Hamersley Iron Railway Network and BHP Billiton�s Goldsworthy Railway. "Fortescue is seeking to open the tremendous transport logistic synergies available in the Pilbara to all Australian mining companies," said Fortescue�s Executive Director Graeme Rowley. "There are numerous stranded iron ore deposits in the Pilbara which alone may not be of sufficient scale to support their own infrastructure yet could become viable with access to existing infrastructure such as the Robe River Railway," Mr. Rowley added. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported a net loss for the past three fiscal years. Net loss for the year ended June 30, 2007, was AU$68.43 million, while net losses for FY2006 was AU$2.15 million and for FY2005 was AU$4.52 million. HIH INSURANCE: Founder Claims He Did Not Transfer Assets to Wife ---------------------------------------------------------------- HIH Insurance Ltd. founder Ray Williams, through a friend, made known to the public that he did not transfer assets into his wife's name within the period leading to the AU$5.2-billion collapse of the insurance company in March 2001, reports Glenda Korporaal of The Australian. Mr. William's long-time friend, Father Dave Smith, of the Holy Trinity Anglican Church, spoke to The Australian after receiving a faxed list of points from Mr. Williams who was released on January 15 after two years and nine months in jail. The Australian says that according to Fr. Smith, Mr. Williams said he and wife Rita were living in a rented house as her AU$3.1-million mansion in the Sydney harborside suburb of Seaforth -- bought in 2003 -- was heavily mortgaged and had to be rented out. Fr. Smith, notes The Australian, said that Mr. Williams "didn't have a clue it was falling over. . ." and that "he lost everything and bought HIH shares not long before it crashed" and added that Mr. Williams had no assets of his own. Mr. Smith is quoted by The Australian as saying, "Ray is most definitely bankrupt. He doesn't have any money squirreled away." The report says that Mr. Williams also hit out at Rodney Adler, pointing out that when HIH bought Mr. Adler's FAI in 1998, the rival insurer was worthless. In the fax to Fr. Smith, Mr. Williams said that Mr. Adler benefited from HIH purchasing FAI, which was worthless, as he took 50% cash and 50% HIH shares, notes the report. On October 17, 2007, Troubled Company Reporter-Asia Pacific reported that Mr. Adler was released on parole after already serving two years and six months of his four-and-a-half year sentence. About HIH Insurance HIH Insurance Limited -- http://www.hih.com.au/-- the holding company of the HIH Group, was a publicly listed company in Australia. Prior to its collapse, the HIH Group was known as the second largest general insurer in Australia, and had operations in many other countries. On March 15, 2001, the HIH Group failed, with a deficiency now believed to be between AU$3.6 billion and AU$5.3 billion. Provisional liquidators were appointed to HIH Insurance Limited and many of its subsidiaries. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world. In August 2001, the major Australian companies in the HIH Group were placed into liquidation. On March 29, 2006, meetings of the creditors of the eight companies in the HIH Insurance Group approved the Australian Schemes of Arrangement for those companies. Moreover, separate meetings of creditors of four HIH Insurance Group companies with branches in the United Kingdom approved English Schemes for those companies. HIH's collapse is known to be the nation's biggest corporate failure. PSIVIDA LTD: Sells Food Science Subsidiary for AU$5.9 Million ---------------------------------------------------------------- pSivida Ltd. has sold its food science subsidiary pSiNutria to Intrinsiq Materials Cayman Ltd. for AU$5.9 million, WA Business reports. WA Business relates that under the deal, pSivida, which continues to focus operations on its core technologies, has sold the licensed intellectual property and other assets concerned with nutraceuticals and food science applications of BioSiliconTM, with UK-based Intrinsiq obliged to make a series of payments totaling AU$1.39 million in the first year following the close of the transaction. Once the license is in place, Intrinsiq, according to the report, is obligated to pay royalties with minimum payments of AU$4.49 million over approximately the next six years, AU$569,000 of which will be payable 18 months after the closing. pSivida, states WA Business, retains all rights outside the food science area. According to pSivida Managing Director Paul Ashton, the pSiNutria sale would advance the BioSiliconTM food program whilst further reducing its burn rate. pSiNutria, adds WA Business, was established in December 2005 to develop applications of the company's BioSiliconTM technology for the food industry. About pSivida Ltd. pSivida Limited -- http://www.psivida.com/-- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ACXIOM CORP: Board Appoints John Meyer as President & CEO --------------------------------------------------------- Acxiom(R) Corporation's Board of Directors has named John Meyer to serve as the company's chief executive officer and president. Mr. Meyer has been president of the Global Services group of Alcatel-Lucent since 2003. Prior to joining Lucent, Mr. Meyer spent almost 20 years in a number of high-profile positions at EDS that included Chairman of the Europe, Middle East and Africa Operating Team, President of Diversified Financial Services and Credit Services Divisions, and CIO for the company's GMAC business. Mr. Meyer's global, multi-industry experience at EDS was marked by numerous successes, including doubling revenue in EMEA from US$3.6 billion to US$7.2 billion in four years. Before entering the business world, Mr. Meyer served as a flight commander and was selected as a captain in the U.S. Air Force. Michael Durham, Acxiom's non-executive chairman, said the board unanimously selected Meyer because of his demonstrated strong leadership skills, his broad experience in the information technology industry and his history of success in building shareholder value. "Since October, the board has been focused on the search for a new leader in its efforts to return Acxiom to sustained success," Mr. Durham said. "John commanded our attention because of his strong execution skills, his ability to lead high-performing teams and his track record in driving shareholder value. He has demonstrated these skills at both Alcatel-Lucent and EDS as he ran businesses that are substantially larger and more complex than Acxiom. As we learned more about John, we were equally impressed by his focus on developing internal talent while reaching outside for new skills. His straightforward style and integrity impressed us as it has his employees, clients and investors in his previous roles. John's track record has established him as one of the most accomplished services leaders in the technology industry." Mr. Meyer said that "Acxiom's position as the leading provider of offline and online marketing services is the envy of the market. Acxiom's proud history of innovation and delivery excellence has created value for its clients for decades. It is an honor to join the company and do all I can to build on its successes. I look forward to working with our associates to create value for our clients and shareholders." Mr. Meyer will join Acxiom on Feb. 4. He also will serve as a member of Acxiom's board of directors. He succeeds Charles Morgan, a 35-year company veteran who has been Chairman and Chief Executive Officer since 1975. Mr. Morgan, who announced his retirement in October, will remain a consultant to the company through 2010. "John's go-to-market, operational and technology skills in leading a large services business are impressive," Mr. Morgan said. "I leave Acxiom in the capable hands of a leader who has a strong client focus and will continue to bring out the best in the teams he leads." Mr. Meyer will be introduced to the financial analyst community during the company's third-quarter earnings call at 4:30 p.m. CST Jan. 23. Mr. Meyer, his wife Victoria and their three children live in Dallas, Texas and will be moving to Little Rock, Acxiom's headquarters, as soon as practical. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2007, Moody's Investors Service has confirmed Acxiom Corp.'s Ba2 corporate family rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on May 17, 2007, following the company's announcement that it had entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital for US$3.0 billion. BEST ADVANCER: Members Meeting Fixed for February 15 ---------------------------------------------------- The members of Best Advancer Limited will have their final general meeting on February 15, 2008, at Flat C-1, 5th Floor of Dragon Court, 6 Dragon Terrace, Causeway Bay, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Yan Renwill. BECHTEL ENTERPRISES: Creditors' Proofs of Debt Due on Jan. 25 ------------------------------------------------------------- The creditors of Bechtel Enterprises (Hong Kong) Limited are required to file their proofs of debt by January 15, 2008, for them to be included in the company's dividend distribution. The company's liquidator is: Jeffrey Stewart Roehl 5275 Westview Drive Frederick, MD 21703 USA CHINA EASTERN: Suspends Share Trading in Hong Kong and Shanghai --------------------------------------------------------------- Shares in China Eastern Airlines were suspended from trading in Hong Kong and Shanghai on Monday as Air China's parent company -- China National Aviation Corp -- prepares to announce a bid, Agence France Presse reports, citing the two cities' stock exchanges. AFP notes that trading in China Eastern's shares was halted in Shanghai for one hour until 10:30 a.m. (0230 GMT), while Hong Kong trading was suspended indefinitely. No reason was given for the suspension of the shares, the report says. The airline is reportedly studying a proposal by CNAC for capital and operational tie-ups, AFP relates. Reuters, however, cites China Eastern group as saying that it could not respond to the proposed partnership because the proposal was incomplete and lacked legal validity. 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. CHINA EASTERN: Says Air China Proposal Incomplete ------------------------------------------------- The China Eastern Airlines group said it could not respond to a partnership proposal launched by Air China because the proposal was incomplete and lacked legal validity, Reuters reports. Reuters cites a brief China Eastern statement quoted by the official Shanghai Securities News on Monday that says the proposal lacked details and did not carry the authorization of Air China's board of directors. China Eastern contended that the issue is important for stock market investors, thus Air China needs to make a formal, complete proposal. Air China's parent, China National Aviation Corp, on Friday proposed a "strategic partnership" that it said could bring China Eastern a cash injection of US$1.9 billion and involve a broad tie-up between the two airlines' operations, Reuters recalls. CNAC suggested that it and the China Eastern group buy a placement of 2.98 billion new Hong Kong-listed H shares in China Eastern, while the airlines would consolidate their cargo operations and cooperate in areas such as sharing flights, frequent flyer programmes, maintenance and ground service, the report adds. CNAC's proposal was made 10 days after China Eastern's minority shareholders rejected 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 24% holding in China Eastern. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, the rejection came after CNAC pledged an offer of at least 32% more than Singapore Air's, or at least HK$5.00 a share. However, after the vote, China Eastern Chairman Li Fenghua emphasized that he would not consider Air China as a strategic investor, adding that a tie-up between them would not benefit China Eastern. Air China Denies Involvement in Acquisition Talks According to a separate Reuters report, Air China said it was not involved in any acquisition talks with China Eastern. The report notes that shares of Air China hit an intra-day low of HK$8.70 before recovering to HK$8.81, down 10.8% in late Monday trade, on fears that it might be roped in to help bankroll an expensive deal. About China Eastern 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. CHINA EVERBRIGHT: FY2007 Net Profit Rises 65.6% to CNY4.6 Bln. -------------------------------------------------------------- China Everbright Bank's net profit for FY2007 rose 65.6% year- on-year to CNY4.6 billion (US$582 million), China Knowledge relates. AFX News Limited also notes that China Everbright's net interest income in 2007 stood at CNY17.36 billion, up 37.3% year-on-year. Meanwhile, China Knowledge says, the lender's outstanding loans amounted to CNY418 billion, 18.66% higher than the previous year, while its outstanding deposits grew 1766% to CNY551 billion by the end of 2007. The bank has generated CNY1.41 billion from its intermediary business in 2007, up 7.31% year-on-year. AFX cites China Everbright Chairman Tang Shuangning as saying that the bank plans to complete an initial public offering in 2008. Moreover, China Knowledge notes that the bank was preparing for its dual listing both in Shanghai and Hong Kong. China Knowledge recalls that China Everbright has received CNY20-billion capital injection from Central Huijin, China's central bank's investment arm, which helped the bank raise its capital adequacy rate to 7.11% at the end of 2007. However the bank's capital adequacy rate is still lower than the regulatory minimum of 8% for domestic listing. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/-- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China approved China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. DEEPER CHRISTIAN: Members Meeting Fixed for February 11 ------------------------------------------------------- The members of Deeper Christian Life Ministry (H.K.) Limited will have their final general meeting on February 11, 2008, at unit 805-6, 8th Floor of the Swire & Maclaine House, 19-23 Austin Avenue, Tsimshatsui, in Kowloon, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Kwok Lai Ngor. GATX CAPITAL: Commences Liquidation Proceedings ----------------------------------------------- Gatx Capital Limited commenced liquidation proceedings on December 28, 2007. The company's liquidators are: Natalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queen's Road East Hong Kong KINGTIME (H.K.): Appoints New Liquidator --------------------------------------- The members of Kingtime (H.K.) Limited appointed Chan Shui Kin as liquidator for the company. The Liquidator can be reached at: Chan Shui Kin 18th Floor H Tower 13, Ocean Shores 88 O King Road New Territories, Hong Kong OCEAN BRIGHT: Creditors' Proofs of Debt Due on Feb. 13 ------------------------------------------------------ The creditors of Ocean Bright Technology Limited are required to file their proofs of debt by February 13, 2008, for them to be included in the company's dividend distribution. The company commenced liquidation proceeding on January 11. The company's liquidator is: Ying Yuk Chu 21st Floor, Fee Tat Commercial Centre No. 613 Nathan Road Kowloon, Hong Kong PETROLEOS DE VENEZUELA: Investing US$15.6 Billion in 2008 --------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA will invest US$15.6 billion to consolidate the "Sowing the Oil Plan" and to guarantee the achievement of output goals for the year 2012, Agencia Bolivariana de Noticias reports, citing energy and oil minister Rafael Ramirez. The US$15.6 billion will make it possible to boost Venezuela's oil production to 5.8 million barrels in five years, Minister Ramirez told Agencia Boliviana. The amount represents a leap forward regarding the investments Petroleos de Venezuela had made. Petroleos de Venezuela had invested no more than US$3.3 billion in operations up to the year 2002. That amount has increased due to the implementation of the "Sowing the Oil Plan." Petroleos de Venezuela's investment in 2006 was US$5.8 billion. Last year it was US$10 billion. Minister Ramirez emphasized to Agencia Bolivariana the need to study Petroleos de Venezuela's processes by following an evaluation proposed by President Hugo Chavez to face the challenges of 2008: -- revision, -- rectification, and -- re-boosting the revolution. 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. PRIMERA (ASIA): Members Meeting Fixed for February 11 ----------------------------------------------------- The members of Primera (Asia) Limited will have their final general meeting on February 11, 2008, at 3806 Central Plaza, 18 Harbour Road, in Wanchai, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are Andrew C.C. MA and Felix K.L. Lee. SHIN HO CH'ENG: Commences Liquidation Proceedings ------------------------------------------------ Shin Ho Ch'eng Development Limited commenced liquidation proceedings on December 31, 2007. The company's liquidators are: Messrs. Lai Kar Yan (Derek) Darach E. haughey 35th Floor, One pacific Place 88 Queensway Hong Kong SKYBINET LIMITED: Creditors Meeting Fixed for February 14 --------------------------------------------------------- The members of Skybinet Limited will have their final general meeting on February 14, 2008, at Room 1308-9 of the Cosco Tower, 183 Queen's Road, in Central, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators is Yeung Wing On Adrian. THE WORLD ASSOCIATION: Members Meeting Fixed for February 18 ------------------------------------------------------------ The members of The World Association for Chinese Church Music Limited will have their final general meeting on February 18, 2008, at Room 1701, 17th Floor of the Shui On Centre, 6-8 Harbour Road, in Wanchai, Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators is Yeung Pak Lun David. TOY BIZ INTERNATIONAL: Commences Liquidation Proceedings -------------------------------------------------------- Toy Biz International Limited commenced liquidation proceedings on December 28, 2007. The company's liquidators are: Natalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queen's Road East Hong Kong TRENDING INTERNATIONAL: Liquidator to Present Wind-Up Report ------------------------------------------------------------ The members of Trending International Limited will have their final general meeting on February 15, 2008, at 3806 Central Plaza, 18 Harbour Road, in Wanchai, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Chui Soo Ching, Katherine. TYSON FOODS: Inks Supply & Sponsorship Pact with Six Flags ---------------------------------------------------------- Tyson Foods, Inc., has reached a supply and sponsorship agreement with Six Flags, Inc. Under the agreement, Tyson Foods will become a Six Flags Corporate Alliance partner and Tyson chicken will become the Official Chicken of Six Flags. In addition, the two companies will collaborate on a number of marketing and advertising initiatives. The agreement makes Tyson Foods, the exclusive chicken supplier for all United States Six Flags parks and includes exclusive product placement on menu boards wherever Tyson products are sold, in-park signage, billboards and additional high-impact messaging via the Six Flags Media Networks. "Moms trust Tyson products and they trust Six Flags," said Six Flags Executive Vice President of Corporate Alliances, Lou Koskovolis. "Millions of families come to our parks every summer expecting industry leading attractions and friendly guest service; now when they dine in our restaurants, they'll immediately identify the Tyson brand for its own superior qualities. We're delighted that Tyson recognizes the Six Flags platform as a unique opportunity to connect with their key consumers." "We want to be where families live, work and play," said Tyson Senior Vice President of Food Service, Randy Smith. "Six Flags entertains millions of visitors every year and now those visitors can experience the same Tyson chicken they cook at home for their families at a Six Flags theme park. We're delighted to be partnering with a brand that resonates so strongly with Moms and kids." About Six Flags Inc. Six Flags, Inc. is the world's largest regional theme park company with 21 parks across the U.S., Mexico and Canada. Since 1961, Six Flags has provided world-class thrilling entertainment for millions of families. Six Flags, Inc. is a publicly traded corporation (NYSE: SIX) headquartered in New York City. About Tyson Foods, Inc. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. The company has operations in China, Japan, Singapore, South Korea, and Taiwan. In Latin America, Tyson Foods has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods Inc.'s ratings, including its Ba1 corporate family rating and Ba1 probability of default rating. Moody's said the rating outlook is negative. WEALTHY-ON: Commences Liquidation Proceedings --------------------------------------------- Wealthy-On (Hong Kong) Limited commenced liquidation proceedings on January 9, 2008. The company's liquidator is: Yeung Kin Fuk, Cangi 21st Floor Fee Tat Commercial Centre No. 613 Nathan Road Kowloon, Hong Kong ========= I N D I A ========= AFFILIATED COMPUTER: Tennessee Medicaid Likely to Award New Deal ---------------------------------------------------------------- Affiliated Computer Services, Inc., has announced the Tennessee Bureau of TennCare's intent to award a new contract for the TennCare Management Information System. The proposed contract has a length of five years and an evaluated total value of US$156 million, and must be negotiated and executed prior to Affiliated Computer commencing operations. The proposed contract calls for Affiliated Computer to assume responsibility for the current TennCare Management Information System used by the state for the management of its Medicaid program. In addition to the takeover, the company will be responsible for data management, as well as ongoing systems modifications and day-to-day operations. The company currently supports Medicaid programs in 13 states and the District of Columbia, in addition to the proposed contract with Tennessee. Affiliated Computer will also assess current TennCare business processes and collaboratively work with TennCare in making business process improvement recommendations. Additionally, it will be performing multiple enhancement projects, including the development of an enterprise Project Management Office and several other projects that will enable TennCare to leverage technology in the most effective manner. "Tennessee has been a leader in Medicaid Managed Care and is looking to ACS' expertise and innovation to continue to advance their program and keep TennCare as one of the premier Medicaid programs in the country," said ACS senior vice president and managing director, Government Healthcare Solutions, Christopher T. Deelsnyder. "In taking over the system, we are committed to our client's success and to building the enhancements that will benefit all Tennesseans enrolled in the TennCare program." TennCare is Tennessee's managed care Medicaid program, serving 1.2 million Tennesseans through a network of contracted, managed care companies. The core of its population consists of Medicaid-eligible people, most of whom are low-income children and families, pregnant women, disabled people, women needing treatment for breast or cervical cancer, or persons requiring care in a nursing facility. "Using Tennessee's competitive bid process to help ensure TennCare vendors bring added-value at competitive prices to our state is a cornerstone of our program's operational success," said Bureau of TennCare deputy commissioner, Darin Gordon. "TennCare looks forward to working with ACS as they assume their contracted responsibilities for an integral part of our day-to- day operations." Affiliated Computer is partnering with Zycron, a Nashville-based minority-owned information technology staffing and outsourcing company. "Zycron is excited to partner with ACS in supporting the state in meeting TennCare objectives," said Zycron Chief Executive Officer, Darrell Freeman. "Zycron's strong presence in the IT industry coupled with ACS' international profile is the ideal solution for the state of Tennessee." About Affiliated Computer Services Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 8, 2008, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Dallas, Texas-based Affiliated Computer Services Inc., and removed it from CreditWatch, where it had been placed with negative implications on March 20, 2007. S&P said the outlook is negative. AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal ---------------------------------------------------------------- Affiliated Computer Services, Inc. has been awarded a seven- year, US$130 million contract to provide information technology outsourcing services for Allergan, Inc., a premier, global multi-specialty healthcare company. Under the terms of the contract, Affiliated Computer will supply comprehensive infrastructure services, including data center operations, network monitoring and management, and end-user support services. The ACS-designed solution will provide the scale necessary to meet Allergan's growth, as well as access to new technology to support its unique industry needs. "This key relationship further expands our presence in the pharmaceutical industry and allows us to develop and strengthen our industry-specific competencies," said ACS Commercial Solutions group president, Ann Vezina. "Our partnership will enable Allergan to focus on its global core business operations as the company grows and help meet Allergan's need for advanced technological capabilities." Along with comprehensive information technology outsourcing services, the company will implement an innovative platform that utilizes a network connection to store important data online, provide additional data security, and more reliably restore backup data. The solution replicates backup data directly to the disaster recovery site, thereby reducing business recovery time and incidence of data loss by eliminating off-site data handling. Allergan's Chief Information Officer, Sue-Jean Lin said, "With our many innovative products, we operate in a wide range of global, high-growth markets. We needed a strategic partner who could not only support our market-leading positions, but help us meet the challenges of continued expansion. ACS has the technology and expertise to meet our growth needs, and their dedication to quality service makes them a strong cultural fit as well." About Allergan Founded in 1950, Allergan, Inc. (NYSE: AGN), with headquarters in Irvine, California, is a multi-specialty health care company that discovers, develops and commercializes innovative pharmaceuticals, biologics and medical devices that enable people to live life to its greatest potential -- to see more clearly, move more freely, express themselves more fully. The Company employs more than 7,500 people worldwide and operates state-of-the-art R&D facilities and world-class manufacturing plants. In addition to its discovery-to-development research organization, Allergan has global marketing and sales capabilities with a presence in more than 100 countries. About Affiliated Computer Services Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * Affiliated Computer Services Inc. continues to carry Standard & Poor's Ratings Services' 'BB' corporate credit rating with a negative outlook. GENERAL MOTORS: Outlines Turnaround Progress & 2008 Priorities -------------------------------------------------------------- General Motors Corp. Chairman and CEO Rick Wagoner and Vice Chairman and CFO Fritz Henderson spoke to automotive analysts at a GM conference on Jan. 17, 2008, giving detailed reviews of the company's turnaround progress, outlining the automaker's priorities for the year and providing a preview of improvement opportunities for 2010 and beyond. "We're delivering on the turnaround plan we established in 2005, and have exceeded expectations on virtually all counts," Mr. Wagoner said. "We've set a strong foundation that we can truly build on. We're encouraged by our progress in revitalizing our product portfolio, strengthening our brands, reducing structural cost and growing the business globally. At the same time, it's clear that we'll face some challenging headwinds in 2008. "To continue driving the company's transformation, we'll remain steadfast in our efforts to introduce great cars and trucks and new advanced propulsion technologies, take full advantage of growth markets around the world, and accelerate our efforts to reduce structural costs to even more competitive levels in North America," Mr. Wagoner added. Turnaround Progress Since introducing its North America turnaround plan in 2005, GM has delivered significant progress in its massive restructuring, including: a) Product excellence Dramatically improved vehicle design and performance is gaining broad recognition, demonstrated by robust sales of recently launched vehicles and numerous industry awards, including 2008 North America Car of the Year for the Chevrolet Malibu, 2008 Motor Trend Car of the Year for the Cadillac CTS, and 2007 North America Car and Truck of the Year awards for the Saturn Aura and Chevrolet Silverado; b) Revitalize the sales and marketing strategy The company has fundamentally changed its "go to market" approach, resulting in stronger brands, re-alignment of its brand distribution channels, stabilized retail market share, significant reductions in daily rental sales and higher average transaction prices; c) Intensify the focus on cost and quality GM reduced annual structural cost in North America from 2005 to 2007 by US$9 billion, driven by the 2005 hourly healthcare agreement, revisions to U.S. salaried healthcare and pension programs, capacity reduction actions, special attrition programs for 34,000 hourly employees, and efficiencies achieved in other activities. Significant improvements also continue to be made in vehicle quality, as measured by both internal and industry metrics; d) Address healthcare/legacy cost burden Reflecting the impact of historical agreements with the United Auto Workers union and several other key initiatives, GM anticipates that its spending on U.S. hourly and salaried pension and healthcare will be reduced from an average of US$7 billion per year over the last 15 years, to approximately US$1 billion per year beginning in 2010. Despite continued pressures in the German market, GM has also made significant progress in its Europe operations, driven by strong new products, successful implementation of its multi- brand strategy, especially the rapid growth of the Chevrolet brand, which contributed to record GME unit sales of over 2 million in 2007. Rapid expansion in Russia and Eastern Europe, and further structural cost reductions have also contributed to the improvements. GM's total automotive results have demonstrated strong progress since 2005, marked by significant improvements in both adjusted net income and adjusted operating cash flow through the first three quarters of 2007. GM continues to have strong liquidity, with 2007 year-end gross liquidity estimated to be more than US$27 billion, up from US$20.4 billion at year-end 2005. 2008 Outlook Acknowledging headwinds facing the industry, including weak U.S. auto industry sales volumes, high fuel prices, high commodity and steel prices, and mounting regulatory requirements, Mr. Wagoner outlined the following focus areas for 2008 designed to continue the momentum and achieve improved financial results: -- Continue to execute great products; -- Build strong brands and distribution channels; -- Execute additional cost reduction initiatives; -- Take full advantage of growth in emerging markets; -- Build GM's advanced propulsion leadership position; and -- Maximize the benefits of running the business globally. For 2008, GM projects global industry volume to reach a record high of approximately 73 million units, up from about 71 million in 2007, with growth in Asia Pacific, Latin America, Africa and the Middle East and Europe. GM anticipates U.S. industry sales will likely be in the low 16-million range, reflecting continuing high fuel prices and sub-par consumer confidence. Despite industry pressures, GM expects to increase revenues in all of its regions, particularly in emerging markets. Building on notable product successes including the Cadillac CTS, Chevrolet Malibu, GMC Acadia, Saturn Outlook and Buick Enclave in the U.S. and the Opel Corsa in Europe, GM will continue to introduce a host of new products including the Pontiac G8 and Chevrolet Traverse in the U.S. and Opel Insignia in Europe. Capital spending is projected to be up slightly from 2007 levels to about US$8 billion in 2008. On the sales and marketing front, GM will continue its efforts -- most clearly demonstrated in the recent launch of the Chevy Malibu in the U.S. -- to more effectively integrate product and brand marketing strategies. GM will accelerate the alignment of its seven U.S. brands into four distinct dealer channels: Chevrolet, Saturn, Buick/Pontiac/GMC and Cadillac/Hummer/SAAB. By doing this, the company expects to enhance dealer profitability and over time facilitate more highly differentiated products and brands. With regard to cost competitiveness, GM has made major strides toward achieving its global target of reducing automotive structural costs to benchmark levels of 25% of revenue by 2010. Structural costs are already below 30%, compared to 34% in 2005, despite weaker than expected U.S. industry volumes. In light of the progress already made, the company fully expects structural costs as a percentage of revenue to be further reduced beyond 2010, with a target of 23% by 2012. In support of those goals, the company plans to reduce annual U.S. labor costs by an additional estimated US$5 billion by 2011. A significant portion of those reductions will be driven by the implementation of the 2007 GM-UAW contract, including the independent healthcare VEBA scheduled to begin in 2010, and in the shorter term by taking full advantage of the workforce restructuring opportunities included in the contract, including a "non-core" wage and benefit structure which will result in the re-classification of a significant number of jobs over time. To facilitate these changes, GM launched, in cooperation with the UAW, the first phase of a voluntary special attrition program for hourly workers in January 2008. This phase applies to those at select job banks, Service Parts Operations, and other key sites. Employees participating in this phase will begin to exit in March. GM disclosed that Phase 2 of the program, under active discussion with the UAW, will be launched in February in all other plants. Participating employees will begin exiting in April. For both phases of the program, 46,000 existing employees are eligible for retirement. During the conference, GM also reiterated its strategy to achieve manufacturing capacity utilization of 100%, or greater, in countries with higher labor costs. Based on current U.S. industry volume levels, additional capacity actions would be required in vehicle assembly, stamping and powertrain facilities. The company will continue to assess U.S. industry and product mix trends, and what potential actions may be required over the coming months. GM will continue its aggressive plans to grow in emerging markets such as China, Brazil, Russia and India. To strengthen its position in China, where it was the first automaker to sell 1 million units in a single year, GM intends to continue to build its corporate reputation, expand its product portfolio with fuel-efficient products, drive full implementation of its multi-brand strategy, expand capacity, and develop our local supply base and technology capability. At GMAC Financial Services, while its mortgage business faces continued challenges relating to weaknesses in the housing and credit markets, its auto financing business remains profitable and its insurance operations continue to perform well. GMAC expects Residential Capital, LLC to meet its year-end 2007 financial covenants, and GM believes GMAC remains adequately capitalized. In addition, GMAC's liquidity position is at relatively high historical levels and GMAC expects to be profitable in 2008, with substantially reduced losses at ResCap due to risk mitigation actions undertaken by the company. Looking Ahead to 2010 Looking ahead, GM expects continued cost savings and improved automotive pre-tax earnings by 2010, compared to 2007 levels, driven by a number of factors. The most significant savings is the estimated US$4-5 billion GM expects to gain in 2010 once it realizes the full-impact of the 2007 GM-UAW labor agreement related to the shift of U.S. hourly health care to an independent VEBA, and takes advantage of favorable labor demographics to adjust workforce levels and transition a portion of the workforce to the new non-core wage structure. In addition, GM will reduce the cost premiums it has historically paid to Delphi for systems, components and parts by approximately US$1 billion by 2010. Those savings will be offset by various labor and transitional subsidies of US$400-500 million under Delphi's proposed reorganization, resulting in net savings of approximately US$500 million. GM also sees the probability of a stronger U.S. industry in 2009 and beyond, as compared to the relatively low 16.5 million total industry in 2007. All indications are that 16.5 million units are approximately 1 million units below trend. It is estimated that a move of the industry back to trend levels by 2010 would generate additional pre-tax income to GM in the range of approximately US$1 billion to US$1.5 billion annually. Beyond these factors, there are a number of additional opportunities to further improve GM earnings and cash flow by 2010, though they are more difficult to predict with specificity. These include: additional material cost reductions due to continued leveraging of global vehicle architectures, improved pricing driven by compelling designs and stronger brands, continued explosive growth in revenue and profitability in emerging markets, and improved performance at GMAC. At the same time, continued U.S. industry product mix deterioration, regulatory cost increases and the ongoing competitiveness of the marketplace pose potential risks to GM's profitability. Considering the foregoing, GM management expects to significantly improve operating results, including earnings and cash flow, over the next two to three years. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. FERTILIZERS & CHEMICALS: Board to Consider Q3 Results on Jan. 24 ---------------------------------------------------------------- Fertilizers & Chemicals Travancore Ltd's board of directors will hold a meeting on Jan. 24, 2008, to consider the company's unaudited financial results for the third quarter ended Dec. 31, 2007. FACT, reported a net loss of INR269.30 million in the quarter ended Dec. 31, 2007. Revenues for that three-month period aggregated INR4.26 billion. Headquartered in Kochi, Kerala, India, Fertilisers & Chemicals Travancore Limited is principally engaged in the manufacturing and distribution of fertilizers and chemicals. Its products include ammonium sulphate, factomfos, urea and caprolactam. The company operates solely in the domestic market. The company, which had been making profits for over a decade, started reporting losses from 1998-99 onwards due to the steep rise in cost of raw materials like naphtha, benzene, sulphur and rock phosphate. There were also uneconomic realization from sales and the company had to stop production because of a liquidity crunch. In 2004, the company was referred to the Board for Industrial and Financial Reconstruction as a potentially sick unit. The company is currently undergoing a revamp program to turn its business around. ICICI BANK: Reports 35% Profit Increase in Qtr. Ended Dec. 31 ------------------------------------------------------------- The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai on Saturday, approved the audited unconsolidated Indian GAAP accounts of the Bank for the quarter ended December 31, 2007 (Q3-2008). Highlights * Profit after tax for Q3-2008 increased 35% to INR1,230 crore (US$312 million) from INR910 crore (US$ 231 million) for the quarter ended December 31, 2006 (Q3-2007). * Operating profit excluding treasury income increased 37% in Q3-2008 to INR1,977 crore (US$ 502 million) from INR1,442 crore (US$366 million) for the quarter ended December 31, 2006 (Q3-2007). * Net interest income increased 32% to INR1,960 crore (US$ 497 million) for Q3-2008 from INR1,485 crore (US$377 million) for Q3-2007. * Fee income increased 33% to INR1,785 crore (US$453 million) for Q3-2008 from INR1,345 (US$341 million) for Q3-2007. * Current and savings account deposits increased 33% to INR62,494 crore (US$ 15.9 billion) at December 31, 2007 from INR47,062 crore (US$ 11.9 billion) at December 31, 2006 resulting in an increase in CASA ratio to 27% at December 31, 2007. * Total advances increased 25% to INR215,517 crore (US$54.7 billion) at December 31, 2007 from INR172,763 crore (US$43.8 billion) at December 31, 2006. * Profit after tax for the nine months ended December 31, 2007 (9M-2008) increased 32% to INR3,008 crore (US$763 million) from INR2,285 crore (US$ 580 million) for the nine months ended December 31, 2006 (9M-2007). Operating Review Deposit Growth Current and savings account deposits increased 33% to INR62,494 crore (US$15.9 billion) at December 31, 2007 from INR47,062 crore (US$ 11.9 billion) at December 31, 2006. During this period, the Bank's total deposits increased 17% to INR229,779 crore (US$ 58.3 billion) at December 31, 2007 from INR196,893 crore (US$ 49.9 billion) at December 31, 2006. The Bank had 955 branches and extension counters and about 3,687 ATMs at December 31, 2007. Credit Growth The Bank's total advances increased 25% to INR215,517 crore (US$54.7 billion) at December 31, 2007 from INR172,763 crore (US$ 43.8 billion) at December 31, 2006. The proportion of advances of the Bank's international branches in total advances increased from 12% at December 31, 2006 to 21% at December 31, 2007, reflecting effective synergies between the Bank's strong corporate franchise and its international presence. The Bank's retail advances were INR132,311 crore (US$33.6 billion) at December 31, 2007 and constituted 61% of total advances. International Operations The Bank is present in 18 countries through wholly-owned subsidiaries, branches and representative offices. At December 31, 2007 the Bank's international operations accounted for about 23% of its consolidated banking assets. ICICI Bank UK plc opened two additional branches in UK in Coventry and London taking the number of retail locations to nine. ICICI Bank Canada opened its seventh branch in Canada in the Greater Toronto Area. Capital Adequacy The Bank's capital adequacy at December 31, 2007 was 15.8%1 (including Tier-1 capital adequacy of 12.1%), well above RBI's requirement of total capital adequacy of 9.0%. Asset Quality At December 31, 2007, the Bank's net non-performing assets constituted 1.47% of net customer assets. International Funding Plan At December 31, 2007, ICICI Bank's consolidated balance sheet size was US$115 billion. From January to December 2007, ICICI Bank and ICICI Bank UK plc raised US$6.7 billion in the international bond markets in dollar, euro and sterling currencies. This is used primarily for financing the expansion of Indian businesses, including their organic and inorganic growth internationally and their large investment plans in India. Going forward, the Bank seeks to continue to capitalize on these growth opportunities. Based upon an evaluation of funding opportunities and returns thereof, the Bank currently expects to raise approximately the same amount through bond issuances during calendar year 2008 subject to market conditions. The Bank currently expects to continue to diversify and evaluate alternative markets to complement its dollar, euro and sterling bond issuances. The balance international funding is likely to come from retail and corporate deposits, bank loan markets, multilateral sources and trade financing. Performance Highlights of Key Subsidiaries ICICI Bank's unaudited consolidated profit after tax was INR2,762 crore (US$701 million) for 9M-2008 compared to INR2,203 crore (US$559 million) for the 9M-2007. ICICI Prudential Life Insurance Company continued to maintain its market leadership among private sector life insurance companies with a private market share of 25.8% and an overall market share of 11.8% on the basis of new business weighted received premium. During April-November ICICI Life's new business weighted received premium increased by 67% as compared to industry growth of 14%. The growing operations of ICICI Life had a negative impact of INR674 crore (US$171 million) on the unaudited consolidated profit after tax of ICICI Bank in 9M-2008. However, ICICI Life's unaudited New Business Profit (NBP) in 9M-2008 was INR748 crore (US$190 million). The assets held by ICICI Life increased from about INR15,818 crore (US$ 4.0 billion) at March 31, 2007 to INR28,409 crore (US$ 7.2 billion) at December 31, 2007. ICICI Lombard General Insurance Company maintained its leadership position with a market share of 31.9% among private sector general insurance companies and an overall market share of 12.7% during April-November 2007. ICICI General's premiums increased 17% to INR2,722 crore (US$691 million) in 9M-2008 despite the impact of detariffication. ICICI General's profit after tax increased by 134% to INR115 crore (US$29 million) in 9M-2008 from INR49 crore (US$ 12 million) in 9M-2007. ICICI Securities' revenues for Q3-2008 and 9M-2008 were INR257 crore (US$65 million) and INR527 crore (US$134 million) respectively. The company's profit after tax for Q3-2008 and 9M-2008 was INR71 crore (US$18 million) and INR108 crore (US$ 27 million) respectively. ICICI Prudential Asset Management Company's assets under management (including portfolio management services and advisory assets) increased by 59% to INR69,230 crore (US$17.6 billion) at December 31, 2007 from INR43,440 crore (US$11.0 billion) at March 31, 2007. ICICI AMC's profit after tax increased by 127% to INR75 crore (US$19 million) in 9M-2008 from INR33 crore (US$8 million) in 9M-2007. ICICI Venture Fund Management Company is the largest private equity company in India with assets under management of about INR9,600 crore (US$ 2.4 billion). ICICI Venture's profit after tax for 9M-2008 was INR52 crore (US$13 million). A copy of the bank's audited results for the quarter and nine months ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2735 About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. ICICI BANK: Director Vinod Rai Resigns From Board ------------------------------------------------- ICICI Bank Ltd has informed the Bombay Stock Exchange that Vinod Rai, non-executive director and government nominee of the bank has resigned from the board effective Jan. 6, 2008. The board at its meeting on Jan. 19, noted the resignation of Mr. Rai and placed on record its deep appreciation for his contribution to the growth and development of the bank. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. IFCI LTD: Net Profit Soars to INR3.19 Bil. in Qtr. Ended Dec. 31 ---------------------------------------------------------------- IFCI Ltd's net profit more than doubled to INR3.19 billion in the three months ended Dec. 31, 2007, from the INR1.29-billion profit recorded in the corresponding quarter in 2006. The profit growth is brought about by rising revenues and the absence of huge interest charges that was part of the company's results in the prior quarters. Total revenues increased from INR3.68 billion in Oct.-Dec. 2006 to INR5.79 billion in the current quarter under revenue. There was zero interest expanded in the quarter ended Dec. 31, 2007, compared to the INR1.88-billion interest last year. In view of GOI letter dated Dec. 12, 2007, the reduction of pro-rata interest, as done in earlier years and current half-year, has not been done in the current quarter, IFCI explained. With operating expenditures of INR962.2 million, the company booked an operating profit of INR4.83 billion. Depreciation for the quarter aggregated INR16.7 million while taxes totaled INR1.62 billion. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2739 IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. INDUSTRIAL DEV'T BANK: Vinod Rai Leaves Director Post ----------------------------------------------------- Vinod Rai has tendered his resignation from Industrial Development Bank of India Ltd's board of directors with effect from Jan. 6, 2008, IDBI disclosed in a filing with the Bombay Stock Exchange. Mr. Rai quit as director of IDBI's board to enable him to take oath of office for the post of the comptroller and auditor beneral of India. Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, the financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * As part of the application of Moody's Investors Service's refined joint default analysis and updated bank financial strength rating methodologies, the rating agency, on April 24, 2007, affirmed Industrial Development Bank of India's BFSR at D-. Moody's also maintains the bank's Foreign Currency Deposit Rating at Ba2. SUN MICROSYSTEMS: Moody's Says MySQL Buyout Won't Affect Ratings ---------------------------------------------------------------- Moody's has commented that Sun Microsystems, Inc.'s Ba1 corporate family and unsecured debt rating with a stable outlook would not be affected by the company's recent announcement that it has entered into a definitive agreement to acquire MySQL AB for approximately US$1 billion. MySQL is a privately held developer of high performance open-source database software experiencing fast growth in the US$15 billion relational database management systems market. Moody's believes the high purchase price is mitigated by the strategic nature of the acquisition and long-term growth opportunities in the relational database management systems market, which is growing roughly at 14% per annum. Having assembled nearly all of the elements for its web-based platform strategy, the MySQL acquisition is consistent with Sun Microsystems' solutions-based operating model of selling a broader, more integrated comprehensive offering of storage, servers, software and services based on open architecture standards. The company expects to: migrate its customers to MySQL's technology to deepen existing relationships; provide MySQL with access to its global infrastructure, channels and OEM partnerships to accelerate the growth of MySQL's mission critical deployment of applications for large-scale customers; and further exploit the secular shift in computing from desktop to web-based platforms through up-sell and cross-sell opportunities. Given MySQL's small relative size, Moody's does not expect it to be a major contributor to the company's operating earnings over the near term. However, its strong liquidity profile, improved credit protection measures and enhanced operating profile can absorb an acquisition of this size. "This pending transaction reflects the company's historical penchant to achieve growth through external means, which is currently factored into the Ba1 CFR. Despite potential revenue synergies, access to new untapped markets and cross-selling opportunities, Moody's believes that Sun's acquisition strategy poses challenges for the company to successfully integrate technologies and operations as the company seeks to expand its business model into the software space. Moody's expects the company will continue to make selective acquisitions to extend the reach of its products among software developers and corporate customers, and strengthen its position as a platform provider for the Web-based economy", stated Moody's Vice President-Senior Analyst, Gregory Fraser. Despite market share growth, improvements in profitability and margins, and higher levels of free cash flow in the company's recent past, the Ba1 rating reflects the company's aggressive acquisition strategy to grow beyond its core business. Sun Microsystems has stated in its public statements that it intends to be a consolidator in the IT industry. The company has had an active acquisition program to acquire small, emerging technology companies whose growth is restrained by resources, distribution and infrastructure that can benefit from its global sales force and services organization. The rating is constrained at Ba1, reflecting the ongoing transition of the company's operating model away from a direct product sale to a cross-product selling approach, which blends hardware, software, and services into a single offering. Though the solutions based sales approach focuses on the value proposition of the bundled sale rather than individual pricing of each component, by adapting to a strategy of selling lower priced servers in order to obtain longer term service revenue streams, the company is likely to witness operating margin pressure on the hardware component of the overall solution sale, while potentially generating future higher margin revenue streams. Moody's is also concerned about the sustainability of this operating model given that Sun's market share continues to be eclipsed by stronger rivals such as IBM and HP. Moody's expects that if the acquisition is consummated as proposed, the company would fund the transaction with approximately US$800 million in cash and assume US$200 million in MySQL options. The company expects the transaction to close in the third or fourth quarter of its fiscal 2008 subject to regulatory approvals. Moody's also expects that following the closing of the proposed transaction, Sun will maintain moderate share purchase activity. The company's liquidity position is strong, with roughly US$5 billion in cash and marketable securities. Balance sheet debt totals US$1.27 billion, comprised of a US$550 million note maturing in August 2009, a US$350 million convertible due 2012, a US$350 million convertible due 2014 and US$21 million in interest rate swaps. The company also maintains full access to US$391 million of uncommitted credit lines. Moody's notes that further cash usage for material acquisitions or stock purchases would likely have a negative impact on the company's liquidity profile and potential credit rating. The company's revenue and EBITDA for the twelve months ended Sept. 30, 2007 were US$13.9 billion and US$1.8 billion, respectively. Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. SUN MICROSYSTEMS: Caris & Co. Keeps Above-Average Rating on Firm ---------------------------------------------------------------- Caris & Company analyst Shebly Seyrafi has kept his "above average" rating on Sun Microsystems Inc.'s shares, Newratings.com reports. Newratings.com relates that the target price for Sun Microsystems was decreased to US$20.00 from US$25.20. Mr. Seyrafi said in a research note that Sun Microsystems issued a positive pre-announcement for the second quarter of the fiscal year 2008, with revenues of almost US$3.6 billion and GAAP earnings per share of up to US$0.32, which is above the consensus. Mr. Seyrafi told Newratings.com that sales of Sun Microsystems' Intel/Galaxy products are not meeting expectations. Sun Microsystems would face a challenging macro environment. The earnings per share estimates for the fiscal years 2008 and 2009 were decreased to US$1.28 from US$1.37 and to US$1.51 from US$1.68, respectively, Newratings.com states. Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. TATA MOTORS: In Talks with Dunlop India for Tire Supply ------------------------------------------------------- Tire and tube manufacturer Dunlop India Ltd is eying a tie-up with Tata Motors Ltd, The Times of India reports. Dunlop India has commenced discussions with Tata Motors for the supply of truck tires, The Times says, citing a statement made by Dunlopo Chairman Pawa Ruia. Aside from making tires and tubes, Dunlop India also manufactures high-pressure hoses, steelcord belting, and vibration isolators. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 3, 2008, Dunlop India is out from the clutches of the Board for Industrial and Financial Reconstruction pursuant to the order of the Madras High Court. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * On Jan. 7, 2008, Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit ratings on India-based automaker Tata Motors Ltd. on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'BB+' foreign currency rating on all of Tata Motor's rated debt issues on CreditWatch with negative implications. As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd on review for possible downgrade. TATA POWER: Shareholders Approve Raising Addt'l Long-Term Funds --------------------------------------------------------------- Tata Power Company Ltd's shareholders, by way of postal ballot, approved the company's plans to, among others, raise additional long-term funds and commence new business, a filing with the Bombay Stock Exchange discloses. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 28, 2007, Tata Power intends to go into shipping and logistics, and raise as much as INR4,000 crore. The company will intends to raise the money through the offering of securities in the local or international markets. "The company is in an aggressive expansion phase and, in the next five years, plans to add 10,000 MW capacity based on thermal coal," Business Line relates. Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. The outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. The ratings outlook is negative. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Inks BRL2B Maintenance Pact with Brasil Telecom --------------------------------------------------------------- Alcatel-Lucent has signed an almost BRL2 billion contract with Brasil Telecom Participacoes for maintenance of network, Brasil Telecom said in a statement. Dow Jones Newswires relates that Alcatel-Lucent won the two-year contract against Ericsson and Nokia Siemens Networks. The contract can be extended. Alcatel-Lucent will be responsible for the administration and maintenance of Brasil Telecom's fixed-line and wireless telephony infrastructure and data transmission network. Brasil Telecom hopes it will lessen costs. The network's maintenance is one of Brasil Telecom's principle outlays, representing almost 10% of all expenses in the first nine months of 2007, Dow Jones states. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Alcatel-Lucent 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. ALCATEL-LUCENT: SA Names Andy Williams as Services Biz Chief ------------------------------------------------------------ Alcatel-Lucent S.A. disclosed that Andy Williams will become President of the company�s Services Business. He will be a member of the management committee. He replaces John Meyer who is leaving the company to become the CEO and President of Acxiom Corporation. Andy Williams currently heads the Network Operations business globally for Alcatel-Lucent's Services group. "Andy Williams is a very experienced business leader with extensive knowledge of the communications industry," said Pat Russo, CEO of Alcatel-Lucent. "Throughout his career Andy Williams has had a broad set of experiences including senior positions running a large Services business, identifying and assessing business opportunities, creating solutions and developing and transforming businesses." Andy Williams headed the former Lucent Technologies European business, responsible for all of the company�s activities in the region. He joined the company in 2005 from IBM, where he worked for 25 years and held a number of senior leadership positions. Prior to joining the former Lucent company, he served as general manager of the Public Sector Services business in EMEA, part of IBM Global Services. His was responsible for the overall region IT services business in Public Sector, including profit and loss, consulting, systems integration and strategic outsourcing. Andy Williams holds degrees in mathematics from Cambridge University in the U.K. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BANK NEGARA: Partners with IBM to Meet Customers Demands -------------------------------------------------------- PT Bank Negara Indonesia (Persero) Tbk has partnered with International Business Machines Corporation to more quickly meet the demands of its increasingly tech-savvy customers and strengthen its market position in Indonesia's banking industry. As a leading Indonesian bank with more than 9 million customers and 972 branch offices across the Indonesian archipelago, Bank Negara Indonesia's first strategic SOA project was the strengthening of its electronic channels through the addition of new offerings to their Internet, mobile and ATM banking services to provide better service to their customers by making transactions as quick and convenient as possible. By using IBM WebSphere software and services to build its SOA and integrate its various service components, BNI is able to quickly aggregate critical data generated by separate systems. For example, data on customer accounts can be shared with new applications just by creating the links between the services. This cuts down the development time as the bank does not have to write a new customer account program for the new applications. Now, when information is updated in one system, the changes are reflected automatically in the others resulting in greater efficiency and productivity. With SOA, Bank Negara is able to protect its IT investments by recycling many of its existing software applications without compromising productivity or customer service. This is due to the fact that the SOA is based on open standards which allow existing and new applications to easily 'talk' to each other through IBM integration middleware. This standards-based approach enables Bank Negara to reuse existing business services, thereby shortening the application development time required to bring the new banking product or service to market. As a result, the bank is now able to reduce the development time from up to three months to down to a few weeks, facilitating a dramatic improvement in responsiveness to client demands. For example, bank Negara's tax services were previously only available from the bank tellers. With SOA, the bank is now able to link the services to Internet banking and ATM applications providing a new and additional service to its customers for a faster and more convenient tax payment option. "We realized the powerful benefits of SOA and chose IBM due to their world class technology which will enable us to respond quickly to emerging needs and changing technological circumstances," said Henrisa Lubis, Vice President, Information Technology Division, Bank Negara "Using a combination of IBM technology and services to build an SOA has freed bank Negara to focus on achieving our strategic business goals through the combination of world-class technology and more efficient organizational processes," Henrisa added. Further, to facilitate and enable the bank's internal team to become proficient in a relatively short period of time, IBM conducts small hands-on workshops monthly in order to effectively transfer SOA knowledge to the Bank's relevant staff during the project engagement. "IBM is deeply committed to developing innovative solutions to help its clients expand to new, emerging markets. We have seen great examples of SOA around the region helping clients to better align IT and business goals, resulting in improved business flexibility, cost savings, reduced risk, and increased revenue," said Erwin Sukiato, Country Manager, IBM Software Group. "IBM's collaboration with BNI, one of the leaders in the banking industry in Indonesia, leveraging on the innovative SOA technology, will enable the bank to quickly respond to new market opportunities and challenges faster and more efficiently," Erwin added. The next phase of the project is to implement WebSphere Service Registry and Repository (WSRR) to manage the services. This tool manages the repository of services that are already defined and used in bank Negara, and also tracks the versions of the programs, an essential tool to ensure workers know which version the programs are on. "When our business development team is asked to write a new application for a new product, our programmer will first check the repository to see whether a service is available that they can reuse--with or without modification--before they decide to create a new program," explained Henrisa. For the infrastructure, BNI acquired System p 595 and System p 590 servers to run IBM WebSphere MQ and other SOA tools such as IBM WebSphere Message Broker(TM). The bank also opted for IBM WebSphere DataPower(TM) SOA security appliance. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter-Asia Pacific Troubled Company Reporter-Asia Pacific on Dec. 7, 2007, Fitch Ratings has upgraded the National Long-term rating of PT Bank Negara Indonesia to 'AA-(idn)' (AA minus (idn)) from 'A+ (idn)). The Outlook is Stable. This rating action resolves the Positive Outlook that BNI's National rating was placed on in September 2007. At the same time, Fitch has affirmed BNI's other ratings, as follow: -- Long-term foreign and local currency Issuer Default Ratings at 'BB-' with a Positive Outlook, -- Short-term rating at 'B' -- Individual rating at 'D' -- Support rating at '4', and -- Support rating floor at 'B+' Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara Indonesia (Persero) Tbk.'s foreign currency long-term debt rating to Ba2 from Ba3 and foreign currency long-term deposit rating to B1 from B2. On April 20, 2007, Standard & Poor's Ratings Services raised Bank Negara's long-term counterparty credit ratings to 'BB-' from 'B+'. BANK RAKYAT: To Operate Shariah-Service Unit as Stand-Alone Bank ---------------------------------------------------------------- PT Bank Rakyat Indonesia (Persero) Tbk plans to operate its shariah service unit, BRI Syariah, in the first quarter this year, Thomson Financial reports. According to the report, BRI director Sarwono Sudarto said that BRI Syariah will initially have capital of IDR500 billion. BRI Syariah's focus will be on serving small- and medium-scale businesses, which have also become the main customers of BRI, he added. BRI Syariah will become the fourth stand-alone shariah bank in Indonesia, the report adds. Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three grou