T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, January 25, 2008, Vol. 11, No. 18 Headlines A U S T R A L I A 18 109 317 446 PTY: To Declare First Dividend on February 18 ABS BUMPER: To Declare First Dividend on February 15 CENTRO PROPERTIES: Largest Shareholder Sees Potential in Assets CENTRO: New CEO Optimistic About Debt Refinancing Extension CORONEOS CHIROPRACTIC: Creditors' Proofs of Debt Due on Feb. 15 ESSENTIAL HOUSEWARES: Supreme Court Enters Wind-Up Order FININVEST AUSTRALIA: Members Agree on Voluntary Liquidation FORTESCUE METALS: Says Pilbara Iron Ore Project is 82% Complete GETTY IMAGES: Board of Directors Explores Strategic Options J & J INDUSTRIES: Commences Liquidation Proceedings METRO MUSIC: Inability to Pay Debts Prompts Wind-Up PINE COUNTRY: Members Final Meeting Slated for February 13 SIRSI PARADISE: Members & Creditors Receive Wind-Up Report WESTPOINT GROUP: Court Grants Carey & Others to Travel WILFRID H.C. KELVIN: Members Opt to Shut Down Business C H I N A , H O N G K O N G & T A I W A N ASIA FORTUNE: Members Meeting Fixed for February 21 BOMBARDIER INC: Earns US$91 Million in 3rd Quarter Ended Oct. 31 CHINA EASTERN: To Push for Singapore Air Tie-Up, Report Says CITIC RESOURCES: Enters Into US$280 Mln Loan Deal with 10 Firms GLOBAL POWER: Emerges from Chapter 11 Bankruptcy GLOBAL SPECIALTY: Members Final Meeting Slated for February 20 INDO HONG KONG: Creditors' Proofs of Debt Due on Feb. 29 INTERNATIONAL SOCIETY: Creditors' Proofs of Debt Due on Feb. 29 MENLO WORLDWIDE: Liquidator Presents Wind-Up Report NEOMAX TRADING: Creditors' Proofs of Debt Due on Feb. 18 PARSEED DEVELOPMENT: Creditors' Proofs of Debt Due on Feb. 19 PEDRENA LIMITED: Liquidator Quits Post PETROLEOS DE VENEZUELA: Three Plants Have Refining Problems SHAW GROUP: Nuclear Division Opens Office in Shanghai SHORTRIDGE LIMITED: Liquidator Presents Wind-Up Report SOL MELIA: Members Meeting Fixed Today TOYOTA TSUSHO: Members Meeting Fixed for Feb. 19 I N D I A BALLARPUR INDUSTRIES: Earns INR739 Mil. in Qtr. Ended Dec. 31 BALLARPUR INDUSTRIES: Two Firms to Invest US$175 Mil. in Unit BANK OF INDIA: Shareholders Approve QIP Issue CANARA BANK: Open Offer in Can Fin Fails; Acquires Only 0.92% CANARA BANK: Books INR4.6-Bil. Net Profit in Qtr. Ended Dec. 31 FERTILIZERS & CHEMICALS: Oct-Dec Loss Widens to INR544.6 Million GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally ICICI BANK: Unit to Raise US$1 Bil. via Pre-IPO Share Placement QUEBECOR WORLD: Moody's Cuts Corp. Family & Bond Ratings to Ca TATA MOTORS: Allies with Chrysler to Sell Electric Truck in U.S. I N D O N E S I A ALCATEL-LUCENT: Unit to Promote Home Telecommuting INDOSAT: Temasek Says Appeal Against KPPU's Ruling Will Win J A P A N ALITALIA SPA: Ministers Say Political Crisis Not Affecting Talks DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced JABIL CIRCUIT: Paying US$0.07 Per Share Dividend on March 3 NIS GROUP: JCR Assigns BB- Senior Debt Rating K O R E A DAEWOO E&C: Gets US$262-Million Deal to Build Shipyard KENERTEC: Sets Jan. 31 as Establishment Date for Indonesian Unit THE LEADCORP: Adjusts Conversion Price of 1st Convertible Bonds MAGNACHIP: To Hold Conference Call for 4Q Results Today MIJU RAIL: Largest Shareholder Sells 6,320,000 Shares MIJU STEEL: Lowers Outlook for FY2007 Revenue & Operating Profit * Moody's says Korean Banks 1H08 Funding Tight, Ratings Stable M A L A Y S I A ASPEN TECHNOLOGY: Deloitte Declines Re-Appointment as Accountant MALAYSIAN AIRLINES: Chooses RMG Worldwide as Service Provider SHAW GROUP: Finalizes Little Gypsy 3 Re-Power Project Agreement SOLUTIA INC: Chapter 11 Emergence Delayed on Credit Woes N E W Z E A L A N D ADVANCED SCAFFOLDING: Subject to CIR's Wind-Up Petition AIR NEW ZEALAND: To Release Half-Year Result by Feb. 29 ASSET BUILDERS: Subject to CIR's Wind-Up Petition BONSAI PRODUCTIONS: Faces Carol Margaret's Wind-Up Petition CHANNEL PUBLISHING: Faces CIR's Wind-Up Petition CITILAND LTD: Court to Hear Wind-Up Petition on February 21 CONNEXIONZ LTD: Now Owns 100% of U.K. Joint Venture CIL CONNEXIONZ LTD: Gets NZ$1.1 Million Order From Reading Borough DDJ (RENTALS): Wind-Up Hearing Set for January 28 JCR DEVELOPMENTS: Subject to Ian Dick's Wind-Up Petition KFP HOLDINGS: Court to Hear Wind-Up Petition on January 28 RATAHI CONTRACTING: Faces CIR's Wind-Up Petition RHODES APARTMENTS: Appoints Vance & Jordan as Liquidators P H I L I P P I N E S BANCO DE ORO-EPCI: SSS Gains PHP1.59 Bil. from Shares Sale METROPOLITAN BANK: To Refinance US$235-Mil. Tier 2 Notes in 4Q RIZAL COMMERCIAL: May Issue Up to PHP7 Billion in Tier 2 Notes S I N G A P O R E FIRST ICE: Court Enters Wind-Up Order LOONG GUAN: Court to Hear Wind-Up Petition on February 15 NANO IMAGING: Court Directs Wind Up of Operations T H A I L A N D BANK OF AYUDHYA: Incurs THB3.991-Billion Net Loss for FY2007 KRUNG THAI BANK: NPLs Fall to 9.53% of Lending at December 2007 TMB BANK: Analysts See Hard Recovery Despite ING's Participation * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= 18 109 317 446 PTY: To Declare First Dividend on February 18 ------------------------------------------------------------ 18 109 317 446 Pty Ltd, which is in liquidation, will declare its first dividend on February 18, 2008. Only creditors who were able to file their proofs of debt by January 21, 2008, will be included in the company's dividend distribution. The company's liquidator is: John Sheahan Sheahan Lock Partners Level 2, 234 George Street Sydney, New South Wales 2000 Australia About 18 109 317 446 Pty 18 109 317 446 Pty Ltd operates employment agencies. The company is located at Parramatta, in New South Wales, Australia. ABS BUMPER: To Declare First Dividend on February 15 ---------------------------------------------------- ABS Bumper Bar Reconditioners Pty Ltd will declare its first dividend on February 15, 2008. Creditors are required to file their proofs of debt by Feb. 1, 2008, for them to be included in the company's dividend distribution. The company's deed administrator is: M. J. M. Smith Smith Hancock Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia About ABS Bumper ABS Bumper Bar Reconditioners Pty Ltd operates non-classifiable establishments. The company is located at Toongabbie, in New South Wales, Australia. CENTRO PROPERTIES: Largest Shareholder Sees Potential in Assets --------------------------------------------------------------- Centro Properties Group's largest shareholder, Colonial First State, held onto its entire stake in the firm amid a price plunge because it still sees value in the company, reports The West. According to The West, John Snowden, who manages an equivalent of AU$6.9 billion as head of property securities at Colonial First, said his funds retained their 8.3% stake in Centro because Centro's Australian assets will provide "significant value" if it can better manage its debt. Mr. Snowden reveals in an interview with The West that, "Their assets are good quality and are performing well; we are very focused on cashflow, which we see as a starting point to determine where relative value lies." The report states that Centro's eight most profitable shopping centers are in Australia, where retail sales increased for a sixth month in November. However, The West notes that UBS AG analyst Simon Garing earlier said that Centro had a better chance of selling Australian shopping centers near book value than the U.S. malls. Thus, the health of the Australian assets may mean they are the easiest for Centro to sell to pay off debt, relates The West. Colonial First, adds The West, and its parent Commonwealth Bank of Australia, together hold a total of 96.8 million Centro shares, equal to an 11.5% stake. Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property Trust and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CENTRO: New CEO Optimistic About Debt Refinancing Extension ----------------------------------------------------------- Centro Properties Group's new chief executive officer, Glenn Rufrano, expressed optimism about securing an extension for a AU$3.9-billion debt refinancing, and ruled out a fire sale of its assets, the Australian Associated Press reports. Mr. Rufrano, according to the report, also said that the company would open a data room next week for potential buyers of some or all of its interest, including two wholesale funds. AAP relates that Mr. Rufrano is optimistic that the banks will give them an extension for the deadline of its maturing debt. In a media briefing, Mr. Rufrano said, "The banks are not going to put themselves in a position with us that will make it untenable for them and us as long as we are doing our jobs," and added that Centro owns good quality properties. Mr. Rufrano, relates AAP, met with local banks and will be meeting with U.S. banks next week when he returns to the U.S. AAP further quotes Mr. Rufrano as saying, "The problem we have is the balance sheet issue, it's not an operating issue." Centro is considering the sale of its investments in the Centro Australian Wholesale Fund and Centro America Fund, which have AU$2.6 billion and AU$1.1 billion under management, respectively. In addition, Centro is looking for an equity injection, but did not say for how much, says AAP. Mr. Rufrano affirms that he has no plans of selling the more than 800 shopping centers of Centro across Australia, New Zealand and the United States, adds AAP. With regards to those interested parties for some or all of the company's interests, Mr. Rufrano was tight-lipped but said that there was "heavy interest" from around the world. "We have had a lot of consideration from all three forms of equity raising. All options are favored equally," says Mr. Rufrano. About Centro Properties 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. CORONEOS CHIROPRACTIC: Creditors' Proofs of Debt Due on Feb. 15 --------------------------------------------------------------- The creditors of Coroneos Chiropractic Centre Pty Limited are required to file their proofs of debt by February 15, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 31, 2007. The company's liquidator is: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Coroneos Chiropractic Coroneos Chiropractic Centre Pty Ltd operates offices and clinics of chiropractors. The company is located at Chatswood, in New South Wales, Australia. ESSENTIAL HOUSEWARES: Supreme Court Enters Wind-Up Order -------------------------------------------------------- On December 21, 2007, the Supreme Court of New South Wales entered an order to have Essential Housewares Australia Pty Limited's operations wound up. D. I. Mansfield was then appointed as liquidator. The Liquidator can be reached at: D. I. Mansfield Moore Stephens Chartered Accountants Level 6, 460 Church Street Parramatta, New South Wales 2150 Australia About Essential Housewares Essential Housewares Australia Pty Ltd is a distributor of home furnishings. The company is located at Artarmon, in New South Wales, Australia. FININVEST AUSTRALIA: Members Agree on Voluntary Liquidation ----------------------------------------------------------- During a general meeting held on December 19, 2007, the members of Fininvest Australia (New South Wales) Pty Limited resolved to voluntarily liquidate the company's business. Roderick Mackay Sutherland was then appointed as liquidator. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland GPO Box 4256 Sydney, New South Wales 2001 Australia Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 e-mail: admin@jirschsutherland.com.au About Fininvest Australia Fininvest Australia (New South Wales) Pty Limited provides management consulting services. The company is located at Chatswood, in New South Wales, Australia. FORTESCUE METALS: Says Pilbara Iron Ore Project is 82% Complete --------------------------------------------------------------- Fortescue Metals Group Ltd. said that the construction of its AU$2.7-billion (US$2.4-billion) iron ore project in the Pilbara region of Australia was 82% complete as of the end of December, Jesse Riseborough writes for Bloomberg News. According to Bloomberg, Fortescue said in a statement to the Australian Stock Exchange that the cost of building the project increased AU$17 million (US$15 million). The company, the report notes, assures that the first shipment of ore from the Pilbara mine remains on schedule for May. 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. GETTY IMAGES: Board of Directors Explores Strategic Options ----------------------------------------------------------- Getty Images Inc. confirmed that its board of directors is exploring strategic alternatives to enhance shareholder value. The board of directors has retained Goldman Sachs & Co. as its financial advisor and Weil Gotshal & Manges LLP as its legal advisor in connection with its evaluation of such alternatives. While the evaluation process, including discussions with various interested parties, is ongoing, there can be no assurance that any transaction will occur or as to the timing, structure, price or terms of any transaction. Getty Images does not plan to update the market with any further information on the process unless and until such time as its board deems appropriate. Headquartered in Seattle, Washington, Getty Images Inc. (NYSE:GYI) -- http://www.gettyimages.com/-- is a creator and distributor of visual content. The company provides relevant imagery to professionals at advertising agencies, graphic design firms, corporations, and film and broadcasting companies; editorial customers involved in newspaper, magazine, book, compact disc and online publishing, and corporate marketing departments and other business customers. Getty Images offers its imagery and related services through the company's website and a global network of company-owned offices and delegates. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * As reported in the Troubled Company Reporter on Oct. 2, 2007, Standard & Poor's Ratings Services raised its ratings on Getty Images Inc., including raising the corporate credit rating to 'BB' from 'B+, and removed the ratings from CreditWatch. The outlook is negative. J & J INDUSTRIES: Commences Liquidation Proceedings --------------------------------------------------- J & J Industries (New South Wales) Pty Limited commenced liquidation proceedings on December 28, 2007. Peter Ngan was then appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia About J & J Industries J & J Industries (New South Wales) Pty Limited provides management consulting services. The company is located at Rooty Hill, in New South Wales, Australia. METRO MUSIC: Inability to Pay Debts Prompts Wind-Up --------------------------------------------------- The members and creditors of Metro Music (Australia) Pty Ltd met on December 21, 2007, and resolved to voluntarily wind up the company's operations due to its inability to pay debts when they fall due. Geoffrey McDonald and Blair Pleash were then appointed as liquidators. The Liquidators can be reached at: Geoffrey McDonald Blair Pleash c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Metro Music Metro Music (Australia) Pty Ltd provides services allied to motion pictures. The company is located at Avalon, in New South Wales, Australia. PINE COUNTRY: Members Final Meeting Slated for February 13 ---------------------------------------------------------- Pine Country Pty Limited will hold a final meeting for its members on Feb. 13, 2008, at 10:00 a.m., at 8 Ash Street, in Orange New South Wales 2800, Australia. At the meeting, the members will: -- receive and adopt the liquidator's report on his dealings during the conduct of the wind-up; -- receive and adopt Australian Securities and Investments Commission Form 524 Accounts and the liquidator's statement; and -- transact other business which may properly be brought forward at the meeting. About Pine Country Pine Country Pty Limited operates non-classifiable establishments. The company is located at Orange, in New South Wales, Australia. SIRSI PARADISE: Members & Creditors Receive Wind-Up Report ---------------------------------------------------------- The members and creditors of Sirsi Paradise Waters Pty Ltd met on December 19, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Edmund C. So The Accountancy Practice (Services) Pty Limited Suite 7, Ground Floor 20 Bungan Street Mona Vale, New South Wales Australia Telephone:(02) 9999 0288 Facsimile:(02) 9979 4088 About Sirsi Paradise Sirsi Paradise Waters Pty Ltd is a distributor of durable goods. The company is located at Newport, in New South Wales, Australia. WESTPOINT GROUP: Court Grants Carey & Others to Travel ------------------------------------------------------ One of the directors of Westpoint Group, Norm Carey, has succeeded in lifting court orders preventing him from leaving Australia, the Australian Associated Press reports. Mr. Carey and his lawyer, Mark de Kerloy, opposed what the Australian Securities & Investments Commission sought in extending freezing orders and travel restrictions for Mr. Carey along with other former Westpoint directors and officers, relates AAP. According to the report, the freeze orders were extended until January 31, 2008, after the ASIC said a potential criminal case was being prepared for the Director of Public Prosecutions. The report notes that, specifically, Justice French extended the orders in relation to asset preservation until midnight on March 6, and scheduled a hearing on the matter at a date to be set in early March. Meanwhile, the orders capping legal representation and restricting travel were not extended. AAP quotes Mr. Kerloy as saying to Justice French, "There is no evidence that Mr. Carey in any way, shape or form, represents a flight risk." AAP adds that Justice French said that Mr. Carey and others affected by the travel restrictions would be able to collect their passports from the court after January 31, unless ASIC successfully lodges a new application against the move. ASIC, represented by Stephen Owen-Conway, said it was going to take legal action against a number of financial adviser and five directors and officers associated with the Westpoint collapse to recover about AU$245 million, recalls AAP. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. WILFRID H.C. KELVIN: Members Opt to Shut Down Business ------------------------------------------------------ During a general meeting held on December 21, 2007, the members of Wilfrid H.C. Kelvin & Associates Accountancy Pty Limited resolved to voluntarily wind up the company's operations. Stephen Wesley Hathway and Terry Grant van der Velde of SV Partners were then appointed as liquidators. The Liquidators can be reached at: Stephen Wesley Hathway Terry Grant van der Velde SV Partners Insolvency Accountants and Business Solutions Suite 6.03, Level 6 135 King Street Sydney, New South Wales 2000 Australia About Wilfrid H.C. Kelvin Wilfrid H C Kelvin & Associates Accountancy Pty Limited provides accounting, auditing, and bookkeeping services. The company is located at Terrey Hills, in New South Wales, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ASIA FORTUNE: Members Meeting Fixed for February 21 --------------------------------------------------- The members of Asia Fortune Holdings Limited will have their final general meeting on February 21, 2008, at the 13th Floor of Lawison Building, No. 37 Hillwood Road, 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 Keiko Ishikawa. BOMBARDIER INC: Earns US$91 Million in 3rd Quarter Ended Oct. 31 ---------------------------------------------------------------- Bombardier Inc. reported net income of US$91.0 million for the third quarter of fiscal 2008, ended Oct. 31, 2007, compared with net income of US$74.0 million in the corresponding period in fiscal 2007. Earnings before financing income, financing expense and income taxes, from continuing operations, reached US$201.0 million, compared to US$105.0 million for the same period in the previous year. This brings the EBIT margin to 4.8%, which compares favorably to fiscal 2007's 3.1% for the same quarter. Free cash flow also surged by US$677.0 million to reach US$560.0 million. Net financing expense amounted to US$68.0 million for the third quarter of fiscal year 2008, compared to US$50.0 million for the corresponding period of last year. Consolidated revenues totaled US$4.2 billion for the third quarter ended Oct. 31, 2007, compared to US$3.4 billion for the same period last year. Cash and cash equivalents increased by US$1.0 billion compared to Jan. 31, 2007, totaling US$3.6 billion at the end of the third quarter of fiscal 2008. "Both business groups produced substantial increases in revenues and made steady improvement in profitability," commented Laurent Beaudoin, chairman of the Board and chief executive officer, Bombardier Inc. "They also generated high levels of free cash flow for the quarter. At Aerospace, orders for business aircraft remained solid, and deliveries of both business and regional aircraft continued to climb. "At Transportation, order levels were similarly robust, bringing our book-to-bill ratio to a healthy 1.7 for the quarter," added Mr. Beaudoin. "Indeed, the corporation's solid backlog, which now tops more than US$50.0 billion, testifies to the enduring demand for our fully diversified product offering. I am confident that Bombardier will continue to build from this solid foundation to execute its market leadership strategy." Nine Month Results For the nine-month period ended Oct. 31, 2007, consolidated revenues reached US$12.2 billion compared to US$10.5 billion for the same period last year. For the nine-month period ended Oct. 31, 2007, EBIT from continuing operations before special items amounted to US$597.0 million, or 4.9% of revenues, compared to US$333.0 million, or 3.2% of revenues, for the same period the previous year. For the nine-month period ended October 31, 2007, net financing expense reached US$209.0 million, compared to US$148.0 million for the same period last year. The special item for the nine-month period ended Oct. 31, 2007, relates to the write-off of the carrying value of the investment in Metronet in Transportation. Net income was US$99.0 million for the nine-month period ended Oct. 31, 2007, compared to US$156.0 million for the same period the previous year. Balance Sheet At Oct. 31, 2007, the company's consolidated balance sheet showed US$20.57 billion in total assets, US$17.50 billion in total liabilities, and US$3.07 billion in total stockholders' equity. About Bombardier Inc. Headquartered in Canada, Bombardier Inc. (TSE: BBD) -- http://www.bombardier.com/-- is a manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. The company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, Australia and China. * * * As reported in the Troubled Company Reporter on Jan. 22, 2008, Fitch Ratings upgraded Bombardier Inc.'s ratings, including the company's Issuer Default Rating to 'BB' from 'BB-', and removed the ratings from Rating Watch Positive following the company's early redemption of approximately $1.0 billion of debt. The Rating Outlook is Positive. CHINA EASTERN: To Push for Singapore Air Tie-Up, Report Says ------------------------------------------------------------ China Eastern Airlines intends to try harder to gain the support of its shareholders with regard to a tie-up with Singapore Airlines, Reuters reports, citing China Eastern Chairman Li Fenghua. According to Reuters, Mr. Li told China Daily that China Eastern wanted to hold another shareholder meeting to discuss the planned stake sale. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders earlier rejected a bid by Singapore Airlines and Temasek Holding Pte Ltd to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. The TCR-AP reported that Air China and CNAC specifically vowed to pay at least 32% more (or at least HK$5.00 a share) than what Singapore Airlines and Temasek agreed to pay for a 24% stake in China Eastern. Singapore Air and Temasek had proposed to pay China Eastern HK$3.80 per share, or HK$7.2 billion (US$923 million) in aggregate. Shortly after the rejection, Reuters recounts, CNAC proposed a "strategic partnership" with China Eastern. An earlier Reuters report stated that CNAC said its proposal could bring China Eastern a cash injection of US$1.9 billion and involve a broad tie-up between the two airlines' operations. 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. Mr. Li, Reuters notes, did not give a timetable for another shareholder meeting. 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. CITIC RESOURCES: Enters Into US$280 Mln Loan Deal with 10 Firms --------------------------------------------------------------- CITIC Resources Holdings Ltd. had entered into a US$280-million term loan facility agreement with 10 financial institutions, Reuters reports. Reuters, citing a statement by CITIC Resources, notes that the loan has a term of five years, starting Jan. 23, and will be applied towards refinancing an existing facility of US$150 million, as well as corporate funding requirements. According to the report, lenders could require the loan to be repaid if CITIC Resources' state-backed parent, CITIC Group, ceases to hold at least 40% of the firm's issued share capital. About CITIC Resources Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. The Troubled Company Reporter-Asia Pacific reported on July 31, 2007, that Standard & Poor's Ratings Services raised the corporate credit rating on CITIC Resources Holdings Ltd. to 'BB+' from 'BB'. The TCR-AP reported on Dec. 19, 2007, that Moody's Investors Service affirmed the Ba2 corporate family rating on CITIC Resources Holdings Ltd, and the Ba2 rating of the US$1 billion seven-year unsecured senior notes issued by CITIC Resources Finance (2007) Ltd and guaranteed by CITIC Resources. GLOBAL POWER: Emerges from Chapter 11 Bankruptcy ------------------------------------------------ Global Power Equipment Group Inc. has successfully reorganized its business operations and emerged from chapter 11 bankruptcy protection. The company has completed the steps necessary to cause its Plan of Reorganization to become effective, including securing US$150 million in exit financing and completing its rights offering and private placement that raised US$71 million in new capital for the company. "After almost a year and half in the bankruptcy process, our company achieved an extraordinary milestone and exited chapter 11 with a sound financial position in order to remain a global leader as an equipment and services provider to the power infrastructure, energy and process industries," John Matheson, President and Chief Executive Officer of Global Power, said. "Our dedicated employees and management team have a great sense of pride for our company's accomplishments and remain committed to serving our strong customer base. We thank our customers and stakeholders for their perseverance, and going forward we pledge to continue providing the highest quality products and services." Consistent with the terms of the order confirming the Plan, the company entered into a US$150 million exit financing package with a group of lenders led by Morgan Stanley Senior Funding, Inc., as lead arranger, bookrunner and administrative agent. The exit-financing package consists of a US$60 million revolving credit facility and a US$90 million term loan. In accordance with the Plan, the funds from the exit financing and new equity investment will be used, in part, to pay all allowed creditor claims of Global Power and its Williams and Braden subsidiaries in full. A separate cash reserve of US$34 million has been established for the payment of allowed unsecured claims against the company's Deltak, L.L.C. subsidiary. In addition to the payment of allowed claims, Global Power will also be issuing approximately 134 million shares of new common stock to its shareholders and participants in the new equity investment, and it will issue warrants for approximately 16 million additional shares as consideration to the group of shareholders that fully backstopped the rights offering and private placement. Under the rights offering and private placement, the share price was dependant upon the final amount of equity capital raised by the company. The final amount of equity capital raised by the company was US$71 million, resulting in a per share price of US$0.85 for the new common stock issued pursuant to the Plan. The company has begun its initial distributions of cash and new common stock provided for under the Plan and it expects to complete initial distributions by the end of January 2008. With the company's successful emergence from chapter 11, Global Power has a new five-member board of directors. The directors, in addition to John Matheson, are Carl Bartoli, Terence Cryan, Eugene I. Davis, and Charles Macaluso. About Global Power Equipment Group Based in Oklahoma, Global Power Equipment Group Inc. (Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design, engineering and manufacturing firm providing an array of equipment and services to the energy, power infrastructure and process industries. The company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, and has over 40 years of power generation industry experience. The company's equipment is installed in power plants and in industrial operations in more than 40 countries on six continents. In addition, the company provides routine and specialty maintenance services to nuclear, coal-fired, fossil, and hydroelectric power plants and other industrial operations. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq., Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham, Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M. Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq., at The Bayard Firm, represent the Debtors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. At Oct. 31, 2006, Global Power's balance sheet showed total assets of US$177,758,000 and total debts of US$99,017,000 Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official Committee of Unsecured Creditors. The Official Committee of Equity Security Holders is represented by Howard L. Siegel, Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels LLP. GLOBAL SPECIALTY: Members Final Meeting Slated for February 20 -------------------------------------------------------------- The members of Global Specialty Chemicals Limited will have their final general meeting on February 20, 2008, at Room 601 of the Albion Plaza, 2-6 Granville Road, 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 Tsang Chui Woon. INDO HONG KONG: Creditors' Proofs of Debt Due on Feb. 29 -------------------------------------------------------- The creditors of Indo Hong Kong International Finance Limited are required to file their proofs of debt by February 29, 2008, for them to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 11, 2008. The company's liquidators are: Chan Wah Tip, Michael Ho Man Kei 601 Prince's Building Charter Road Central, Hong Kong INTERNATIONAL SOCIETY: Creditors' Proofs of Debt Due on Feb. 29 --------------------------------------------------------------- The creditors of International Society of Life-Nurturing Traditions Limited are required to file their proofs of debt by February 29, 2008, for them to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 11, 2008. The company's liquidator is: Tong Fuk Hung 21st Floor Weswick Commercial Building 147-149 Queen's Road East Wanchai, Hong Kong MENLO WORLDWIDE: Liquidator Presents Wind-Up Report --------------------------------------------------- The members of Menlo Worldwide Forwarding Hong Kong Limited will have their final general meeting on February 19, 2008, at 2855 Campus Drive, San Mateo, in California, U.S.A., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are Chan Wah Tip, Michael, and Ho Man Kei, Keith. NEOMAX TRADING: Creditors' Proofs of Debt Due on Feb. 18 -------------------------------------------------------- The creditors of Neomax Trading (Hong Kong) Limited are required to file their proofs of debt by February 18, 2008, for them to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 9, 2008. The company's liquidators are: Darach Eoghan Haughey Lai kar Yan, Derek 35th Floor, One Pacific Place 88 Queensway, Hong Kong PARSEED DEVELOPMENT: Creditors' Proofs of Debt Due on Feb. 19 ------------------------------------------------------------- The creditors of Parseed Development Limited are required to file their proofs of debt by February 19, 2008, for them to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 11, 2008. The company's liquidators are: Puen Wing Fai Lo Yeuk Ki, Alice 6th Floor, Kwan Chart Tower 6 Tonnochy Road Wanchai, Hong Kong PEDRENA LIMITED: Liquidator Quits Post -------------------------------------- On January 8, 2008, Kwok Chi Sun Vincent stepped down as liquidator for Pedrena Limited. The former liquidator can be reached at: Kwok Chi Sun, Vincent Suite 1703, 17th Floor 88 Hing Fat Street Causeway Bay, Hong Kong PETROLEOS DE VENEZUELA: Three Plants Have Refining Problems ----------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA's El Palito, Cardon, and Amuay plants are experiencing "profound" refining problems, Business News Americas reports, citing an industry source. As reported in the Troubled Company Reporter-Latin America on Jan. 23, 2008, a source at El Palito plant said that operations at the refinery has restarted after an electrical outage shut down units. As reported on Jan. 22, 2008, Petroleos de Venezuela also restarted operations at its Amuay and Cardon plants. Petroleos de Venezuela had said that its Amuay plant in the Paranguana refining complex in Falcon was temporarily closed down due to power failure. The problem came from a power unit in Amuay's block 29. Paraguana managers activated emergency procedures at Amuay. The source commented to BNamericas, "They [the plants] are importing high-octane components and are desperately looking for a cargo of finished mogas [gasoline]." According to BNamericas, some industry analysts have said that Petroleos de Venezuela has refining problems partly due to investment deficits and insufficient qualified personnel. A Petroleos de Venezuela spokesperson told BNamericas that the three plants were operating normally. However, he didn't confirm or deny reports that they were importing gasoline components, saying, "That would be strategic information that we don't release, but it's generally not like that." 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. SHAW GROUP: Nuclear Division Opens Office in Shanghai ----------------------------------------------------- The Shaw Group Inc.'s Nuclear Division has opened a new office in Shanghai, China, to support the rapidly growing Chinese nuclear power marketplace. The office will accommodate the Shaw project management team already working on four AP1000 nuclear reactors at power plants in Sanmen and Haiyang. "We are extremely pleased to expand our China operations," said Richard F. Gill, president of Shaw's Power Group. "Having a significant presence in both Beijing and Shanghai will allow us to serve our customers more efficiently, facilitate the successful execution of our existing nuclear power projects in China and strengthen our position for future projects and services in the world's fastest-growing economy." Shaw selected Shanghai as the location for its newest office to establish and grow a strong presence in the business center of China. The location also will facilitate close interaction with the Shanghai Nuclear Engineering Research and Design Institute, which is the premier nuclear design institute in China and provides important engineering services to the Consortium. Shaw will maintain its well-established Beijing office to continue providing business development services for the nuclear, fossil and process industries in China. Shaw and Westinghouse Electric Company, its AP1000 Consortium partner, signed contracts in July 2007 to provide services and equipment for two AP1000 nuclear reactors in Sanmen and two reactors in Haiyang. China has indicated plans to build as many as 30 new nuclear reactors by 2020. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. SHORTRIDGE LIMITED: Liquidator Presents Wind-Up Report ------------------------------------------------------ The members of Shortridge Limited will have their final general meeting on February 1, 2008, at the 13th Floor of Gloucester Tower, The Landmark, 15 Queen's Road, in Central, Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. SOL MELIA: Members Meeting Fixed Today -------------------------------------- The members of Sol Melia China Limited will have their final general meeting today, January 25, 2008, at the 27th Floor, Alexandra House, 18 Charter Road, in Central, Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Edward S. Middleton. TOYOTA TSUSHO: Members Meeting Fixed for Feb. 19 ----------------------------------------------- The members of Toyota Tsusho (Hong Kong) Company Limited will have their final general meeting on February 19, 2008, at Room 2702, Block 1, 27th Floor, Admiralty Centre, 18 Hancourt Road, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Moriyama Tsunenage. ========= I N D I A ========= BALLARPUR INDUSTRIES: Earns INR739 Mil. in Qtr. Ended Dec. 31 ------------------------------------------------------------- Ballarpur Industries Ltd's posted a INR738.8-million consolidated net profit after tax, minority interest and share in associates for the quarter ended Dec. 31, 2007. The bottom line is an improvement compared to the INR624.5 million earned in the same quarter in 2006. Reuters said the increased net profit could be attributed to higher paper prices and on gains from its unit Sabah Forest Industries Sdn Bhd, Malaysia. The company acquired the Malaysian unit on March 16, 2007. BILT's total income rose to INR7.49 billion in Oct.-Dec. 2007, from 2006's INR6.07 billion. Expenditures totaled INR6.21 billion, which included, among others consumption of Raw materials aggregating INR1.89 billion, consumption of stores & spare parts of INR1.22 billion and INR1.11 billion in utility expenses. Interest charges for the quarter were at INR357.8 million while taxes totaled INR188.3 million. A copy of BILT's consolidated financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2754 Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of Dec. 2, 2007, the company still carry those ratings. BALLARPUR INDUSTRIES: Two Firms to Invest US$175 Mil. in Unit ------------------------------------------------------------- Ballarpur Industries Ltd has disclosed the approval of US$175 million in equity investments by two major private equity investment firms -- GIC Special Investments Pte Ltd, a wholly owned subsidiary of Government of Singapore Investment Corporation Pte Ltd, and JP Morgan's Principal Investment Management Group -- in Ballarpur Paper Holdings B.V. BPH is a wholly owned step-down subsidiary of BILT in Netherlands. The investment will entitle GIC Special and Principal Investment to around 21% equity stake in BPH. BILT had created BPH as a special purpose vehicle for the acquisition of Sabah Forest Industries Sdn Bhd, the largest integrated pulp and paper mill in Malaysia. BPH owns 97.8% of the capital in SFI and the remaining 2.2% is held by the Government of Sabah. Pursuant to the financial restructuring terms of the approved Scheme of Arrangement and Reorganization, the three undertakings of BILT at Bhigwan, Ballarpur and Kamalapuram were transferred to its wholly owned subsidiary in India, BILT Graphic Paper Products Ltd, through a slump exchange effective July 1, 2007, for a lump sum value of INR1,950 crore. BILT will transfer its investments in BGPPL to BPH. BPH will utilize the funds to be received from the two investment firms to part finance consideration payable to BILT for sale of its investments in BGPPL. Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is a paper manufacturer and exporter. BILT has five product groups: coated wood-free, uncoated wood- free, copier, creamwove, and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards, and single side coated products. The company has a presence in all segments of the paper usage spectrum that includes writing and printing paper, industrial paper, and specialty paper. On April 12, 2004, Standard and Poor's Ratings Services gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. As of Dec. 2, 2007, the company still carry those ratings. BANK OF INDIA: Shareholders Approve QIP Issue --------------------------------------------- Bank of India's shareholders, at a meeting on Jan. 23, 2008, approved the proposed issuance of up 3,77,72,600 shares through qualified institutional placement, a filing with the Bombay Stock Exchange disclosed. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 2, the bank's board of directors decided to raise Tier I Capital by way of the share issuance. Based on the floor price, we could raise INR1,350-1,400 crore through the QIP, the Press Trust of India quoted BoI Chairman and Managing Director T. S. Narayanasami as saying. The money would be used for credit expansion, Basel II compliance and explore new business opportunities, the news agency relates. The bank has also received the approval of India's Ministry of Finance. Headquartered in Mumbai, India, Bank of India -- http://www.bankofindia.com-- 2628 branches in India spread over all states/ union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * Moody's Investors Service gave a Ba2 rating to the bank's Foreign LT Bank Deposits. CANARA BANK: Open Offer in Can Fin Fails; Acquires Only 0.92% ------------------------------------------------------------- Canara Bank was only able to acquire 1,89,130 shares, or 0.92%, in Can Fin Homes compared to the 43,14,246 shares, or 21.06%, that it intended to purchase pursuant to an open offer to shareholders of the housing finance firm. Canara planned to increase its stake by 21.06% to 51% in Can Fin Homes but with the little response from shareholders, the bank was only able to hike its holding 30.86%. Originally, Canara made an open offer to acquire up to 43,14,246 fully paid-up equity shares of Can Fin Homes for INR58 per share. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 18, 2007, the bank increased its open offer for the stake to INR63 per share and later to INR78 per share. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. CANARA BANK: Books INR4.6-Bil. Net Profit in Qtr. Ended Dec. 31 --------------------------------------------------------------- For the three months ended Dec. 31, 2007, Canara Bank posted a net profit of INR4.59 billion, more than 26% than the INR3.63 billion earned in the same quarter in 2006. Total income increased from INR32.45 billion in 2006 to INR40.97 billion in the latest quarter under review. The bank's expenditures in Oct.-Dec. 2007 aggregated INR33.39 billion, including operating expenses at INR7.23 billion and interest charges of INR26.16 billion. The bank also provided INR1 billion for taxes and INR1.99 billion as provisions and contingencies. A copy of the bank's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?275a Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Standard & Poor's Ratings Services, on July 4, 2007, assigned its 'BB' issue rating to Canara Bank's US$250 million Upper Tier II subordinated notes due in 2021. FERTILIZERS & CHEMICALS: Oct-Dec Loss Widens to INR544.6 Million ---------------------------------------------------------------- Fertilizers & Chemicals Travancore Ltd's net loss widened to INR544.6 million in the three months ended Dec. 31, 2007, from the INR269.3-million loss incurred in the same quarter in 2006. FACT's total income dipped from INR4.26 billion in the Oct.-Dec. 2007 quarter to INR1.48 billion for the latest quarter under review. The company booked an operating loss of INR334.2 million after recording operating expenses of INR1.82 billion, which is comprised of: Change in Stock In Trade INR171.6 million Consumption of Raw Materials INR975.6 million Other Expenditure INR235.3 million Cost of Power & Fuel INR151.4 million Employees Cost INR284.7 million FACT also posted depreciation of INR96.8 million and interest charges of INR113.6 million. A copy of FACT's unaudited financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2756 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. GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally ----------------------------------------------------------- General Motors Corp. sold 9,369,524 cars and trucks around the world in 2007, an increase of 3%, according to preliminary sales figures released. In the fourth quarter, GM sold 2,305,752 vehicles, an increase of 4.8% compared with a year ago. "We set a record in China with more than a million vehicles sold. We nearly doubled our sales in Russia to an all-time record of more than 258,000 vehicles delivered. And we set a record in Brazil with nearly a half-million vehicles sold," John Middlebrook, GM vice president, Global Sales, Service and Marketing Operations said. "This is the kind of emerging market growth that fuels our global performance. Customers are responding to our fuel-efficient and dynamically-designed product lineup around the world." The 2007 tally was the second best global sales total in the company's 100-year history and marked the third consecutive and fourth time (2007, 2006, 2005 and 1978) GM sold more than 9 million vehicles in a calendar year. GM's global position -- especially the emerging markets -- built sales momentum. Global sales of GM's top-selling brand, Chevrolet, grew more than 4% to 4.49 million vehicles compared with 2006 sales of 4.30 million. Chevrolet grew in all three regions outside North America, with the strongest performance in Europe with a nearly 34% increase compared with 2006. The Latin America, Africa and Middle East region saw strong Chevrolet growth with an additional 23% (208,000 vehicles) delivered over the 2006 level. Chevrolet also performed well in the Asia Pacific region, which was up 22%. The Aveo helped Chevrolet field a strong competitor in the very competitive global car market. GM also retains its strong truck portfolio, evidenced by 3.80 million truck sales around the world, an increase of more than 33,000 vehicles (1%) compared with 2006. Chevrolet sold more than 1.96 million trucks globally last year. GMC global sales grew nearly 6% in 2007, with 613,000 vehicles delivered, compared with 579,000 in 2006. Wuling sales in the Asia Pacific region also fueled significant truck, mini-truck, and mini-van performance with 516,000 vehicles sold, a 24% increase over 2006. GM increased full-size pickup truck market share in the U.S. in 2007 by 0.2 ppts to 40.2%. Cadillac saw global growth with sales increases outside of North America last year, thanks to a 45% increase in the Europe, a 42% climb in the Latin America, Africa and Middle East region, and an impressive 106% hike in the Asia Pacific region. Saab saw annual sales increases of 13% in the Latin America, Africa and Middle East region, and 5% in Asia Pacific. In Europe, Saab maintained its market share position (0.4%), and with the extension of BioPower to its 9-3 model range, continues to be the leading brand for E-85 vehicles in Europe. Global sales highlights include: * GM sold 9.37 million vehicles in 2007, an increase of 3%. In the quarter, sales of 2.31 million vehicles were up 4.8%. At 5.50 million vehicles, 2007 sales outside of the United States accounted for about 59% of GM's total global sales, outpacing the industry average growth rate. The industry has seen significant volume increases in the global automotive market in the past five years, and the market now nears 71 million. In 2007, GM's top three brands in sales volume were Chevrolet (4.49 million, up 4%), Opel/Vauxhall (1.69 million vehicles, up 4%) and GMC (613,000, up 6%). * In the Asia Pacific region, GM sales of 1.43 million vehicles topped 1 million vehicles for the third consecutive year, and GM China saw more than 18% sales growth compared with 2006. The company had regional Q4 sales of 382,000 vehicles, up nearly 17%, exceeding the industry average growth rate. GM was the top-selling global automaker in China in 2007, with 1.03 million vehicles sold -- becoming the first global automaker to exceed 1 million vehicle sales. Sales in India also set records with an annual volume growth of 74%, driven by the recent launch of the Chevrolet Spark and strong performances by the Chevrolet Tavera, Aveo and Optra. * In the Latin America, Africa and Middle East region, GM sales reached an all-time record 1.23 million vehicles, exceeding 1 million vehicles for the second time, up 19% in volume compared with 2006. For the quarter, 341,000 vehicles were sold, up 18%. GM saw volume increases in most major Latin America, Africa and Middle East markets in 2007. GM Brazil set an all-time domestic sales record with 499,000 vehicles delivered. The Chevrolet Corsa, Aveo and Celta were the three top sellers across the region in 2007. * In Europe, GM's record sales -- for the second year -- exceeded 2.18 million vehicles, up about 9%. Sales for the quarter of 529,000 vehicles were up 11%, exceeding the industry average. Full-year sales in Russia set an all- time record for the company by nearly doubling, up 95%. Sales volume in Russia exceeded a quarter million vehicles. Opel/Vauxhall, Chevrolet and Cadillac reported sales growth in Europe. Strong performance by the new Corsa, Astra, Meriva and Zafira led Opel/Vauxhall sales to more than 4% growth. Chevrolet achieved record sales of 458,000 vehicles, up nearly 34%. Cadillac sales were up 45%. Saab sold nearly 85,000 vehicles. Several of GM's regional brands also experienced notable growth in 2007. Saturn sales in North America were up 8% compared with 2006, largely on the popularity of the new 2007 AURA, AURA Hybrid, SKY, OUTLOOK, VUE, and VUE Green Line Hybrid. GM Holden sold 158,000 vehicles in 2007 as the Commodore remained Australia's best-selling car for the 12th consecutive year. Holden held its second-place position in the country's automotive market. 2008 marks Holden's 60th anniversary producing Australia's first locally-developed vehicle. 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 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 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. The outlook is stable. ICICI BANK: Unit to Raise US$1 Bil. via Pre-IPO Share Placement --------------------------------------------------------------- ICICI Bank Ltd's wholly owned subsidiary, ICICI Securities Ltd, aims to raise as much as US$1 billion through a pre-Initial Public Offering placement of shares, Reuters reports, citing ICICI Bank CEO & Managing Director K.V. Kamath. The Troubled Company Reporter-Asia Pacific, on Jan. 21, reported that ICICI Securities' board of directors has approved an IPO, as well as a private placement of shares to institutional investors. The bank's board also approved the proposed capital raising. Mr. Kamath told Reuters that the plan is to raise between three quarters of a billion to a billion dollars, adding that the issue will be done in the April-June period. ICICI Securities �could use a large part of the money in its own business,� Bloomberg News quotes Mr. Kamath as saying. �This company could make investments in other companies.� The TCR-AP also reported that aside from ICICI Securities, the bank also plans other three subsidiaries. The other units reportedly are ICICI Prudential and ICICI Lombard, both into insurance, and one housing finance subsidiary. 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. QUEBECOR WORLD: Moody's Cuts Corp. Family & Bond Ratings to Ca -------------------------------------------------------------- Moody's Investors Service downgraded Quebecor World Inc.'s corporate family rating to Ca. The company's debt instruments and those of related companies, Quebecor World Capital Corporation and Quebecor World Capital ULC, were also downgraded to Ca. In addition, the company's probability-of-default rating was downgraded to D to respond to QWI's Jan. 21, 2008 announcement that had applied for creditor protection under the Companies' Creditors Arrangement Act in Canada and Chapter 11 of the United States Bankruptcy Code in the United States. QWI's announcement also indicated that, pending court approval, it had entered into a US$1 billion financing commitment with Credit Suisse and Morgan Stanley that will allow the company "to meet all current operating needs, including wages, benefits and other operating expenses" as it restructures its operations and finances. Following these rating actions, Moody's will withdraw all of the relevant ratings. Downgrades: * Issuer: Quebecor World, Inc. -- Corporate Family Rating, Downgraded to Ca from Caa2; -- Probability of Default Rating, Downgraded to D from Caa2; -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD4, 67) from Caa2 (LGD4, 67). * Issuer: Quebecor World Capital Corporation -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD4, 67) from Caa2 (LGD4, 67). * Issuer: Quebecor World Capital ULC -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD4, 67) from Caa2 (LGD4, 67). Outlook Actions: * Issuer: Quebecor World, Inc. -- Outlook, Changed To Stable From Negative. * Issuer: Quebecor World Capital Corporation -- Outlook, Changed To Stable From Negative. * Issuer: Quebecor World Capital ULC -- Outlook, Changed To Stable From Negative. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. TATA MOTORS: Allies with Chrysler to Sell Electric Truck in U.S. ---------------------------------------------------------------- Tata Motors Ltd has entered into an agreement with a unit of Chrysler LLC for the development of an electric version of Tata's mini truck Ace, media reports say. Pursuant to a development contract that Tata Motors entered into with Chrysler's Global Electric Motorcars, the parties will develop and market battery-operated neighborhood electric vehicles that will be sold in the United States. The NEVs, which can ferry passengers and cargo, has passed required safety and reliability tests, and the prototype is ready for production, Alka Kshirsagar of the Business Line relates, citing unnamed sources in the industry. The vehicles, which will be shipped as completely built units, will mark Tata Motor's entry into the U.S. markets, BL points out. A Tata Motors spokesperson has admitted that the company, in partnership with an American firm, is exploring the possibility of a vehicle on the Ace platform with a U.S.-suitable electrical engine, BL relates. �But it is premature at this stage to furnish any details,� the spokesperson added. According to Reuters, Tata Motors will begin exporting around 10,000 units by year-end and ramp up to 50,000 units. The Press Trust of India, in a report on Wednesday, observed that Tata Motors' stock rose 1.56% to INR668.50 on reports of the Chrysler deal. As previously reported by the Troubled Company Reporter-Asia Pacific, Tata Motors on Jan. 10 unveiled the INR1-lakh (around US$2,500) Tata Nano, which it plans to launch in India late this year. 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. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd on review for possible downgrade. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Unit to Promote Home Telecommuting -------------------------------------------------- Alcatel-Lucent discloses the signature by its subsidiary Alcatel-Lucent France of a company-wide agreement to promote home telecommuting with all the unions present in the company. This innovative agreement offers employees of the different units and sites of Alcatel-Lucent France the possibility of working from their home one to two days a week provided the employees agree to do so and that their activity is eligible for telecommuting. This agreement makes every telecommuter an ambassador of his/her own Alcatel-Lucent products and solutions (such as collaborative enterprise applications). This agreement results from several trials conducted since 2003 within the sites of Velizy and then Villarceaux, both in the Paris area. It will progressively be implemented site by site throughout 2008 in France. Broadband technologies will enable employees to improve their work/life balance through greater flexibility in how to organize their work. In addition, home telecommuting is in line with Alcatel-Lucent's actions in favor of sustainable development*, among others by contributing to reducing polluting emissions, in particular by limiting the travel of its employees in Ile-de- France (Paris Region). "As a world leader of broadband technologies, Alcatel-Lucent wanted to contribute to new ways of working by developing telecommuting initiatives. In 2007, a workgroup and studies associating unions and occupational physicians provided an indication of the impact of telecommuting on the organization of teams and their productivity. Today, nearly 500 employees based in the Paris area are already trialing telecommuting one to two days per week" states Jean-Christophe Giroux, Chief Executive Officer of Alcatel-Lucent France. "The signing of this agreement confirms Alcatel-Lucent�s desire to be a socially responsible company that combines technological know-how, corporate competitiveness and responsibility in terms of sustainable development". This agreement is in line with the inter-professional frame agreement on telecommuting signed at the European level on July 16, 2002 and its adoption into French law by the national inter-professional agreement of July 19, 2005. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. INDOSAT: Temasek Says Appeal Against KPPU's Ruling Will Win ----------------------------------------------------------- PT Indosat Tbk's shareholder Temasek Holdings, an investment arm of the Singapore state, is confident that its appeal against the Business Competition Supervisory Commission's ruling will be successful, Antara News reports citing company lawyer Todung Mulya Lubi. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 23, 2007, Temasek Holdings was found guilty by the Business Competition Monitoring Commission (KPPU) of violating Indonesia's anti-monopoly laws. Temasek violated the country's anti-monopoly laws through its ownership in PT Indosat Tbk and PT Telekomunikasi Selular Indonesia. The TCR-AP related that KPPU ruled that Temasek must sell its minority stake in either Telekomunikasi Selular or Indosat. Syamsul Maarif, KPPU commission assembly chairman, reportedly said the shares must be sold within two years at the maximum since the decision has legal grounds. Mr. Lubis told Antara that the company was now only waiting for a summons from the Central Jakarta District Court to attend hearings on its appeal. The court, Antara relates, had postponed the hearings pending a decision of the Supreme Court on which district court would handle Temasek's appeal. Mr. Lubis said the choice would also depend on the KPPU's preference as conveyed to the Supreme Court, the report notes. Temasek Corporate Affairs Director Deliea Mohamad said the company was unaffected by the KPPU's ruling and would continue to invest in Indonesia, Antara adds. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company provides international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter-Asia Pacific reported on June 19, 2007, that Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive which is in line with the outlook on Indonesia's foreign currency country ceiling. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. ========= J A P A N ========= ALITALIA SPA: Ministers Say Political Crisis Not Affecting Talks ---------------------------------------------------------------- Italian ministers assured that the current political crisis in the country will not affect the exclusive talks to sell the government's 49.9% stake in Alitalia S.p.A. to Air France-KLM SA, published reports say. "[Alitalia Chairman Maurizio] Prato has full powers to conduct and conclude talks with Air France, with the duty to keep the minister informed, even during a government crisis," Transport Minister Alessandro Bianchi told Reuters. "Nothing changes, even if there is a government crisis," Economic Development Minister Pierluigi Bersani told Thomson Financial. "There is no disturbance," Mr. Bersani adds. Prime Minister Romano Prodi no longer has a majority in the Italian Senate after the Udeur party left the coalition government. Mr. Prodi yesterday survived a confidence vote in the lower parliamentary house, but may tender resignation on pressure from allies before the Senate vote, The Wall Street Journal says. As reported in the TCR-Europe on Jan. 17, 2007, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have two months to reach an agreement, which would be approved by the government. Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement of exclusive talks with Air France-KLM. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700 jobs and defended plans to downsize Alitalia's operations in Milan's Malpensa airport. Mr. Spinetta also revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Mr. Schioppa will represent the Italian government during sale talks and will evaluate whether to sell to the state's majority stake in Alitalia, Agenzia Giornalistica Italia says. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced -------------------------------------------------------- As widely reported, the Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York said he will approve Delphi Corp. and its debtor-affiliates' First Amended Joint Plan of Reorganization on the condition that the total payout of cash bonuses to top executives is reduced. "I am prepared to enter the confirmation order, provided the management compensation plan is changed," Judge Drain said at the confirmation hearings, which began Jan. 17, 2008. Reuters reports the Court wants the emergence bonus for Delphi's officers reduced to US$16.5 million from the US$87.9 million that Delphi had proposed to award to 500 managers upon emergence. But the United Auto Workers and the International Union of Electronic Workers-Communications Workers of America objected to payments, citing among other things, that while unionized Delphi employees suffered pay-cuts, the managers, who are already adequately compensated, are given generous bonuses. The management compensation plan seeks to grant an US$8.3 million "performance payment" to Executive Chairman Robert Miller; and a US$5.3 million cash emergence payment to Chief Executive Officer Rodney O'Neal. Delphi aims to emerge from Chapter 11 by the end of first quarter of 2008. Delphi, however, has yet to secure the US$6.1 billion exit financing to pay claims and fund its post- bankruptcy operations. According to The Associated Press, a Delphi executive said that the company expects to obtain a commitment for US$4.5 billion of the financing by Jan. 23, 2008, but there has been no indication whether the company is close to securing the loans. Delphi told the Court that the First Amended Plan satisfies the conditions for confirmation under Section 1129 of the Bankruptcy Code. It noted that the Plan has been approved by 81% of 4,000 creditors entitled to vote on the Plan. According to Bloomberg News, Delphi resolved or had overruled objections to earlier changes to the Plan, including those triggered by a US$2.55 billion investment in Delphi by a group of investors led by Appaloosa Management LP. Delphi, Bloomberg News reports, said that Davidson Kempner Capital Management LLC, Whitebox Advisors LLC and other bondholders have agreed to withdraw their objections, in exchange for, among other things, payment of the group's legal fees up to US$5 million. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court will convene the hearing to consider confirmation of the Plan on Jan. 17, 2008. (Delphi Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) JABIL CIRCUIT: Paying US$0.07 Per Share Dividend on March 3 ----------------------------------------------------------- Jabil Circuit Inc.'s Board of Directors has approved payment of a quarterly dividend to shareholders of record as of Feb. 15, 2008. The dividend of US$0.07 per share is payable on March 3, 2008. The company intends to continue to pay regular quarterly dividends; however the declaration and payment of future dividends are discretionary and will be subject to determination by the Board each quarter following its review of the Company's financial performance. Jabil Circuit, Inc., headquartered in St. Petersburg, Florida -- http://www.jabil.com/-- is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil Circuit has more than 50,000 employees and facilities in 20 countries, including Brazil, Mexico, United Kingdom and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 14, 2008, Moody's Investors Service has assigned a Ba1 rating to Jabil Circuit, Inc.'s proposed offering of US$300 million senior notes due 2018 and affirmed its existing ratings and negative outlook. At the same time, Fitch Ratings also assigned a 'BB+' rating to Jabil Circuit, Inc.'s proposed Rule 144A offering of US$300 million senior unsecured notes due 2018. Fitch currently rates Jabil Circuit as: -- Issuer default rating 'BB+'; -- Senior unsecured revolving credit facility 'BB+'; -- Senior unsecured debt 'BB+'. NIS GROUP: JCR Assigns BB- Senior Debt Rating --------------------------------------------- Japan Credit Rating Agency, Ltd. has assigned a preliminary BB- rating to shelf registration of NIS Group Co., Ltd. JCR has been placing rating on senior debts of NIS Group under Credit Monitor with Negative direction since October 2007 because there are concerns about the Company's liquidity on hand, relationships with the lenders and drop in its financial stability. NIS Group announced on December 10, 2007, its strategic capital and operational alliance with a US-based private equity firm TPG Inc. The alliance with TPG will lead to stabilization of NIS Group's financial footing. On the other hand, there remain points that have to become clear for analysis on impact of the alliance on NIS Group's management and business development. Therefore, JCR will continue to place the rating under Credit Monitor to examine carefully the impact on creditworthiness of the Company centering on the above concerns to be reflected in the future rating for the Company. Headquartered in Ehime Prefecture, Japan, NIS Group Co., Ltd., formerly Nissin Co., Ltd., -- http://www.nisgroup.jp/japanese/ind...-- is mainly engaged in the provision of secured and unsecured loans to individuals, including small business owners, consumers, small- and medium- sized enterprises in Japan. The Company operates in four business segments. The Integrated Loan Services segment is engaged in the provision of secured and unsecured loans, trust assurance, leasing and securities services to individuals and corporate clients. The Debt Management and Collection segment is engaged in the purchase, management and collection of debts. The Real Estate segment is engaged in the purchase, sale and development of real estate, as well as the asset management business. The Others segment is engaged in the provision of construction services and enterprise support services, among others. The Company has 54 subsidiaries and 10 associated companies. ========= K O R E A ========= DAEWOO E&C: Gets US$262-Million Deal to Build Shipyard ------------------------------------------------------ Daewoo Engineering & Construction has clinched a US$443-million order to build a shipyard in Oman jointly with an Oman-based builder, Yonhap News reports. According to the report, the company said in a regulatory filing that the ship repair yard is to be built in Duqm, a port city of Al Wusta on the southeastern coast of Oman. The company, the report says, holds a 59.07% in the order, equivalent to US$262 million, while Galfar Engineering and Contracting Co. has the rest of the stake. The company, however, did not disclose when it will start the construction of the ship repair yard, the report adds. Headquartered in Seoul, South Korea, Daewoo Engineering & Construction Co. -- http://www.daewooenc.com-- has become a world leader in civil engineering, housing construction, power and industrial plant development, architectural services, and construction of liquid natural gas facilities. In addition to large-scale domestic projects, Daewoo has more recently built gas plants in Nigeria, a hospital in Libya, and the Trump World Tower in New York, to name a few. Daewoo Engineering was formed in 2000 by creditors after Daewoo Group, then South Korea's second-largest industrial consortium, collapsed under about KRW85 trillion in debt. In early 2004, Daewoo Engineering's largest shareholder, the Korea Asset Management Company, disclosed a proposed auction of the construction firm. Daewoo Engineering is the latest part of the bankrupt Daewoo business empire to be sold. The contractor turned around its finances and outlook, posting KRW409.8 billion in net income in 2005, and has a backlog of KRW18.47 trillion worth of orders from regions including Africa, the Middle East and South Korea. The company's market value rose 70% in 2005 to KRW4.5 trillion. Operating profit was KRW432.1 billion in 2005, equal to 8.5% of revenue. Debt accounted for 130% of shareholder equity as of Dec. 31, 2005. KENERTEC: Sets Jan. 31 as Establishment Date for Indonesian Unit ---------------------------------------------------------------- Kenertec Co. Ltd amended the January 15, 2008 settlement date for the establishment of Kenertec Indonesia to January 31, Reuters Investing Keys reports. As reported by the Troubled Company Reporter - Asia Pacific on Jan. 9, 2008, the company planned to acquire 2,500,000 shares of Kenertec Indonesia for KRW2,316,500,000. The company move will make Kenertec Indonesia a wholly owned subsidiary of the company, the report recounted. Headquartered in Gyeongsangbuk Province, Korea, Kenertec Co., Ltd. -- http://www.kenertec.co.kr/-- is provides industrial burners and energy-related equipment. The company operates two main divisions: Furnace division, which provides regenerative combustion systems, including regenerative combustion industrial furnace burners, regenerative combustion radiant tube burners, regenerative combustion raddle burners, radiant combustion devices, direct heat-treatment burners, flat flame burners, turndish-heating burners, high-spray burners, low-nitrogen-oxide radiant tube burners, oxygen burners, flare stack burners and rotary kiln burners, and Energy division, which provides cogeneration systems, community energy systems and energy diagnosis equipment. Korea Ratings gave the company's convertible bond a BB rating on Jan. 30, 2007. THE LEADCORP: Adjusts Conversion Price of 1st Convertible Bonds --------------------------------------------------------------- The Leadcorp Inc. has adjusted the conversion price of its first convertible bonds from KRW2,720 to KRW2,626 per share, Reuters Investing Keys reports. According to the report, this company disclosure took effect on January 23, 2008. The initial announcement regarding the bond issuance was made on June 21, 2006, the report recounts. Seoul, Korea-based The LEADCORP, Inc. is engaged in the provision of oil and consumer financial service. The company operates its business under three main sectors: oil, gas station and resting place, and consumer financial service. Its oil business supplies gasoline, lamp oil, light oil and other related products predominantly in Jeolla Province, Korea. Its gas station and resting place business operates Cheon Ahn resting place in Chungcheong Province, Korea. The consumer financial service business offers loan service primarily through the Internet with its 10 domestic branches. Korea Investors Service affirmed the company's straight bonds series 13's 'BB-' rating with a stable outlook, as of June 28, 2006 MAGNACHIP: To Hold Conference Call for 4Q Results Today ------------------------------------------------------- MagnaChip Semiconductor Ltd. will hold a conference call with investors and analysts to discuss the company's fourth quarter 2007 results on January 25, 2008, at 9:30 a.m. EDT, in New York. The news release announcing the fourth quarter 2007 results will be disseminated before the New York Stock Exchange opens on January 25, 2008 in New York. The dial-in number for the live audio call beginning at 9:30 a.m. EDT, on January 25, in New York is +1-201-689-8560. A live webcast of the conference call will be available on MagnaChip's Web site at http://www.magnachip.com A replay of the call will be available from 12:30 p.m. EDT on Friday, January 25, 2008 through midnight on February 1, 2008 in New York at http://www.magnachip.comand by telephone at +1-201- 612-7415. The account number to access the replay is 3055 and the conference ID number is 268781, respectively. About MagnaChip Semiconductor Based in Korea, MagnaChip Semiconductor -- http://www.magnachip.com/-- designs, develops, and manufactures mixed-signal and digital multimedia semiconductors addressing the convergence of consumer electronics and communications devices. MagnaChip also provides wafer foundry services utilizing CMOS high voltage, embedded memory, and analog and power process technologies for the manufacture of IC's for customer-owned designs. MagnaChip has world-class manufacturing capabilities and an extensive portfolio of approximately 8,500 registered and pending patents. As a result, MagnaChip is a valued partner in providing leading technology solutions to its customers worldwide. * * * The Troubled Company Reporter-Asia Pacific reported on Oct. 10, 2007, that Moody's Investors Service confirmed the B2 corporate family rating of MagnaChip Semiconductor LLC. At the same time, Moody's confirmed the ratings of the debt issued by MagnaChip Semiconductor Finance Co and MagnaChip Semiconductor S.A., including: 1) B1 rating of the US$100 million five-year senior secured credit revolver 2) B2 rating of the US$500 million aggregate floating and fixed-rate second-priority senior secured notes due 2011 3) Caa1 rating of the US$250 million senior subordinated notes due 2014 On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on MagnaChip to 'B' from 'B+'. At the same time, S&P lowered the rating on MagnaChip's senior unsecured debt to 'B' from 'B+' and rating on its senior subordinated notes due 2014 to 'CCC+' from 'B-'. MIJU RAIL: Largest Shareholder Sells 6,320,000 Shares ----------------------------------------------------- Miju Rail MFG. Co. Ltd.'s largest shareholder, Ilkyung Co. Ltd., has signed a contract to sell 6,320,000 shares of the company to a Korea-based company, Reuters Investing Keys reports. According to the report, the shares are sold at the price of KRW14,902,560,000. Upon completion of the transaction, the Korea-based company is expected to become the largest shareholder of Miju Rail, the report adds. Incheon, Korea-based Miju Rail MFG. Co., Ltd. -- http://www.miju.co.kr/-- is a manufacturer of steel products. The company offers carbon steel pipes, stainless steel pipes, spiral steel pipes, elevator guardrails, light rails and steel plates. Korea Ratings, on May 8, 2006, gave the company's US$3,000,000 overseas bond with warrants issue a 'BB-' rating with a stable outlook. MIJU STEEL: Lowers Outlook for FY2007 Revenue & Operating Profit ---------------------------------------------------------------- Miju Steel Co. Ltd. has lowered the outlook for full year 2007 revenue and operating profit to KRW201,738 million and KRW4,246 million, Reuters Investing Keys reports. According to the re