T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, January 29, 2008, Vol. 11, No. 20 Headlines A U S T R A L I A ADOLFI PTY: Members Opt to Shut Down Firm ADVANCE FIBREGLASS: Liquidator Presents Wind-Up Report ALMA COURT: Placed Under Voluntary Liquidation CHRYSLER LLC: Invests US$27 Million in Toledo Machining Plant CONSTELLATION BRANDS: Selling Three Wine Brands for US$134 Mil. DIAN NOMINEES: Placed Under Voluntary Liquidation DUXTRON PTY: To Declare First Dividend on January 30 FORTESCUE METALS: Says Pilbara Final Forecast Cost is AU$2.70BB GETTY IMAGES: S&P Affirms BB Corp. Credit Rating; Outlook Neg. GILLESPIE INVESTMENTS: Undergoes Liquidation Proceedings J. & D.A. FRITH FAMILY: Members Resolve to Liquidate Business JASPAL ELECTRIC: Commences Liquidation Proceedings KELDON HOLDINGS: To Declare First Dividend on January 30 SEVEN STAR: Members' Final Meeting Slated for February 14 SYMBION: Healthscope and Primary to Start Consolidation Talks ZINIFEX LTD: Reports Rise in 1st Quarter Zinc and Lead Output C H I N A , H O N G K O N G & T A I W A N AGRICULTURAL BANK: Would Seek IPO Within Three Years BALL CORP: Reports US$281.3 Million 2007 Full Year Earnings BILLION METRO: Members Set Final Meeting on February 18 EVERICH CREATION: Court to Hear Wind-Up Petition on Jan. 30 FIAT SPA: Moody's Affirms Ba1 Corp. Family Rating; Outlook Pos. GALAWELL INVESTMENT: Members Set Final Meeting on February 18 HEXCEL CORP: Net Income Down to US$13-Million in Fourth Quarter HK ASSOCIATION OF PATHOLOGY: Commences Liquidation Proceedings HONG KONG & KOWLOON: Members Meeting Fixed for Feb. 20 HUMBERT MANUFACTURING: Members Meeting Fixed for Feb. 19 MAXLAND COMPUTER: Court to Hear Wind-Up Petition on Feb. 27 NIHON (HONG KONG): Members Meeting Fixed for Feb. 19 PETROLEOS DE VENEZUELA: Oil Output Drops 148,000 bpd in 2007 PROMINENCE REALTY: Pays Second and Final Dividend to Creditors TRW AUTOMOTIVE: Earns US$23 Mln in Third Quarter Ended Sept. 28 WAYRISE LIMITED: Members Set Final Meeting on February 18 YIU TING: Members Set Final Meeting on February 18 I N D I A ANDHRA CEMENTS: Profit Soars to INR182MM in Qtr. Ended Dec. 31 GERDAU SA: Chaparral Steel Acquisition is Biggest Takeover Deal GLOBAL BROADCAST: Shareholders Approve 1:5 Stock Split IFCI LTD: Puts Vishwas Steels Units on Sale to Recover Debt QUEBECOR WORLD: To Use US$750MM DIP Fund to Buy Receivables QUEBECOR: Wants Access to RBC's & Soc Gen's Cash Collateral SAMTEL COLOR: Allots Shares to Two Promoter Companies SAMTEL COLOR: Allots 29,21,499 Preference Shares to CDR Lenders TATA MOTORS: Offers Customers Free Fuel for New Purchases * Fitch Teleconference for Auto Sector Outlook Set on Jan. 30 I N D O N E S I A ARPENI PRATAMA: Pefindo Reaffirms "idA" Ratings AVNET INC: Reports US$142.2-Mln Net Income in Qtr. Ended Dec. 31 DIRECTED ELECTRONICS: Reduces Debt by US$75 Million in 2007 EXCELCOMINDO PRATAMA: Moody's Affirms Ba2 Local Currency Rating GARUDA INDONESIA: To Conduct Extra Flights for China Routes GOODYEAR: European Unit to Reduce Production at Two Factories HM SAMPOERNA: To Issue IDR1-Tril. Bond for Foreign Debt Payment INDOSAT: Russian Altimo Still Aiming to Buy Company Shares J A P A N ALITALIA SPA: Air France-KLM to Retain Alitalia Brand DELPHI CORP: Bankruptcy Court Confirms Chapter 11 Plan DELPHI CORP: To Sell Steering Business to Platinum Equity FORD MOTOR: Auto Credit Arm Earns US$775 Million in 2007 FORD MOTOR: Neapco Inks Sale Agreements for ACH Driveshaft Biz FORD MOTOR: Posts US$2.7 Billion Net Loss in Fiscal Year 2007 HARMAN INT'L: Declares US$0.0125 Per Share Quarterly Dividend XEROX CORPORATION: Earns US$1.1 Billion in Year Ended Dec. 31 * Six Cooperatives May Get JPY20-Billion Bailout from Shinkumi K O R E A BURGER KING: May No Longer Buy Tomatoes from Immokalee KOREAN EXPRESS: Kumho-Asiana Group Signs Deal to Acquire Stake MAGNACHIP SEMICONDUCTOR: Reports 2007 Fourth Quarter Results M A L A Y S I A AVAYA INC: Works with Extreme Networks in Ethernet Transition CNLT (FAR EAST): Bourse Grants June 10 Deadline to Submit Plan MANGIUM INDUSTRIES: Unit Defaults on MYR17 Mil. as of Dec. 31 MEGAN MEDIA: Suruhanjaya Approves Time Extension Request SHAW GROUP: Environmental Unit Bags Deal from General Electric SHAW GROUP: Nuclear Unit Launches New Office in Shanghai, China N E W Z E A L A N D AIR NEW ZEALAND: Cuts Domestic Fares to Fill Seats AIR NEW ZEALAND: To Suspend Nadi-Los Angeles Flights ISTATION LTD: Wind-Up Petition Hearing Set for February 11 JK HORTICULTURE: Wind-Up Petition Hearing Set for January 30 KABO DEVELOPMENTS: Faces CIR's Wind-Up Petition MARFIT INDUSTRIES: Taps Whittfield & van Delden as Liquidators NORTHRIDGE ARCHITECTURE: Faces CIR's Wind-Up Petition NORTHRIDGE CONSTRUCTION: Creditors' Meeting Set for January 30 SPENTA CONSULTANCY: Subject to Kiwi Capital's Wind-Up Petition TARANAKI CONSUMER: Faces CIR's Wind-Up Petition THE LITZ COMPANY: Subject to CIR's Wind-Up Petition ZURVAN INVESTMENTS: Faces Kiwi Capital's Wind-Up Petition P H I L I P P I N E S BANCO DE ORO-EPCI: Board Declares Semi-Annual Cash Dividend CHIQUITA BRANDS: May Bid for Five Million Boxes of Bananas EIB REALTY: Stockholders OK Increase in Capital to PHP2.946 Bil. EIB REALTY: To Hold Annual Stockholders' Meeting on June 2 EXPORT AND INDUSTRY: Annual Stockholders' Meeting Set for May 30 IPVG CORP: Seeks Non-Disclosure Deal with PeopleSupport on Offer NATIONAL POWER CORP: Moody's Changes Rating Outlook to Positive NIHAO MINERAL: Net Loss Climbs 220% to PHP741,113 for 3Q 2007 RIZAL COMMERICAL: BSP Gives Nod to PHP7-Billion Tier 2 Issuance URC PHILIPPINES: Moody's Changes Rating Outlook to Positive S I N G A P O R E ADVANCED MICRO: Fitch Cuts Issuer Default Rating to B- from B AKZO NOBEL: Requires Creditors to File Claims by February 18 LI PIN: Creditors' Proofs of Debt Due on February 4 RADAC PRIVATE: Creditors' Proofs of Debt Due on February 10 SANG CHOY: Court Enters Wind-Up Order T H A I L A N D ARVINMERITOR INC: To Supply Hyundai Unit w/ Plastic Door Modules BANK OF AYUDHYA: Uses THB10.17 Billion for Working Capital WYNCOAST IND'L: Board Taps Koranun Sukonritikorn as Deputy CEO * BOND PRICING: For the Week 28 January to 01 February 2008 - - - - - - - - ================= A U S T R A L I A ================= ADOLFI PTY: Members Opt to Shut Down Firm ----------------------------------------- At an extraordinary general meeting held on December 17, 2007, the members of Adolfi Pty Ltd agreed to voluntarily liquidate the company's business. Leonard A. Milner of Venn Milner & Co. was then appointed as liquidator. The Liquidator can be reached at: Leonard A. Milner Venn Milner & Co. Suite 1, 43 Railway Road Blackburn, Victoria 3130 Australia About Adolfi Pty Adolfi Pty Ltd is a distributor of durable goods. The company is located at Deer Park, in Victoria, Australia. ADVANCE FIBREGLASS: Liquidator Presents Wind-Up Report ------------------------------------------------------ The creditors of Advance Fibreglass Pty Ltd met on January 23, 2008, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. Newman HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne, Victoria 3000 Australia About Advance Fibreglass Advance Fibreglass Pty Ltd is a distributor of non-metallic mineral products. The company is located at Dandenong, in Victoria, Australia. ALMA COURT: Placed Under Voluntary Liquidation ---------------------------------------------- The members of Alma Court Pty. Ltd. met on December 12, 2007, and agreed to voluntarily wind up the company's operations. Barry Keith Taylor was then appointed as liquidator. The Liquidator can be reached at: Barry Keith Taylor B. K. Taylor & Co. 8/608 ST. Kilda Road Melbourne, Victoria 3004 Australia About Alma Court Alma Court Pty Ltd, which is also trading as House Of Recliners, operates furniture stores. The company is located at Hartwell, in Victoria, Australia. CHRYSLER LLC: Invests US$27 Million in Toledo Machining Plant ------------------------------------------------------------- Tom LaSorda, Chrysler LLC Vice Chairman and President, disclosed that Chrysler would invest more than US$27 million in its Toledo Machining Plant in Ohio. The plans were revealed during a keynote speech at the Toledo Regional Chamber of Commerce's annual meeting. Toledo Machining, which currently builds torque converters and steering columns, will divide the investment into two separate parts of the plant: US$26.4 million will go toward the manufacturing of a redesigned torque converter for automatic transmissions and an additional US$1.5 million will be used for production of a new steering column. The torque converter investment will deliver improved fuel efficiency and refinement and retain 164 jobs. The steering column investment will retain 44 hourly jobs. "Chrysler's investments in the Toledo area are rooted in our faith that we can keep good-paying manufacturing jobs in America as long as government, our unions and our companies all pull together for the common good," Mr. LaSorda said. "We at Chrysler have a stake in Toledo being a vital city, and we're pleased at the ongoing progress." Overall, the Toledo Machining investment will enhance Chrysler's ability to offer the highest quality products and advanced technical expertise. "This is an important day for the future of the UAW and Chrysler, and in particular for the continued competitiveness of our team here in the State of Ohio," General Holiefield, UAW Vice President, who directs the union's Chrysler Department, said. "This investment is a significant step toward realizing our vision to see this company and our union grow this business and be competitive for the long run." "Chrysler is the largest manufacturing employer and one of the best corporate citizens in Wood County," Tom Blaha, Executive Director of the Wood County Economic Development Commission, said. "This investment is a testament to the hard working men and women at Toledo Machining." The Toledo Machining Plant is located in Perrysburg, Ohio. The plant covers 1.2 million square feet and employs 1,530. Employees at the plant are represented by UAW Local #1435. The plant builds steering columns and torque converters for vehicles across the Chrysler, Jeep(R), Dodge product line. Chrysler, a good neighbor and good citizen, sponsors various community events through its philanthropic arm, The Chrysler Foundation, including the Art Tatum Jazz Heritage Festival, Toledo Urban League, City's Youth Entrepreneur Program, Toledo Opera, the Toledo Museum of Art, Valentine Theatre and the Diamante Awards. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CONSTELLATION BRANDS: Selling Three Wine Brands for US$134 Mil. --------------------------------------------------------------- Constellation Brands Inc. has entered into an agreement to sell the Almaden and Inglenook wine brands, and the Paul Masson winery located in Madera, California, to The Wine Group LLC for US$134 million in cash, subject to closing adjustments. Close of the transaction is subject to routine and customary regulatory review, and is expected by the end of Constellation's fiscal year on Feb. 29, 2008. "This transaction, when coupled with the recent acquisition of Clos du Bois, the number one super-premium U.S. wine brand, will allow our wine sales forces to focus on selling higher-growth, higher-margin premium wines," Rob Sands, Constellation Brands president and chief executive officer, said. "This change also demonstrates our commitment to improve return on invested capital." "Almaden and Inglenook are table wines which retail for less than US$3 per 750 ml bottle equivalent," Mr. Sands added. "The Mission Bell Winery, also in Madera, California, will be retained and allows the company to increase premium wine production in California's important San Joaquin Valley wine producing region. This winery will also provide wine production services to The Wine Group for a period of time on a contract basis." The transaction is expected to result in a pre-tax loss of approximately US$27 million or an after-tax loss of US$0.13 diluted earnings per share on a reported basis, and will be excluded from the company's comparable basis earnings per share. The loss on the disposal is driven by the higher write-off of goodwill unrelated to these brands as required by generally accepted accounting principles in the U.S. and the low tax basis associated with goodwill. Proceeds from the transaction will be used to reduce borrowings. The impact of this transaction is expected to be slightly dilutive to ongoing reported basis and comparable basis diluted earnings per share for fiscal 2009. The Almaden and Inglenook wine brands are expected to generate approximately US$130 million of net sales for fiscal 2008, and represent approximately 10 million 9-liter cases of the company's U.S. wine volume. The proceeds from this transaction do not impact free cash flow, and therefore the company's free cash flow guidance for fiscal 2008 remains unchanged at US$280-US$300 million. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ) -- http://www.cbrands.com/-- has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. The company has market presence in the U.K., Australia, Canada, New Zealand; Mexico. Barton Brands Ltd. is the spirits division of Constellation Brands Inc. is a producer, importer and exporter of a wide range of spirits products, including brands such as Black Velvet Canadian Whisky, Ridgemont Reserve 1792 bourbon, and Effen vodka. * * * As reported in the Troubled Company Reporter on Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note registered by Constellation Brands Inc. to fund the purchase price of Beam Wine Estates Inc., a subsidiary of Fortune Brands Inc: US$500 million 8.375% senior unsecured note due Dec. 15, 2014. Fitch said the rating outlook is negative. DIAN NOMINEES: Placed Under Voluntary Liquidation ------------------------------------------------- During a general meeting held on December 14, 2007, the members and creditors of Dian Nominees Pty Ltd resolved to voluntarily wind up the company's operations. Gregory Stuart Andrews of G S Andrews & Associates was then appointed as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 About Dian Nominees Dian Nominees Pty Ltd, which is also trading as Mallop Doors, is involved with millwork business. The company is located at Bayswater, in Victoria, Australia. DUXTRON PTY: To Declare First Dividend on January 30 ---------------------------------------------------- Duxtron Pty. Ltd., which is in liquidation, will declare its first dividend on January 30, 2008. Creditors are required to file their proofs of debt today, January 29, 2008, for them to be included on the company's dividend distribution. The company's liquidator is: Barry Keith Taylor B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Duxtron Pty Duxtron Pty Ltd is a distributor of durable goods. The company is located at Ballarat, in Victoria, Australia. FORTESCUE METALS: Says Pilbara Final Forecast Cost is AU$2.70BB --------------------------------------------------------------- Fortescue Metals Group Ltd said that its planned first shipment of iron ore from its Pilbara ore and infrastructure project remains on schedule for mid-May with overall project completion at 82%, the Sydney Morning Herald reports. According to the Australian Associated Press, Fortescue said the project final forecast cost is AU$2.699 billion, which is an increase of AU$17 million from the forecast during the previous period. During the month, AAP notes, there was also a draw on contingency of AU$22 million. The combined increase of AU$39 million, SMH explains, came from scope changes at Port Hedland worth AU$24.5 million, additional costs of AU$10 million and AU$4 million for port power supply costs. Fortescue said port works at the project were 87% advanced, mine sight works were 75% complete, and rail works were 79% complete, SMH relates. Fortescue informed the press that there are no material delays to the project this month. According to AAP, Fortescue Chief Executive Officer Andrew Forrest, during the company's annual meeting, tipped cost overruns at the Pilbara project of two to three per cent. 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: S&P Affirms BB Corp. Credit Rating; Outlook Neg. -------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings and outlook on Seattle, Washington-based visual imagery company Getty Images Inc., including its 'BB' corporate credit rating, following the company's announcement that it is exploring strategic alternatives. The outlook is negative. "We believe that a sale of the company could potentially result in a weakened credit profile, but that current unfavorable economic and credit market conditions suggest a lower probability of a transaction within the next three months," said S&P's credit analyst Tulip Lim. The ratings on Getty Images reflect risks related to its limited business diversity, its reliance on sales to the cyclical advertising and publishing industries, the trend of organic revenue decline, and secular pressures related to the unfavorable economics of digital migration. The company's good competitive position in the niche market for generic (or stock) visual imagery, solid discretionary cash flow generation, and low leverage partially offset these risks. Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom and Argentina. GILLESPIE INVESTMENTS: Undergoes Liquidation Proceedings -------------------------------------------------------- On December 14, 2007, the members of Gillespie Investments Pty Ltd resolved to voluntarily wind up the company's operations. About Gillespie Investments Located at Hawthorn, in Victoria, Australia, Gillespie Investments Pty Ltd is an investor relation company. J. & D.A. FRITH FAMILY: Members Resolve to Liquidate Business ------------------------------------------------------------- The members of J. & D.A. Frith Family Investments Pty. Ltd. met on December 14, 2007, and agreed to voluntarily wind up the company's operations. Anthony Robert Cant and Simon Patrick Nelson were then appointed as liquidators. The Liquidators can be reached at: Anthony Robert Cant Simon Patrick Nelson Romanis Cant, Chartered Accountants 106 Hardware Street Melbourne Australia About J. & D.A. Located at Daylesford, in Victoria, Australia, J. & D.A. Frith Family Investments Pty Ltd is an investor relation company. JASPAL ELECTRIC: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary general meeting held on December 10, 2008, the members of Jaspal Electric Pty Ltd resolved to voluntarily wind up the company's operations. William Bernard Abeyratne and Loke Ching Wong were then appointed as liquidators. The Liquidators can be reached at: William Bernard Abeyratne Loke Ching Wong c/o Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Victoria 3205 Australia Telephone:(03) 9696 2885 About Jaspal Electric Jaspal Electric Pty Ltd is involved with electrical work. The company is located at Taylors Lakes, in Victoria, Australia. KELDON HOLDINGS: To Declare First Dividend on January 30 -------------------------------------------------------- Keldon Holdings Pty. Ltd. will declare its first dividend on January 30, 2008. Creditors are required to file their proofs of debt today, January 29, 2008, for them to be included in the company's dividend distribution. The company's liquidator is: Leigh Dudman B. K. Taylor & Co. 8/608 St. Kilda Road Melbourne, Victoria 3004 Australia About Keldon Holdings Keldon Holdings Pty Ltd is involved in the business of trusts, except educational, religious, and charitable trusts. The company is located at North Bondi, in New South Wales, Australia. SEVEN STAR: Members' Final Meeting Slated for February 14 --------------------------------------------------------- The members of Seven Star (International) Pty Ltd will have their final meeting on February 14, 2008, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: B. J. Marchesi Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia About Seven Star Seven Star (International) Pty Ltd operates investment offices. The company is located at Northcote, in Victoria, Australia. SYMBION: Healthscope and Primary to Start Consolidation Talks ------------------------------------------------------------- Healthscope Ltd and Primary Health Care Ltd will begin negotiations within days for the carve-up of Symbion Health Ltd.'s pathology, radiology and medical centers, the Sydney Morning Herald reports. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 18, 2007, Symbion had refused to let Healthscope and Primary talk to each other before January 26 about breaking a stalemate in their rival takeover ambitions. Now, the temporary contractual restriction against Healthscope has been lifted, and Healthscope and Primary are now free to talk and are expected to begin discussions as soon as possible, SMH says. Primary, which has made a AU$4.10 cash offer for Symbion, is expected to further extend its bid past its current February 7 deadline as talks are held, SMH notes. Primary, SMH explains, holds 44.06% of Symbion's stock, while Healthscope has voting power over 11.9%. SMH cites Merrill Lynch health-care analyst Matthew Prior as saying that he expects a resolution to the AU$2.7-billion tussle in the next month. "The recent market weakness has assisted Primary in gaining accelerated acceptance for its AU$4.10 cash bid for Symbion," Mr. Prior wrote in a note to clients late last week, SMH notes. "In the coming days, if Primary approaches 50 per cent acceptance, we would not be surprised to see the Symbion board support its offer." However, the report relates, Symbion reiterated late on Friday that its shareholders should not accept Primary's AU$4.10-a- share offer, after Primary made a renewed attempt to attract support by citing sharemarket uncertainties and breaches of bid conditions that allow it to walk away from the offer. SMH cites a supplementary bidder's statement released late on Thursday as indicating that Primary said Symbion shareholders should accept its cash offer, partly because it provided security in an uncertain market. Primary also said the failure of its bid might cause a downturn in Symbion's share price, which it said was being supported by its bid. Primary further noted that the recent decline in the ASX 200 index had triggered a clause in its bid, giving it the right to walk away if the market falls more than 15% from the date it announced its offer. The breach means that the underwriters of Primary's AU$1.41-billion equity raising to fund the acquisition -- Credit Suisse, ABN Amro Rothschild and Deutsche Bank -- can walk away, SMH explains. Primary said the banks have not yet decided to terminate their obligations but retain the right to do so. However, Primary said it remained committed to the bid and would provide an update to the market about the status of the conditions of its offer on Wednesday, SMH writes. About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). ZINIFEX LTD: Reports Rise in 1st Quarter Zinc and Lead Output ------------------------------------------------------------- Zinifex Ltd recorded positive first quarter production results, Jamie Freed of the Sydney Morning Herald. Zinifex produced 147,288 tonnes of zinc and 18,863 tonnes of lead in the December quarter, up from 143,116 tonnes of zinc and 14,565 tonnes of lead it produced in the same period in 2006. Herald Sun relates that for the half-year period to December 2007, Zinifex lifted zinc production by 8% to 301,274 tonnes, while lead output rose 12% to 37,406 tonnes. The Century mine in northwest Queensland, Herald Sun says, was a major contributor, producing 463,600 tonnes of zinc concentrate and 40,459 tonnes of lead concentrate in the half-year period. SMH quotes UBS analyst Glyn Lawcock as saying that the result "was about 4% ahead of our expectations." According to SMH, the price of zinc plunged last year, finishing 38% lower in the December quarter than in the same period a year earlier. Zinc prices, according to Herald Sun, averaged US$2,623 a tonne in the December quarter. SMH relates that Zinifex, which recently sold its smelters, said the market appeared to be expecting that new zinc supply would enter the market this year, returning it to a surplus. The company also noted that there was growing uncertainty over the state of the U.S. economy. Zinifex's acting chief executive officer, Tony Barnes, assured that shareholders demand remained healthy, especially from China, the report notes. "We believe markets have already priced in an appropriate zinc price correction in response to the most pessimistic of forward outlooks," Mr. Barnes said. According to Reuters, Zinifex said that price volatility in zinc markets was making it difficult for miners and smelting companies to agree on treatment fees for 2008. Reuters explains that the fees to process concentrates supplied by miners into refined zinc are a major source of revenue for smelting companies, such as Belgium's Nyrstar NYR,BR, which was formed last year through the merger of the smelting assets of Zinifex and Umicore of Belgium. SMH notes that Zinifex was in the middle of negotiations over smelter treatment charges for its zinc concentrate. The report explains that although Zinifex used to treat the bulk of its concentrate at its own smelters, it always priced into its financial results a market-level treatment charge to allow it to compare the mining and smelting businesses independently. This year, Zinifex will sell most of its concentrate to Nyrstar and will help set the benchmark price of treatment charges. SMH adds that copper treatment charges have fallen this year, but the copper concentrate market is much tighter than the zinc concentrate market. Zinifex said the smelter sale had helped give it a AU$2-billion "war chest" for acquisitions, including its current AU$775-million cash offer for Allegiance Mines, SMH notes further. About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' Long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). The Outlook is Stable. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ AGRICULTURAL BANK: Would Seek IPO Within Three Years ---------------------------------------------------- The Agricultural Bank of China would offer shares to the public within three years, China Knowledge reports, citing the bank's governor, Xiang Junbo, as saying at a work conference. According to the report, while Agricultural Bank outlined the time frame for its listing, it didn't provide details about how the government plans to recapitalize the bank. China Knowledge notes Mr. Xiang as adding that they plan to see Agricultural Bank as becoming a world-famous lender by 2012 and a China-focused modern bank with global operations by 2017. The Agricultural Bank of China -- http://www.abchina.com/en/hq/index.jsp/index.html-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of 2006. According to XFN-Asia, at the end of September 2007, Agricultural Bank had outstanding loans of CNY3.44 trillion, of which 22.11% were bad loans. The Troubled Company Reporter-Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an Individual rating 'E'. BALL CORP: Reports US$281.3 Million 2007 Full Year Earnings ----------------------------------------------------------- Ball Corporation has reported full-year 2007 net earnings of US$281.3 million, or US$2.74 per diluted share, on sales of US$7.39 billion, compared to US$329.6 million, or US$3.14 per diluted share, on sales of US$6.62 billion in 2006. Fourth quarter 2007 net earnings were US$33.3 million, or 33 cents per diluted share, on sales of US$1.76 billion, compared to US$48.3 million, or 46 cents per diluted share, on sales of US$1.59 billion in the fourth quarter of 2006. In both 2007 and 2006 results included costs from business consolidation activities and significant non-operating items. Fourth quarter 2007 results included net after-tax costs of approximately US$27 million, or 27 cents per diluted share, for business consolidation primarily in the company's food and household products packaging, Americas, segment. Full-year 2007 results included the fourth quarter business consolidation costs and a third quarter after-tax charge of US$51.8 million, or 50 cents per diluted share, related to a customer settlement. Fourth quarter 2006 results included net after-tax costs of US$20.2 million, or 19 cents per diluted share, from business consolidation activities, reduced by a one-time tax gain. Full- year 2006 results included property insurance proceeds resulting from a fire at a plant in Germany, offset by business consolidation costs, for a net after-tax gain of US$25.6 million, or 24 cents per diluted share. Chairperson, president and chief executive officer, R. David Hoover said "2007 was a record year for Ball in terms of operating results." "On a comparable basis, our diluted earnings per share were US$3.50 in 2007, up 21 percent from our previous record of US$2.90 in 2006. This came despite a difficult fourth quarter comparison where, also on a comparable basis, we earned 60 cents per diluted share in the period in 2007 versus 65 cents in the fourth quarter of 2006," Mr. Hoover said. "While we generally are pleased with our results from 2007, we have identified and are executing on numerous initiatives that we believe will lead to further improvements in 2008 and better position us for the longer term," Mr. Hoover said. "Earlier this week our board of directors elected John A. Hayes as executive vice president and chief operating officer of Ball Corporation. John has done a superior job of leading our operations in Europe in recent years. We look forward to having him as chief operating officer for all of our businesses." Metal Beverage Packaging, Americas Metal beverage packaging, Americas, segment operating earnings were US$213.6 million in 2007 on sales of US$2.76 billion, including an US$85.6 million charge for a customer settlement, compared to US$269.4 million on sales of US$2.60 billion in 2006. For the fourth quarter, earnings were US$57.8 million on sales of US$666.6 million in 2007, compared to US$75.9 million on sales of US$611.9 million in 2006. "Continued strong demand for specialty size cans contributed to overall results in our metal beverage packaging, Americas, segment in 2007," Mr. Hoover said. "Work is progressing on schedule to install a new 24-ounce can production line in our Monticello, Indiana, beverage can plant. That capacity will come on stream later this year to help us keep up with the growing demand for that particular container, primarily for energy drinks and beer." Ball Corp.'s board of directors approved yesterday the corporation's participation in a one-line metal beverage container plant in southeastern Brazil. The plant will be part of Latapack-Ball Embalagens, Ltda., the company's 50-50 joint venture can company in Brazil. Its capacity will be 900 million cans per year and can be expanded to 2 billion cans per year as demand grows. The plant will be financed entirely by cash flows from the joint venture, and production is expected to begin in mid-2009. Metal Beverage Packaging, Europe/Asia Metal beverage packaging, Europe/Asia, segment results in 2007 were operating earnings of US$256.1 million on sales of US$1.9 billion, compared to US$268.7 million on sales of US$1.51 billion in 2006, which included a pre-tax property insurance gain of US$75.5 million related to a fire in a German plant. For the fourth quarter, operating earnings in 2007 were US$37.6 million on sales of US$455.5 million, compared to US$33 million on sales of US$352.6 million in the fourth quarter of 2006. Ball Corp. announced today plans to build a new beverage can manufacturing plant in Poland in order to meet the rapidly growing demand for beverage cans there and elsewhere in Central and Eastern Europe. The plant will be built in Lublin, near the borders of Belarus and Ukraine. It will initially have one production line with an annual capacity of approximately 750 million cans per year and is expected to begin production in the first half of 2009. "Our metal beverage packaging, Europe/Asia, segment had a strong 2007, with improved results throughout Europe and in China, and we have numerous growth opportunities," Mr. Hoover said. "We currently are speeding up certain production lines in Germany and Poland in advance of the busy 2008 summer selling season. In addition, during the fourth quarter of 2007 we announced plans for a beverage can plant in India that will use existing manufacturing equipment." Metal Food & Household Products Packaging, Americas Metal food and household products packaging, Americas, segment results for 2007 were a loss of US$8 million on sales of US$1.18 billion, including business consolidation costs of US$44.2 million, compared to US$2.4 million on sales of US$1.14 billion in 2006. For the fourth quarter of 2007, segment results were a loss of US$33.4 million on sales of US$271.1 million, compared to a loss of US$23.2 million on sales of US$288.1 million in the same period of 2006. The fourth quarter and full-year 2007 results included business consolidation costs of US$44.2 million. The fourth quarter and full-year 2006 results include business consolidation costs of US$33.8 million and US$35.5 million, respectively. "Work has begun on the further restructuring announced early in the fourth quarter of our metal food and household products packaging, Americas, segment," Mr. Hoover said. "The restructuring plan includes closing aerosol can production plants in California and Georgia and exiting the custom and decorative tinplate can business. Even though the anticipated annualized cost savings of US$15 million from this restructuring are not expected until 2009, we believe other improvements we have already made and continue to make in pricing and operating efficiencies will lead to much improved performance in this segment in 2008." Plastic Packaging, Americas Plastic packaging, Americas, segment results for 2007 were operating earnings of US$25.9 million on sales of US$752.4 million, compared to US$28.3 million on sales of US$693.6 million in 2006. For the fourth quarter, earnings in 2007 were US$8.8 million on sales of US$172.1 million, compared to US$10 million on sales of US$172.6 million for the same period in 2006. "Plastic packaging, Americas, segment results were down slightly in 2007 from 2006 and are at unacceptable levels," Mr. Hoover said. "We will continue to emphasize our heat set and other higher margin plastic containers while pursuing price increases for commodity plastic containers for water and carbonated soft drinks, where returns are well below our cost of capital and must improve." Aerospace and Technologies Aerospace and Technologies segment results were operating earnings of US$64.6 million on sales of US$787.8 million in 2007, compared to US$50 million on sales of US$672.3 million in 2006. For the fourth quarter, earnings were US$11.1 million on sales of US$190.9. Fourth quarter 2006 earnings were US$16.7 million on sales of US$166.6 million. "Our aerospace and technologies segment enjoyed an outstanding year in 2007, even though fourth quarter results were down from a year ago," Mr. Hoover said. "We have several large projects, such as the WorldView 2 satellite for DigitalGlobe, in progress and are competing for several other large contracts. The market continues to hold strong demand for the products and technologies for which we are most recognized." Outlook Raymond J. Seabrook, executive vice president and chief financial officer, said adjusted free cash flow for 2007 was US$440 million and that 2008 free cash flow will be lower due to higher cash taxes, a one-time after-tax payment of US$42 million for the customer settlement reached in the third quarter of 2007 and higher 2008 capital expenditures, offset partially by a reduction in working capital. "In part due to lower than expected capital expenditures in 2007 which will be spent in 2008, and due to growth projects in the company's worldwide beverage can business, we expect capital spending to exceed US$300 million in 2008," Mr. Seabrook said. "Approximately 75 percent of our anticipated capital spending will be in our beverage can segments, with more than US$150 million of the total earmarked for top-line growth projects. Cost reduction and maintenance capital spending for the total company should be approximately 60 percent of overall depreciation. "Our credit profile remains strong with net debt at the end of 2007 at US$2.2 billion. This strong credit profile should allow us to repurchase approximately US$300 million of our common stock in 2008, including the accelerated share buyback program we announced in December," Mr. Seabrook said. "We are optimistic about 2008," Mr. Hoover said. "We are focused on getting results in our food and household products packaging and plastic packaging segments to more acceptable levels. "We have attractive opportunities for growth in our beverage can operations worldwide, and much of our capital spending will be directed at these opportunities. Our aerospace and technologies segment is coming off of a remarkable record year that will be difficult to duplicate, but results in 2008 should remain strong," Mr. Hoover said. "For full year 2008 we will work hard to achieve greater than the US$3.50 per diluted share we made in 2007, excluding restructuring and customer settlement costs," Mr. Hoover said. About Ball Corp. Headquartered in Broomfield, Colorado, Ball Corp. -- http://www.ball.com/-- is a supplier of high-quality metal and plastic packaging products. It owns Ball Aerospace & Technologies Corp. -- a developer of sensors, spacecraft, systems and components for government and commercial customers. Ball Corp. reported sales of US$7.4 billion in 2007 and the company employs about 15,500 people worldwide, including Argentina, Hong Kong and China. * * * As of July 30, 2007, the company holds Moody's Ba1 long-term corporate family rating, bank loan debt, senior unsecured debt, and probability of default rating. Moody's said the outlook is stable. Standard & Poor's rates the company's long-term foreign and local issuer credits at BB+ with a stable outlook. Fitch also rates the company's bank loan debt at BB+ and long- term issuer default rating and senior unsecured debt at BB. Fitch said the outlook is stable. BILLION METRO: Members Set Final Meeting on February 18 ------------------------------------------------------- The members of Billion Metro Investment Limited will have their final general meeting on February 18, 2008, at 2-4 Dai Fat Street, Tai Po Industrial Estate, in Tai Po New Territories, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Ng Lai Ching. EVERICH CREATION: Court to Hear Wind-Up Petition on Jan. 30 ----------------------------------------------------------- On November 26, 2007, Nice Theme Limited, filed a petition to have Everich Creation Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on January 30, 2008, to hear the petition. The petitioners' solicitor can be reached at: Tanner De Witt 1806, Tower Two, Lippo Centre 89 Queensway, Hong Kong FIAT SPA: Moody's Affirms Ba1 Corp. Family Rating; Outlook Pos. --------------------------------------------------------------- Moody's Investors Service has affirmed Fiat SpA's Ba1 Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook was maintained. The short term Not Prime rating remains unchanged. Moody's Senior Vice President and the lead analyst for the European automotive sector, Falk Frey said: "In 2007 Fiat continued on its successful path towards a sustainable recovery of its financial profile mainly driven by further operating improvements at Fiat Group Automobiles but also higher contributions from all other industrial businesses in particular Iveco and CNH. This strong performance of Fiat is very much in line with Moody's expectations of late August when we changed our outlook to positive on the rating" Mr. Frey went on to say, "Moody's believes that 2008 might be more challenging for Fiat, as a weakness in the overall economy and the strengthening competitive landscape could slow down the strong growth observed in the last few years. Should Fiat be able to sustain its market share performance achieved in Europe last year also during 2008 while at least consolidating the level of operating profitability reached in 2007, the ratings could be upgraded to investment grade over the next 6 to 12 months." Moody's says that the positive outlook is based on the expectation that the company is well positioned to sustain the current momentum, benefiting from (i) the strong demand of the Fiat 500 launched in Q3 2007, (ii) a gradual overhaul of its Alfa Romeo and Lancia models, (iii) an ongoing improvement of Fiat Group Automobiles' dealer network as well as (iv) ongoing efficiency gains. Moody's nonetheless notes that company's performance may no longer be aided by the favourable 2007 environment, notably in the company's core markets, but that the heavy restructuring engaged by the company in the past years should mitigate this possible headwind. As Moody's outlined in its last press release dated Aug. 22, 2007, the possibility of another positive rating change as indicated by the positive outlook would be mainly dependent on Fiat's ability to demonstrate the robustness of its current business model in a more challenging market environment in 2008. Among those challenges are Fiat's ability (i) to maintain positive market share trend in Western Europe and Latin America, Fiat's principal markets and (ii) to further solidify the profitability and cash flows which will be necessary to fund rising capital expenditure needs in order to keep a robust and steady renewal rate. In Moody's view, this sustained development is a key factor to sustain the regained strength in the company's competitive position and a factor where Fiat has to close the gap compared to its direct peers. A successful execution of these challenges should go in line with a trajectory of credit metrics towards RCF/Net debt above 50%, which is one of the metrics expected from Baa Automotive credits. Moody's last rating action on Fiat SpA was an upgrade of the Corporate Family Rating to Ba1 with a positive outlook from Ba2 on Aug. 22, 2007. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. GALAWELL INVESTMENT: Members Set Final Meeting on February 18 ------------------------------------------------------------- The members of Galawell Investment Limited will have their final general meeting on February 18, 2008, at 2-4 Dai Fat Street, Tai Po Industrial Estate, in Tai Po New Territories to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Ng Lai Ching. HEXCEL CORP: Net Income Down to US$13-Million in Fourth Quarter --------------------------------------------------------------- Hexcel Corporation reported results for the fourth quarter and full year of 2007. Net sales from continuing operations during the quarter were US$317.6 million, 20.8% higher than the US$262.9 million reported for the fourth quarter of 2006. Related operating income for the fourth quarter was US$20.8 million, compared to US$17.5 million for the same quarter last year. Included within the 2007 operating income figure is US$9.4 million of pension settlement expense associated with the termination of Hexcel's U.S. defined benefit pension plan and US$3.2 million of impairment costs on certain purchased technology and fixed assets, incurred as part of its portfolio realignment. Net income from continuing operations for the fourth quarter of 2007 was US$13.0 million compared to US$17.7 million in 2006. Net income from continuing operations for the fourth quarter of 2007 was US$0.20 per share excluding one-time items of the termination of Hexcel's U.S. defined pension plan, the impairment costs and favorable tax adjustments. Net income for the fourth quarter of 2006 included the benefit from an after-tax gain of US$9.6 million on the sale of a joint venture interest. Adjusted net income in the fourth quarter of 2006 was US$6.9 million. Chief Executive Officer David E. Berges commented, "This was a very good closing quarter to a successful year of significant transition for Hexcel. Fourth quarter sales were at record levels, led by the extremely strong growth in revenues from aerospace (both commercial and defense) and assisted by strong sales in the wind energy markets. Our diluted earnings per share for the quarter were a solid US$0.20 excluding the one- time items, as compared to US$0.08 last year." "For the year, we not only met all of our financial targets, we accomplished or made great progress on all of our strategic goals. Our portfolio realignment is now complete and has resulted in a more focused Company with better long-term growth prospects. Over 80% of our markets and submarkets delivered double digit growth this year and have the potential to continue doing so for years to come. Our restructuring programs have resulted in a single, lean entity, down from three business units in 2005. Our capacity expansion programs are all on track, new product introductions are being embraced and we are well positioned for the A350XWB." "Despite the distractions presented by the restructuring and business sale transactions, we are pleased with our financial progress, particularly in the second half. Adjusted operating income margin was up for the fourth year in a row, at 11.5% of sales, 40 basis points better than 2006, despite 30 basis points of compression from exchange rates. We have also achieved our longstanding goal of reducing our net debt to EBITDA leverage ratio below two times." "As described in our 2008 Outlook, published in December 2007, we expect the good growth trends to continue through at least the next three years, thanks to sustained increases in wind energy markets and in aircraft production, plus incremental new programs from customers such as at Airbus, Boeing and USEC. We expect continued improvement of our financial performance. While the impact of the recently announced delays of the 787 have not yet been determined, we are targeting to offset any negative effects and do not expect it to cause a change in our 2008 earnings outlook of US$0.90 to US$0.95 per diluted share." About Hexcel Corp. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. HK ASSOCIATION OF PATHOLOGY: Commences Liquidation Proceedings -------------------------------------------------------------- Hong Kong Association of Pathology Directors Limited commenced liquidation proceedings on January 16, 2008. The company's liquidator is: Lee Chee Wah Room 3501, 35th Floor Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong HONG KONG & KOWLOON: Members Meeting Fixed for Feb. 20 ------------------------------------------------------ The members of Hong Kong & Kowloon Sun Hing Clansmen General United Association Limited will have their final general meeting on February 20, 2008, at 33rd Floor, Hanson House, 794-802 Nathan Road, 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 Leung, Kai Ming. HUMBERT MANUFACTURING: Members Meeting Fixed for Feb. 19 -------------------------------------------------------- The members of Humbert Manufacturing Company Limited will have their final general meeting on February 19, 2008, at Room 1520, 15th Floor Leighton Centre, 77 Leighton Road, Causeway Bay, in Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Chung, Yau Yan Sammy. MAXLAND COMPUTER: Court to Hear Wind-Up Petition on Feb. 27 ----------------------------------------------------------- On December 27, 2007, Industrial and Commercial bank of China (Asia) Limited, filed a petition to have Maxland Computer Systems Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on February 27, 2008, to hear the petition. The petitioners' solicitor can be reached at: Ho and Wong Rooms 1408-1411 14th Floor China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central Hong Kong NIHON (HONG KONG): Members Meeting Fixed for Feb. 19 ---------------------------------------------------- The members of Nihon (Hong Kong) Company Limited will have their final general meeting on February 19, 2008, at 35th Floor, One Pacific Place, 88 Queensway, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are Lai Kar Yan, Derek and Darach Eoghan Haughhey. PETROLEOS DE VENEZUELA: Oil Output Drops 148,000 bpd in 2007 ------------------------------------------------------------ As published by the Organization of Petroleum Exporting Countries, El Univeral reports that Venezuela's oil production has declined to 148,000 barrels per day with an average of 2.39 million bpd. OPEC has recorded a decrease in January to September, although the production picked up in the last 2007 quarter, the same paper states. Based on the OPEC statistics, the country's oil output has plunged for two consecutive year. In 2007, Oil production fell 246,000 bpd from a peak of 2.63 million bpd in 2005, El Universal relates. According to the report, OPEC members that will cut production were Venezuela, Nigeria, Libya, and Ecuador in a medium of boosted output by most OPEC members. About Petroleos de Venezuela 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. PROMINENCE REALTY: Pays Second and Final Dividend to Creditors -------------------------------------------------------------- Prominence Realty (International) Limited, which is in voluntary liquidation, paid second and final preferential dividend to its creditors. The company paid 7.6% on account of all received claims. The company's liquidator is Anthony Nedderman. TRW AUTOMOTIVE: Earns US$23 Mln in Third Quarter Ended Sept. 28 --------------------------------------------------------------- TRW Automotive Holdings Corp. reported net earnings of US$23.0 million for the third quarter ended Sept. 28, 2007, which compares to net earnings of US$5.0 million in the corresponding period ended Sept. 29, 2006. The company reported third-quarter 2007 sales of US$3.5 billion, an increase of US$480.0 million or 16.0% over the prior year period. The 2007 quarter benefited from higher customer vehicle production in Europe and China, continued growth of safety products in all markets (including a higher mix of lower margin modules) and the positive effect of foreign currency translation. These positive factors were partially offset by price reductions provided to customers. "The growing market demand for our advanced active and passive safety products is helping to drive our solid 2007 financial performance," said John Plant, president and chief executive officer. "We have seen a 16.0 percent increase in total sales related to electronic stability control, electric park brake, electrically powered steering, tire pressure monitoring and side and curtain airbag systems during the first nine months of the year. "In addition to the success of these products, we continue to derive significant benefits from the diversity of having nearly 70.0% of sales outside the challenging North American market, aggressive cost reduction efforts and interest savings attributable to our 2007 debt recapitalization." Mr. Plant added, "Safety continues to be a major focus of manufacturers and governments seeking to reduce driving related injuries and fatalities, and of consumers who want their vehicles equipped with technology that can help protect their families. As the global leader in safety with the most comprehensive portfolio of products on the market, we are at the forefront of development and are recognized as a solution provider, especially when it comes to integrated products that encompass both active and passive safety technologies." Operating income for third-quarter 2007 was US$95.0 million, which compares favorably to US$82.0 million in the prior year period. Restructuring and asset impairment expenses in the 2007 period were US$13.0 million, which compares to US$3.0 million in 2006. Excluding these expenses from both periods, operating income was US$108.0 million in 2007, which represents an increase of 27.0% compared to the 2006 adjusted result. The year-to-year increase was driven primarily by higher product volumes and savings generated from cost improvement and efficiency programs, including reductions in pension and OPEB related costs. These positive factors were in part offset by pricing provided to customers and higher commodity costs. Net interest and securitization expense for the third quarter of 2007 totaled US$56.0 million, which compares to US$62.0 million in the prior year. The year-to-year decline can be attributed to the benefits derived from the company's 2007 debt recapitalization, which was completed during the second quarter of this year. Tax expense was US$18.0 million in both 2007 and 2006. The effective tax rate in the 2007 quarter was 44.0%, which compares favorably to 78.0% in the prior year primarily due to a change in the company's geographical earnings mix. Earnings before interest, securitization costs, loss on retirement of debt (where applicable), taxes, depreciation and amortization, or EBITDA, were US$237.0 million in the third quarter, which compares to the prior year level of US$213.0 million. Year-to-Date 2007 For the nine-month period ended Sept. 28, 2007, the company reported sales of US$10.8 billion, an increase of US$944.0 million or approximately 10.0% compared to prior year sales of US$9.9 billion. The 2007 period benefited primarily from higher product volumes related to new product growth, robust industry sales in overseas markets and the positive effect of foreign currency translation. These positive factors were partially offset by the decline in North American customer vehicle production and price reductions provided to customers. Year-to-date 2007 net earnings were US$34.0 million, which compares to US$143.0 million in the 2006 period. Net earnings excluding debt retirement costs from both periods were US$189.0 million, which compares to US$200.0 million in 2006. EBITDA for the first nine months of 2007 was US$890.0 million, which is lower than the prior year level of US$899.0 million, primarily due to the lower level of operating income in the current year. Capital Structure The company completed its debt recapitalization plan during the second quarter of 2007. Transactions related to the plan included the refinancing of the company's US$2.5 billion credit facilities on May 9, 2007. Prior to this transaction, on March 26, 2007, the company completed its US$1.5 billion Senior Note offering and repurchased substantially all of the existing US$1.3 billion Notes through a tender offer. The company incurred debt retirement charges of approximately US$155.0 million during the year-to-date period related to these transactions. On Feb. 2, 2006, the company's wholly owned subsidiary, Lucas Industries Limited, completed the tender for its outstanding GBP 94.6 million 10 7/8% bonds. As a result of the transaction, the company incurred a US$57.0 million charge for loss on retirement of debt. As of Sept. 28, 2007, the company had US$3.515 billion of debt and US$486.0 million of cash and marketable securities, resulting in net debt of US$3.029 billion. This net debt outcome, excluding the Receivable Facility repayment, is US$144.0 million higher than the balance at the end of the second quarter primarily due to the seasonal cash outflow in the third quarter. Balance Sheet At Sept. 28, 2007, the company's consolidated balance sheet showed US$11.93 billion in total assets, US$9.21 billion in total liabilities, US$128,000 in minority interests, and US$2.59 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 28, 2007, are available for free at http://researcharchives.com/t/s?2764 About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trw.com/-- ranks among the world's leading automotive suppliers. The company, through its subsidiaries, operates in 28 countries -- including China, Brazil, Italy and Germany -- and employs approximately 63,800 people worldwide. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * * * As reported in the Troubled Company Reporter on Jan. 25, 2008, Moody's Investors Service affirmed the ratings of TRW Automotive Inc.: Corporate Family Rating, Ba2; senior secured bank credit facilities, Baa3; and senior unsecured notes, Ba3, but revised the rating outlook to negative from stable. As reported in the Troubled Company Reporter on Oct. 2, 2007, Fitch Ratings affirmed TRW Automotive Holdings Corp.'s BB Issuer Default Rating. It also affirmed TRW Automotive Inc.'s BB Issuer Default Rating. The Rating Outlook is Stable. WAYRISE LIMITED: Members Set Final Meeting on February 18 --------------------------------------------------------- The members of Wayrise Limited will have their final general meeting on February 18, 2008, at 7th Floor, San Toi Building, 139 Connaught Road Central, in Hong Kong, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are Chow Sheung Bing and Keung Sai Tung. YIU TING: Members Set Final Meeting on February 18 --------------------------------------------------- The members of Yiu Ting Company Limited will have their final general meeting on February 18, 2008, at Room 803, Harvest Building, 29-35 Wing Kut Street, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Wu Wallen. ========= I N D I A ========= ANDHRA CEMENTS: Profit Soars to INR182MM in Qtr. Ended Dec. 31 --------------------------------------------------------------- Andhra Cements Ltd, in the three months ended Dec. 31, 2007, reported a net profit of INR182.4 million, more than five times the INR32.1-million earned in the same quarter in 2006. The improved bottom line comes with the rising revenues and the dip in interest charges. Total income in the Oct.-Dec. quarter rose to INR905.6 million from 2006's INR518 million. With operating expenses of INR706.8 million, the company booked an operating profit of INR198.8 million in the quarter ended Dec. 31, 2007. Interest charges slid from INR35.7 million in the Oct.-Dec. 2006 to INR13.7 million in the latest quarter under review. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2776 Headquartered in Guntur, India, Andhra Cements Limited, manufactures and distributes cement. Andhra is part of the Kolkata-based Duncan Goenka group. The original promoter of Andhra Cements handed over the reins to Goenka in 1994 when the company was under the Board for Industrial and Financial Reconstruction's purview. Andhra Cements had been operating under the sanctioned rehabilitation scheme of the BIFR dated June 16, 1994. The scheme is presently under revision. GERDAU SA: Chaparral Steel Acquisition is Biggest Takeover Deal --------------------------------------------------------------- PricewaterhouseCoopers said in a report that Gerdau SA's acquisition of U.S. firm Chaparral Steel was the biggest takeover transaction by a Brazilian company last year. Business News Americas relates that Gerdau unit Gerdau Ameristeel closed the deal to buy Chaparral Steel for US$4.22 billion in September 2007. Meanwhile, Gerdau's accord to buy US-based Quanex Corp.'s steel mill operation Macsteel for US$1.70 billion was also listed in the 2007 ranking. According to PricewterhouseCoopers' report, Gerdau also figures among the Brazilian companies that conducted 10 or more mergers or acquisitions last year. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook, following the announcement of an agreement to acquire the specialty steel operations of Quanex Corporation, mainly represented by its MacSteel division for some US$1.46 billion in cash. All other ratings related to the company were affirmed. Ratings affirmed are: Issuer: Gerdau S.A. -- Ba1 Global Local Currency Corporate Family Rating -- US$600 million Senior Unsecured Guaranteed Perpetual Notes: Ba1 Foreign Currency Rating Issuer: Gerdau Brazil (fictitious entity representing the Brazilian operations of Gerdau S.A. comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A.). -- Ba1 Global Local Currency Corporate Family Rating Issuer: Gerdau Ameristeel Corporation -- Ba1 Probability of Default Rating -- Ba1 Corporate Family Rating -- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59% Issuer: Jacksonville Economic Development Comm. -- US$23 million Senior Unsecured Revenue Bonds guaranteed by Gerdau Ameristeel: Ba1, LGD4 59% Outlook for all ratings: stable GLOBAL BROADCAST: Shareholders Approve 1:5 Stock Split ------------------------------------------------------ Global Broadcast News Ltd's shareholders, by way of postal ballot, approved the company's proposed 1:5 stock split, a regulatory filing with the Bombay Stock Exchange discloses. Specifically, the shareholders gave their nods to sub-divide the nominal value of the company's equity shares from the INR10 to INR2 per share. With the stock split, Global Broadcast's existing authorized equity share capital of of INR40,00,00,000 divided into 4,00,00,000 shares of INR10 will be sub-divided and re-classified as INR40,00,00,000 divided into 20,00,00000 shares of the nominal value of INR2. Headquartered in New Delhi, Global Broadcast News Limited -- http://www.ibnlive.com/-- owns and operates a 24-hour English language news and current affairs channel called CNN-IBN. CNN- IBN was launched in December 2005. The Company has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce, inter alia, the CNN name and principal logo. It also has news services agreement with Turner for production and broadcasting services. It is also part of the TV 18 group, which owns and operates some business channels and Internet portals. The Troubled Company Reporter-Asia Pacific reported on Sept. 28, 2007, that Global Broadcast had a stockholders' deficit of US$30.6 million. IFCI LTD: Puts Vishwas Steels Units on Sale to Recover Debt ----------------------------------------------------------- IFCI Ltd has put the Goa and Tarapur units of Vishwas Steels on the sale block to regain its debts, media reports say. IFCI reportedly is to recover about INR72 crore from Vishwas Steels. According to the reports, secured creditors having more than 75% of Vishwas Steels have already given their consent for the sale. The Business Standard said that the reserve price for the Goa unit has been fixed at INR20 crore, while for Tarapur unit, at INR4.60 crore. Interested parties have until Feb. 26 to submit their bids for one or both units. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. QUEBECOR WORLD: To Use US$750MM DIP Fund to Buy Receivables ----------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to immediately obtain up to an aggregate of US$750,000,000 revolving loans and letters of credit under a debtor-in-possession facility to allow them to purchase Receivables Portfolio worth US$416,800,000. As reported in the Troubled Company Reporter yesterday, the Debtors formally sought the Bankruptcy Court's authority to enter into a US$1,000,000,000 senior secured superpriority DIP credit agreement from a syndicate of lenders led by Credit Suisse Securities (USA), LLC, as administrative and collateral agent, and Morgan Stanley Senior Funding Inc. Receivables Portfolio refers to certain accounts receivable and other related rights sold, assigned and initially transferred by the Debtors to one of its non-debtor affiliate, Quebecor World Finance Inc., who, in turn, sold those account receivables to third parties. As previously reported, the US$1,000,000,000 DIP Facility comprises of a US$600,000,000 term loan and a US$400,000,000 revolving credit facility. The Revolving Credit Facility also includes a US$100,000,000 letter of credit subfacility and a US$25,000,000 swing line subfacility. Aside from purchasing the Receivables Portfolio, the remaining proceeds of the DIP Facility will be used to provide the Debtors financing for working capital, letters of credit, capital expenditures and other general corporate purposes, the Debtors' proposed counsel Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, says. The DIP Facility's Borrowing Base will mean at any time of determination the sum of: (a) up to 85% of eligible US and Canadian trade accounts receivable of the Debtors, other than accounts receivable subject to a lien in favor of the lenders under the existing Credit Agreements with the Royal Bank of Canada and the Societe Generale (Canada); and (b) the lesser of (x) up to 85% of the Orderly Liquidation Value Percentage of eligible US inventory of the Debtors, other than inventory subject to a lien in favor of the lenders under the Existing Credit Agreements, and (y) up to 65% of eligible US inventory of the Debtors, minus (z) reserves to be reasonably determined by Credit Suisse. The DIP Facilities, the Guarantees and any Hedging Arrangements will be secured by substantially all the assets of the Debtors, except any proceeds of Avoidance Actions. Security granted to the Lenders will include: -- a perfected first-priority pledge of all the equity interests of Quebec World (USA), Inc.; -- a perfected first priority pledge of all the equity interests held by Quebec World, Inc., QWUSA or any other Guarantor; and -- a perfected first-priority security interests in, and mortgages on, substantially all assets of QWI, QWUSA and each Guarantor. The Collateral will not include accounts receivable of European Guarantors, which are subject to existing factoring arrangements or factoring arrangements that are otherwise acceptable to the DIP Agent up to an amount to be agreed. The DIP Agents' liens on the Collateral will be junior to: -- all valid liens presently held securing indebtedness pursuant to the Amended and Restated Credit Agreement among QWI, QWUSA, the lenders, Royal Bank of Canada, as administrative agent, and RBC Capital Markets, as arranger; -- all valid liens presently held securing indebtedness pursuant to that certain Credit Agreement, among QWI, QWUSA and Societe Generale (Canada), as lender; -- capitalized leases, purchase money security interests or mechanics' liens in existence at the bankruptcy filing or perfected subsequent to the bankruptcy filing; -- other limited liens to be agreed on; and -- the Carve-Out for the payment of allowed fees and disbursements of professionals hired by the Debtors and a statutory committee of unsecured creditors. The superpriority perfected security interests in the assets of QWI in its insolvency proceedings under the Canadian Companies' Creditors Arrangement Act will be subject and subordinate to an administration charge. Loans under the Term Facility will be prepaid with 100% of the net cash proceeds of all asset sales or other dispositions of property by the Debtors; 100% of the net cash proceeds of issuances, offerings or placements of debt obligations of the Debtors; and 100% of Extraordinary Receipts. Mandatory prepayments under the Revolving Credit Facility will be required if the DIP Revolving Credit Facility Usage exceeds the then effective commitments under the Revolving Credit Facility or the DIP Revolving Credit Facility Usage exceeds Availability. Voluntary prepayments of the borrowings under the Revolving Credit Facility will be permitted at any time without premium or penalty, subject to payment of customary breakage costs in the case of a prepayment of an adjusted LIBOR borrowing other than on the last day of the relevant interest period. Mr. Canning asserts that approval of the DIP Facility will enable the Debtors to maintain the confidence of their vendors, customers and employees. Absent approval of the DIP Facility, the Debtors will run out of cash before the end of January 2008, resulting in severe disruptions to their business, he further asserts. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. 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. Quebecor World and its debtor-affiliates filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Debtors listed total assets of US$5,554,900,000 and total debts of US$4,140,700,000 when they filed for bankruptcy. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR: Wants Access to RBC's & Soc Gen's Cash Collateral ----------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to use certain collateral pledged to the prepetition secured lenders. The prepetition secured lenders are group lenders led by Royal Bank of Canada and another group of lenders led by Societe Generale (Canada). The Debtors tell the Court that they do not have sufficient liquidity to pay obligations that either are currently due or are expected to become due in early 2008, proposed counsel Michael J. Canning, Esq., at Arnold & Porter, LLP, in New York, relates. RBC Lenders have indicated that it will not provide any further advances from a US$750,000,000 prepetition credit agreement because the Debtors have not satisfied conditions and refinancing milestones set by the RBC Lenders. Mr. Canning adds that suppliers are demanding cash terms and customers are threatening to cease doing business with the Debtors unless they are provided with letters of credit or similar accommodations. Hence, the Debtors need infusion of additional cash. US$750 Million RBC Credit Facility The RBC Lenders committed to provide a US$750,000,000 revolving credit facility, which was secured up to a maximum of US$135,000,000 by: (a) unlimited guaranties from certain Debtors; (b) a pledge of the shares of Debtor QW Memphis Corp. by the Debtors Quebecor World (USA) Inc., the Webb Company, and Quebecor World Memphis, LLC; (c) a pledge of the shares of QWUSA by Debtor Quebecor Printing Holding Company; (d) security on all personal and real property of QW Memphis, excluding accounts receivable subject to the Existing Receivables Facility and certain real estate located in Covington, Tennessee; and (d) security on all inventory of QWI located in Canada. As of Jan. 18, 2008, the aggregate amount of indebtedness outstanding under the RBC Credit Agreement was approximately US$735,000,000. CADUS$136 Million Soc Gen Credit Agreement A Soc Gen Credit Agreement, on the other hand, provides for an equipment financing credit facility in the aggregate amount of the CADUS$136,165,415, expiring on July 1, 2015. The amounts due under the Soc Gen Credit Agreement are guaranteed and secured on a pari passu basis up to US$35,000,000 by the same collateral as the credit facilities under the RBC Credit Agreement. As of Jan. 11, 2008, the aggregate amount outstanding under the Soc Gen Credit Agreement was approximately US$155,000,000. To protect the interest of the Prepetition Secured Lenders in the QW Memphis Collateral, for any diminution in value from the use of the QW Memphis Collateral, and for the imposition of the automatic stay, the Debtors will release any liens of the Prepetition Secured Lenders in QW Memphis' accounts immediately on the entry of an interim cash collateral order. Establishment of Cash Collateral Account The Debtors will establish a cash collateral account with a certain bank. Certain security interests and liens will be granted: (a) to the Prepetition Secured Lenders, a valid, binding, continuing, enforceable, fully perfected first priority senior security interest in and lien on the Memphis Cash Collateral Account, securing any Prepetition Secured Indebtedness that is secured by valid, perfected non avoidable and enforceable liens in existence as of the bankruptcy filing; provided that the security interest granted will be included in the cap on the Prepetition Secured Indebtedness provided for in the Prepetition Security Agreements; and (b) to Credit Suisse Securities (USA), LLC, as the DIP Facility's Administrative Agent, a valid, binding, continuing, enforceable, fully perfected security interest in and lien on the Memphis Cash Collateral Account immediately junior to the Prepetition Secured Lenders' Lien. The Debtors will deposit in the Memphis Cash Collateral Account an amount equal to the bankruptcy filing value of the QW Memphis Inventory divided by 46 each day until the date on which the balance on deposit in the Memphis Cash Collateral Account is equal to the QW Memphis bankruptcy filing inventory amount. As of Jan. 22, 2008, the Debtors have not disclosed the approximate bankruptcy filing value of the Memphis Inventory. On the Memphis Inventory Release Date, the Debtors will release any Liens of the prepetition secured lenders in the QW Memphis Bankruptcy Filing Inventory. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. 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. Quebecor World and its debtor-affiliates filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Debtors listed total assets of US$5,554,900,000 and total debts of US$4,140,700,000 when they filed for bankruptcy. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SAMTEL COLOR: Allots Shares to Two Promoter Companies ----------------------------------------------------- Samtel Color Ltd's committee of the board of directors, at its meeting on Jan. 25, 2008, issued a fresh 46,51,163 equity shares of the company of face value of INR10 each at a premium of INR11.5 per share to two promoter companies: 1. Teletube Electronics Ltd Shares Allotted: 35,34,884 2. CEA Consultants P Ltd Shares Allotted: 11,16,279 The shares were issued at a premium of INR11.5 per share. After the allotment, the issued & paid up equity share capital of the company is increased from 4,66,05,775 shares at INR10 each for INR46,60,57,750 to 5,12,56,938 shares at INR10 each fully paid up for INR51,25,69,380 (including forfeited partly paid 6,000 equity share INR5 each). The committee additionally alloted 23,25,581 warrants having optional right of conversion against each into one equity share of at a premium of INR11.5 per share to M/s. CEA Consultants Pvt Ltd (one of the promoter company). Headquartered in New Delhi, India, Samtel Color Ltd -- http://www.samtelgroup.com/samtelnew/home.jsp-- manufactures a range of display devices like television picture tubes, tubes for avionics, medical and industrial applications, glass parts for picture tubes, components for tubes like deflection yokes and engineering services. The company also manufactures glass for television and display tubes. Through Samtel Electron Devices GmbH, the company manufactures professional cathode ray tube. As reported by the Troubled Company Reporter-Asia Pacific on June 30, 2006, ICRA Limited downgraded the rating for the INR250-million Long-Term Non-Convertible Debenture Programme of Samtel Color Limited to LBB from the LBBB- assigned earlier. LBB is the inadequate-credit-quality rating assigned by ICRA. The rated instrument carries high credit risk. The rating downgrade follows Samtel's delay in meeting its repayment obligations against term loans from banks and financial institutions because of the liquidity pressures brought about by a sharp decline in the company's income and profits. SAMTEL COLOR: Allots 29,21,499 Preference Shares to CDR Lenders --------------------------------------------------------------- Samtel Color Ltd's Finance Committee, on Friday, issued a fresh 29,21,499 shares of the company's 8% Non-Convertible Redeemable Preference Shares of face value of INR100 each to Corporate Debt Restructuring Lenders. The NCRPS allotment is pursuant to, among others, the CDR Scheme approved by CDR cell on September 27, 2007. The details of the equity shares allotted and issued to CDR Lenders are: 1. Export-Import Bank of India: 395000 shares 2. Syndicate Bank: 351537 shares 3. Union Bank of India: 270018 shares 4. ICICI Bank Ltd: 918930 shares 5. Axis Bank Ltd: 398845 shares 6. Punjab National Bank: 300585 shares 7. State Bank of India: 143780 shares 8. Canara Bank: 142804 shares With the allotment, the issued and paid up share capital of Samtel Color is: a. 5,12,56,938 equity shares at INR10 each fully paid up aggregating of INR51,25,69,380 (including forfeited partly paid 6000 equity share at INR5 each; and b. 2921499 - 8% NCRPS of INR100 each aggregating of INR292149900. Headquartered in New Delhi, India, Samtel Color Ltd -- http://www.samtelgroup.com/samtelnew/home.jsp-- manufactures a range of display devices like television picture tubes, tubes for avionics, medical and industrial applications, glass parts for picture tubes, components for tubes like deflection yokes and engineering services. The company also manufactures glass for television and display tubes. Through Samtel Electron Devices GmbH, the company manufactures professional cathode ray tube. As reported by the Troubled Company Reporter-Asia Pacific on June 30, 2006, ICRA Limited downgraded the rating for the INR250-million Long-Term Non-Convertible Debenture Programme of Samtel Color Limited to LBB from the LBBB- assigned earlier. LBB is the inadequate-credit-quality rating assigned by ICRA. The rated instrument carries high credit risk. The rating downgrade follows Samtel's delay in meeting its repayment obligations against term loans from banks and financial institutions because of the liquidity pressures brought about by a sharp decline in the company's income and profits. TATA MOTORS: Offers Customers Free Fuel for New Purchases --------------------------------------------------------- Tata Motors Ltd has tied up with Hindustan Petroleum Corp. to offer free fuel on all new purchases, The Financial Express reports. According to the financial daily, free fuel will be offered from INR10,000-INR20,000 up to one year to all new buyers of Tata Indica and some model of Tata Indigo and Fiat cars across New Delhi and the national capital region. Industry experts believe the move may be aggressive effort to win back customers with the negative growth felt end of 2007, FE relates. 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. * Fitch Teleconference for Auto Sector Outlook Set on Jan. 30 ------------------------------------------------------------- Fitch Ratings India will hold a teleconference on Wednesday, Jan. 30, 2008, at 4:00 p.m. India to comment on its outlook on the domestic auto and auto components sectors. The Indian auto sector has had one of the longest and strongest positive market cycles in its history during FY03-FY07. Against this backdrop, Fitch will present its 2008 outlook for the industry, including key market trends and the impact of these trends on the sector's financials. At the teleconference, Priyamvada Balaji (auto) and Shailesh Agrawal (auto ancillary) of Fitch's Corporates team will present their views on their respective sectors, which will then be followed by a Q&A session. The call coincides with the release of Fitch's '2008 Outlook for Indian Autos: Short-Term Pain, Medium-Term Recovery ' and 'Indian Auto Components -- Outlook 2008' which is available on the Fitch Ratings subscription-based Web site at http://www.fitchresearch.com To register for this event, please contact Nidhi Singh at (91)22 4000 1781/ nidhi.singh@fitchratings.com Dial in numbers: Mumbai Main Access: 022 2788 3362 Mumbai Standby Access: 022 4422 3062 Bangalore Toll Number: 080 2237 8260 / 080 4422 3060 Delhi Toll Number: 011 4422 3061 / 011 2654 0761 Chennai Toll Number: 044 2831 0760 / 044 4422 3060 Contacts: Priyamvada Balaji, Mumbai, +91 22 4000 1742/ priyamvada.balaji@fitchrating.com; Shailesh Agrawal, New Delhi, +91 11 4165 7230 ext 106/ shailesh.agrawal@fitchratings.com ================= I N D O N E S I A ================= ARPENI PRATAMA: Pefindo Reaffirms "idA" Ratings ----------------------------------------------- Pefindo reaffirmed "idA" ratings for PT Arpeni Pratama Ocean Line Tbk. The company's Bond I/2003 of IDR171 billion due October 2008 and at the same time assigned "idA" rating for its proposed bond II with a maximum amount of IDR750 billion to be due in 2013. The outlook for the ratings is "Stable". Proceeds of the proposed bond will be used for debt refinancing (IDR675 billion) and working capital (IDR75 billion). The ratings reflect the company's strong market position in dry bulk shipment, strong business growth potential from the ongoing implementation of Cabotage principle and favorable coal demand in the future as well as relatively strong liquidity. However, the ratings are still constrained by the company's aggressive vessels acquisition plan going forward and exposure to freight rate cyclicality. APOL provides a wide range of shipping services for transporting coal, oil, LPG, pulp, timber and general products, and is also engaged as an agency and ship management. APOL is a public company with shareholding composition as: * PT. Mandira Sanni Pratama (30.67% of total shares) * PT Ayrus Prima (21.04%), Melon S/A Cundhill Recovery FD (9.67%), DEG (8.67%) and public (29.95%). As of 3Q07, APOL operates 96 vessels, consisting of 73 self owned vessels and 23 chartered in vessels. The ratings are supported by: * Strong market position in dry bulk shipment. APOL has continued to maintain its strong market position in domestic dry bulk shipment especially for coal. APOL is estimated to hold a significant market share in terms of coal shipping to power plant industry (PLTU). The strong market position is supported by favorable fleet profile and its 30 years presence in shipping business. The company's experience and expertise has been proven by its long standing relationship with domestic coal producers (PT Tambang Batu Bara Bukit Asam Tbk, PT Berau Coal and PT Kideco Jaya Agung), PT Pertamina, and world class shipping companies (Noble Shipping Inc. BVI and Hyundai Merchant Marine). With the existing fleets dedicated for dry bulk shipment (9 bulk carriers, 24 pairs of barges & tug boats, 8 floating cranes), APOL is believed to be the only domestic company that is able to provide one stop shipping services for coal shipment. APOL's revenue only from dry bulk segment totaled to IDR841.14 billion in 3Q07 and is projected to be IDR1.21 trillion in FY07, as compared to IDR936.89 billion in FY06. In addition, APOL has been announced as a winner to provide coal shipping and jetty management for PLTU Tanjung Jati B for a period of 15 years with total contract value of IDR3.08 trillion. * Strong business growth potential from the ongoing implementation of Cabotage principle and favorable coal demand. Cabotage principle requires intra Indonesian cargo to be carried by Indonesian shipping companies. There are at least thirteen major national products that must be carried by domestic flag vessels at certain period, including oil, gas, coal and crude palm oil (CPO) whose all have strong demand growth in the future. In addition, all government funded trade will also have to be carried by domestic shipping companies. Fully implementation of the policy will eventually eliminate the competition from foreign shipping companies. Meanwhile, the ratification of Maritime Liens and Mortgages 1993 should provide domestic players better access to financing sources, which in turn should help domestic player improve their fleet profile. On the demand side, coal demand in domestic and international market is expected to continue growing in line with increased price of oil & gas. In domestic market, power sector is the biggest consumer of domestic coal products, followed by cement, pulp & paper and other sectors. Government's commitment to accelerate coal fired power plants development will create additional 40 million tons of coal consumption and consequently intra-Indonesia coal trade. Therefore, APOL is considered as one of domestic shipping companies who should enjoy the most benefits from current favorable development and the same time be able to strengthen its business position. * Relatively strong liquidity. As of 3Q07, APOL's cash balance and marketable securities totaled to IDR497.31 billion and IDR119.12 billion while annual EBITDA is expected to reach minimal about IDR500 billion. As such, APOL will have a relatively strong liquidity to cover the maturing loan of IDR820.40 billion, consisting of working capital loan (IDR373.13 billion) and loan installment (IDR447.28 billion). On the liquidity analysis, PEFINDO also has incorporated the proceeds of proposed bond that will be used to refinance its existing debt, including loan from Bank Mandiri (US$38.1 million), working capital loan from BII (US$19.18 million) and parts of loan from UOB of US$38.64 million. Pefindo also expects the company's cash flow protection to remain relatively strong in the medium term with EBITDA/IFCCI and EBITDA/Total debt to be stable at 3.0x and 0.2x. This is mainly attributable to higher operating profit coming from more operated vessels and strong freight rate. The ratings are constrained by: * Aggressive vessels acquisition plan going forward. Over the next three years, APOL's strategy to strengthen its fleet profile is considered aggressive as it plans to acquire 4 vessels in 2008, 15 vessels in 2009 and 3 vessels in 2010 with estimated total investment of US$365.06 million. Pefindo anticipates that the investment would be partly financed with external borrowing. Consequently, APOL's financial leverage ratio measured with Debt to Equity ratio is projected to remain aggressive in the medium term. * Exposed to freight rate volatility risk. By nature, APOL's business and financial profile is always exposed to the fluctuation of freight rates. The fluctuation is driven by the seasonal demand that is highly linked to the global economic cycle, overall shipping capacity in the market and seaborne changes. Although in the last three years freight rate stayed relatively strong, the risk remains in place because shipping markets are cyclical and fragmented. Over supply market condition could further result in declining freight rates and increased vessel unemployment, both of which could affect the company's business and financial profiles. Outlook A"stable" outlook is assigned to the above ratings. The company's aggressive financial leverage in the future due to vessels acquisition should be compensated by stronger market position in domestic shipping business especially in dry bulk segment. APOL is expected to book higher operating cash flow and maintain its cash flow protection at the current level. About Arpeni Pratama PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is a marine shipping company. The company's activities include bulk and liquid transportation services. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport dry cargoes such as plywood and agricultural products. * * * As reported in the Troubled Company Reporter - Asia Pacific on Jul 05, 2007, that Fitch Ratings has affirmed the 'BB-'Long-term Foreign and Local Currency Issuer Default Ratings, and the 'A+(idn)' National Long-term Rating of PT Arpeni Pratama Ocean Line Tbk. The Outlook for the ratings remains Stable. At the same time, Fitch has affirmed the 'BB-'rating on Arpeni's US$160 million senior notes due 2013. The TCR-AP also reported on April 24, 2006, that Standard & Poor's Ratings Services assigned its B+ corporate credit rating to PT Arpeni. The outlook is stable. At the same time,