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 Thursday, January 31, 2008, Vol. 11, No. 22 Headlines A U S T R A L I A BALLARAT COLONY: Placed Under Voluntary Liquidation CENTRO PROPERTIES: Unlisted Funds Carry High Sale Prices EDUCATIONAL ASSISTANCE: Placed Under Voluntary Liquidation F.B.A. IMPORTS: Members to Receive Wind-Up Report on Feb. 7 FMRSCHEM PTY: Commences Liquidation Proceedings M. & M. PARTITIONS: Undergoes Liquidation Proceedings N.O.F.S. PTY: Members Resolve to Liquidate Business PDQR OPERATIONS: Placed Under Voluntary Liquidation RATHSON PROPRIETARY: Members Opt to Shut Down Firm SUNCORP-METWAY: Sells US$50 Million Floating Rate Notes TRELILLE NO. 17: Commences Liquidation Proceedings WHISTLER'S 7: Members Agree on Voluntary Liquidation C H I N A , H O N G K O N G & T A I W A N ADVERTASIA STREET: Appoints New Liquidator BERRY PLASTICS: S&P Keeps Low-B Ratings on Captive Plastics Buy FLANNEL (ASIA): James Wardell Steps Down as Liquidator FIAT SPA: Posts EUR58.5 Billion in Revenues for Fiscal Year 2007 HONG CHANG PRINTING: Appoints New Liquidator KOOKMIN LEASING: Members Set Final Meeting on February 26 LUXLAND DEVELOPMENT: Appoints New Liquidator MABUCHI PRECISION: Liquidators Quit Post NIDECO ELECTRONICS: Appoints New Liquidators PARALLEL ASIA: Members Meeting Fixed for Feb. 28 SAMTA SHIPPING: Commences Liquidation Proceedings THE UNIVERSITY OF HONG KONG: Appoints New Liquidators TOP MIGHTY: Creditors' Proofs of Debt Due on March 15 I N D I A AFFILIATED COMPUTER: Moody's Confirms Ba2 Corp. Family Rating BANK OF BARODA: Profit Up 52% in Qtr. Ended Dec. 31, 2007 BHARTI AIRTEL: Profit Rose to INR14.2 Bil. in Qtr. Ended Dec. 31 ESSAR OIL: Books INR134-Mil. Loss in Qtr. Ended Dec. 31 ESSAR OIL: To Raise US$2 Bil. for Expansion and Exploration ESSAR OIL: To Consolidate Upstream & Exploration in New Unit HMT LTD: Net Loss Widens to INR157.5 Mil. in Qtr. Ended Dec. 31 INDIAN OVERSEAS BANK: Fitch Upgrades Individual Rating to 'C/D' NCO GROUP: US$ Depreciation Cues S&P to Remove Watch Developing TATA MOTORS: Nearing Deal With Ford on Jaguar & Land Rover Sale I N D O N E S I A ADARO INDONESIA: Moody's Upgrades Corporate Family Rating to Ba2 BANK TABUNGAN: Fitch Assigns 'D; Individual Rating PERUSHAAN LISTRIK: Unit's Employees Reject Restructuring Plan TUPPERWARE BRANDS: 4Q 2007 Sales Up 19% to US$577 Million J A P A N COSMO OIL: To Join Exploration Project in Australia JVC CORP: Books JPY3.36-Billion Net Profit for Third Quarter JVC CORP: To Tie Up with Funai on Supply of Flat-Panel TVs JVC CORP: Enters Into Patent Cross-Licensing Deal with Microsoft K O R E A DAEWOO ELECTRONIC: Choi Yong Geon Acquires 6.93% Stake DAEYUVESPER: Signs KRW593-MM Contract With Tourism Organization DURA AUTO: Seeks Court Consent for US$170MM Replacement Loan HANAROTELECOM: Signs Deal With Disney to Provide Movies LG TELECOM: Fourth Qtr. Earnings Down 48.9% on Increased Cost M A L A Y S I A AVAYA INC: Jenne Distributors to Offer Mid-Market Biz to Dealers MANGIUM: Wants to Acquire MYR240 Mil. Assets in Ramajuta TRIPLC BERHAD: Earns MYR1.07 Mil. in Quarter Ended November 30 N E W Z E A L A N D A.C. TIPPING: Creditors' Proofs of Debt Due on February 28 ABSAM HOLDINGS: Shareholders Resolve to Liquidate Business C K FLOORING: Court to Hear Wind-Up Petition on February 8 CLEAR CHANNEL: S&P Retains B+ Corp. Credit Rating on Watch Neg. FIRST PACIFIC: Fixes Feb. 19 as Last Day to File Claims LADA LTD: Shareholders Opt to Liquidate Business MERLIN EQUITIES: Faces CIR's Wind-Up Petition METWORX LTD: Subject to CIR's Wind-Up Petition SHETLAND RISE: Appoints van Delden & Whittfield as Liquidators WASH N SHOP: Wind-Up Petition Hearing Slated for February 4 WILL & PHIL: Wind-Up Petition Hearing Slated for February 8 P H I L I P P I N E S CHIQUITA BRANDS: Soliciting Consents to Amend Indenture Terms CHIQUITA BRANDS: Gets Consent Solicitation for 7-1/2% Sr. Notes PRC: Seeks to Hire Jenner & Block as Special Conflicts Counsel PRC LLC: Wants to Hire CXO LLC as Restructuring Advisors PRC LLC: Wants Court Nod on Evercore Group as Investment Bankers S I N G A P O R E FLEXTRONICS INT'L: Completes Avail Medical Products Acquisition ITC GLOBAL: Creditors' Meeting Slated for February 13 MELROSE SINGAPORE: Creditors' Proofs of Debt Due on Feb. 25 OPTIMUM-3 INTERNATIONAL: Creditors to Meet on February 1 SEMITECH ELECTRONICS: Incurs SGD3.9-Mil. Net Loss for FY 2007 SEMITECH ELECTRONICS: Unveils Appointment & Resignation of Staff T H A I L A N D ABICO HOLDINGS: SEC Grants Request for Leniency on Special Audit DOLE FOOD: Converts Salinas Equipment to B20 Bio-Diesel Fuel G-STEEL: Exempted From Tender Offer on Nakornthai Purchase PICNIC CORP: Liquidates Operations of Two Subsidiaries SIAM GENERAL: Has Until June 29 to Complete Talks for Land THAI-DURABLE GROUP: 3Q07 Net Loss Climbs 113% to THB30.341 Mil. TMB BANK: Appoints Two New Independent Directors - - - - - - - - ================= A U S T R A L I A ================= BALLARAT COLONY: Placed Under Voluntary Liquidation --------------------------------------------------- During a general meeting held on December 17, 2007, the members of Ballarat Colony Operations Pty. Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia Ballarat Colony Operations Pty Ltd operates non-classifiable establishments. The company is located at Melbourne, in Victoria, Australia. CENTRO PROPERTIES: Unlisted Funds Carry High Sale Prices -------------------------------------------------------- Centro Properties Group opened its data room late on Tuesday, with several of the larger unlisted property investors who were said to have submitted initial expressions of interest at considerably high prices, Carolyn Cummins writes for The Age. The data room, which is a confidential Web site, allows potential buyers to register a price, the report explains. If the offer is accepted, the potential buyers are then given access to information by Centro's advisers. Centro, The Age further explains, is selling its two unlisted funds -- Centro Australia Wholesale Fund, with AU$2.6 billion of funds under management; and Centro America Fund, with AU$1.1 billion. According to the report, it was believed that the average offer price reflected a yield of about 6%, implying a high price (low yield translates to a high asset price), given the quality in some of the portfolio. Fund managers, The Age notes, said that the high asking price would limit the potential buyers to the unlisted and direct property funds such as the Industry Superannuation Property Trust, Colonial First State, AMP Capital Investors and Macquarie. These private vehicles, the report says, have more cash available -- due to the large superannuation inflows -- than the listed property trusts. The LPTs, The Age further points out, would need to go to the market to raise funds, which, according to analysts, is a difficult course considering the current state of equity and debt markets. The Age cites Winston Sammut, head of Maxim Asset Management, as contending that investors still needed more information to make an informed decision. According to the report, the sales are said to be set on the condition that Centro remains as manager of the centers. Another potential hindrance is the joint ownership of some of the centers within the two Centro unlisted funds that are on the block, which could pose problems with pre-emptive ownership contracts, the report adds. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a Melbourne, Australia-based company that comprises the operations of Centro Property Trust and its entities, which are engaged in property investment, property management, property development and funds management. The Company operates in two business segments: property ownership business and services business. The Company derives income from retail property rentals of shopping center space to retailers across Australasia and the United States. It also derives income from its retail property investments in listed and unlisted entities. Its services business activities include incorporating funds management, property management and development and leasing. During the fiscal year ended June 30, 2007, the Company acquired New Plan Excel Realty Trust, Heritage Property Investment Trust and Galileo Funds Management, as well as assumed full ownership of its United States management operations. The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. EDUCATIONAL ASSISTANCE: Placed Under Voluntary Liquidation ---------------------------------------------------------- At an extraordinary general meeting held on December 21, 2007, the members of Educational Assistance Pty Ltd resolved to voluntarily wind up the company's operations. Timothy M.S. Holden of Foremans Business Advisors (Southern) Pty Ltd was appointed as liquidator. The Liquidator can be reache at: Timothy M.S. Holden Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia About Educational Assistance Educational Assistance Pty Ltd, which is also trading as Pack & Deliver, provides schools and educational services. The company is located at Fitzroy, in Victoria, Australia. F.B.A. IMPORTS: Members to Receive Wind-Up Report on Feb. 7 ----------------------------------------------------------- The members of F.B.A. Imports & Wholesale Pty Ltd will meet on February 7, 2008, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: J. P. Downey J P Downey& Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About F.B.A. Imports F.B.A. Imports & Wholesale Pty Ltd is a distributor of home furnishings. The company is located at Melbourne, in Victoria, Australia. FMRSCHEM PTY: Commences Liquidation Proceedings ---------------------------------------------- The members of FMRSCHEM Pty Ltd met on December 17, 2007, and agreed to voluntarily liquidate the company's business. Richard Herbert Judson was then appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About FMRSCHEM Pty FMRSCHEM Pty Ltd is a distributor of chemicals and allied products. The company is located at Ingleburn, in New South Wales, Australia. M. & M. PARTITIONS: Undergoes Liquidation Proceedings ----------------------------------------------------- The members of M. & M. Partitions Pty. Ltd. met on December 21, 2007, and resolved 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 106 Hardware Street Melbourne Australia About M. & M. Partitions M. & M. Partitions Pty Ltd is involved with carpentry work. The company is located at Hoppers Crossing, in Victoria, Australia. N.O.F.S. PTY: Members Resolve to Liquidate Business --------------------------------------------------- During a general meeting held on December 20, 2008, the members of N.O.F.S. Pty Ltd resolved to voluntarily liquidate the company's business. James Patrick Downey was then appointed as liquidator. The Liquidator can be reached at: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne, Victoria 3000 Australia About N.O.F.S. Pty N.O.F.S. Pty Ltd operates eating places. The company is located at St Kilda, in Victoria, Australia. PDQR OPERATIONS: Placed Under Voluntary Liquidation --------------------------------------------------- The members of PDQR Operations Pty Ltd met on December 17, 2007, and agreed to voluntarily wind up the company's operations. Richard Herbert Judson was then tapped as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About PDQR Operations PDQR Operations Pty Ltd provides management consulting services. The company is located at Carlton, in Victoria, Australia. RATHSON PROPRIETARY: Members Opt to Shut Down Firm -------------------------------------------------- During a general meeting held on December 17, 2007, the members of Rathson Proprietary Limited agreed to voluntarily liquidate the company's business. The company's liquidator is: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia About Rathson Proprietary Located at Reservoir, in Victoria, Australia, Rathson Proprietary Limited is an investor relation company. SUNCORP-METWAY: Sells US$50 Million Floating Rate Notes ------------------------------------------------------- Suncorp-Metway Ltd sold US$50 million of floating rate notes maturing in 2009, Reuters reports, citing sole lead UBS as saying on Wednesday. The details of the deal are: Issuer: Suncorp-Metway Ltd Facility: Floating rate euronotes Amount issued: US$50 million Maturity: July 29, 2009 Set date: July 29 Coupon: +25 basis points over 3-month Libor Yield: +25 basis points over 3-month Libor Margin: +25 basis points over 3-month Libor Issue price: 100 Lead(s): UBS Issuer rating: A+ (S&P), Aa3 (Moody's) About Suncorp-Metway Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in retail and business banking, general insurance, life insurance, superannuation and funds management with a focus on retail consumers and small to medium businesses. Its brand offering includes Suncorp and GIO, with GIO being the main insurance brand outside of Queensland. On March 20, 2007, Fitch Ratings gave a 'B' rating on Suncorp's Individual Rating. Subsequently, on May 4, 2007, Moody's Investors Service rated Suncorp-Metway's bank financial strength a 'B-'. TRELILLE NO. 17: Commences Liquidation Proceedings -------------------------------------------------- The members of Trelille No. 17 Pty Ltd met on December 20, 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 Trelille No. 17 Trelille No. 17 Pty Ltd operates miscellaneous business credit institutions. The company is located at Numurkah, in Victoria, Australia. WHISTLER'S 7: Members Agree on Voluntary Liquidation ---------------------------------------------------- The members of Whistler's 7 Pty. Ltd. met on December 20, 2007, and agreed to voluntarily liquidate the company's business. Leigh Dudman was then appointed as liquidator. The Liquidator can be reached at: Leigh Dudman B. K. Taylor & Co 8/608 St Kilda Road Melbourne, Victoria 3004 Australia About Whistler's 7 Whistler's 7 Pty Ltd is a general contractor of single-family houses. The company is located at Richmond, in Victoria, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ ADVERTASIA STREET: Appoints New Liquidator ------------------------------------------ The members of Advertasia Street Furniture Limited has appointed Law Yui Lun as the company's liquidators. The Liquidator can be reached at: Law Yui Lun Room 502 5th Floor, Prosperous Building 48-52 Des Voeux Road Central, Central Hong Kong BERRY PLASTICS: S&P Keeps Low-B Ratings on Captive Plastics Buy --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' first-lien and 'B' second-lien senior secured debt ratings on Berry Plastics Corp. S&P removed the first- and second-lien senior secured debt ratings from CreditWatch, where they were placed with negative implications on Jan. 3, 2008, following the company's announced acquisition of Captive Plastics Inc. Pro forma for the debt-financed acquisition, total debt (adjusted to include capitalized operating leases and unfunded postretirement liabilities) was about US$3.9 billion at Sept. 29, 2007. "The ratings affirmation reflects our expectation that the issuance of additional debt to fund Berry's acquisition of privately held Captive Holdings Inc., parent of Captive Plastics Inc., will not diminish recovery prospects for the outstanding first- and second-lien debt in the post-acquisition capital structure," said Standard & Poor's credit analyst Liley Mehta. Berry has obtained financing commitments to fund the acquisition for about US$500 million in cash, and expects it to close in the first quarter of 2008, subject to customary closing conditions. Captive manufactures blow-molded bottles and injection-molded closures for the food, health care, spirits, and personal care markets at 13 plants in the U.S. The rating on Berry Plastics Group Inc. reflects the company's highly leveraged financial profile, which offsets the company's fair business profile with large market shares in niche segments, a well-diversified customer base, and strong customer relationships. With about US$3.5 billion in annual sales pro forma for the Captive acquisition, Berry ranks among the largest packaging companies in North America, with leading positions in both the rigid and flexible plastic packaging segments. Based in Evansville, Indiana, Berry Plastics Corporation -- http://www.berryplastics.com/-- manufactures and markets rigid plastic packaging products. Berry Plastics provides a wide range of rigid open top and rigid closed top packaging as well as comprehensive packaging solutions to over 12,000 customers, ranging from large multinational corporations to small local businesses. The company has 25 manufacturing facilities worldwide, including in Italy, England and Hong Kong, and employs more than 6,800 employees. FLANNEL (ASIA): James Wardell Steps Down as Liquidator ------------------------------------------------------ On January 25, 2008, James Wardell, stepped down as liquidator for Flannel (Asia) Limited, which is undergoing liquidation. FIAT SPA: Posts EUR58.5 Billion in Revenues for Fiscal Year 2007 ---------------------------------------------------------------- Fiat S.p.A. reported EUR58.5 billion in revenues for year ended 2007 compared with EUR51.8 billion in revenues for the year ended 2006. The revenues are driven by increased activity across all major industrial businesses. The Automobiles businesses posted revenues of EUR29 billion, on the back of higher sales volumes at Fiat Group Automobiles, whose revenues rose 13.1% to EUR26.8 billion. Significant contributions also came from Ferrari, whose revenues increased 15.3%, and Maserati, which recorded revenue growth of 33.7%. Iveco had revenues of EUR11.2 billion due to outstanding sales volume and improved pricing. CNH-Case New Holland closed with revenues of EUR11.8 billion, up 12.5% from EUR10.5 billion in 2006. Revenues in the Components and Production Systems businesses totaled EUR13.4 billion, an overall increase of 8.2%. Sales increased 15.1% at FPT Powertrain Technologies and 12.2% at Magneti Marelli. Teksid revenues decreased by 20.0%, from EUR783 million in 2007 from EUR979 million in 2006, in absolute terms, mainly due to changes in the scope of consolidation Comau reported a decline of 14.9%, in line with the reshaping of the business initiated in 2006. In the fourth quarter of 2007, Fiat Group revenues totaled EUR15.8 billion, a 14.1% increase over EUR13.9 billion for the fourth quarter in 2006, with all major sectors contributing to the improvement. In 2007, trading profit totaled EUR3.23 billion, an increase of 65.7% compared to the EUR1.95 million reported in 2006. The Automobiles businesses achieved trading profit of EUR1.09 million. Fiat Group Automobiles, in particular, had a trading profit of EUR803 million, an increase of EUR512 million compared to 2006, while trading margin grew from 1.2% in 2006 to 3.0% in 2007. Ferrari's trading profit totaled EUR266 million, an increase of 45.4%. For the first time since its acquisition by Fiat in 1993, Maserati was profitable in 2007, achieving a trading profit of EUR24 million against a loss of EUR33 million in 2006. Agricultural and Construction Equipment had a trading profit of EUR990 million, exceeding by EUR253 million the 2006 level; trading margin grew from 7.0% in 2006 to 8.4% in 2007. Iveco's trading profit also improved sharply from EUR546 million in 2006 to EUR813 million in 2007, an increase of EUR267 million or 48.9%. In 2007, the Components and Production Systems business posted trading profit of EUR509 million, representing a trading margin of 3.8%. The EUR161 million overall improvement reflects higher trading profit at FPT Powertrain Technologies and Magneti Marelli, and a much-reduced loss at Comau, whose reshaping plan is starting to bear fruit. Teksid's trading profit, down EUR9 million, improved by EUR16 million on a comparable scope of operations. For the fourth quarter of 2007, trading profit was EUR947 million, up EUR405 million or 74.7% over Q4 2006, with improvements across all businesses. Operating income for the year totaled EUR3.15 billion. The EIR1.09 million improvement from 2006 reflects higher trading profit for EUR1.28 million, reduced by the difference of EUR191 million in unusual items year-over-year Gains of disposals worth EUR190 million in 2007 were more than offset by restructuring costs of EUR105 million and other one-off expenses of EUR166 million mainly related to the remaining class of strategic suppliers in need of rationalization. In 2007, net financial expenses totaled EUR564 million and included the positive impact of EUR70 million from two stock option-related equity swaps, the financing costs for pension plans and other employee benefits for EUR155 million, as well as the one-off cost of EUR43 million related to the accelerated redemption of CNH senior notes due 2011. Investment income totaled EUR185 million in 2007, versus EUR156 million in 2006. Income before taxes amounted to EUR2.77 million in 2007, against EUR1.64 million in 2006. The improvement of EUR1.13 million is due to the EUR1.09 million increase in operating income, lower net financial expenses of EUR12 million and the increase of EUR29 million in investment income. Income taxes totaled EUR719 million, representing an effective tax rate of 25.9%, at the low end of the expected income tax rate range. In 2007, net income before minority interest was EUR2.05 million, compared with income of EUR1.15 million in 2006. Net industrial debt turned from EUR1.77 million at the end of 2006 to a net industrial cash position of EUR355 million at 2007 year end, reflecting strong net industrial cash flow of approximately EUR2.7 billion, mainly as a result of positive operating performance, partially offset by dividend distribution of EUR0.3 billion and share repurchase for EUR0.4 billion. Fiat Group's capital expenditures in 2007 for industrial operations amounted to EUR3.7 billion, an increase of EUR0.8 billion against 2006. The Group's cash position at December 31, 2007 was EUR6.9 billion compared with EUR8 billion at Dec. 31, 2006. The decrease follows the net reduction in external debt of about EUR2.2 billion. Outlook for 2008 The Western European automobile market is expected to remain stable in 2008. In this context, Fiat Group Automobiles expects to gain market share in Italy and Western Europe, continuing to leverage on the recently introduced Fiat 500, Fiat Bravo, Fiat Linea, on the 2008 new model launches, as well as on new engines. The Brazilian market should continue to grow, posting in 2008 an increase of more than 10% compared to 2007, and Fiat operations are expected to maintain their leadership of the Brazilian market. Higher spending in advertising and network investments will support Fiat Group Automobiles targeted volume growth of approximately 200,000 units in 2008. The agricultural equipment market is expected to grow in North America, Europe and in Latin America and to remain flat in the Rest of the World. High global commodity prices and low levels of agricultural stocks will lead to strong net farm incomes. Increasing demand for corn and sugar cane to produce fuel ethanol continues to support equipment sales. The construction equipment market is expected to grow in Europe and in the rest of the world, to be flat in Latin America and to decrease in North America. In the United States, further declines in residential construction should be partly offset by higher nonresidential and heavy construction activity. In North America, housing starts are expected to continue declining but will potentially stabilize later in the year; housing starts are expected to be flat in Europe, Latin America and in the rest of the world. In this context, CNH expects to achieve a strong improvement in unit volume along with continuing market share gains. Momentum of positive net pricing offsetting increases in certain raw materials and components will continue. In Western Europe, the market for light, medium and heavy commercial vehicles is expected to keep on growing, notably in the first half of the year. Central and Eastern European markets are expected to grow about 15% compared to 2007. In this environment Iveco aims at gaining market share thanks to new products and is targeting revenue growth due to price repositioning and higher volumes. To achieve its targets, the Fiat Group will continue to push group-wide purchasing synergies, intensifying and accelerating development of best-cost-country sourcing, strengthening strategic partnerships with suppliers through long-term contracts, and focusing on the implementation of world-class manufacturing initiatives. The Group confirms its targets for 2008: trading profit between EUR3.4 and EUR3.6 billion, net income between EUR2.4 and EUR2.6 billion (earnings per share between EUR1.90/EUR2.00). Consolidated net revenues will be in excess of EUR60 billion. The Group expects to close the year again debt free, with a minimum of EUR1.5 billion of net cash on hand. While working on the achievement of these objectives, the Fiat Group will continue to implement its strategy of targeted alliances, in order to reduce capital commitments, and reduce the related risks. The Group's expectations for 2008 are based on the assumption that the current turbulence in financial markets will have limited contagion impact on the real economy, and at worst will be limited to the U.S. market. There is a concern that the current crisis of confidence being experienced in the capital markets will spill over and begin to severely restrict consumption on a global scale. The Group believes that such a scenario is unlikely: nonetheless, if such conditions were to effectively materialize, the Group believes that it would be able to fully sustain the financial impact of a downward pressure on demand, albeit with reduced operating performance and margins. A full-text copy of Fiat SpA's financial results is available at no charge at http://ResearchArchives.com/t/s?2777 About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 28, 2008, Moody's Investors Service 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. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. HONG CHANG PRINTING: Appoints New Liquidator -------------------------------------------- The members of Hong Chang Printing Factory Limited appointed Tseng Yih Sun as the company's liquidator. The Liquidator can be reached at: Tseng Yih Sun Unit 2, 8th Floor Kowloon Bay Kowloon KOOKMIN LEASING: Members Set Final Meeting on February 26 --------------------------------------------------------- The members of Kookmin Leasing & Finance (Hong Kong) Limited will have their final general meeting on February 26, 2008, at 32nd Floor, One Pacific Place, 88 Queensway Road, 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 E. Haughey. LUXLAND DEVELOPMENT: Appoints New Liquidator -------------------------------------------- The members of Luxland Development Limited appointed Lai Yui Chun as the company's liquidator. The Liquidator can be reached at: Lai Yui Chun Flat D, Block 5 5th Floor, Pristine Villa To Fung Shan, Shatin New Territories, Hong Kong MABUCHI PRECISION: Liquidators Quit Post ---------------------------------------- On January 25, 2008, Lai Kar Yan, Derek and Darach E. Haughey, stepped down as liquidator for Mabuchi Precision Industries hong Kong Limited, which is undergoing liquidation. NIDECO ELECTRONICS: Appoints New Liquidators -------------------------------------------- The members of Nideco Electronics Hong Kong Limited appointed Rainer Hok Chung Lam and John James Toohey as the company's liquidators. The Liquidators can be reached at: Rainer Hok Chung Lam John James Toohey 22nd Floor, Prince Building Central, Hong Kong PARALLEL ASIA: Members Meeting Fixed for Feb. 28 ------------------------------------------------ The members of Parallel Asia Engineering Limited will have their final general meeting on February 28, 2008, at 15th Floor, manulife Tower, 169 Electric Road, North Point, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Chok-man Yik. SAMTA SHIPPING: Commences Liquidation Proceedings ------------------------------------------------- Samta Shipping Company Limited commenced liquidation proceedings on January 21, 2008. The company's liquidators are: Chui Chi Hung Chun Hoi Commercial Building 688-690 Shanghai Street Mongkok, Kowloon Hong Kong THE UNIVERSITY OF HONG KONG: Appoints New Liquidators ----------------------------------------------------- The members of The University of Hong Kong Ilpo Graduates Association Limited appointed Tsui Kin Shing and Wong Sze Hoo Paul as the company's liquidators. The Liquidators can be reached at: Tsui Kin Shing Flat E, 32nd Floor Block 4, Tsui Ling Garden Tuen Mun New Territories Wong Sze Hoo Paul 5, 27th Floor Fai Ming House Chung Ming Court Tseung Kwan O New Territories TOP MIGHTY: Creditors' Proofs of Debt Due on March 15 ----------------------------------------------------- The creditors of Top Mighty Limited are required to file their proofs of debt by March 15, 2008, to be included in the company's dividend distribution. The company's liquidator is: Kung Ka Wun Units 803-5, Nan Fung Tower 173 Des Voeux Road Central, Hong Kong ========= I N D I A ========= AFFILIATED COMPUTER: Moody's Confirms Ba2 Corp. Family Rating ------------------------------------------------------------- Moody's Investors Service has confirmed Affiliated Computer Services' Ba2 corporate family rating with a stable rating outlook. This rating confirmation concludes a review for possible downgrade initiated on March 20, 2007, which was prompted by the company's announcement that founder and chairperson, Darwin Deason, and private equity fund Cerberus Capital Management, had proposed to buy the company. The ratings remained under review for possible downgrade following Cerberus' withdrawal of its offer on Oct. 31, 2007, as the termination triggered a public dispute between the chairperson and the former outside directors. The recent resignation of all five former outside directors, at Mr. Deason's request, ended the dispute. Resolution of the board dispute has reduced near-term uncertainty given the potential distraction to the ongoing business that a protracted fight could have caused. Nevertheless, the independence and effectiveness of the new board's oversight remains a key corporate governance concern. The Ba2 rating is supported by the company's size and profitability, as measured by its adjusted pretax income (US$464 million for the twelve months ended September 2007) and returns on assets (4.2% adjusted for pensions and leases). Moody's believes that Affiliated Computer's pretax income and returns will remain within ranges appropriate for the Ba2 rating given the company's relatively sizeable offshore employee footprint (over 30% of commercial business employees domiciled offshore) and continued growth in the higher margin BPO markets (about 75% of total revenues) and government business segment (about 40% of total revenues). Although the company's organic growth has slowed from mid-teens prior to 2005 to the low to mid single digits, its contract renewal rate remains strong at 94% in 2007. Furthermore, Moody's believes that bookings level should improve over the next twelve months as the disruptions of the past year have subsided with management now focused on stabilizing and growing the business. The Ba2 rating is constrained by the company's financial leverage and interest coverage, which collectively compare to business services peers rated in the Ba3 category. The rating is further constrained by management's aggressive financial policies, corporate governance concerns, the company's sluggish bookings growth rates, legal overhang related to prior improper stock options granting practices, and sizable capital expenditures as a percentage of EBITDA (about 45% on a Moody's adjusted basis). The stable outlook reflects the company's relatively steady internal revenue growth and solid operating margins, which are supported by its competitively well-positioned and relatively diversified BPO business portfolio. The stable outlook assumes that the likelihood of another potential leverage buy-out in the current market is low and that new business awards will improve due to renewed management focus on business fundamentals. Ratings confirmed/assessments revised: -- Corporate family rating, Ba2 -- US$500 million Senior Secured Notes due 2010 and 2015, Ba2, LGD 4, 53% -- US$1800 million Senior Secured Term Loan facility due 2013, Ba2, LGD 3, 43% -- US$1000 million Senior Secured Revolving Credit Facility, Ba2, LGD 3, 43% Rating revised: -- Probability of default rating to Ba2 from Ba3 Rating assigned: -- Speculative grade liquidity rating of SGL-1 Approximately US$3.3 billion of rated debt affected. Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. BANK OF BARODA: Profit Up 52% in Qtr. Ended Dec. 31, 2007 --------------------------------------------------------- Bank of Baroda reported a net profit of INR5.01 billion in the quarter ended Dec. 31, 2007, more than 52% compared to the INR3.29 billion earned in the same quarter in 2006. Total income increased to INR36.2 billion from 2006's INR26.68 billion. The bank reported operating profit of INR9.32 billion after deducting operating expenses of INR6.83 billion and interest expenses of INR20.05 billion. The bank also booked INR1.57 billion as provisions and contingencies other than tax. Tax for the three-month period totaled INR2.74 billion. A copy of the bank's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?2796 Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * On July 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: US$250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes program. Fitch said the outlook on all ratings is stable. BHARTI AIRTEL: Profit Rose to INR14.2 Bil. in Qtr. Ended Dec. 31 ---------------------------------------------------------------- Bharti Airtel Ltd, yesterday, disclosed its audited results for the quarter ended Dec. 31, 2007. The company posted a net profit of INR14.2 billion for the quarter ended Dec. 31, 2007, 36% more than the INR10.44 billion earned in the corresponding quarter in 2006. Total revenue has increased from INR47.24 billion to the latest quarter's INR66.83 billion. With expenditures from operations aggregating INR38.41 billion, the company booked a net profit of INR28.42 billion. Interest charges soared to INR4.68 billion in the current quarter under review, from the INR610.5 million posted in 2006. 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?2790 Pursuant to the Indian Generally Accepted Accounting Principles, the Group posted a consolidated net profit of INR14.29 billion on total income of INR70.18 billion for the quarter ended Dec. 31, 2007. As per United States GAAP, the Group's net profit in the Oct.- Dec. 2007 is at INR17.22 billion on total revenues of INR69.64 billion. About Bharti Airtel Headquartered in New Delhi, India, -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. * * * Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel Limited's Long-term foreign currency Issuer Default Rating at 'BB+'. The Outlook on the rating is Stable. ESSAR OIL: Books INR134-Mil. Loss in Qtr. Ended Dec. 31 ------------------------------------------------------- In the three months ended Dec. 31, 2007, Essar Oil Ltd reported a net loss of INR134 million on expenses boosted by those incurred in startup activities in the company's units of its integrated refinery project. In the same quarter in 2006, Essar Oil booked a profit of INR1.2 million. Essar Oil earned INR1.5 billion in revenues and incurred INR1.62 in operating expenses, bringing the company an operating loss of INR124.2 million. The company also posted depreciation of INR7.8 million and INR2 million in taxes. 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?2794 Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. ESSAR OIL: To Raise US$2 Bil. for Expansion and Exploration ----------------------------------------------------------- Essar Oil Ltd plans to raise up to US$2 billion (about INR8,000 crore) for its various developmental business activities. In a filing with the Bombay Stock Exchange, the company disclosed that its board of directors, at a meeting on Tuesday, considered various capital raising options. The funds will be used for projects including expansion of refining capacity, exploration and production activities, expansion of marketing network, and strengthening of working capital. The board decided to raise the funds by issuing debt or equity in the domestic or international markets and/or via qualified institutional placement. The board will hold an Extraordinary General meeting on Feb. 28, 2008, to, among others, seek shareholders' approval of the move. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. ESSAR OIL: To Consolidate Upstream & Exploration in New Unit ------------------------------------------------------------ Essar Oil Ltd has decided to consolidate its upstream exploration production activities under its proposed subsidiary, Essar Exploration & Production Ltd, the company said in a filing with the Bombay Stock Exchange. According to the company, the move is aimed at building a strong fully integrated oil company having upstream, refining, and downstream marketing activities. On completion of the exercise, Essar Oil will have nine Oil & Gas and Coal Bed Methane blocks -- three onshore blocks in Madagascar; one offshore block in Nigeria; oil & gas block in Mehsana, Gujarat; Coal Bed Methane block in Raniganj, West Bengal; offshore field Ratna & R Series and two onshore blocks in Assam. The company further disclosed that it has commissioned all the processing units of its 10.5 mmtpa refinery. All the units are expected to reach full capacity by the end of this quarter. In addition, the dispatch facilities by rail and road have also been fully commissioned. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. HMT LTD: Net Loss Widens to INR157.5 Mil. in Qtr. Ended Dec. 31 --------------------------------------------------------------- HMT Ltd's net loss widened to INR157.5 million in the quarter ended Dec. 31, 2007, compared to the INR44.9-million loss incurred in the quarter ended Dec. 31, 2006. Total income dipped from INR701.30 million in Oct.-Dec. 2006, to the latest quarter's INR378.1 million, which is comprised of INR362.1 in net sales and INR16 million in other income. Expenditures in the quarter ended Dec. 31, 2007, aggregated INR520.2 million, leaving the company an operating loss of INR142.1 million. 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?2795 HMT Limited -- http://www.hmtindia.com/-- is a public sector engineering conglomerate. The company retains the Tractor's Business, which develops tractors ranging from 25 horsepower to 75 horsepower. It has an installed capacity of 18,000 tractors for manufacturing and assembly operations. The company has three tractor manufacturing units in India located at Pinjore in Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh. The subsidiaries of the company include HMT Machine Tools Limited, HMT Watches Limited, HMT Chinar Watches Limited, HMT (International) Limited, HMT Bearings Limited and Praga Tools Limited. The principal segments include Machine tools, Watches, Tractors, Bearings and Exports. The company has a Joint Venture with SUDMO HMT Process Engineers (India) Limited, Bangalore. Credit Analysis and Research Limited downgraded HMT's long-term bond issue of INR310 crore to CARE BB(SO) on Feb. 18, 2005. At the same time, the company's medium term bond issue of INR40.40 crore was likewise downgraded to CARE BB(SO). Instruments rated 'Double B' are considered to be speculative, with inadequate protection for interest and principal payments. INDIAN OVERSEAS BANK: Fitch Upgrades Individual Rating to 'C/D' --------------------------------------------------------------- Fitch Ratings, yesterday, upgraded Indian Overseas Bank's Individual rating to 'C/D' from 'D/E'. The Support rating is affirmed at '3'. The upgrade of IOB's Individual rating reflects its improved asset quality and stable capital ratios in recent years. The ratings also reflect its moderately large size among Indian banks, being amongst the twelve largest banks in terms of assets (INR927 billion). As with other government banks, aggressive NPL write-offs and recovery from delinquent accounts in a benign credit environment helped improve IOB's reported asset quality ratios (Gross NPL ratios decreased to 2.1% in September 07 from 7.4% in FY04), which are now slightly better than the system median. The bank has also been strengthening its risk management systems by improving its technology and operational efficiencies, which is critical given the rapid loan growth (more than 30% in FY07 and FY06), increase in exposure to real estate (approximately 7% of loans) and increase in restructured assets in FY07. Reduction of low cost deposits to total deposits (33% in June 2007, 40% in FY05) led to a decline in IOB's net interest margin (NIM), although it continues to be above the system median thanks to a greater proportion of lending to higher yielding SMEs and corporates. Fitch expects margins to remain under pressure, particularly if interest rates were to rise further. The issue of Tier-2 bonds in FY07 helped the bank maintain its total capital adequacy ratio above 13%. Although Basel II implementation, due from March 08, could have an adverse impact due to an increase in capital charge for operational risk, IOB's ability to raise common equity is presently better than many other government banks, as the government's shareholding of 61.2% is above the regulatory minimum of 51%. Established in 1937, Indian Overseas Bank was nationalized in 1969 and until its listing in September 2000, was wholly-owned by the government. Subsequent to its public offering, the government's stake reduced to 61.2%. IOB has an extensive network of 1,822 branches spread nationwide, although there is a higher concentration of its business and branches in South India, especially in its home state of Tamil Nadu. On 31 December 2006, IOB took over all assets and liabilities of Bharat Overseas Bank (a private bank based in Chennai in which IOB held a 30% stake), which added about 5% to IOB's gross loans. NCO GROUP: US$ Depreciation Cues S&P to Remove Watch Developing --------------------------------------------------------------- Standard & Poor's Ratings Services has removed its 'B+' long- term counterparty credit rating on NCO Group Inc. from CreditWatch Developing, where it was placed on Dec. 12, 2007. At the same time, S&P affirmed its 'B+' rating on the company and all associated issue ratings. The outlook is negative. "The outlook revision reflects our belief that the tougher collection environment and the depreciating U.S. dollar may continue to negatively affect NCO's results in 2008 and beyond," said S&P's credit analyst Rian Pressman. These factors caused NCO Group to moderately underperform relative to S&P's initial expectations when the rating was initially assigned in late 2006. This revised outlook does not reflect upon S&P's generally positive opinion of NCO's pending acquisition of Outsourcing Solutions Inc., a sizable competitor in the accounts receivable management industry. This acquisition significantly expands NCO Group's accounts receivable management business, where it is already the market leader. The group's accounts receivable management product mix, which is currently weighted heavily toward third-party collections on a contingency-fee basis, will become more balanced, given Outsourcing Solutions Inc.'s focus on managing early-stage delinquent receivables, which is paid on an FTE (a fixed-fee per full-time employee) basis. In addition, because Outsourcing Solutions has only a nominal portfolio of purchased receivables, the contribution to the consolidated organization's EBITDA from portfolio management activities will decline. S&P has previously cited the disproportionately high contribution from this volatile business as a negative ratings factor. S&P also views integration risk as relatively low because there is little client overlap and good IT compatibility between the two companies. The company's ownership group (One Equity Partners and certain members of senior management) is contributing US$210 million of additional equity to the US$325 million for Outsourcing Solutions (US$24 million of deal and integration costs will also be incurred). Given the add-on term loan of US$139 million required to consummate the transaction, S&P's expectations of leverage have changed. Per management projections, S&P expects debt-to-EBITDA and EBITDA interest coverage to approximate 4.3 and 2.3, respectively, for 2008 on a pro forma basis. Although these metrics are adequate for the current rating, continued pressure on EBITDA because of the factors discussed above may alter this conclusion. The senior-secured bank loan and revolver (the original US$465 million plus a US$139 million add-on and US$100 million, respectively) are guaranteed by all material direct and indirect domestic subsidiaries of the borrower (NCO Group Inc.), excluding those that contain CarVal, an affiliate of the agriculture/food company Cargill, articipation and international operations. Approximately 26% of the total EBITDA, which S&P expects the consolidated organization to generate, is forecast to be attributed to these excluded subsidiaries, post- acquisition. The senior unsecured and senior-subordinated notes (US$165 million and US$200 million, respectively) are both subordinated in right of payment to the senior-secured indebtedness. S&P used an enterprise value approach to analyze the lenders' recovery prospects, given the likelihood that the business would retain value as an operating entity in the event of a bankruptcy. A default on the company's debt obligations would most likely be the result of financial pressures caused by the franchise's rapid expansion, adverse operational issues, lost clients, competitive pressures, or the mispricing of portfolio management purchases. S&P's simulated default scenario also contemplates a fully drawn revolving credit facility, a 200 basis point increase in LIBOR, and a 200 basis point increase to the borrower's cost of capital because of credit deterioration. S&P used an EBITDA multiple of 4.0 to determine an enterprise valuation. Based on this simulated default scenario, lenders would be expected to realize a substantial recovery (70%-90%) of principal for the secured bank loan and revolver, which is reflective of a '2' recovery rating. As a result, the rating on the bank facilities is one notch higher than the counterparty credit rating, while the unsecured notes are two notches lower. The negative outlook reflects the potential for continued pressure on results because of the difficult collections environment and depreciating U.S. dollar. If these or other circumstances cause NCO to underperform further, relative to S&P's expectations, the rating will be lowered. If circumstances stabilize, the outlook will be changed to stable. Headquartered in Horsham, Pennsylvania, NCO Group Inc. -- http://www.ncogroup.com/-- provides business process outsourcing services including accounts receivable management, customer relationship management and other services. NCO provides services through over 100 offices in the United States, Canada, the United Kingdom, Australia, India, the Philippines, the Caribbean and Panama. TATA MOTORS: Nearing Deal With Ford on Jaguar & Land Rover Sale --------------------------------------------------------------- Tata Motors Ltd is closing in on a deal with Ford Motor Co. for the sale of the American carmaker's Jaguar and Land Rover brands, The Economic Times reports citing an unnamed source �who has been briefed on the negotiations.� The Times' source anticipates an announcement of an agreement as early as next week to as late as March. The agreement may also include an engine-supply deal. The parties, the news agency's source relates, are negotiating an agreement for Ford to keep supplying engines and other technology to Jaguar and Land Rover. Times expects the sale agreement will be for the sale of the entire stake in the two luxury brands. Ford CFO Don Leclair told the news agency that �the company does not plan to keep a stake in the storied British automakers.� Tata Motors became the front-runner bidder for Ford's two brands when Ford announced on Jan. 3, that it has entered into �focused negotiations at a more detailed level� with Tata. Tata Motors, who has the backing of the unions of Jaguar and Land Rover, made it to the list of final bidders along with Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd on review for possible downgrade. ================= I N D O N E S I A ================= ADARO INDONESIA: Moody's Upgrades Corporate Family Rating to Ba2 ---------------------------------------------------------------- Moody's Investors Service has upgraded PT Adaro Indonesia's corporate family rating to Ba2 from Ba3. This action concludes the review for possible upgrade which commenced on 6th November 2007. The outlook on the rating is stable. "The upgrade recognizes Adaro's improving fundamentals driven by continued deleveraging of the balance sheet, significantly lower cost of capital, ongoing operational efficiencies, and the ability to lock in customers for substantial proportions of forward production for the next 3 years," says Laura Acres, a Moody's Vice President. Moody's also notes that Adaro has materially altered it debt structure post redemption of its US$400 million bond facility and other debts (all ahead of the scheduled maturities) in December 2007. As a result of the refinancing concluded in December 2007, the company has significantly reduced its cost of borrowings, resulting in lower debt service obligation. The company now operates under one unsecured syndicated facility which provides flexibility to the company to implement its growth strategy and to declare dividends (limited to 50% of annual Net Income). The company's projected key credit metrics in the next 2 years -- in particular, adjusted debt/EBITDA and EBIT/interest - support a higher rating at the Ba2 level. Adaro's rating further reflects it's status as one of the world's lowest-cost producers and exporters of coal, with a long concession life (to 2022); the quality of its customer base, as represented by large utilities with excellent payment records; and its well established operations, with a record of consistent production growth. At the same time, the rating recognizes key challenges such as: 1) exposure to commodity cycles for both coal sales and fuel procurement; 2) moderate degree of financial leverage as a consequence of the LBO in 2005; and 3) a lack of diversification given Adaro's single site and product. The stable outlook reflects our expectation that Adaro will continue to maintain its operating and financial profile consistent with the Ba2 rating. The rating could experience upward pressure if Adaro continues to demonstrate an ongoing ability to delever the business. Indicators that Moody's would look for include (CFO- dividends)/adjusted debt rising above 20% on a consistent basis and adjusted debt/capitalization falling below 60%: Downward pressure on the rating could arise should Adaro experience material disruption to its operations, or industry fundamentals deteriorate to the extent that Adaro's ability to service its debt is compromised. Indicators Moody's would consider include debt service coverage falling below 2.0x or adjusted debt/capitalization rising above 75%. Furthermore, while cognizant of the need to return monies to shareholders, Moody's would look for financial metrics to remain in line with the rating level as such (CFO-dividends)/adjusted debt falling below 15% may also prompt negative rating action. Other negative rating trends include: 1) event risk as a result of the courts deciding against Adaro on off-setting VAT payments; and 2) any change in laws and regulations, particularly on the mining concessions, that would affect the business. Adaro is one of the largest single site coal producers in the southern hemisphere and one of the world's largest sub- bituminous coal companies. It exports 70% of its products to the Asia Pacific region, the US and Europe, while the rest is for the domestic market. Adaro is owned 36% by a group of international investors including Goldman Sachs, Citigroup, Farallon Capital, GIC of Singapore and the Kuok Group, remaining shares are held by Indonesian investors including the Edwin Soeryadjaya group (32%) and Theodore Rachmat group (32%). BANK TABUNGAN: Fitch Assigns 'D; Individual Rating -------------------------------------------------- Fitch Ratings has assigned a National Long-term rating of 'AA- (idn)' to PT Bank Tabungan Negara (Persero), an Individual Rating of 'D' and a Support Rating of '4'. The Outlook is Stable. The ratings reflect BTN's dominant role as the provider of financing of low- cost housing in Indonesia, stable and generally satisfactory balance sheet while taking into account its small size, limited deposit funding base and below average profitability. BTN was appointed as the main financial institution to provide subsidised mortgage loans to the low-income segment in 1974, but was encouraged by the government to develop commercial non- subsidised mortgage loans since 2002. In 2006, BTN remained a dominant lender in the subsidised mortgage loan market, with more than 97% of government-subsidised mortgage loans channelled through it. There are about 30 other banks which are allowed to provide subsidised mortgage loans for low-cost housing, although a lack of lending experience/infrastructure in this segment and possibly, the associated higher risk, have led to a preference for commercial mortgage lending. At end-9M07, BTN remained the largest mortgage lender in Indonesia with 19% market share thanks to its large exposure in subsidised mortgage loans. However, BTN's market share had declined from 30% at end-2003 due to the more intense competition and stronger growth in the non-subsidised mortgage loan segment. Over 2003-2006, BTN's subsidised mortgage loans grew by 15% CAGR and reached IDR9.9 trillion at end-9M07 or about 47% of total loans. The rest were non-subsidised mortgage loans (33%), home equity loans (9%), commercial loans (8% and mainly construction- related), and Islamic financing (2% and mainly mortgage). Loan quality was stable at about 4% of gross loans at both end-2005 and end-2006 although deterioration in macroeconomic conditions in H205 to H106 caused NPLs to rise slightly to 4.7% at end- 9M07. The bank expects the NPL ratio to remain generally stable in 2008, provided growth conditions remain benign. The high amount of special mention loans at about 18% of gross loans at end-9M07 reflected a revolving pool of late payers in the low- income segment who only tend to pay after receiving notification from BTN. Provision cover was relatively low at 52.7% of NPLs but was partly mitigated by the high portion of secured lending where almost all of BTN's loans, as a mortgage lender, were secured by fixed assets. BTN's net interest margin was relatively stable at about 5.0% over 2004-9M07 although below peer average of 6.0% (2006), reflecting its higher funding cost with time deposits accounting for about 61% of total deposit at end-9M07. However, the bank has increased efforts to improve its funding mix by establishing more outlets to collect saving deposits through cooperating with the government's postal offices. Competition on the lending side, particularly in the non-subsidised segment, may continue to limit upside potential for the bank's net interest margin. Total CAR including market risk declined to 16.8% (Tier-1 CAR: 14.9%) at end-9M07, from 17.5% at end-2006 due to loans growth (peers total CAR: 20% at end-2006). Management advised that total CAR will be maintained at above 15%, with a rights issue planned in 2008 expected to support the bank's CAR further. BTN was established as Bank Tabungan Pos in 1950 before its name was changed in 1963. Like its larger peers, BTN was badly affected by the financial crisis in the late 1990s and had to be recapitalised by the government. The bank remained wholly-owned by the government of Indonesia at end-9M07. PERUSHAAN LISTRIK: Unit's Employees Reject Restructuring Plan ------------------------------------------------------------- Employees of PT Pembangkit Jawa Bali, a subsidiary of PT Perusahaan Listrik Negara, have threatened to stage a rally to show their resistance to the government's plan to separate the unit from the parent company, The Jakarta Post reports. PJB Employees Union Head Edy Hartono told the news agency that up to 3,000 employees would join the rally. If the government would not respond to their demands, they would launch a strike that they claim would result in blackouts in the capital, the report notes. Under the program, The Post explains, the status of PLN's two most lucrative subsidiaries, PJB and Indonesia Power (IP), would be separated from PLN to form new companies. This would pave the way for the government to sell some of the company's shares to the public to gain funds to improve its performance, the report relates. PJB employees, however, disagreed, saying it would put 'strategic' state assets and eventually public interests at risk, the report relates. Mr. Hartono was quoted by the news agency as saying, "The plan to separate PJB from PLN is upsetting as it will give the new management, which will run the firm based on profit orientation, the option to raise electricity tariffs at the expense of the public." The plan could also cause negative reactions from employees, which would then risk PLN's current operations and performance, he added. Mr. Hartono, the report points out, suggested that the government should delay the restructuring program, and give the plan at least five years before implementation. The Post relates that Roes Aryawijaya, a deputy to the State Minister for State Enterprises, said the restructuring plan must be realized this year. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. TUPPERWARE BRANDS: 4Q 2007 Sales Up 19% to US$577 Million --------------------------------------------------------- Tupperware Brands Corporation's fourth-quarter 2007 sales grew 19% year over year (11% in local currency) to US$577 million with strong growth in all 5 segments ranging from 6% to 18% in local currency. Rick Goings Chairman and CEO of Tupperware Brands commented, "We are encouraged with the progress we made in the fourth quarter and the full year in further refining and implementing our strategies, which are working and delivering the positive results we expected to support long term growth. This came through in the fourth quarter with our high-teen year-over-year sales increase and our 35% increase in GAAP diluted earnings per share. Our sales and profit were both well ahead of our October outlook." "As we look ahead to 2008, we're planning to capitalize on our year end sales force size advantage of 15% to further grow our businesses, and expect to be in our long-term outlook range for local currency sales growth of 5 to 7% per year. This includes high single, to low double-digit, growth from the 40% to 45% of our businesses that operate in emerging markets and, on average, a low single digit growth rate from the remainder of our businesses that operate in established markets." "We expect to grow net income even more with higher profit from the segments and lower interest expense, as we benefit from the credit agreement we closed at the end of the third quarter, partially offset by a higher but still very favorable income tax rate in the 23% range." "Included in our 2008 outlook is continued investment to implement our strategies as we further develop our branded portfolio of direct selling companies, working to continue to innovate with our demonstrable product lines, our contemporized selling situations and the right sales force compensation plan in each market." Excluding certain adjustment items, fourth-quarter earnings per share rose to 93 cents from 74 cents in 2006, or 26%. Stronger foreign currencies had a 10 cent positive impact on the year- over-year comparison. Profit from the segments rose 29%, interest expense was lower by over US$3 million, reflecting lower borrowings along with a benefit from the new credit agreement entered into in September, and unallocated expenses rose by US$5 million, largely reflecting higher expenses associated with management incentive programs. The quarter's effective tax rate rose to 17% this year from 10% last year. As of the end of the fourth quarter net debt was down to US$593 million, a reduction of US$88 million from US$681 million at the end of 2006. Net cash provided by operating activities, net of investing activities, for the full year was US$152 million, ahead of October guidance of US$100 to US$110 million. Fourth Quarter Segment Highlights Tupperware Segments In Europe, fourth quarter sales rose by 19% (6% in local currency) over the prior year. The positive sales force trends continued in the emerging markets leading to 22% growth in local currency coming most notably in Russia, Turkey and South Africa. Established markets grew 1% in local currency with Germany achieving a 3% sales increase, following double-digit declines in each of the first three quarters. The total sales force size advantage for the whole segment at the end of the year was 21%. The average active sales force increased 8%. Segment profit increased 33% (18% in local currency) reflecting a greater than 2 point higher return on sales from improved value chains in several of the markets in Western Europe and higher manufacturing volume. Asia Pacific achieved a 24% (16% in local currency) sales increase with emerging markets up 30% in local currency and established markets up 9% led by Australia. The number of active sellers was up 11% led by Indonesia, Australia and Korea. Operating profit increased 48% (36% in local currency) and reflected a 3.7 pp improvement in return on sales. This primarily reflected a higher share of sales from Australia, with its high return on sales, and more efficient expense management by Tupperware Japan, as well as 0.8 pp from lower purchase accounting amortization. In Tupperware North America, 12% (11% in local currency) higher sales, reflected increases in all three markets, the United States, Canada and Mexico. Although there was a drag in the last 2 and 1/2 weeks of December in light of the warehouse fire in the main U.S. warehouse, Tupperware United States and Canada still achieved a 12% local currency sales increase in the quarter. The total sales force size for the whole segment was down at the end of the year, reflecting a decrease in Mexico as the United States had a higher sales force count. Active sellers in the segment were down slightly. There was a 4.5 pp improvement in return on sales that brought the segment's profit up over 100%, mainly reflecting an improved cost structure in the United States. Beauty Segments In the Beauty North America segment, the 13% (12% in local currency) sales increase reflected double-digit increases by both units, Fuller Mexico and BeautiControl North America. Both units also had double-digit total sales force size advantages as of the end of the year, with the segment up 13%. The active sales force was up 10%. Segment profit was up 9% (8% in local currency), reflecting a lower return on sales, principally from gross margin investment at BeautiControl to sell through inventories and higher distribution costs that were about offset by lower purchase accounting amortization. * Amounts discussed in Segment Highlights are on a GAAP basis including purchase accounting amortization. Reconciliation Schedule for information excluding this item. The Beauty Other segment achieved a 30% (18% in local currency) sales increase, reflecting higher sales forces and sales throughout Central and South America, most notably in Venezuela and Brazil. Fuller Philippines also had a double digit sales increase. The Nutrimetics units were down as a group, with the largest Nutrimetics market, Australia, down just slightly, reflecting an improved trend from earlier in the year. The total sales force in the segment was up 12% and the active sales force was up 8% in the quarter. There was a loss of US$0.1 million that included US$1.2 million of purchase accounting amortization. Excluding purchase accounting amortization from both years, profit increased reflecting improved results in the Philippines, Venezuela and Brazil. Full-Year Results For full-year 2007, total companysales grew 14% (9% in local currency), to a record US$2.0 billion versus US$1.7 billion in 2006. The Tupperware brand segments grew by 14% (8% in local currency) and the Beauty brand segments by 12% (10% in local currency). The businesses operating in emerging markets had sales growth of 21% (18% in local currency) and the remaining businesses that operate in established markets had growth of 8% (2% in local currency). Active sellers grew 5% for the year. Profit from the operating segments rose 33% (26% in local currency), 9 points of which was from lower purchase accounting amortization. Diluted earnings per share was US$1.87, up 21% (8% in local currency). Excluding certain adjustment items, full year 2007 diluted earnings per share was US$2.25, up 26% (14% in local currency). 2008 Outlook Full year 2008 sales are expected to increase 8 to 10% (5 to 7% in local currency) and GAAP diluted earnings per share is expected to be US$2.37 to US$2.47, including a 10 to 12 cent benefit versus 2007 from stronger foreign currencies. After adjustments full-year diluted earnings per share is expected to be US$2.50 to US$2.60 up 6% to 10% in local currency (see detail in the Non-GAAP Financial Measures Outlook Reconciliation schedule). Sales in local currency in the Tupperware brand segments are expected to increase in the mid-single-digit range and in the Beauty brand segments are expected to increase in the high- single-digit range. Excluding certain adjustment items, profit in the segments is expected to grow in line, to slightly above the rate of sales, except in Beauty Other where there was a loss of US$3 million in 2007 and a small profit is expected in 2008. Unallocated corporate costs in 2008 are expected to be about even with 2007's US$44 million; interest expense is expected to be US$33 to US$34 million, versus US$49 million in 2007, which included US$10 million of expense associated with implementing the new credit agreement; and the income tax rate is expected to be about 23%, compared with 17% in 2007 on a GAAP basis and 18% excluding certain items. First Quarter 2008 Outlook First quarter sales are expected to increase 13 to 15% (5 to 7% in local currency) and diluted earnings per share is expected to be 50 to 55 cents versus 32 cents last year. Excluding certain adjustment items diluted earnings per share is expected to be 44 to 49 cents versus 36 cents last year. This includes a 5 to 7 cents benefit versus 2006 from stronger foreign currencies and a lower effective tax rate. Rick Goings, Chairman and CEO of Tupperware Brands commented, "Many analysts and investors are concerned about the weakness of the U.S. dollar and the U.S. economy. Upwards of 84% of our sales and even more of our profit come from international markets. This means that our profit rises on dollar weakness, and while we could see some impact from lower consumer spending in the United States, the impact would be less than for many other companies given the size of our businesses here. To date we have not seen issues in our Tupperware United States or BeautiControl businesses related to the consumer spending environment." Tupperware Brands Corporation is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.1 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company's stock is listed on the New York Stock Exchange. Statements contained in this release, which are not historical fact and use predictive words such as "outlook" or "target" are forward-looking statements. These statements involve risks and uncertainties which include recruiting and activity of the company's independent sales forces, the success of new product introductions and promotional programs, the ability to obtain all government approvals on land sales, the success of buyers in attracting tenants for commercial developments, the effects of economic and political conditions generally and foreign exchange risk in particular and other risks detailed in the company's most recent periodic report as filed in accordance with the Securities Exchange Act of 1934. The company does not intend to regularly update forward-looking information. Non-GAAP Financial Measures The company has utilized non-GAAP financial measures in this release, which are provided to assist readers' understanding of the company's results of operations. The adjustment items materially impact the comparability of the company's results of operations. The adjusted information is intended to be more indicative of Tupperware Brands' primary operations, and to assist readers in evaluating performance and analyzing trends across periods. The non-GAAP financial measures exclude gains from the sale of property, plant and equipment and insurance recoveries; re- engineering costs; purchase accounting intangible asset amortization; purchase accounting intangible asset and goodwill impairment costs; and costs associated with terminating the company's previous credit agreement. While the company is engaged in a multi- year program to sell land adjacent to its Orlando, Florida headquarters, and also disposes of other excess land and facilities periodically, these activities are not part of the company's primary business operation. Additionally, gains recognized in any given period are not indicative of gains which may be recognized in any particular future period. For this reason, these gains are excluded as indicated. Further, the company excludes significant charges related to casualty losses caused by significant weather events, fires or similar circumstances. It also excludes any related gains resulting from the settlement of associated insurance claims. While these types of events can and do recur periodically, they are excluded from indicated financial information due to their distinction from ongoing business operations, inherent volatility and impact on the comparability of earnings across quarters. Also, the company periodically records exit costs as defined under Statement of Financial Accounting Standards No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" and other amounts related to rationalizing manufacturing and other re- engineering activities, and believes these amounts are similarly volatile and impact the comparability of earnings across quarters. Therefore, they are also excluded from indicated financial information to provide what the company believes represents a more useful measure for analysis and predictive purposes. The company has also elected to present financial measures excluding the impact of amortizing the purchase accounting write-up of the carrying value of depreciable assets and certain definite-lived intangible assets, primarily the value of independent sales forces, recorded in connection with the Company's December 2005 acquisition of the direct selling businesses of Sara Lee Corporation. The amortization expense related to these assets will continue for several years; however, based on the company's current estimates, this amortization will decline significantly as the years progress. Similarly in connection with its annual evaluation of the carrying value of acquired intangible assets and goodwill, the company has recognized an impairment charge in 2007. The company believes that both of these types of non-cash charges will not be representative in any single year of amounts recorded in prior years or expected to be recorded in future years. Therefore, they are excluded from indicated financial information to also provide a more useful measure for analysis and predictive purposes. Finally, in 2007, the company entered into a new credit agreement, which triggered the non-cash write off of previously deferred debt costs and costs associated with the settlement of floating-to-fixed interest rate swaps that were hedging the borrowings under the previous agreement. These costs are also not expected to be incurred in most reporting periods and for comparison purposes have also been excluded from the indicated financial information. Headquartered in Orlando, Florida, Tupperware Brands Corporation (NYSE: TUP)-- http://www.tupperware.com/-- is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. * * * As reported in the Troubled Company Reporter on Sept. 19, 2007, Moody's Investors Service assigned a Ba1 rating to Tupperware Brands Corporation proposed senior secured credit facilities, consisting of a US$200 million revolving credit facility and a US$550 million term loan A, both due 2012. Moody's also affirmed the company's Ba2 corporate family rating and Ba3 probability of default rating, and changed the outlook to positive from stable ========= J A P A N ========= COSMO OIL: To Join Exploration Project in Australia --------------------------------------------------- Cosmo Oil Co had signed a farm-in agreement for an operating interest in an oil exploration project in offshore western Australia, Reuters reports. According to Reuters, Cosmo Oil said in a statement that it had acquired a 22.5% interest in Australian block AC/P32 of the Timor Sea. However, the report relates, a Cosmo Oil spokesman refused to disclose the price of the deal. Reuters notes that Cogee Resources, which also holds a 22.5% interest, is the operator of the project. The other partners in the project include Bharat Petroleum, Westranch Holdings, and Adelphi Energy. Headquartered in Tokyo, Japan, Cosmo Oil Company, Limited -- http://www.cosmo-oil.co.jp/-- is primarily an oil refining company. The company is also involved in the purchase and sale of real estate, the manufacture and sale of alpha lipoic acid (ALA) products, as well as the provision of leasing and insurance services. Moody's Investors Service, on April 18, 2007, placed under review for possible upgrade the Ba1 senior unsecured debt rating and issuer rating of Cosmo Oil Co., Ltd. (Cosmo). The rating review is prompted by Moody's expectation that Cosmo will likely be able to maintain the stability of its operating performance and capital structure, despite a rather difficult business environment, over the intermediate term through successful business diversification. JVC CORP: Books JPY3.36-Billion Net Profit for Third Quarter ------------------------------------------------------------ Victor Co. of Japan Ltd., or JVC, booked its first profit in five quarters, Bloomberg News reports. According to Bloomberg, JVC posted a net income of JPY3.36 billion (US$31 million) in the quarter ended Dec. 31, 2006, a turnaround from the JPY1.45-billion net loss recorded in the third quarter of the previous fiscal year. Bloomberg cites JVC as saying in a statement that sales fell to JPY184.1 billion from JPY205.1 billion year-on-year. About JVC Corp. Headquartered in Kanagawa Prefecture, Japan, Victor Company of Japan, Limited (JVC) -- http://www.jvc-victor.co.jp/-- is primarily engaged in the manufacture and sale of audiovisual equipment, information and communications equipment, electronic products and others. The Company has five business segments. The Consumer Equipment segment offers various types of televisions, digital video cameras, car audio systems, as well as players and related equipment for video, mini disc, compact disc and digital versatile disc systems. The Industrial Equipment provides visual inspection devices, audio and video equipment, as well as projectors. The Electronic Devices segment offers monitors, optical pickups, high density buildups, multi-layer boards and display parts. The Software and Media segment provides music and visual software and recording media. The Others segment is engaged in businesses related to interior furniture and production facilities. It has 96 subsidiaries and seven associated companies. JVC incurred three consecutive annual net losses: JPY7.89 billion for the fiscal year ended March 31, 2007; JPY30.61 billion for the fiscal year ended March 31, 2006; and JPY1.86 billion for the fiscal year ended March 31, 2005. JVC CORP: To Tie Up with Funai on Supply of Flat-Panel TVs ---------------------------------------------------------- Victor Co. of Japan, or JVC, and Funai Electric Co. will join forces and supply each other with flat-panel televisions made overseas on an original equipment-manufacturing basis, Japan Times reports, citing unnamed sources. According to Reuters, JVC will supply LCD TVs made at a plant in Mexico to Funai, which will sell them under its own brand in North America. JVC, on the other hand, will market LCD TVs in Europe produced by Funai in Poland. Specifically, the Times writes, JVC will annually supply Funai with about 200,000 37-inch televisions starting this February, while Funai will annually provide JVC with about 300,000 small televisions. The Times explains that by procuring products from each other's production sites close to their main markets, JVC and Funai expect to cut transportation costs and improve plant operating ratios. The two companies also plan to release a jointly developed LCD TV in 2009, Reuters cites an industry source as saying. Reuters relates that Funai spokesman Naoyuki Takanaka said that his firm was in talks with JVC on a possible alliance but that nothing had been decided. JVC spokesman Toshiya Ogata, meanwhile, told Reuters that nothing had been set. The news on the tie-up pushed up shares of both companies, with Funai rising nearly 8% at one point, Reuters further notes. The Times points out that large electronics companies have recently forged partnerships in the production of liquid crystal display panels and other areas to reduce costs and survive fierce price-cutting competition in the flat-panel TV industry. Among other tie-ups in the industry, according to Reuters, are that of Toshiba Corp and Sharp, wherein Toshiba agreed in December to procure large LCDs from Sharp, which in turn will buy chips for LCD TVs from Toshiba. The JVC-Funai partnership indicates that the trend is spreading to small to medium-size companies that emphasize overseas markets with low-priced products, the Times says. About Funai Electric Funai Electric Co., Ltd.'s principal activities are the manufacture and sale of electrical products. The company's operations are carried out through these divisions: Video equipment; Information/ Communication equipment and Other. Video equipment consists of videos, VHS video cassette recorders, TV/VCR combination models and TV/DVD/VCR combination models, TVs and DVD players. Information/Communication equipment comprises of printers, facsimile machines, inkjet printer and laser beam printer. Others include other electronic devices. About JVC Corp. Headquartered in Kanagawa Prefecture, Japan, Victor Company of Japan, Limited (JVC) -- http://www.jvc-victor.co.jp/-- is primarily engaged in the manufacture and sale of audiovisual equipment, information and communications equipment, electronic products and others. The Company has five business segments. The Consumer Equipment segment offers various types of televisions, digital video cameras, car audio systems, as well as players and related equipment for video, mini disc, compact disc and digital versatile disc systems. The Industrial Equipment provides visual inspection devices, audio and video equipment, as well as projectors. The Electronic Devices segment offers monitors, optical pickups, high density buildups, multi-layer boards and display parts. The Software and Media segment provides music and visual software and recording media. The Others segment is engaged in businesses related to interior furniture and production facilities. It has 96 subsidiaries and seven associated companies. JVC incurred three consecutive annual net losses: JPY7.89 billion for the fiscal year ended March 31, 2007; JPY30.61 billion for the fiscal year ended March 31, 2006; and JPY1.86 billion for the fiscal year ended March 31, 2005. JVC CORP: Enters Into Patent Cross-Licensing Deal with Microsoft ---------------------------------------------------------------- Victor Company of Japan Ltd., or JVC, and Microsoft Corp. have entered into a patent cross-licensing agreement intended to further the development of each of their product lines and expand technological innovation, InfoWorld says. Northwest Innovation cites Microsoft as saying that the deal covers a broad range of consumer products that each company manufactures and sells. According to InfoWorld, Microsoft's statement says that the agreement expands the relationship between JVC and Microsoft in order to promote the exchange of valuable information and the incorporation of patented technologies in their respective products. InfoWorld notes that the contents and specific financial terms of the agreement were kept confidential. However, the report points out, the parties indicated that Microsoft will be compensated by JVC. About JVC Corp. Headquartered in Kanagawa Prefecture, Japan, Victor Company of Japan, Limited (JVC) -- http://www.jvc-victor.co.jp/-- is primarily engaged in the manufacture and sale of audiovisual equipment, information and communications equipment, electronic products and others. The Company has five business segments. The Consumer Equipment segment offers various types of televisions, digital video cameras, car audio systems, as well as players and related equipment for video, mini disc, compact disc and digital versatile disc systems. The Industrial Equipment provides visual inspection devices, audio and video equipment, as well as projectors. The Electronic Devices segment offers monitors, optical pickups, high density buildups, multi-layer boards and display parts. The Software and Media segment provides music and visual software and recording media. The Others segment is engaged in businesses related to interior furniture and production facilities. It has 96 subsidiaries and seven associated companies. JVC incurred three consecutive annual net losses: JPY7.89 billion for the fiscal year ended March 31, 2007; JPY30.61 billion for the fiscal year ended March 31, 2006; and JPY1.86 billion for the fiscal year ended March 31, 2005. ========= K O R E A ========= DAEWOO ELECTRONIC: Choi Yong Geon Acquires 6.93% Stake ------------------------------------------------------ Choi Yong Geon has acquired 757,400 shares of Daewoo Electronic Components Co., Ltd, Reuters Investing Keys reports. According to the report, the stake represents a 6.93% stake in the company. The report did not disclose the price in acquiring the stake. Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo Electronics placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. In September 2006, the consortium led by Videocon Industries submitted a bid for a controlling stake in Daewoo. DAEYUVESPER: Signs KRW593-MM Contract With Tourism Organization --------------------------------------------------------------- DaeyuVesper Co. Ltd. has signed a contract with the southwest branch of Korea Tourism Organization, Reuters Investing Keys reports. According to the report, under the business agreement, the company will provide construction services for development of Haewon resort. The contract is worth KRW593,000,000, the report adds. Headquartered in Gyoenggi Province, Korea, DaeyuVesper Co. Ltd. -- http://www.emoris.co.kr/-- formerly SungKwang Co., Ltd., is a manufacturer specialized in the provision of wastewater treatment equipment. The company provides its products under two categories: wastewater treatment and water treatment equipment. Its wastewater treatment includes aerated grit chambers, bar screens and micro screens, pumps, mixers and aerators, clarifiers, skimmer systems, sludge collectors, dissolved air flotation systems, ultraviolet (UV) disinfections systems, spiral-type rotating biological contractors and sequencing batch reactors. The Troubled Company Reporter-Asia Pacific's "Large Companies with Insolvent Balance Sheets" column on September 21, 2007, showed that DaeyuVesper has a US$1.60-million shareholders' deficit on total assets of US$19.06 million. DURA AUTO: Seeks Court Consent for US$170MM Replacement Loan ------------------------------------------------------------ DURA Automotive Systems, Inc., and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware's permission to obtain US$170 million replacement financing and amend their US$300 million existing postpetition financing facility. The Debtors have obtained commitments from Ableco Finance LLC on Jan. 21, 2008, for a Replacement Term Loan DIP Facility, which would (i) extend the maturity date of DIP loans by six months to July 31, 2007, and (ii) would allow the Debtors to enter into a replacement facility in order borrow US$170 million to pay off US$104.5 million due under the existing term loan facility, and pay outstanding balance under its DIP revolver and pay fees and expenses associated with the replacement term loan facility. Immediately after seeking for Chapter 11 protection, and in order to fund their operations while in bankruptcy, the Debtors obtained Court permission to enter into with Goldman Sachs Capital Partners L.P., General Electric Capital Corporation, and other lender parties: -- up to US$130 million asset based revolving credit facility, subject to borrowing base and availability terms, with a US$5 million sublimit for letters of credit; and -- up to US$170 million Fixed Asset Facilities consisting of: * up to US$150 million tranche B term loan; and * up to US$20 million pre-funded synthetic letter of credit facility. Due to their failure to obtain confirmation of their Joint Plan of Reorganization by their mid-December 2007 target, the Debtors had obtained an extension of their Existing DIP Facilities until Jan. 31, 2008. The Debtors missed their target mainly because of its failure to obtain full syndication of its US$425 million exit financing, due to tighter credit conditions. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors have been working with a number of potential replacement DIP lenders to solicit proposals for potential replacement DIP facilities. These efforts culminated in the Debtors obtaining a commitment letter from Ableco Finance on Jan. 21, 2008 for the Replacement Term Loan DIP Facility. The parties are negotiating and finalizing a form of the Replacement Term Loan DIP Facility based on the existing Term Loan DIP Facility, i.e., premised substantially on "stepping into the shoes" of the lenders under the existing Term Loan DIP Facility, along with the pledge of 100% of the stock of the Debtors' foreign non-debtor subsidiaries, an increase from the existing pledge of 66% under the existing Term Loan DIP Facility. The material terms of the Revolver DIP Amendments are: Term Description ---- ----------- Aggregate Commitments Reduced to US$90 million. New Maturity Date July 31, 2008. Interest Rate Subject to pending negotiations. New Collateral Enhanced Foreign Stock Pledge. Other Terms Certain additional terms, including Revolver DIP Facility covenants, are being negotiated and finalized. Carve-out Subject to pending negotiations. The salient terms of the Replacement Term Loan DIP Facility are: Term Description ---- ----------- Fees US$1,275,000 commitment fee, US$1,275,000 closing fee, and reasonable out-of-pocket fees and expenses incurred by Ableco, including already-paid US$175,000 advance expense deposit. Interest Rate The Term Loan will bear interest at the rate per annum equal to (i) the Reference Rate plus 7% of which 3% will be pai in- kind or (ii) the 30-, 60- or 90-day LIBOR plus 10% of which 3% will be paid-in-kind. Interest will be payable monthly in arrears. "Reference Rate" means the rate of interest publicly announced from time to time by JPMorgan Chase in New York, New York as its reference rate, base rate or prime rate, provided that at no time will the Reference Rate be less than 6.75% "LIBOR" means the London Interbank Rate, provided that at no time will the LIBOR rate referred to above be less than 3.75%. All interest and fees will &nbs