T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, February 1, 2008, Vol. 11, No. 23 Headlines A U S T R A L I A BRUCE BAVIN: Commences Liquidation Proceedings BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007 CHARSCOTT PTY: Placed Under Voluntary Liquidation CHATTEM INC: Fiscal Year 2007 Net Income Up to US$59.7 Million FLIGHT CENTRE: Says on Track to Beat Half-Year Profit Forecast J&B BRIGHT: Taps Bettles and Carter as Liquidators JOLLY JUMPS: Members Appoint Carter and Bettles as Liquidators KYRANO PTY: Commences Liquidation Proceedings MACK GRAZING: Taps Carter and Bettles as Liquidators NOONARM PTY: Members to Receive Wind-Up Report on February 11 OMEGA PTY: Members Resolve to Liquidate Business TASKINC PTY: Placed Under Voluntary Liquidation THE LEISURETIME CENTRE: Members Receive Wind-Up Report C H I N A , H O N G K O N G & T A I W A N AVALON KNITTING: Appoints New Liquidator CURRENT MANAGMENT: Hires Lai Man Chau as Liquidator HYSOCK COMPANY: Members Meeting Fixed for Feb. 29 INTELSAT LTD: Increased Leverage Cues Moody's to Cut CFR to Caa1 JIANGXI COPPER: To Shut 300,000 Tonnes of Smelting Capacity LUNG ELECTRONICS: Members Set Final Meeting on February 5 MYSTARU.COM: DNTW Accountants Raises Going Concern Doubt NEW SUNNY: Members Meeting Fixed for Feb. 25 SUN YUI: Members Set Final Meeting on February 29 VISION FOUNDATION: Members Meeting Fixed for Feb. 25 YUEN TAI: Members Meeting Fixed for Feb. 27 I N D I A NCO GROUP: Moody's Puts Ba3 Rating on US$139 Million Add-On Loan SINGER INDIA: Settles Debt With Banks & Financial Institutions SPICEJET LTD: To Enter Fixed-Price Deal With Oil Marketing Firm TATA MOTORS: May Pay More for Jaguar and Land Rover, Report Says I N D O N E S I A ANEKA: Partners With Shenzhen Zhongjin to Buy Herald Resources ANIXTER INT'L: Reports US$9.7MM Net Income in Qtr. Ended Dec. 28 BANK PERTAMA: Fitch Upgrades Individual Rating to 'C/D' MEDIA NUSANTARA: Linktone's Shareholders OK 51%-Stake Sale J A P A N ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 DELPHI CORP: Court Allows Committee Participation in Exit Loan DELPHI CORP: Court Grants Final Approval of MDL Settlements FORD MOTOR: At Ease with Tata Motors' Jaguar Brand Acquisition JAPAN AIRLINES: To Slash Discount Fares Up to 80% JVC CORP: To Transfer Circuit Business to Meiko Electronics MITSUBISHI MOTORS: Global Production for December 2007 Up 7.9% MIZUHO FINANCIAL: Subprime Loss May Hit JPY250 Billion in March K O R E A DURA AUTO: Wants To Sell 9 Properties to IRG for US$19.2 Mil. DURA AUTOMOTIVE: Jacksonville Property Buyer Withdraws Offer M A L A Y S I A OCI BERHAD: Incurs MYR615,000 Net Loss in Qtr. Ended Dec. 31 OCI BERHAD: Anticipates to End Losses by Financial Year 2009 ELECTRONIC DATA: Inks Management Deal With Breast Cancer Org. N E W Z E A L A N D ACCESS DRAIN: Wind-Up Petition Hearing Slated for February 4 CLEAR CHANNEL: Pending US$19BB Buyout Unaffected by Market Frets EARTH INNOVATIONS: Fixes February 15 as Last Day to File Claims FRESH TASTE: Court to Hear Wind-Up Petition on April 1 J.W. MADDREN: Taps van Delden & Whittfield as Liquidators LAURIE WOODING: Faces Gaynor's Wind-Up Petition MINGINUI VILLAGE: Subject to Watene's Wind-Up Petition POHUTUKAWA BETA: Names Shane Francis Hussey as Liquidator TERRACE CAPITAL: Shareholders Resolve to Liquidate Business THE STICKY SIGN: Court to Hear Wind-Up Petition on February 8 TROOP BUILDERS: Faces CIR's Wind-Up Petition P H I L I P P I N E S ATLAS CONSOLIDATED: Nickel Mine Ships 530,158 Metric Tons in '07 BANK OF THE PHIL ISLANDS: Expects 8% Growth in Loans in 2008 CHIQUITA BRANDS: Soliciting Consents to Amend Indenture Terms GLOBE TELECOM: Signs Money Transfer Alliance with Western Union MANILA ELECTRIC: Buys 65% of Clark Electric Distribution Corp. MANILA ELECTRIC: GSIS Acquires Less Than 10% Additional Stake 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 AT & J: Requires Creditors to File Claims by February 24 ENZER ELECTRONICS: Court Enters Wind-Up Order FLEXTRONICS: Adjusted Net Income Up 84% to US$250MM in December KIM HOCK: Taps Chuang and Meng as Liquidators MINAMI ENGINEERING: Court Directs Wind Up of Operations T H A I L A N D NATURAL PARK: Stockholders to Meet on February 22 PICNIC CORP: Somchai Siripunvaraporn Resigns as Chief Executive TTL INDUSTRIES: Stockholders Opt Not to Pay Dividends for 2008 TUNTEX PCL: Clarifies Reported Takeover by Indorama Polymer * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= BRUCE BAVIN: Commences Liquidation Proceedings ---------------------------------------------- Bruce Bavin and Co Pty Ltd commenced liquidation proceedings on December 20, 2007. John William Cunningham John Richard Park were then appointed as liquidators. The Liquidators can be reached at: John William Cunningham John Richard Park Ramsay Clout, Suite 2 63 The Esplanade, Cotton Tree Australia About Bruce Bavin Located at Broadbeach Waters, in Queensland, Australia, Bruce Bavin and Co Pty Ltd is an investor relation company. BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007 --------------------------------------------------------------- Buckeye Technologies Inc. reported net income of US$13.8 million on net sales of US$210.9 million for the three months ended Dec. 31, 2007, compared to net income of US$3.8 million on net sales of US$184.7 million for the same period in 2006. Chairman and Chief Executive Officer John B. Crowe said, "We had an exceptional quarter. Second quarter net sales were up 14% compared to the same period last year. Sales of US$211 million are our highest revenue quarter ever. The earnings improvement is a combination of higher pricing, higher specialty wood volume and cost control." Mr. Crowe went on to say, "We are pleased with the quarter and year-to-date revenue and income growth. Our markets remain solid and we will benefit from price increases that we implemented in January. In the current quarter, we anticipate lower nonwovens production and revenue due to our previously announced volume reduction from our Delta nonwovens facility. Additionally, we expect higher manufacturing costs at our Florida specialty wood facility due to planned maintenance inspections. While the just completed quarter's earnings performance will be difficult to repeat, we do anticipate strong performance in the January-March quarter 2008." About Buckeye Technologies Headquartered in Memphis, Tennessee, Buckeye Technologies Inc. (NYSE: BKI) -- http://www.bkitech.com/-- manufactures and markets specialty fibers and nonwoven materials. The company currently operates facilities in the United States, Germany, Canada, Brazil and Australia. Its products are sold worldwide to makers of consumer and industrial goods. * * * As reported in the Troubled Company Reporter on June 19, 2007, Moody's upgraded Buckeye Technologies Inc.'s corporate family rating to B1 from B2 and maintained a stable outlook. All otherratings were upgraded by one notch while the unsecured notes were affirmed at B2. CHARSCOTT PTY: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on December 18, 2007, the members of Charscott Pty Ltd resolved to voluntarily wind up the company's operations. Kelly-Anne Trenfield and John Park of KordaMentha (Queensland) were appointed as liquidators. The Liquidators can be reached at: Kelly-Anne Trenfield John Park KordaMentha (Queensland) 22 Market Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4900 Facsimile:(07) 3225 4999 About Charscott Pty Located at Birkdale, in Queensland, Australia, Charscott Pty Ltd is an investor relation company. CHATTEM INC: Fiscal Year 2007 Net Income Up to US$59.7 Million -------------------------------------------------------------- Chattem Inc. has announced its financial results for the fiscal fourth quarter and year ended Nov. 30, 2007. Fiscal Year 2007 Financial Results Total revenues for fiscal 2007 rose to a record US$423.4 million, an increase of 40.9%, compared to total revenues of US$300.5 million in fiscal 2006. Revenue growth for the fiscal year was driven by the five acquired brands and continued growth of the Gold Bond and Icy Hot businesses, offset by declines in the Icy Hot Pro-Therapy(R) and Dexatrim(R) franchises, the latter of which was impacted by unprecedented competition in the weight loss category as well as difficult comparisons to the fiscal 2006 launch period of Dex Max2O(R). Excluding the impact of the acquired brands and Icy Hot Pro- Therapy, total revenues increased 5% compared to fiscal 2006. Net income for the fiscal year increased to a record US$59.7 million, compared to US$45.1 million for fiscal 2006, and earnings per share were US$3.08, compared to US$2.34 for fiscal 2006. Net income for fiscal 2007 included a loss on early extinguishment of debt and SFAS 123R employee stock option expense. Net income for fiscal 2006 included a debt extinguishment charge, litigation settlement items and SFAS 123R employee stock option expense. As adjusted to exclude these items, net income for fiscal 2007 was US$65.1 million, compared to US$37.5 million for fiscal 2006, and earnings per share were US$3.36 compared to US$1.95 for fiscal 2006, a 72.3% increase. Fourth Quarter Financial Results Total revenues for the fourth quarter of fiscal 2007 were US$100.6 million, compared to total revenues of US$65.1 million in the prior year quarter, representing a 54.5% increase. Revenue growth for the quarter was led by the five acquired brands as well as strong performances from Gold Bond and Icy Hot. Offsetting these increases was a reduction in sales of Dexatrim and lower sales of Icy Hot Pro-Therapy. Excluding the impact of the acquired brands and Icy Hot Pro-Therapy, total revenues increased 3% compared to the prior year quarter. Net income for the quarter rose to US$14.8 million, compared to US$4.9 million for the prior year quarter. Net income for the fourth quarter of fiscal 2007 included SFAS 123R employee stock option expense. Net income for the fourth quarter of fiscal 2006 included litigation settlement items and SFAS 123R employee stock option expense. As adjusted to exclude these items, net income for the fourth quarter of fiscal 2007 was US$15.8 million, compared to US$6.0 million for the prior year quarter. In the fourth quarter of fiscal 2007, the Company increased the reserves for Icy Hot Pro-Therapy retail and in-house inventory exposure by approximately US$7.0 million, or US$0.24 per share, which resulted in lower revenue and reduced gross margins during the fourth quarter of fiscal 2007. This increase in reserves was based on a detailed evaluation of the Icy Hot Pro-Therapy business. Management believes this amount fully addresses any significant product return or in-house inventory obsolescence exposure. "The company experienced the most successful year in its 128 year history," said Zan Guerry, Chattem's Chairman and Chief Executive Officer. "Early in the year, we made the exciting acquisition of five brands from Johnson & Johnson and were able to integrate those brands into our organization smoothly and ahead of schedule. The acquisition, combined with the growth of our existing business, resulted in a 41% increase in total revenues for the year to a record US$423 million and even more impressive earnings growth," Mr. Guerry stated. "In reference to the balance sheet," Guerry commented further, "we were able to finance the acquisition of the five brands on very favorable terms and have put in place a very solid and effective capital structure. Our strong operating cash flows for fiscal 2007 enabled us to reduce debt more rapidly than we anticipated at the time of the acquisition while also repurchasing over 400,000 shares of our common stock for US$23.6 million, or an average cost of US$58.98 per share." "Looking to fiscal 2008," Mr. Guerry continued, "we have tremendous momentum and robust advertising support planned for our Big 6 brands, Gold Bond(R), Icy Hot(R), ACT(R), Cortizone- 10(R), Selsun(R) and Unisom(R), which accounted for approximately 72% of our total revenues in fiscal 2007. The strength of our Big 6 brands, together with an impressive line up of new products, expected gross margin improvement and the ability to rapidly deleverage with strong cash flows, has led us to increase our earnings per share guidance for fiscal 2008 to a range of $4.00 to $4.20 per share before SFAS 123R and debt extinguishment charges." Key Highlights: * Gross margin for the quarter rose to 70.0%, compared to 68.2% for the prior year quarter, and 69.5% for fiscal 2007, compared to 68.7% for fiscal 2006. Gross margin for fiscal 2008 is expected to approach historical levels as a result of the full year impact of the in-house manufacturing of certain of the five acquired brands and product mix. * Advertising and promotion expense (A&P) for the quarter increased by US$5.5 million to US$26.0 million, or 25.8% as a percentage of total revenues, and rose by US$16.1 million to US$112.2 million, or 26.5% of total revenues, for the fiscal year, compared to US$96.1 million, or 32.0% of total revenues in fiscal 2006. The decline in A&P expense as a percentage of total revenues from fiscal 2006 reflected unusually high A&P expenses in fiscal 2006 due primarily to the launch of Icy Hot Pro-Therapy. The company anticipates A&P spending to increase significantly on a dollar basis for fiscal 2008 and remain consistent with historical levels of 26% to 28% as a percentage of total revenues. * Selling, general and administrative expenses (SG&A) decreased to 15.3% of total revenues for the quarter, compared to 20.0% for the prior year quarter, and to 13.6% of total revenues for the fiscal year, compared to 15.6% for fiscal 2006. For fiscal 2008, SG&A expenses are not expected to rise commensurate with increases in total revenues as the company continues to leverage its operating infrastructure. * For the fiscal year, cash flows from operations increased 59.4% to US$86.7 million compared to US$54.4 million for fiscal 2006. Free cash flow, defined as cash flows from operations less capital expenditures, was US$80.4 million, up 61.8%, compared to US$49.7 million for fiscal 2006. Capital expenditures for the fiscal year were US$6.3 million with more than half of these expenditures attributable to the integration of in-house manufacturing for certain of the five acquired brands. * Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 139% to US$32.2 million, or 32.0% of total revenues, for the quarter and increased 82.6% to US$133.9 million, or 31.6% of total revenues, for the fiscal year, compared to US$73.3 million, or 24.4% of total revenues in fiscal 2006. * Since acquiring the five brands on Jan. 2, 2007, the company has reduced total debt by US$62.5 million to US$508.0 million as of Nov. 30, 2007. During that same period, the company funded the purchase of a net bond hedge of US$12.1 million in connection with the issuance of the 1.625% senior convertible notes in April 2007; acquired the ACT business in Western Europe and the worldwide trademark rights to ACT for US$4.1 million; and repurchased 400,129 shares of the Company's common stock for US$23.6 million, or an average cost of US$58.98 per share. Fiscal 2008 Guidance The company currently expects earnings per share for fiscal 2008 to be in the range of US$4.00 to US$4.20 as compared to our earlier estimate of US$3.90 to US$4.10, in each case excluding stock option expense under SFAS 123R and any loss on debt extinguishment. Stock option expense under SFAS 123R for fiscal 2008 is estimated to be US$0.21 per share. Chattanooga, Tenn.-based Chattem Inc. manufactures and markets branded consumer products, including over-the-counter healthcare products and toiletries and skin care products. Its products include Gold Bond medicated powder, Icy Hot topical analgesic, Dexatrim appetite suppressant, and Bullfrog sunblock. Chattem has operations in the U.K., Australia, and Puerto Rico. * * * Chattem Inc.'s 7% Exchange Senior Subordinated Notes due 2014 carry Moody's Investors Service's 'B2' rating and Standard & Poor's 'B' rating. FLIGHT CENTRE: Says on Track to Beat Half-Year Profit Forecast -------------------------------------------------------------- Flight Centre Ltd said that it saw its half-year profit before tax at between AU$92-AU$93 million (US$82-83 million), exceeding its previous forecast of AU$85-AU$90 million, Reuters reports. Reuters notes that Flight Centre attributes the profit forecast upgrade to the contribution of its recent acquisition, Liberty Travel. About Flight Centre Headquartered at Brisbane, in Queensland, Australia, Flight Centre Ltd. -- http://www.flightcentre.com/-- is an Australian owned and New Zealand-run independent retail travel group, guaranteeing the lowest prices on all airfares. It had a turnover in excess of $3 billion worldwide and 18 years of consecutive profits until its shares plunged more than 8% following the announcement of its first ever annual profit decline. The company, which in the past has reported spectacular results, hit the wall in 2004-05 with two profit downgrades. Flight Centre announced 2004-05 profit of AU$67.91 million, down 17% from the previous period. Embattled Flight Centre then launched a restructuring drive aimed at saving costs and began working towards a turnaround in 2005/06 by focusing on ongoing development of its four main networks. It has implemented changes to its customer relations programs, following a comprehensive review of its other company initiatives. J&B BRIGHT: Taps Bettles and Carter as Liquidators -------------------------------------------------- During a general meeting held on December 10, 2007, the members of J&B Bright Sparks Pty Ltd appointed Jason Bettles and Susan Carter as the company's liquidators. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise Queensland 4217 Australia Web site: http://www.worrells.net.au About J&B Bright J&B Bright Sparks Pty Ltd, which is also trading as Jb Faux Electrical Services, is involved with electrical work. The company is located at Pittsworth, in Queensland, Australia. JOLLY JUMPS: Members Appoint Carter and Bettles as Liquidators -------------------------------------------------------------- The members of Jolly Jumps Pty Ltd met on November 8, 2007, and appointed Susan Carter and Jason Bettles of Worrells Solvency & Forensic Accountants as the company's liquidators. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia Telephone:(07) 5553 3407 Facsimile:(07) 5570 1884 Web site: http://www.worrells.net.au About Jolly Jumps Jolly Jumps Pty Ltd provides miscellaneous personal services. The company is located at Arundel, in Queensland, Australia. KYRANO PTY: Commences Liquidation Proceedings --------------------------------------------- During a general meeting held on February 1, 2008, the members of Kyrano Pty Ltd agreed to voluntarily liquidate the company's business. Susan Carter was then appointed as liquidator. The Liquidator can be reached at: Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise Queensland 4217 Australia About Kyrano Pty Located at Hunters Hill, in New South Wales, Australia, Kyrano Pty Ltd is an investor relation company. MACK GRAZING: Taps Carter and Bettles as Liquidators ---------------------------------------------------- Susan Carter and Jason Bettles were appointed liquidators of Mack Grazing Pty Ltd on December 10, 2007. The Liquidators can be reached at: Susan Carter Jason Bettles Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia Telephone:(07) 5553 3411 Facsimile:(07) 5570 1884 About Mack Grazing Mack Grazing Pty Ltd is involved in the business of beef cattle feedlots. The company is located at Pittsworth, in Queensland, Australia. NOONARM PTY: Members to Receive Wind-Up Report on February 11 ------------------------------------------------------------- The members of Noonarm Pty Ltd will meet on February 11, 2008, to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tony Cordner Cordner Wilson Ludeke Certified Practising Accountants Level 12, 238 Robina Town Centre Drive Robina, Queensland Australia About Noonarm Pty Noonarm Pty Ltd operates book stores. The company is located at Darra, in Queensland, Australia. OMEGA PTY: Members Resolve to Liquidate Business ------------------------------------------------ During a general meeting held on February 4, 2008, the members of Omega Pty Ltd resolved to voluntarily liquidate the company's business. Jason Bettles was then appointed as liquidator. The Liquidator can be reached at: Jason Bettles Worrells Solvency & Forensic Accountants Web site: http://www.worrells.net.au About Omega Pty Located at Nerang, in Queensland, Australia, Omega Pty Ltd is an investor relation company. TASKINC PTY: Placed Under Voluntary Liquidation ----------------------------------------------- During a general meeting held on December 21, 2007, the members of Taskinc Pty Ltd resolved to voluntarily liquidate the company's business. Samuel Richwol of O'Keeffe Walton Richwol was then appointed as liquidator. The Liquidator can be reached at: Samuel Richwol O'Keeffe Walton Richwol Chartered Accountants Suite 3, 431 Burke Road Glen Iris 3146 Australia About Taskinc Pty Taskinc Pty Ltd provides business services. The company is located at Caulfield South, in Victoria, Australia. THE LEISURETIME CENTRE: Members Receive Wind-Up Report ------------------------------------------------------ The members of The Leisuretime Centre Pty Ltd met on January 17, 2007, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Thomas G. Hackett 157 Musgrave Street North Rockhampton Queensland 4701 Australia About The Leisuretime The Leisuretime Centre Pty Ltd provides services allied to motion picture distribution. The company is located at Rockhampton, in Queensland, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ AVALON KNITTING: Appoints New Liquidator ------------------------------------------ The members of Avalon Knitting & Garment Factory Limited appointed Lai Man Chau, James as the company's liquidators. The Liquidator can be reached at: Lai Man Chau, James 21st Floor, Fee Tat Commercial Centre No. 613 Nathan Road Kowloon Hong Kong CURRENT MANAGMENT: Hires Lai Man Chau as Liquidator --------------------------------------------------- The members of Current Management Consultants Limited appointed Lai Man Chau, James as the company's liquidators. The Liquidator can be reached at: Lai Man Chau, James 21st Floor, Fee Tat Commercial Centre No. 613 Nathan Road Kowloon Hong Kong HYSOCK COMPANY: Members Meeting Fixed for Feb. 29 ------------------------------------------------- The members of Hysock Company Limited will have their final general meeting on February 29, 2008, at 11th Floor, Pico Tower, 66 Gloucester Road, Wanchai, in China to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Lam Wai Hay. INTELSAT LTD: Increased Leverage Cues Moody's to Cut CFR to Caa1 ---------------------------------------------------------------- Moody's Investors Service has downgraded Intelsat Ltd.'s corporate family rating by two notches to Caa1. The company's speculative grade liquidity rating was downgraded to SGL-3 (adequate liquidity) from SGL-1 (very good liquidity). The rating action reflects the impact of increased leverage resulting from an additional US$5 billion in debt (US$3.7 billion incremental) that is being incurred to facilitate the purchase of Intelsat's parent company's equity ownership by BC Partners, Silver Lake Partners and certain other investors, and repay certain outstanding indebtedness. Moody's expects the majority of the new debt to be issued at Intelsat (Bermuda), Ltd., while Intelsat (Bermuda), Ltd.'s existing assets and liabilities will be transferred to a newly created holding company, Intelsat Jackson Holdings, Ltd. Following closing, the ratings agency expects all equity to be owned by BC Partners, Silver Lake Partners, certain other investors and management. The defining factor in the company's credit profile is the increased leverage resulting from debt financing facilitating the ownership changes, and risks that the company will not be able to grow its cash flow stream in order that all of its substantial interest burden, capital expenditures and periodic cash income tax obligations can be met from operating cash flow. The future opportunities to grow cash flow include increases to EBITDA, plus permanent reductions in capital expenditures as the company rationalizes its very large satellite constellation fleet. In the interim, Moody's anticipates a modest cash flow deficit. However, applicable bank credit agreements and trust indentures feature relatively lax default triggers that may provide time before creditors gain default rights. The company has available sources of external liquidity, including the revolving credit facilities at Intelsat Corporation and Intelsat Subsidiary Holding Co. Ltd. For this reason, Moody's rates Intelsat's liquidity arrangements as being adequate (SGL-3), with the Caa1 CFR reflecting execution risks related to cash flow growth including the potential that exogenous factors such as a slowing global economy may retard necessary progress. Since Intelsat issues debt from five legal entities, the rating action also involved adjustments to ratings for several debt instruments in other Intelsat entities. At closing, the ratings on notes that will be repaid in full will be withdrawn. However, the rating actions are based on assumptions incorporated in the company's acquisition financing plan and on very preliminary documentation. Accordingly, there is the potential for minor adjustments to the instrument ratings should the facts change. Ratings will be finalized in due course (the transaction is tentatively scheduled to close on Feb. 4). Instrument rated: Intelsat Corp.: -- Secured Bank Credit Facility, Rated B1 (LGD1 05) * US$150 million incremental Term Loan B-2 due Jan. 3, 2014 Downgrades: Intelsat Corp.: -- Senior Secured Bank Credit Facility, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * Senior Secured Revolving Facility due July 5, 2012 * US$329 million Term Loan A-3 due July 5, 2012 * US$1,623 million Term Loan B-2 due Jan. 3, 2014 -- Senior Secured Regular Bond/Debenture, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * US$125 million 6.875% Senior Secured Notes due Jan. 15, 2028 -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) * US$656 million 9% Senior Unsecured Notes due Aug. 15, 2014 * US$575 million 9% Senior Unsecured Notes due June 15, 2016 Intelsat Subsidiary Holding Co. Ltd.: -- Senior Secured Bank Credit Facility, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * Senior Secured Revolving Facility due July 5, 2012 * US$342 million guaranteed Term Loan B due July 5, 2013 -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD1 33) from B2 (LGD3 45) * US$875 million 8.25% Senior Notes due Jan. 15, 2013 * US$675 million 8.625% Senior Notes due Jan. 15, 2015 Intelsat Intermediate Holding Company, Ltd.: -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 (LGD4 53) from B3 (LGD5 72) * US$388 million 9.25% Senior Discount Notes due Feb. 1, 2015 Intelsat (Bermuda), Ltd. (to be re-named Intelsat Jackson Holdings, Ltd.): -- Senior Unsecured Bank Credit Facility, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) * US$1,000 million guaranteed Term Loan due 2014 -- Senior Regular Bond/Debenture, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) * US$750 million 9.25% guaranteed Senior Notes due June 15, 2016 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 (LGD4 60) from Caa1 (LGD5 82) * US$1,330 million 11.25% Senior Notes due June 15, 2016 Intelsat, Ltd.: -- Probability of Default Rating, Downgraded to Caa1 from B2 -- Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-1 -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD6 95) from Caa1 (LGD6 93) * US$600 million 6.625% Senior Notes due April 15, 2012 * US$700 million 6.5% Senior Notes due Nov. 1, 2013 Outlook Actions: Intelsat, Ltd.: -- Outlook, Changed To Stable From Rating Under Review Ratings to be withdrawn upon closing: Intelsat (Bermuda), Ltd. (to be re-named Intelsat Jackson Holdings, Ltd.): -- Senior Unsecured Regular Bond/Debenture, currently rated Caa1 (LGD5 82) * US$260 million Floating Rate Senior Notes due June 15, 2013 * US$600 million Floating Rate Senior Notes due Jan. 15, 2015 Intelsat, Ltd.: -- Senior Unsecured Regular Bond/Debenture, currently rated Caa1 (LGD6 93) * US$400 million 5.25% Senior Notes due Nov. 1, 2008 Stable outlook for approximately US$10 billion of rated debt instruments. Headquartered in Bermuda, Intelsat is the largest fixed satellite service operator in the world and is currently privately held by a group of financial investors: Apax Partners, Apollo Management, Madison Dearborn Partners, and Permira. Intelsat has sales offices in Australia, China, Japan, and Singapore. JIANGXI COPPER: To Shut 300,000 Tonnes of Smelting Capacity ----------------------------------------------------------- Jiangxi Copper Co Ltd will shut down 300,000 tonnes of smelting capacity in two to three days due to power shortages, Reuters reports, citing company sources. China, the report says, is suffering its worst power crisis in years. Reuters' Polly Yam writes that the smelting capacity to be closed down is 43% of Jiangxi Copper's total capacity of 700,000 tonnes a year. According to Reuters, the unnamed source said that Jiangxi Copper expects the capacity to remain shut until mid-February. The report notes that the shutdown could see lost output of about 12,500 tonnes, or 2.3% of the company's expected output of 550,000 tonnes in 2007. News of the Jiangxi Copper shutdown, Reuters explains, comes after China's biggest zinc plant shut down on Tuesday, while stainless steel and aluminium output curbs spread to Shanxi as power shortages and chaotic weather cut deeper into supply from the world's top producer of the metals. The report points out that snow has blanketed parts of central and southern China, blocking roads and railways and choking coal shipments, adding pressure on energy shortages that have caused power outages in 17 Chinese provinces and province-status cities. Reuters recounts that Jiangxi Copper lost about 30,000 tonnes of copper output due to repairs of another 400,000 tonnes of smelting capacity in December. The source also told Reuters that Jiangxi Copper had reduced transportation of copper and sulphuric acid to clients in other provinces, building stocks at its plant in Guixi in Jiangxi province. The company, the report relates, produces 2 million tonnes annually of sulphuric acid, a bi-product during the process of smelting concentrate, which is the main material for copper production. When the sulphuric acid is not collected, it could cause an environmental disaster. A second company source told Reuters that Jiangxi Copper had already informed its clients that term copper deliveries might be delayed in the coming weeks. Jiangxi Copper Company Limited -- http://www.jxcc.com/-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. LUNG ELECTRONICS: Members Set Final Meeting on February 5 --------------------------------------------------------- The members of Lung Electroncs (HK) Limited will have their final general meeting on February 5, 2008, 1301-02, 13th, Kwan Chart Tower, 6 Tonnochy Road, Wanchai, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Au-Yeung Sin Ming Cindy. MYSTARU.COM: DNTW Accountants Raises Going Concern Doubt -------------------------------------------------------- DNTW Chartered Accountants, LLP in Markham, Canada, expressed substantial doubt about the ability of MyStarU.com, Inc., (formerly Telecom Communications, Inc.) to continue as a going concern after it audited the company's financial statements for the year ended Sept. 30, 2007. The auditor pointed to the company's significant cumulative operating losses. The company posted a comprehensive loss of US$4,997,250 on total revenue of US$21,554,811 for the year ended Sept. 30, 2007, as compared with a comprehensive income of US$1,071,729 on total revenue of US$15,546,181 in the prior year. The Company had cumulative losses of US$2,450,726 as of September 30, 2007, and cash flows from operations during the year ending September 30, 2007, of US$695,098. The Company has committed to its new business segment, "Investments in Entertainment Arts," which requires substantial capital in order to invest in and manage the Company's investments. On April 1, 2006, MYST sold all its interests in Island Media with the net gain on the disposal of US$295,533. Island Media's operating loss for the period up to the date of disposition was US$239,776. At September 30, 2006, based on management's projected future discounted cash flows, management determined an impairment loss related to the Company's copyrights was present as on those copyrights of US$1,530,000 at September 30, 2006. The portion of the acquisition costs of Panyu M&M that has been allocated to goodwill totaled US$354,614. Such allocation was made on the basis of the Company�s appraised value of Panyu M&M's net assets as of September 30, 2007. At Sept. 30, 2007, the company's balance sheet showed US$27,611,494 in total assets, US$3,693,242 in total liabilities, US$3,801,642 of minority interest in consolidated subsidiaries and stockholders' equity of US$20,116,610. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?276a About Mystaru.com Mystaru.com, Inc., formerly Telecom Communications, Inc., is a fully integrated information and entertainment service provider in the People's Republic of China. The Company operates in four segments: investments in entertainment arts productions, in which the Company purchases and licenses or resells copyrights of entertainment-related assets; online content and member services provider, in which it provides online content and member services for commercial use; software sales, in which it provides Web-based and mobile software platforms, and importing and exporting of goods, in which it conducts international trade using the People�s Republic of China as its base of operations. NEW SUNNY: Members Meeting Fixed for Feb. 25 -------------------------------------------- The members of New Sunny Limited will have their final general meeting on February 25, 2008, at their registered office to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Chui Ching Wai. SUN YUI: Members Set Final Meeting on February 29 ------------------------------------------------- The members of Sun Yui Memorial Association Limited will have their final general meeting on February 29, 2008, at the Haven Commercial Building, Nos. 6-8 Tsing Fung Street, North Point in Hong Kong. During the meeting, the members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Chan Yim Wah. VISION FOUNDATION: Members Meeting Fixed for Feb. 25 ---------------------------------------------------- The members of Vision Foundation Limited will have their final general meeting on February 25, 2008, at Room 10, Bock 4E, Selwyn Industrial Building, 404 Kwun Tong Road, Kowloon, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Soong Yuen Kei. YUEN TAI: Members Meeting Fixed for Feb. 27 ------------------------------------------- The members of Yeun Tai Electrical (Hong Kong) Company Limited will have their final general meeting on February 27, 2008, at Jiaoyitang Industry Zone, Tangxia Town, Dongguang City in Guangdong, China. The members will hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Suen Man Fai. ========= I N D I A ========= NCO GROUP: Moody's Puts Ba3 Rating on US$139 Million Add-On Loan ---------------------------------------------------------------- Moody's Investors Service confirmed all the credit ratings of NCO Group, Inc., concluding a review for possible downgrade initiated on Dec. 13, 2007. Moody's also assigned a Ba3 rating to the US$139 million add-on term loan B, which will be used along with a US$210 million equity contribution from One Equity Partners and its co-investors, to finance the acquisition of Outsourcing Solutions, Inc. Moody's downgraded NCO Group's speculative grade liquidity rating to SGL-3 from SGL-2 reflecting material revolver borrowings and a projected tightening of headroom under financial covenants during 2008. The rating outlook is stable. Moody's views the acquisition of Outsourcing Solutions favorably since it will be financed with a large equity component (about 60% of acquisition financing) and provides increased scale and significant cost saving opportunities. The confirmation of the B2 Corporate Family Rating reflects the company's sizeable revenue base, leading market position in the accounts receivable outsourcing industry, a large global platform of on-shore and off-shore offerings and adequate credit metrics pro forma for the Outsourcing Solutions acquisition. The ratings are constrained by economic pressures that may continue to weaken performance in the contingent collection and portfolio management businesses as well as limited business line diversity and moderate customer concentration. Moody's took these rating actions: -- Assigned US$139 million add-on term loan B, Ba3 (LGD 3, 31%) -- Confirmed US$465 million senior secured term loan due 2013, Ba3 (to LGD 3, 31% from LGD 2, 29%) -- Confirmed US$100 million senior secured revolver due 2011, Ba3 (to LGD 3, 31% from LGD 2, 29%) -- Confirmed US$165 million senior floating rate notes, B3 (to LGD 4, 67% from LGD 4, 63%) -- Confirmed US$200 million senior subordinated notes, Caa1 (to LGD 6, 91% from LGD 6, 90%) -- Confirmed Corporate Family Rating, B2 -- Confirmed Probability of Default Rating, B2 -- Downgraded Speculative Grade Liquidity rating, to SGL-3 from SGL-2 Approximately US$1.1 billion of rated debt securities affected. 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. SINGER INDIA: Settles Debt With Banks & Financial Institutions -------------------------------------------------------------- Singer India Ltd has made a INR700-lakhs one-time settlement with a consortium of bankers lead by the State Bank of Travancore, the company informed the Bombay Stock Exchange. The company said the full amount has been paid, hence it has no outstanding dues with banks and financial institutions. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 10, 2007, the auditors of Singer India, in a limited review report, pointed out that the net worth of the company as at Sept. 30, 2007, has been completely eroded. Singer India Limited manufactures, among others, sewing machines. Singer India, hoping to meet the entire needs of an Indian household, also makes food processors, juicer mixer grinders, microwave ovens, fans, washing machines, televisions, and airconditioners. The company is a 49% subsidiary of Singer Company N.V. Singer India has been declared sick by the Board for Industrial and Financial Reconstruction constituted under Sick Industrial Companies (Special Provision) Act, 1985. The company has filed a restructuring plan for its revival. Its factory at Jammu continues to be under lay off since April 6, 2005. SPICEJET LTD: To Enter Fixed-Price Deal With Oil Marketing Firm --------------------------------------------------------------- SpiceJet Ltd is poised to enter into a fixed-price deal with an oil company to buy 20% of the carrier's annual requirement of aviation turbine fuel, P.R. Sanjai writes for livemint.com. According to the report, the move is aimed at protecting SpiceJet from the ATF's price volatility resulting from fluctuations in crude prices. ATF supply in India is controlled by Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd that also fix ATF prices on a mutually agreed common formula every month, Mr. Sanjai relates. Citing an unnamed source "familiar with the development," Mr. Sanjay writes that an agreement is expected to be signed early February with 3% plus or minus to January's base ATF price (INR47,045.16 per kiloliter at Mumbai airport). As reported by the Troubled Company Reporter-Asia Pacific on Jan. 28, SpiceJet's net profit decreased to INR93.37 million in the three months ended Dec. 31, 2007, on higher fuel prices, the Bombay Stock Exchange discloses. Gurgoan, India-based SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier. In fiscal 2006, SpiceJet carried over 1.6 million passengers. As of May 31, 2006, the company operated over 60 daily flights covering 13 destinations, including eight Boeing 737-800 aircraft. SpiceJet has integrated with various travel related Websites, such as indiatimes, makemytrip, travelguru and cleartrip. The company has launched a co-branded credit card with State Bank of India in association with MasterCard. In fiscal 2006, SpiceJet entered into a sale and lease back agreement with Babcock & Brown Aircraft Management along with its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing 737-800/-900ER aircraft. Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. The company changed its financial year from June-May to April-March. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. TATA MOTORS: May Pay More for Jaguar and Land Rover, Report Says ---------------------------------------------------------------- Tata Motors Ltd may have to shell out more to purchase Ford Motor Co.'s Jaguar and Land Rover as the brands' stable, Premier Automobile Group, posted a US$504-million profit before tax, The Economic Times reports. Aside from the two Ford brands, PAG also houses Volvo. Tata Motors became the front-runner bidder for Ford's Jaguar and Land Rover when the U.S. carmaker announced on Jan. 3, that it has entered into �focused negotiations at a more detailed level� with Tata. Tata Motors outbid Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. As reported yesterday by the Troubled Company Reporter-Asia Pacific, Tata Motors and Ford are closing in on a deal for the sale. The Times, citing an unnamed source, anticipates an announcement of an agreement as early as next week to as late as March. Since the negotiations are not yet over, Ford could push for better valuations now that PAG has become profitable, the Times says, citing auto consultants and analysts. PAG's pre-tax 2007 profit is a huge improvement from the U$344-million loss in 2006, the news agency points out. Ford spokesperson John Gardiner attributed the turnaround to Land Rover and Jaguar. �Jaguar and Land Rover have been solidly profitable in each quarter of 2007, but Volvo made a loss,� Mr. Gardiner told the news agency. Tata Motors reportedly made a US$2-billion bid for the two luxury brands. According to The Times, auto analysts have unanimously maintained that Tata's bid price is too high. 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 ================= ANEKA: Partners With Shenzhen Zhongjin to Buy Herald Resources -------------------------------------------------------------- PT Aneka Tambang Tbk and Chinese zinc producer Shenzhen Zhongjin Lingnan Nonfemet Co. joined together to submit an offer to acquire Australian miner Herald Resources Ltd for US$448-US$449 million, various reports say. According to Bloomberg News, the joint venture offered AU$2.50 a share, topping Calipso InvestmentPte's bid of AU$2.25. In a statement to the Australian Securities Exchange, The Jakarta Post relates, the Herald board unanimously urged investors to accept the consortium's cash offer and withdrew its support to Calipso InvestmentPte. Herald's directors indicated that, in the absence of a better proposal, would accept the joint venture's bid, the report notes. The Post says that the Antam-Zhongjin offer is subject to conditions, including 50.1% minimum acceptance, foreign investment regulatory approval. Antam and Zhongjin also need to get necessary shareholder and regulatory approvals, the report adds. Antam and Zhongjin are being advised by Macquarie Capital Advisers, while Blake Dawson is acting as their Australian legal adviser, Bloomberg adds. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and WestJava (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter-Asia Pacific reported on Jan 17, 2008, Moody's Investors Service has upgraded PT Aneka Tambang (Persero) Tbk's corporate family rating to Ba3 from B1. This concludes the review for possible upgrade which commenced on October 22, 2007. On Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long-term corporate credit rating on Indonesian state-owned miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. ANIXTER INT'L: Reports US$9.7MM Net Income in Qtr. Ended Dec. 28 ---------------------------------------------------------------- Anixter International Inc. has reported results for the quarter ended Dec. 28, 2007. Fourth Quarter Highlights -- Sales of US$1.49 billion, including US$20.5 million of incremental sales from a series of acquisitions completed over the past twelve months, rose 15 percent compared to sales of US$1.30 billion in the year ago quarter. -- Quarterly operating income of US$114.4 million increased 27 percent from the US$90.4 million reported in the fourth quarter of 2006. -- Net income in the quarter, inclusive of a benefit of US$9.7 million or 23 cents per share primarily related to foreign tax benefits and the finalization of prior year's tax returns, increased 34 percent, to US$70.5 million, or US$1.69 per diluted share, from US$52.4 million, or US$1.20 per diluted share, in last year's fourth quarter when the company reported a benefit of US$4.2 million or 10 cents per share primarily related to tax benefits associated with its foreign operations. -- Cash flow generated from operations was US$92.9 million, up significantly compared to US$17.0 million in the year ago quarter. Robert Grubbs, President and Chief Executive Officer, stated, "We are very pleased with the strong financial results in the quarter and the year. Our success in expanding our product and supply chain offering, along with an intense focus on broadening and diversifying our global customer base, drove record sales, operating margins and net income in 2007. We enter 2008 confident in our ability to continue executing on our growth strategies including further expanding our customer base as well as growing with our existing customers." Fourth Quarter Results For the three-month period ended Dec. 28, 2007, sales of US$1.49 billion produced net income of US$70.5 million, or US$1.69 per diluted share. Included in the current year's fourth quarter results was US$20.5 million of incremental sales from a series of acquisitions completed in the past year. After adjusting for acquisitions and the favorable foreign exchange impact of US$50.5 million, fourth quarter sales grew at a year-over-year organic rate of 9 percent. Also included in the fourth quarter results was a benefit of US$9.7 million, or 23 cents per diluted share, of net income primarily related to foreign tax benefits and the finalization of prior year's tax returns. Exclusive of these tax related items, net income was US$60.8 million or US$1.46 per diluted share. In the prior year period, sales of US$1.30 billion generated net income of US$52.4 million, or US$1.20 per diluted share. The fourth quarter 2006 results include US$4.2 million, or 10 cents per diluted share, of net income primarily related to tax benefits for foreign operations. Included in the net income associated with these tax benefits is US$0.8 million of interest expense that is reflected as a part of the other, net line in the accompanying income statement. Exclusive of these tax benefits, net income was US$48.2 million or US$1.10 per diluted share. Operating income in the fourth quarter increased 27 percent to US$114.4 million as compared to US$90.4 million in the year ago quarter. For the latest quarter, operating margins were 7.7 percent compared to 7.0 percent in the fourth quarter of 2006. Twelve-Month Results For the twelve-month period ended Dec. 28, 2007, sales of US$5.85 billion produced net income of US$253.5 million, or US$6.00 per diluted share. The 2007 results include incremental sales of US$125.5 million from a series of acquisitions completed in the past year. After adjusting for acquisitions and the favorable foreign exchange impact of US$139.3 million, full year sales grew at a year-on-year organic rate of 13 percent. Net income in 2007 also includes US$11.8 million, or 28 cents per diluted share, primarily related to foreign tax benefits and the finalization of prior year's tax returns. Exclusive of these tax benefits, net income was US$241.7 million or US$5.73 per diluted share. In the prior year period, sales of US$4.94 billion produced net income of US$209.3 million or US$4.86 per diluted share. In addition to the previously discussed tax benefits recorded in the prior year's fourth quarter associated with the company's foreign operations, the 2006 twelve-month results include US$22.8 million, or 53 cents per diluted share, of income primarily associated with a refund from the United States Internal Revenue. This refund was the result of the final settlement of income taxes covering the period of 1996 through 1998. The interest income portion of this settlement of US$7.7 million (after-tax impact of US$4.7 million) is reflected on the income statement in the other, net line. The remaining portion of the settlement is recorded as an US$18.1 million reduction to the tax provision. Excluding the tax benefits and the favorable tax settlements, net income was US$182.3 million or US$4.23 per diluted share. Operating income in fiscal 2007 increased by 30 percent to US$439.1 million as compared to US$337.1 million in the prior fiscal year. Operating margins in 2007 were 7.5 percent as compared to 6.8 percent in the prior year. Fourth Quarter Operating Results "As a result of solid sales growth, fourth quarter operating margins were 7.7 percent as compared to 7.0 percent in the year ago period," said Mr. Grubbs. "In North America, our operating margins were 8.6 percent as compared to 8.2 percent in the year ago quarter, with sales growth again producing additional operating leverage." Mr. Grubbs added, "In Europe, operating margins in the most recent quarter were 4.9 percent as compared to 2.6 percent in the year ago quarter. This improvement in operating margins reflects improved gross margins and operating expense leverage including the fact that the prior year quarter included US$1.3 million of expenses associated with certain facility consolidations and pension plan restructuring costs. We were again encouraged by the results in the most recent quarter as operating profits more than doubled. Our investments in this market in the past couple of years combined with our recent success in organically growing this business enables us to feel positive about the outlook for our business in Europe." "Fourth quarter operating margins in the emerging markets were 6.8 percent as compared to 7.2 percent in the year ago quarter as a result of further investment in personnel and infrastructure to support future growth," added Mr. Grubbs. Cash Flow and Leverage "In the fourth quarter we generated US$92.9 million in cash from operations, up significantly compared to the US$17.0 million generated in the year ago quarter," said Finance Executive Vice President, Dennis Letham. "The positive cash flow in the quarter reflects the normal seasonal patterns associated with the previously discussed slight drop in consecutive quarter sales due to the number of holidays in the fourth quarter and the related effects on working capital needs." "During the fourth quarter the company repurchased 1,250,000 of its outstanding shares at a total cost of US$82.1 million. When combined with the 3,000,000 shares repurchased during the first quarter of 2007 for US$162.7 million, the company repurchased 4,250,000, or 10.8 percent of the outstanding shares it had at the start of 2007, for a total consideration of US$244.8 million or an average of US$57.61 per share," continued Mr. Letham. Mr. Letham added, "Working capital requirements associated with our year-on-year sales growth consumed US$139.8 million of cash during 2007. The company also completed two acquisitions for total consideration of US$35.2 million. The share repurchases, added working capital requirements and acquisition costs were financed from a combination of a US$300 million convertible bond offering completed in the first quarter of 2007 and added borrowings under bank lines of credit. The company ended 2007 with a debt-to-total capital ratio of 49.4 percent as compared to 45.7 percent at the end of 2006. For the fourth quarter the weighted-average cost of borrowed capital was 4.3 percent as compared to 5.4 percent in the year ago quarter. At the end of the fourth quarter, approximately 77 percent of our total borrowings of US$1.02 billion had fixed interest rates, either by the terms of the borrowing agreements or through hedge contracts. We also had US$243 million of available, unused credit facilities at Dec. 28, 2007, which provide us with the resources to support continued strong organic growth and to pursue other strategic alternatives, such as acquisitions, in the new year." Business Outlook Mr. Grubbs concluded, "The record sales and earnings performance in 2007 was the result of many of the same underlying trends that generated record performances over the past couple of years, especially as relates to expansion of our customer base. While 2008 begins with a well publicized, less certain overall economic environment than 2007, recent activity levels suggest the end markets we serve have remained strong and we are comfortable they will continue to present opportunities for growth in the coming year. As we look to the start of a new year, we remain focused on building on our strategic initiatives of growing our security and OEM supply businesses, initiating an industrial automation network sales effort, adding to our supply chain services offering, enlarging the geographic presence of our electrical wire & cable business, and expanding our product offering. We believe that if we continue to successfully execute our strategic initiatives to grow our product and service offerings and expand our customer base, we can drive solid sales and earnings growth in 2008." About Anixter Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and has presence in 220 cities in 45 countries, including Indonesia, Australia, China, France, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Spain, Taiwan, Thailand, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 2, 2007, Fitch Ratings has affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter International Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured debt 'BB-'. Anixter Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured notes 'BB+'; -- Senior unsecured bank credit facility at 'BB+'. BANK PERTAMA: Fitch Upgrades Individual Rating to 'C/D' ------------------------------------------------------- Fitch Ratings has upgraded the Individual rating of PT Bank Permata Tbk to 'C/D' from 'D' and affirmed its Support rating at '4'. The upgrade in the Individual rating reflects the bank's improved profitability and asset quality, while the Support rating reflects expectations for limited support from Standard Chartered Bank (SCB, 'A+'/Stable), which together with Astra International, own an 89% stake in Permata through a 50:50 joint venture. Permata is tapping into the technical resources of SCB, combined with support from Astra to further expand its banking business. Permata focuses on consumer and SME loans, which accounted for a combined 87% of total loans. Pre-provision profit improved to 3.0% of average assets in 9M07 on higher net interest margin and trading income, which helped to offset the increase in operating expenses as the bank continues to expand its network and IT system. NPLs declined to 5.5% of gross loans at end-September 2007, from 6.4% at end-2006 and provision cover increased to 85.9%, bringing it closer to the peer average of 85% (based on end-2006 data). Following the IDR500 billion subordinated debt issue in November 2006 and higher profits, total CAR improved to 13.9% from 9.9% in end- 2005, which is still below the peer average of about 20%. Bank Permata is the ninth-largest bank in Indonesia by assets and was formed from the merger of four IBRA-owned banks into Bank Bali in September 2002. In November 2004, the Indonesian government sold a 51% stake in the bank to a 50:50 consortium comprising SCB and Astra International (which is part of the Jardine group of companies in Hong Kong). MEDIA NUSANTARA: Linktone's Shareholders OK 51%-Stake Sale ---------------------------------------------------------- Linktone Ltd's shareholders approved PT Media Nusantara Citra Tbk's proposal to acquire at least 51% of the outstanding shares of the company. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 30, 2007, Media Nusantara will acquire the stakes through a combination of a tender offer for existing shares and subscription for newly issued shares. The tender offer, the TCR-AP said, will be for 6.1 million ADS, or nearly 25% of total shares outstanding. MNC will subscribe a minimum of 18.0 million ADS up to 25.2 million ADS, representing up to 57% and no less than 51% of total shares outstanding at the close of the subscription and tender, the report added. Linktone's shareholders, at the extraordinary meeting held in connection with the proposed acquisition, duly approved the following proposals: -- the adoption of the acquisition agreement between Linktone and MNC and the issuance of up to 252 million ordinary shares to MNC; -- the amendment of Linktone's Amended and Restated Memorandum and Articles of Association to require that material transactions between Linktone and any holder of 5% or more of its share capital be approved (i) by a majority of the disinterested directors of Linktone's board of directors, in the case of transactions valued at or above US$1 million, and (ii) by holders of a majority of the shares held by Linktone's disinterested shareholders, in the case of transactions valued at or above US$10 million; and -- the election of MNC's designees to Linktone's board of directors, subject to and effective upon the consummation of the subscription and purchase. Linktone's Chief Executive Officer Michael Li commented, "We believe that our companies will have a major opportunity to pursue advertising and WVAS cross-selling initiatives both in China and other Asian countries. We anticipate a very strong and mutually beneficial relationship that provides a great value proposition for shareholders going forward." As previously announced by Linktone, MNC will launch a partial tender offer in the United States within five business days after the conditions to the tender offer are satisfied or waived. The tender offer will be for up to 6 million of Linktone's outstanding American Depositary Shares ("ADSs") for US$3.80 per ADS. About Linktone Ltd. Linktone Ltd. is one of the leading providers of wireless interactive entertainment services to consumers and advertising services to enterprises in China. Linktone provides a diverse portfolio of services to wireless consumers and corporate customers, with a particular focus on media, entertainment and communications. These services are promoted through the Company's and our partners cross-media platform which merges traditional and new media marketing channels, and through the networks of the mobile operators in China. Through in-house development and alliances with international and local branded content partners, the Company develops, aggregates, and distributes innovative and engaging products to maximize the breadth, quality and diversity of its offerings. About Media Nusantara Headquartered in Jakarta, PT Media Nusantara Citra -- http://www.mnc.co.id/-- is an integrated media company with operations in television broadcasting network, radio and print media. It is the leader in Indonesia's FTA TV broadcasting market, owning 3 FTA TV networks out of a total of 11, and captured the largest audience and ADEX shares in 2005. MNC is 100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta Stock Exchange. The Troubled Company Reporter - Asia Pacific reported on Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term local and foreign currency corporate credit rating on Indonesia's integrated media company, PT Media Nusantara Citra. The outlook has been revised to positive from stable. On Sept. 19, 2006, that Moody's Investors Service has affirmed its B1 rating for the senior unsecured bonds issued by PT Media Nusantara Citra following the issuance's completion. At the same time, Moody's has affirmed its B1 corporate family rating for MNC. Both ratings have been removed from their provisional status. The ratings outlook is stable. ========= J A P A N ========= ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 ------------------------------------------------------ Alitalia S.p.A.'s December 2007 traffic data compared to the same period in 2006 showed no difference in passenger business and a decrease in cargo business. Passenger business showed traffic in line with the same period of 2006 (+0.1%) with an increase of capacity offered by 0.7%. December 2007 Cargo statistics, compared to December 2006, showed a decrease in terms of goods flown (-7.8%) with capacity offered down 5.7%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, showed levels in line with 2006 (+0.1%) and the capacity, measured in Available Seat Kilometres, increased by 0.7%. Therefore load factor decreased by 0.4 percentage points reaching 68.6%. Alitalia carried 1.8 million passengers, up 1.2% compared to the previous year. Detailed comparisons with December 2006: -- Domestic Passenger Network: traffic increased by 3.9% with offered capacity up 6.2%. Load factor was 59.8%; -- International Passenger Network: traffic decreased by 1.3% and offered capacity decreased by 0.7%. Load factor was 62.6%. -- Intercontinental Passenger Network: traffic (-0.2%) and capacity offered (-0.1%) showed levels in line with 2006. Load factor was 76.6%. Cargo Operations December 2007 Cargo performance showed, compared to December 2006, a traffic decrease by 7.8% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 5.7%. Overall Load factor was 71.2% with a decrease by 1.7 percentage points. Regarding the All-Cargo sector, Load factor was 82.2% with an increase by 5.6 percentage points compared with the same period of 2006. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina and Japan. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELPHI CORP: Court Allows Committee Participation in Exit Loan -------------------------------------------------------------- The Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York permits members of the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders appointed in the bankruptcy cases of Delphi Corp. and its debtor-affiliates to participate in any syndicate of lenders assembled to provide exit financing facilities for the Debtors' emergence from Chapter 11. The Court directs all interested Statutory Committee members to: (a) to make advanced written disclosure of their participation in the Exit Loan Syndication to the Debtors, counsel to each of the Statutory Committees, and the U.S. Trustee; (b) withhold any information with his or her institution, or any lender or other party involved in the Exit Financing, related to the Debtors' or Statutory Committees' strategy regarding the Exit Financing; and (c) abstain from any direct negotiations with the Debtors or the Statutory Committees on the Exit Financing. Participating Statutory Committee members will be screened on an ongoing basis from any information relating to the Debtors' or the Statutory Committees' strategy regarding, and any deliberations by the applicable Statutory Committee in any respect thereon, the Exit Financing, Judge Drain rules. Nothing in the Court's order relieves any member of the Statutory Committees from its obligations under any applicable securities laws, Judge Drain clarifies. As reported in the Troubled Company Reporter on Jan. 9, 2008, the Debtors reduced their Exit Financing from the Court-approved US$6.8 billion to US$6.1 billion. The reduced facilities include: (a) US$1.6 billion in an asset-backed revolving credit facility; (b) US$3.7 billion in a first-lien term loan facility; and (c) US$825 million in a second lien term loan facility. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Court Grants Final Approval of MDL Settlements ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York entered a final order on Jan. 25, 2008, approving the Multidistrict Litigation Settlements among the Debtors, General Motors Corp., and the lead plaintiffs in securities actions and lawsuits brought under the Employee Retirement Income Security Act consolidated before the U.S. District Court for the Eastern District Of Michigan, Southern Division. Pursuant to the MDL Settlements, the Debtors agreed to grant the Lead Plaintiffs and ERISA Plaintiffs claims under their First Amended Joint Plan of Reorganization. The Lead Plaintiffs are the holders of Section 510(b) Note Claims under the Plan, while the ERISA Plaintiffs are the holders of the Section 510(b) Equity Claims. In exchange, the Lead Plaintiffs and the ERISA Plaintiffs will release the Debtors from any and all claims in connection with the Securities Litigation. The Hon. Robert Drain authorizes the Debtors to release any and all of their claims against the current and former officers and directors of Delphi Corp. that relate to or arise out of any alleged violations of the federal securities laws during the period March 7, 2000, through March 3, 2005, inclusive. Judge Drain permits the Debtors and the other MDL Settlement parties to make nonmaterial modifications to the MDL Settlements without further Court order provided that the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders do not lodge an objection to any proposed modification within five business days' notice. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. FORD MOTOR: At Ease with Tata Motors' Jaguar Brand Acquisition -------------------------------------------------------------- Ford Motor Company anticipates a return of its Jaguar brand to profitability once it is sold, together with the Land Rover brand, to preferred bidder Tata Motors Ltd., insisting that its management is at ease at Tata Motor's operational capabilities, John Griffiths of the Financial Times in London reports citing Ford Director of Design Ian Callum. As reported in the Troubled Company Reporter on Jan. 4, 2008, Lewis Booth, executive vice president for Ford of Europe and Premier Automotive Group (Chairman - Jaguar, Land Rover, Volvo and Ford of Europe) stated that Ford is committed to focused detailed talks with Tata Motors on the potential sale of its Jaguar and Land Rover brands. He related that while no final decision has been made, Ford will proceed with further substantive discussions with Tata Motors over the coming weeks with a view to securing an agreement that is in the best interests of all parties concerned. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. JAPAN AIRLINES: To Slash Discount Fares Up to 80% ------------------------------------------------- Japan Airlines International Company, Ltd., will cut discount fares up to 80% for tickets sold directly to passengers starting April, sources disclosed to The Asahi Shimbun. The Asahi Shimbun's sources revealed that JAL's move, designed to bolster occupancy rates during the off-season, could lead to off-peak round-trip fares from Narita Airport to Vancouver for as low as JPY50,000. Under JAL's plan, the fare from Narita Airport, Chubu Airport or Kansai International Airport to Vancouver would be JPY50,000 round trip, depending on the week, relates the article. The report adds that the step will take advantage of the transport ministry's decision to abolish in April the floor price for the discount International Air Transport Association PEX tickets a carrier can sell directly to passengers. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. JVC CORP: To Transfer Circuit Business to Meiko Electronics ----------------------------------------------------------- Victor Company of Japan, Limited, or JVC, adopted a resolution at the Board of Directors meeting held on January 30, 2008, to transfer its circuit business to Meiko Electronics Co., Ltd. as of March 31, 2008. JVC is currently reforming its business structure and management foundation by focusing on consumer electronics, professional electronics, and entertainment as the three future core businesses, under its management reconstruction plan, Action Plan 2007. As part of Action Plan 2007, JVC has planned fundamental structural reforms in each business area including business transfer and spin-off. As part of JVC�s component business, printed circuit boards are manufactured and sold to Meiko Electronics. JVC and Meiko Electronics have been considering a transfer of JVC's circuit business to Meiko Electronics. This business transfer will allow JVC to concentrate its management resources on its core businesses, namely, consumer electronics, professional electronics, and entertainment. It enables JVC to further commit itself to rebuilding the entire company through business selection and concentration. JVC and Meiko concluded that the transfer of JVC�s circuit business would contribute to the future development of Meiko's printed wiring board business, whose priority strategy is to expand into the areas of high-end and module package boards. JVC�s unique circuit technology assets include the Victor Interconnected Layer (VIL) method that excels in thin construction and insulation for high-density, multilayer build- up boards, as well as JVC�s human resources, and manufacturing expertise. In addition, this move is expected to enhance the job security of JVC employees working in the circuit business and ensure the continuity in the responsibility of product supply to existing customers. The decision is also consistent with the direction of the reforms under Action Plan 2007. About Victor Co. 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 (AV) 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 (MD), compact disc (CD) and digital versatile disc (DVD) 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, multilayer 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. MITSUBISHI MOTORS: Global Production for December 2007 Up 7.9% -------------------------------------------------------------- Mitsubishi Motors Corporation posts global production, as well as domestic sales and export figures both for December 2007 and calendar year 2007. Total global production came in at 118,648 units, an increase of 7.9% over December 2006 and marking the tenth consecutive monthly increase since March last year. Production volume in Japan at 79,279 units was up 10.3%, the 15th consecutive month of year-on-year growth, and marked a new record for December since Mitsubishi Motors spun off its truck and bus operations in 2003. This growth was driven by a 92.6% increase in output (28,706 units) of the new Lancer for the Russian, North American, and Middle East and African markets and by a 12.3% increase in output (15,663 units) of the new Outlander for European and Chinese markets. Sales in Japan Vehicle sales in Japan in December totaled 16,210 units, 1.3% down year-on-year. Passenger car (registrations and mini-car) sales of 12,528 units and commercial vehicle sales of 3,682 units were 3.5% up and 14.7% down respectively on the same month last year. Total registered vehicle sales were 47.9% up year- on-year driven mainly by firm sales of the Delica D:5, and the recently introduced Galant Fortis and the Lancer Evolution X. Total mini-car sales were 21.5% down. Production Overseas Overseas production volume totaled 39,369 units, 3.4% up over December last year, and marked the fourth consecutive monthly increase since September 2007. In Asia production at 25,613 units was 6.3% up on December 2006, driven mainly by higher output at China Motor Co., Ltd. in Taiwan (42.8% up at 3,293 units). In Europe production came in at 4,835 units or 1.0% down on last year's figure. In North America production at 4,694 units was 27.9% down on last year. Export Shipments From Japan Total exports from Japan of 57,022 units were 47.7% up on December 2006, marking the 14th consecutive month of year-on- year increases and setting a new record for December since Mitsubishi Motors spun off its truck and bus operations in 2003. Exports to Asia of 4,962 units were 37.6% up over the same period last year thanks to firm sales of the new Outlander in China and to the introduction of the new Pajero. Exports to North America of 7,430 units marked a substantial 103.4% increase over December 2006, this reflecting firm sales of the new Lancer, solid growth in Canada. Export shipments to Europe of 18,796 units were 28.3% up ear-on-year driven by the introduction of the new Lancer and by firm sales of the Outlander. January-December 2007 In calendar year 2007 global production marked the first increase in five years, since 2002, registering a 7.5% rise on calendar 2006. Production volume in Japan in 2007 rose for the third year in succession, chalking up an 11.6 percent increase year-on-year,and marked a new record since the splitting off of truck and bus operations in 2003.due to: (1) a 201.0% increase in output of the Outlander (159,614 units) since its launch in America and Europe in September and November 2006 respectively and also for the Chinese market; (2) a large 26.2% increase in output of the Lancer (282,052 units) which is selling particularly well in Russia, North America, and the Middle East and Africa; (3) a 557.5% rise in output of the Delica D:5 (34,106 units); and (4) a 62.7% increase in output of the Pajero (105,212 units.) Vehicle sales on the Japanese market in calendar 2007 were 13.9% down on the same period last year, the first decline in two years. Registered vehicle volume increased 7.3% but minicar sales declined by 22.9%. The boost in sales stemming from the introduction of the new Delica D:5, Galant Fortis and Lancer Evolution X during the year was more than sufficient to cover the drop in sales of other models against 2006 year levels. Overseas production in the period rose 2.0% over the previous period, the first increase in five years, since 2002. Production in Asian markets grew 8.5% to 368,422 units driven mainly by higher shipments of the L200 pickup truck from Thailand and increased output at CMC and South East (Fujian) Motor Co., Ltd. Production in Europe and North America came in at 66,670 and 78,739 units, 19.2% and 15.1% down respectively over 2006 totals. Lastly, exports from Japan registered a 40.9% increase over the total for calendar 2006, registering the second consecutive year-on-year gain since calendar 2006 and marking a new record since the company spun off its truck and bus operations in 2003. Exports to Asia grew by 28.0% to 40,323 units, principally on the back of higher sales of the new Outlander in China and of the Grandis, and boosted by the introduction of the new Pajero. Export shipments to North America grew 40.7% to 66,334 units driven mainly by strong sales of the new Lancer and by gains in the Canadian market. Shipments to Europe also grew a strong 61.9 percent to 221,308 units on the back of fast sales of the new Lancer and new Outlander models. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the Mitsubishi Motors Revitalization Plan on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. * * * The Troubled Company Reporter-Asia Pacific reported on July 10, 2007, that Rating and Investment Information, Inc. has lifted its issuer rating from 'B' to 'B+' with a stable outlook. Also, R&I affirmed its 'B' rating for its domestic commercial paper program. The upgrade in rating, according to the report, is due to the fact that Mitsubishi Motors has been working to restructure its operations since it announced its Mitsubishi Motors Revitalization Plan in January 2005 and despite difficult domestic market conditions caused by factors like shrinking vehicle demand, Mitsubishi Motors has managed to leverage new model introductions to gradually restore its earnings base. MIZUHO FINANCIAL: Subprime Loss May Hit JPY250 Billion in March --------------------------------------------------------------- Mizuho Financial Group Inc.'s losses stemming from the United States subprime mortgage crisis could bloat up to JPY250 billion in the fiscal year ending in March 2008 instead of the JPY170 billion forecast at the end of September, Japan Times says, citing banking industry sources. According to the report, the sources said that the expected losses are blamed on Mizuho Securities Co., which got burned in securities investments amid the subprime crisis. The Times recounts that in December 2007, Mizuho Securities said it would issue JPY150 billion worth of new shares to parent Mizuho Corporate Bank in order to reload its capital. However, with the loss estimate for FY2007-08 rising, Mizuho Securities might need a further cash infusion, considering that it is due to merge with Shinko Securities Co. in May, the report says. Mizuho has been forced to put off the merger with Shinko from January to May 2008 after incurring net losses for the six- month period ended September 31, 2007, due to the subprime woes, the Times explains. The delay became necessary as the two merger partners need more time to revise their stock swap ratio. ========= K O R E A ========= DURA AUTO: Wants To Sell 9 Properties to IRG for US$19.2 Mil. ------------------------------------------------------------- Dura Automotive Systems Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the District of Delaware to sell to Industrial Realty Group, LLC, real property located at: -- 9444 Florida Mining Boulevard East, Jacksonville, Florida 32257, -- 617 Douro Street, Stratford, Ontario, Canada, -- 322 East Bridge Street, Brownstown, Indiana, -- 800 North College Street, Fulton, Kentucky, -- 132 Ferro Road, Pikeville, Tennessee, -- 1775 East U,S, 20, LaGrange, Indiana, -- 5 Industrial Loop, Hannibal, Missouri, -- 345 Ecclestone Road, Bracebridge, Ontario, Canada, and -- 445 Helm Street, Brookfield, Missouri, Dura Operating Corp. and its affiliates seek to sell the Property Portfolio to IRG free and clear of all liens, claims, encumbrances, and other interests. The Debtors also seek the Court's permission to pay broker fees in connection with the Sale. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that over a period of three years, each of the properties in the Property Portfolio was individually marketed by the Debtors and Colliers International, the Debtors' exclusive real estate broker for the properties, including listing on national multi-listing sites, municipal and regional economic development Web sites, and through direct canvassing by local brokers of local businesses, investors and developers within a radius of approximately 100 miles of each property. Starting May 2007, the Debtors and Colliers International marketed the Property Portfolio as a whole to certain developers and investors who had previously expressed interest in purchasing similar rural industrial properties. IRG was one of the parties contacted by Colliers International, on the Debtors' behalf, and was the only party to submit an offer for the Property Portfolio. Between August and December 2007, the Debtors conducted arm's- length negotiations with IRG. As a result of the negotiations, IRG agreed to material improvements in the lease terms under the purchase and sale agreements, resulting in an additional benefit to the Debtors' estates of approximately US$900,000. IRG submitted a written offer on Sept. 7, 2007. When DSN Holdings, Inc., the original purchaser of the Jacksonville Property, determined not to proceed to closing, the Debtors offered to sell the property to IRG for the same purchase price of US$8,400,000 and on substantially similar terms. The Debtors believe the purchase price offered by IRG for the Property Portfolio is both fair and favorable to their estates based on: (a) appraisal information provided by Gordon Schreur, director of AlixPartners, LLP; (b) the willingness of IRG to lease certain of the facilities to the Debtors on a short-term basis at a competitive rate to the Debtors while the Debtors wind down remaining operations at those locations; and (c) the fact that IRG is willing to purchase all of the properties in a single transaction, which will reduce the costs associated with selling the Property Portfolio. The material terms of the Purchase and Sale Agreements signed by the parties are: Term Description ---- ----------- Purchase Price US$19,200,000 -- US$8,400,000 for the Jacksonville Property, and $10,800,000 for the remainder of the Property Portfolio. Escrow Deposit US$100,000 for the Jacksonville Property, and US$300,000 for the remainder of the Property Portfolio. Seller Customary representations and warranties Representations for an "as is" sale. and Warranties Inspection Period 45 days. Purchaser's Satisfactory completion of due Conditions diligence. Precedent to Closing Mutual Conditions Entry of Bankruptcy Court order approving Precedent to Sale. Closing Timing of Closing 30 days after the end of the inspection period. Interim Short-term leases of property at 800 Short-Term Leases North College Street, Fulton, Kentucky, &nb