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 Wednesday, February 6, 2008, Vol. 9, Issue 26 Headlines A U S T R A L I A BURNETT PROPERTY: Members Agree on Voluntary Liquidation CNA STAFF: Commences Liquidation Proceedings CHRYSLER LLC: Total U.S. Sales Decreased 12% at 137,392 Units CHRYSLER LLC: Parts Shortage Prompts Closing of Four Facilities COLLIERS INTERNATIONAL: Placed Under Voluntary Liquidation COLLIERS INT'L PROPERTY: Undergoes Liquidation Proceedings COLLIERS INT'L (FINANCE): Members Resolve to Wind Up Operations COLLIERS RURAL: Placed Under Voluntary Liquidation GETTY IMAGES: Reports US$125.9-Mln Net Income in Full Year 2007 KENDLE INT'L: Satish Tripathi To Oversee Global Regulatory Group MOURA COAL: Placed Under Voluntary Liquidation RAVENSWORTH PASTORAL: Commences Liquidation Proceedings TRIMAS CORP: Cequent Acquires Parkside Towbars in West Australia VALE ENGINEERING: Members Opt to Liquidate Business WESTERN MAIN: Undergoes Liquidation Proceedings * AUSTRALIA: Fitch Sees Decline in RMBS Delinquencies in Q407 * AUSTRALIA: Fitch Says Prospects for Banks Remain Positive C H I N A , H O N G K O N G & T A I W A N BRIGHT SMOOTH: Members' Meeting Fixed for March 3 CHALLENGE POINT: Members' Final Meeting Slated for March 3 GOLDEN PLEASURE: Liquidator to Present Wind-Up Report HOP LICK: Members' Meeting Fixed for March 3 JIANGXI COPPER: Storm Affects Q1 Production Output RENAL CARE: Creditors' Proofs of Claim Due by March 3 SAMTA SHIPPING: Commences Liquidation Proceedings SUN SWIMS: Creditors' Proofs of Debt Due on March 7 TRIUMPHS KEY: Members Meeting Fixed for March 7 UNIVERSAL VENTURE: Creditors' Proofs of Debt Due on March 3 UTI TELECOM: Members Meeting Fixed for March 4 XINHUA FINANCE: 2007 Earnings Release Slated for Feb. 15 * China Eyes Limited Impact from U.S. Subprime Crisis: Regulator I N D I A SHREE RAMA: Incurs INR30.8-Mil. Net Loss in Qtr. Ended Dec. 31 SHYAM TELECOM: Net Loss Narrows to INR29 Mil. in Oct.-Dec. 2007 SINGER INDIA: Net Loss Down to INR800,000 in Oct.-Dec. 2007 TATA POWER: JV Completes Financing for 1,050-MW Maithon Plant * INDIA: Fitch Comments on SEBI's Proposed Regulations for REITs I N D O N E S I A ALCATEL-LUCENT SA: Extended Restructuring Projects 400 Job Cuts FOSTER WHEELER: Improved Cash Flow Spurs S&P's Outlook Revision FREEPORT-MCMORAN: Unit Pays Government IDR17 Trillion in 2007 GOODYEAR TIRE: Calls for Redemption of US$650 Mil. Secured Notes MEDIA: Venture Capital Firm Competes for 60% Linktone Shares PT INCO: Nickel in Matte Production Exceeds 2007 Target TELKOM: Collaborates with Huawei to Reduce Construction Costs J A P A N ALITALIA SPA: Sale Talks Continue Unless New Gov't Takes Over DELPHI CORP: Anticipates Chapter 11 Emergence by March 31 FLOWSERVE CORP: Discloses Full Year EPS Range of US$5.10-US5.40 FORD MOTOR: January 2008 Sales Decreased 4% to 159,914 HERBALIFE LTD: Paying US$0.20 Per Share Dividend on March 24 LOPRO CORP: Fitch Affirms and Withdraws Low B Long-Term IDRs MITSUBISHI MOTORS: Posts 3Q 2007 Financial Results K O R E A BURGER KING: Reports US$49-Mln Net Income in 2008 Second Quarter DURA AUTOMOTIVE: Obtains Court OK for US$170MM Replacement Loan M A L A Y S I A APL: Unit's Failure to File Annual Report Leads to Liquidation CNLT (FAR EAST): Court to Hear Restraining Order on February 25 HARVEST COURT: Court to Hear Summons for Directions on March 18 MEGAN MEDIA: Defaults on MYR899.956 Million Banking Facilities OCI BERHAD: Bursa to De-List Securities on February 18 PANGLOBAL BERHAD: Has Until Dec. 31 to Comply to Equity Rule SYARIKAT KAYU: Names Lai Hock as New Board Chairman TENGGARA OIL: Owes MYR20.74 Mil. as of Jan. 31, 2008 N E W Z E A L A N D BRUCE HILL: Wind-Up Petition Hearing Slated for February 25 ELITE POOLS: Appoints Parsons and Kenealy as Liquidators FRESH FOCUS: Court Appoints Madsen-Ries & Vance as Liquidators HAMILL REFRIGERATION: Wind-Up Petition Hearing Set for Feb. 14 HBC PROPERTIES: Fixes February 22 as Last Day to File Claims P L R INVESTMENT: Taps Madsen-Ries and Vance as Liquidators RANGITIKEI COMMODITIES: Wind-Up Petition Hearing Set for Feb. 25 SS SERVICE: Subject to CIR's Wind-Up Petition WINSLOW GROUP: Court to Hear Wind-Up Petition on May 9 WINSLOW MANAGEMENT: Creditors' Meeting Slated for February 7 P H I L I P P I N E S EPIXTAR PHILS: Appeals Lower Court's Junking of Rehab Plan RIZAL COMMERCIAL: Net Profit in 2007 Up 56% to PHP3.21 Billion S I N G A P O R E AF AEROSPACE: Court Enters Wind-Up Order EC-ASIA INTERNATIONAL: Creditors' Proofs of Debt Due on Feb. 22 FORSYTH PARTNERS: Court to Hear Wind-Up Petition on Feb. 15 UPPER ROOM: Requires Creditors to File Claims by March 3 T A I W A N AU OPTRONICS: Still the World's Leading LCD Supplier AU OPTRONICS: TV Screens Fuel Profit and Expansion T H A I L A N D * Fitch Says Non-Japan Asia Structured Finance'08 Outlook Stable * McKinney Names V. Pollaers as Asia Pacific Managing Partner - - - - - ================= A U S T R A L I A ================= BURNETT PROPERTY: Members Agree on Voluntary Liquidation -------------------------------------------------------- During a general meeting held on December 21, 2007, the members of Burnett Property Management Pty Limited agreed to voluntarily liquidate the company's business. S. J. Cathro and C. R. Campbell of Deloitte Touche Tohmatsu were tapped as liquidators. The liquidators can be reached at: S. J. Cathro C. R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Burnett Property Burnett Property Management Pty Limited, which is also trading as Burnett Colliers Jardine, is involved with real estate agents and managers. The company is located at Thornleigh in New South Wales, Australia. CNA STAFF: Commences Liquidation Proceedings -------------------------------------------- The members of CNA Staff Retirement Fund Pty Limited met on December 21, 2007, and agreed to voluntarily wind up the company's operations. J. L. Greig and S. J. Cathro of Deloitte Touche Tohmatsu were tapped as liquidators. The liquidators can be reached at: J. L. Greig S. J. Cathro Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About CNA Staff Located at North Sydney, in New South Wales, Australia, CNA Staff Retirement Fund Pty Limited is an investor relation company. CHRYSLER LLC: Total U.S. Sales Decreased 12% at 137,392 Units ------------------------------------------------------------- Chrysler LLC's total U.S. sales of 137,392 units were down 12% and total fleet sales were down 18% in January. This was due to a planned reduction of daily rental fleet vehicles that is in line with the company's strategy. The company opened the new year with strong sales performance from the Dodge Avenger, Dodge Viper, Dodge Caliber and Dodge Charger, all contributing to a year-over-year sales increase of 42% (28,457 units) for Dodge brand car sales. This is compared with 20,020 units in January 2007. Chrysler Aspen sales of 2,570 units represented a 20% increase in January 2008 versus the same period last year. Based on strong consumer demand, sales of the redesigned Jeep(R) Liberty mid-size sport-utility vehicle increased 17% to 8,331 units in January 2008. Sales in January 2007 were 7,141 units. "As customers become even more thoughtful about the vehicles they buy, Chrysler is committed to delivering products that meet their needs-and exceed their expectations," Jim Press, Vice Chairman and President, said. "While the government works on an economic stimulus package, we are ready to offer consumers the best value in the American car market, with vehicles that meet the highest safety and quality standards. We are pleased to offer products like the Dodge Journey, Challenger and Ram; and launching soon, the two new SUV hybrids -- Chrysler Aspen and Dodge Durango. These products, combined with the best-in- industry Lifetime Powertrain Warranty, will continue to bring more customers to our showrooms." "We're moving fast to earn the trust of dealers and customers and prove that we are listening," Deborah Meyer, Vice President and Chief Marketing Officer said. "In the first 60 days after Chrysler became private, we approved 260 line-item improvements to our products. With all of the changes, we have the opportunity to really get back in step with the American public. Our task is to challenge old perceptions and build a new image that is strong and relevant to today's consumers-and prove that it really is a New Day for Chrysler." The company finished the month with 413,874 units of inventory, or a 75-day supply. Inventory is down by 15% compared with January 2007 when it was at 488,410 units. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CHRYSLER LLC: Parts Shortage Prompts Closing of Four Facilities --------------------------------------------------------------- Chrysler LLC, has closed four facilities on Feb. 4, 2008, as the direct result of a supplier-related parts shortage: -- Belvidere Assembly Plant - Rockford, Illinois -- Newark Assembly Plant - Newark, Delaware -- Sterling Heights Assembly Plant - Sterling Heights, Michigan -- Toledo North Assembly Plant - Toledo, Ohio -- Toledo Supplier Park - Toledo, Ohio (Second shift only dismissed) Mike Ramsey and Erik Larson at Bloomberg News reports that Chrysler temporarily halted production at the four assembly plants in a dispute with auto-parts supplier Plastech Engineered Products Inc. Bloomberg says Chrysler closed the plants after following through Feb. 1 on a threat to revoke contracts with Plastech. The parts maker filed for Chapter 11 bankruptcy protection hours after Chrysler canceled orders. Chrysler's move may result in the closure of all 13 of its North American assembly plants, according to Messrs. Ramsey and Larson, unless it finds a way to obtain Plastech parts on an interim basis. Employees will be notified directly by their facility or through local media regarding a return-to-work schedule, Chrysler said in a statement announcing the plant closures. Skilled trades and janitorial services personnel will be notified of their work schedules by their respective plants. All other employees are advised not to report to work unless notified directly by their management. Powertrain and Stamping operation employees will be notified by their local facility as to their work schedule. These actions are to ensure quality for the company's customers. The delayed volume will be rescheduled in the near future. The company are monitoring the situation and will adjust inventory mix accordingly to ensure its operations resume efficiently and as quickly as possible. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. COLLIERS INTERNATIONAL: Placed Under Voluntary Liquidation ---------------------------------------------------------- During a general meeting held on December 21, 2007, the members of Colliers International (Perth) Pty Limited resolved to wind up the company's operations. S. J. Cathro and C. R. Campbell were appointed as liquidators. The liquidators can be reached at: S. J. Cathro C. R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Colliers International (Perth) Colliers International (Perth) Pty Limited is involved with real estate agents and managers. The company is located in Sydney, Australia. COLLIERS INT'L PROPERTY: Undergoes Liquidation Proceedings ---------------------------------------------------------- The members of Colliers International Property Solutions Pty Limited met on December 21, 2007, and agreed to voluntarily liquidate the company's business. S. J. Cathro and C. R. Campbell of Deloitte Touche Tohmatsu were appointed as liquidators. The liquidators can be reached at: S. J. Cathro C. R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Colliers International Property Colliers International Property Solutions Pty Limited is a distributor of durable goods. The company is located at Sydney, in New South Wales, Australia. COLLIERS INT'L (FINANCE): Members Resolve to Wind Up Operations --------------------------------------------------------------- On December 21, 2007, the members of Colliers International Property Finance Limited had a meeting and agreed to wind up the company's operations. S. J. Cathro and C. R. Campbell of Deloitte Touche Tohmatsu were named as liquidators. The liquidators can be reached at: S. J. Cathro C. R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Colliers International Property Finance Colliers International Property Finance Limited is an operator of non-residential buildings. The company is located at Sydney, in New South Wales, Australia. COLLIERS RURAL: Placed Under Voluntary Liquidation -------------------------------------------------- The members of Colliers Rural Limited met on December 21, 2007, and resolved to liquidate the company's business. S. J. Cathro and C. R. Campbell of Deloitte Touche Tohmatsu were named as liquidators. The liquidators can be reached at: S. J. Cathro C. R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Colliers Rural Colliers Rural Limited is an operator of non-residential buildings. The company is located at Sydney, in New South Wales, Australia. GETTY IMAGES: Reports US$125.9-Mln Net Income in Full Year 2007 --------------------------------------------------------------- Getty Images Inc. has disclosed financial results for the fourth quarter and full year ended Dec. 31, 2007. Net income for the fourth quarter of 2007 was US$28.5 million compared to US$30.9 million in the fourth quarter of 2006. Net income for 2007 was US$125.9 million compared to US$130.4 million in 2006. "We are making tremendous progress toward our goal of becoming a complete digital media company and we are pleased with our record revenue for the quarter," said Jonathan Klein, co-founder and chief executive officer. "We experienced sequential growth in every product line compared to the third quarter of 2007 and continue to see strong progress on our many initiatives to stabilize our traditional creative stills business while growing revenue across all other areas of our business." Fourth Quarter Results Revenue increased 7.1 percent to US$218.1 million from US$203.6 million in the fourth quarter of 2006. Excluding the effects of changes in currency exchange rates, revenue grew 1.0 percent. Revenue growth over the prior year came from increasing licenses of editorial imagery, significant growth in micro payment revenue, and increased revenue from digital asset management and publicity distribution. This year over year growth was partially offset by lower revenue in the company's traditional creative stills business. As a percentage of revenue, cost of revenue was 27.0 percent, compared to 26.3 percent in the prior year due to mix, in particular in the composition of the company's royalty free business where "other" royalty free revenue is growing faster and has lower gross margins than the traditional single image royalty free licensing. Selling, general and administrative expenses totaled US$86.4 million or 39.6 percent of revenue for the fourth quarter of 2007, compared to US$77.0 million or 37.8 percent of revenue in the fourth quarter of 2006. The increase over the prior year is attributable to recently acquired companies, the impact of changes in foreign exchange rates, certain non-recurring costs and investments that the company is making in growth areas, including editorial imagery, multi-media products, footage, micro payment, music and consumer. Income from operations was US$47.8 million or 21.9 percent of revenue in the fourth quarter of 2007 compared to US$44.1 million or 21.7 percent of revenue in the fourth quarter of 2006. Excluding US$1.1 million of professional fees associated with the review of strategic alternatives and restructuring costs, operating income in the fourth quarter of 2007 was US$48.9 million or 22.4 percent of revenue. Excluding US$11.1 million of restructuring costs and professional fees associated with the review of the company's historical equity compensation grant practices, operating income in the fourth quarter of 2006 was US$55.2 million or 27.1 percent of revenue. Total cash and short-term investments were US$364.5 million at Dec. 31, 2007, compared to US$303.0 million at Sept. 30, 2007. Net cash provided by operating activities during the fourth quarter of 2007 was US$78.7 million. 2007 Full Year Results For Full Year 2007, revenue grew 6.3 percent to US$857.6 million compared to US$806.6 million in the prior year. As a percentage of revenue, cost of revenue was 26.6 percent in 2007 compared to 25.6 percent in the prior year. For 2007, selling, general and administrative expenses were US$335.9 million or 39.2 percent of revenue compared to US$302.7 million or 37.5 percent of revenue in the prior year. Excluding US$6.0 million for certain non-recurring professional fees associated with the review of the company's historical equity compensation grant practices, a terminated transaction, and exploration of strategic alternatives in 2007, SG&A would have been US$329.9 million or 38.5 percent of revenue. Income from operations was US$196.3 million or 22.9 percent of revenue compared to US$198.1 million or 24.6 percent of revenue in 2006. Excluding US$11.2 million of restructuring costs and professional fees, income from operations for 2007 was US$207.5 million or 24.2 percent of revenue. In 2006, excluding US$27.9 million for items, income from operations was US$226.0 million or 28.0 percent of revenue in the prior year. For the full year 2007, the company generated cash from operating activities of US$249.3 million, compared to US$269.1 million in 2006. Significant uses of cash during the year included US$254.7 million for business acquisitions and US$62.9 million for the acquisition of property and equipment. The company finished the year with total cash and short term investments of US$364.5 million. Business Outlook The following forward-looking statements reflect Getty Images' expectations as of Jan. 31, 2008. The company currently does not intend to update these forward-looking statements until the next quarterly results announcement. For the first quarter of 2008, the company expected revenue of approximately US$220 million and diluted earnings per share of US$0.45. For the full year 2008, the company expected revenue of approximately US$900 million and diluted earnings per share of US$2.00 to US$2.10. Certain professional fees associated with the company's exploration of strategic alternatives are included in the guidance for the first quarter and full year of 2008. The company expected fully diluted shares just over 60 million shares for both the first quarter and the full year of 2008. Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * As reported in the Troubled Company Reporter-Europe on Jan. 29, 2008, Standard & Poor's Ratings Services affirmed its ratings and outlook on Getty Images Inc., including its 'BB' corporate credit rating, following the company's announcement that it is exploring strategic alternatives. KENDLE INT'L: Satish Tripathi To Oversee Global Regulatory Group ---------------------------------------------------------------- Kendle International Inc. has hired Satish Tripathi, PhD, RAC as Vice President, Global Regulatory and Quality. Dr. Tripathi will provide additional leadership to the Regulatory Affairs Brand, overseeing the multi-functional global regulatory group consisting of approximately 450 personnel. He will focus on driving growth in the company's regulatory brand, which includes strategic clinical development planning, regulatory consulting and submissions, clinical trial regulatory affairs, nonclinical consulting, Chemistry, Manufacturing and Controls development, medical writing and pharmacovigilance/safety services. "We are thrilled to have someone with Satish's background and experience as part of our regulatory leadership team," said Melanie Bruno, PhD, Vice President, Global Regulatory Affairs, Quality and Safety. "His ability to analyze the regulatory complexities of drug development and fashion a market positioning strategy to help ensure commercial success will provide a wonderful resource to Kendle's customers." Dr. Tripathi served most recently as the Director of Worldwide Regulatory Strategy at Pfizer (formerly Pharmacia). Prior to that, he was a Director of Global Regulatory Affairs at the Biosciences Division of Baxter Healthcare Corporation in charge of all global regulatory submissions within the Recombinant Strategic Business Unit. While at the U.S. Food and Drug Administration, Dr. Tripathi served as a Pharmacology and Toxicology Reviewer with an emphasis on oncology and pulmonary products. Dr. Tripathi earned his doctorate from the University of Glasgow in Scotland, his Master of Philosophy from Bhopal University in India and bachelor's and master's degrees from Jiwaji University at Gwalior, India. His post-doctoral fellowships include the Massachusetts Institute of Technology, Emory University Medical School and the Medical College of Wisconsin. Dr. Tripathi will be based in Kendle's Chicago office. About Kendle Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions: North America; Europe; Asia/Pacific, including Australia; Africa; and Latin America, including Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 14, 2007, Standard & Poor's Rating Services revised its outlook on Kendle International Inc. to positive from stable. S&P also revised its issue rating on the company's amended US$53.5 million revolver to 'BB' with a recovery rating of '1', indicating the expectation of very high (90%-100%) recovery of principal in the event of default. At the same time, S&P affirmed all existing ratings, including its 'B+' corporate credit rating, on the company. MOURA COAL: Placed Under Voluntary Liquidation ---------------------------------------------- During a general meeting held on December 21, 2007, the members of Moura Coal Investments Pty Limited resolved to voluntarily liquidate the company's business. J. L. Greig and S. J. Cathro were then appointed as liquidators. The Liquidators can be reached at: J. L. Greig S. J. Cathro Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Moura Coal Moura Coal Investments Pty Limited is a distributor of durable goods. The company is located at Ravensworth Via Singleton, in ACT, Australia. RAVENSWORTH PASTORAL: Commences Liquidation Proceedings ------------------------------------------------------- During a general meeting held on December 21, 2007, the members of Ravensworth Pastoral Company Pty Limited agreed to voluntarily wind up the company's operations. J. L. Greig and S. J. Cathro of Deloitte Touche Tohmatsu were appointed as liquidators. The Liquidators can be reached at: J. L. Greig S. J. Cathro Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Ravensworth Pastoral Ravensworth Pastoral Company Pty Limited is a distributor of durable goods. The company is located at North Sydney, in New South Wales, Australia. TRIMAS CORP: Cequent Acquires Parkside Towbars in West Australia ---------------------------------------------------------------- Cequent group, TriMas Corporation's subsidiary, has acquired Parkside Towbars, located in Western Australia. With annual revenues of approximately US$5 million, Parkside Towbars adds to Cequent's towing and truck accessory product offering, while strengthening its position in an attractive international market. Parkside Towbars will be integrated with Cequent's already well-established business in Australia, operating under the brand of Hayman Reese(R). "Consistent with our strategy to expand internationally, the acquisition of Parkside Towbars provides us greater access to the robust Western Australian segment of the Australian market," commented Cequent Group President, Ed Schwartz. "Parkside's recognized brand and established channel presence will generate new opportunities for Cequent products in this market. This acquisition will also allow us to expand into complimentary products, including front-end protection equipment for motor vehicles." About Parkside Towbars Located in Perth, Western Australia, Parkside Towbars is a leading manufacturer and distributor of standard towbars, Tow- Safe(R) hitches, roobars, nudge bars, front protection bars and bullbars. The company also carries a range of related vehicle accessories such as load equalizing hitches, electric brake units, transmission coolers, cargo barriers and spotlights. Established in 1972, Parkside Towbars earned certification as a Quality Endorsed Company with Quality Assurance Services (Standards Australia) in 1992. About Cequent Cequent is a leading designer, manufacturer and marketer of a broad range of accessories for light trucks, sport utility vehicles, recreational vehicles, passenger cars and trailers of all types. Products include towing and hitch systems, trailer components and accessories, and electrical, brake, cargo- carrying and rack systems. Cequent draws upon a 75-year-old heritage of superior towing and trailer brands, including: ROLA(R), Hayman Reese(R), Highland(R), Draw-Tite(R), Reese(R), Fulton(R), Wesbar(R), Bull Dog(R), Hidden Hitch(R) and Tekonsha(R). About TriMas Headquartered in Bloomfield Hills, Michigan, TriMas Corporation (NYSE:TRS) -- http://www.trimascorp.com/-- is a diversified growth company of high-end, specialty niche businesses manufacturing a variety of products for commercial, industrial and consumer markets worldwide. TriMas Corporation is organized into five strategic business groups: Packaging Systems, Energy Products, Industrial Specialties, RV & Trailer Products, and Recreational Accessories. TriMas Corporation has nearly 5,000 employees at 80 different facilities in 10 countries. The company has manufacturing facilities in Indiana, Mexico, England, Germany, Italy, China, and Australia. * * * TriMas Corp. carries Standard & Poor's Ratings Services' B+ corporate credit rating. S&P said the outlook is stable. VALE ENGINEERING: Members Opt to Liquidate Business --------------------------------------------------- The members of Vale Engineering Pty Ltd met on December 21, 2007, and passed a resolution to voluntarily liquidate the company's business. The company's liquidators are: J. L. Greig S. J. Cathro Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Vale Engineering Vale Engineering Pty Ltd is a distributor of mining machineries. The company is located at Moss Vale, in New South Wales, Australia. WESTERN MAIN: Undergoes Liquidation Proceedings ----------------------------------------------- During a general meeting held on December 21, 2007, the members of Western Main Collieries Pty Ltd agreed to wind up the company's operations. J. L. Greig and S. J. Cathro of Deloitte Touche Tohmatsu were appointed as liquidators. The liquidators can be reached at: J. L. Greig S. J. Cathro Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia About Western Main Western Main Collieries Pty Ltd is involved in Bituminous Coal and Lignite-surface mining. The company is located at Milsons Point, in New South Wales, Australia. * AUSTRALIA: Fitch Sees Decline in RMBS Delinquencies in Q407 ------------------------------------------------------------- Fitch Ratings has said, in its "The Dinkum Index - Q407 Quarterly Australian Residential Mortgage Performance" report, that the Australian prime mortgage market shows a decline in delinquencies in the fourth quarter of 2007. The 30+ day delinquencies for the market as at 31 December 2007 decreased to 1.07% from 1.15%, the index's lowest level since December 2005. "In contrast to market perception and anecdotal evidence to the contrary, missed payments on mortgages have actually fallen over the past six months and Fitch's figures at 31 December 2007 show the lowest level of mortgage arrears since December 2005. The data indicates that, at least prior to the interest rate rises of the past few months, Australian borrowers, in general, were coping well with their mortgage obligations," notes Natasha Vojvodic, Senior Director of Fitch's Australian Structured Finance team and author of the report. The improvement in the index supports the agency's continued positive outlook for Australian prime residential mortgage backed securities (RMBS), which is underpinned by strong fundamentals of record low unemployment and low, albeit increasing, interest rates. "The combined effects of the Reserve Bank of Australia's (RBA) official interest rate rises of August and November 2007, as well as today's (5 February 2008), and the move by lenders to increase rates outside of the usual RBA cycle in January 2008, has seen mortgage interest rates rise approximately 1% in seven months, and this will undoubtedly put additional pressure on households with mortgages. While the effects of these interest rate rises have yet to be reflected in Fitch's Dinkum Index, we expect the interest rate hikes along with the seasonal effect of the Christmas period will be reflected in Q108 and Q208 data," noted Ben McCarthy, Managing Director and Head of Fitch's Australian Structured Finance team. The agency notes that 30+ day delinquencies for low-doc loans increased in Q407 to 4.12% from 4.05% in Q307. Covering four categories of delinquencies (30 to 59 days, 60 to 89 days, 90+ days and 30+ days), as well as claims against lenders' mortgage insurance (LMI), the Dinkum report enables market participants to compare the performance of Australian RMBS deals and monitor trends in the Australian RMBS market. A full copy of the report, as well as downloadable versions of the graphs and performance data, is available on the agency's Web sites, http://www.fitchratings.comand http://www.fitchratings.com.au * AUSTRALIA: Fitch Says Prospects for Banks Remain Positive ----------------------------------------------------------- Fitch Ratings has commented, in its semi-annual review and outlook of Australian banks that these banks remain in good shape and appear well positioned to handle the turmoil currently enveloping global markets. However, the agency notes that a prolonged liquidity crunch may result in banks moderating their lending activity to reflect a reduced funding capacity. "Fundamentally, Australian banks appear to be in good shape, with solid profitability and excellent asset quality, while having only limited exposure to US subprime mortgages and related structured credit products. However, in the current environment there are a number of downside risks," said Tim Roche, Associate Director in Fitch's Financial Institutions group. "These include the potential for credit rationing should the current liquidity crisis be prolonged, a reduction in demand for credit as corporates and SMEs adjust their investment decisions to suit a softer economic environment, and the potential for higher interest rates to place further pressure on already highly indebted households," he added. Thus far, the main impact of the current market turmoil on Australian banks has been increased wholesale funding costs. This has impacted all Australian financial institutions, including those with strong retail deposit bases - although these banks are better positioned than smaller institutions that rely heavily on wholesale and structured markets for funding. As mentioned previously, Australian banks appear to have very little exposure to US subprime mortgages, either directly or through their relatively small structured credit portfolios. Similarly, while the banks do provide liquidity backup facilities to asset-backed commercial paper conduits, these facilities tend to be relatively modest, and the assets within the conduits are generally prime Australian mortgages, or other receivables, rather than more exotic structured credit products. Exposure to monoline insurance companies appears limited to relatively small portfolios of guaranteed corporate bonds; ratings downgrades for the insurance companies are likely to result in moderate increases in collective provisioning for the Australian banks. As a result, the profitability of Australian banks remains strong while asset quality is generally excellent by international standards. With that said, the asset quality cycle has turned. Fitch expects impaired assets to increase moderately in 2008; this is subject to global financial conditions not worsening significantly. Capital at Australian banks remains adequate, although the ratios reported by the larger Australian banks are, generally, slightly below those reported by their international peers. The ultimate impact of the Basel II framework, which was implemented on 1 January 2008, is uncertain - the Australian regulator is still in discussion with the banks on Pillar 2 capital requirements. Fitch's ratings for Australia's six largest consumer banks are as follows: -- National Australia Bank: Long-term Issuer Default rating 'AA'/ Stable Outlook, Short-term IDR 'F1+', Individual 'A/B', Support '2', Support Rating Floor 'BBB+'; -- Commonwealth Bank of Australia: Long-term IDR 'AA'/Stable Outlook, Short-term IDR 'F1+', Individual 'A/B', Support '2', Support Rating Floor 'BBB+'; -- Australia & New Zealand Banking Group: Long-term IDR 'AA-' /Stable Outlook, Short-term IDR 'F1+', Individual 'B', Support '2' and Support Rating Floor 'BBB+'; -- Westpac Banking Corporation: Long-term IDR 'AA-'/Stable Outlook, Short-term IDR 'F1+', Individual 'B', Support '2' and Support Rating Floor 'BBB+'; -- St.George Bank Limited: Long-term IDR 'A+'/Stable Outlook, Short-term IDR 'F1', Individual 'B', Support '3' and Support Rating Floor 'BB+'; and -- Suncorp-Metway Limited: Long-term IDR 'A+'/Stable Outlook; Short-term IDR 'F1'; Individual 'B', Support '3' and Support Rating Floor 'BB+'. A copy of the agency's report will be available shortly on the agency's Websites, http://www.fitchratings.comand http://www.fitchratings.com.au ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ BRIGHT SMOOTH: Members' Meeting Fixed for March 3 ------------------------------------------------- The members of Bright Smooth Development Limited will have their final general meeting on March 3, 2008, at Shop C151, 2nd Floor, Kwai Chung Plaza, Kwai Chung, N.T., in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Pang Wai Kui Suite A, 12.F Ritz Plaza 122 Austin Rd., Tsimshatsui Kowloon, Hong Kong CHALLENGE POINT: Members' Final Meeting Slated for March 3 ---------------------------------------------------------- The members of Challenge Point Limited will have their final general meeting on March 3, 2008, at Argyle Center, 688 Nathan Road, in Kowloon to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Cheng Alexander Chiu Wang Room 810, Argyle Centre 688 Nathan Rd. Kowloon Hong Kong GOLDEN PLEASURE: Liquidator to Present Wind-Up Report ----------------------------------------------------- The members of Golden Pleasure Company Limited will have their final general meeting on March 3, 2008, at 25th Floor, Jardine House, No. 1 Connaught Place, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Pih Kam Shen Ravana Garden, Flat A, 29th Floor, Block 4 Nos. 1-3 On King Street, Shatin New Territories Hong Kong HOP LICK: Members' Meeting Fixed for March 3 ------------------------------------------- The members of Hop Lick Electrical Limited will have their final general meeting on March 3, 2008, at 5th Floor, Gloucester Tower, The Landmark, 11 Pedder Street, Central, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Lo Wing Hung Gloucester Tower, 5 th Floor The Landmark 11 Pedder Street, Central Hong Kong JIANGXI COPPER: Storm Affects Q1 Production Output -------------------------------------------------- Jiangxi Copper Co. Ltd.'s production volume in the first quarter was affected by bad weather in southern China, Reuters reports. According to the report, the storm forced production cuts in hundreds of Chinese metal firms. The company told the news agency that apart from the Yongping copper mine, the whole or at least half of the production activities of the copper mines of the company in Jiangxi Province have ceased. Donny Kwok and Alfred Cang of Reuters writes that the company said its copper smelting factory could only produce at 60% to 70% of capacity while output at other copper processing enterprises is limited. Jiangxi Copper said last week that it would shut down 43% of its smelting capacity, becoming the latest smelter to face output disruptions amid power shortages and transport chaos, the report adds. Production of the company is expected to resume to normal if there is improvement in the external electricity supply and transportation, the report noted. About Jaingxi Copper 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. RENAL CARE: Creditors' Proofs of Claim Due by March 3 ----------------------------------------------------- The creditors of Renal Care Services Limited are required to file their proofs of debt by March 3, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 22, 2008. The company's liquidator is: Yu Kwong Man 27th Floor Wing on House 71 Des Voeux Road Central Hong Kong SAMTA SHIPPING: Commences Liquidation Proceedings ------------------------------------------------- Samta Shipping Limited commenced liquidation proceedings on January 19, 2008. The company's liquidators are: Kan Tim Hei Fok Pui Ling Linda 31st Floor, The Center 99 Queen's Road Central Hong Kong SUN SWIMS: Creditors' Proofs of Debt Due on March 7 --------------------------------------------------- The creditors of Sun Swims Limited are required to file their proofs of debt by March 7, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 21, 2008. The company's liquidator is: Henry Fung Rooms 1001-03 10 Floor Manulife Provident Funds Place 345 Nathan Road Kowloon, Hong Kong TRIUMPHS KEY: Members Meeting Fixed for March 7 ----------------------------------------------- The members of Triumph's Key Limited will have their final general meeting on March 7, 2008, at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: Natalia K.M. Seng Level 28 Three Pacific Place 1 Queen's Road East Hong Kong UNIVERSAL VENTURE: Creditors' Proofs of Debt Due on March 3 ----------------------------------------------------------- The creditors of Universal Venture Development Limited are required to file their proofs of debt by March 3, 2008, to be included in the company's dividend distribution. The company's liquidators are: Nathalia Seng Sze Ka Mee Cynthia Wong Tak Yee Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong UTI TELECOM: Members Meeting Fixed for March 4 ---------------------------------------------- The members of UTI Telecom Limited will have their final general meeting on March 4, 2008, at Room 2205, 22nd Floor, Kowloon Building, 555 Nathan Road, in Kowloon to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is Oliver Hoffman. XINHUA FINANCE: 2007 Earnings Release Slated for Feb. 15 -------------------------------------------------------- Xinhua Finance Limited will release Feb. 15 its financial results for the full fiscal year ended Dec. 31, 2007, after the market closes in Tokyo. XFL's earnings release and related materials will be available on the investor relations page of its Web site at http://www.xinhuafinance.com/en/for-investors/ Following the earnings announcement, XFL's senior management will host a conference call on Feb. 15, 2008, at 8 a.m. (New York) / 1 p.m. (London) / 9 p.m. (Shanghai) /10 p.m. (Tokyo) to discuss the results and recent business activities. Interested parties may dial into the conference call at (US) +1 480 629 9041/ (UK) +44 20 7190 1595 / (Asia Pacific) +852 3009 5027. A telephone replay will be available shortly after the call for one week at (US) +1 303 590 3030/ (UK) +44 20 7154 2833, Passcode: 3838441# and (Asia Pacific) +852 2287 4304, Passcode: 103110# A real-time webcast and replay will be also available at: http://www.xinhuafinance.com/en/for-investors/news-and- events/webcast About the Company Xinhua Finance Limited is China's premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Bridging China's financial markets and the world, Xinhua Finance's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited, XFL leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is headquartered in Shanghai, with offices and news bureaus spanning 11 countries worldwide. * * * Moody's Investors Service upgraded Xinhua Finance Limited's corporate family rating and senior unsecured bond rating to B1 from B2. This concludes the review for possible upgrade, which began on March 15, 2007. The outlook for both ratings is stable. On Sept. 14, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Xinhua Finance Ltd to 'B' from 'B+'. The rating was removed from CreditWatch, where it had been placed with negative implications on May 23, 2007, following a series of senior executive departures. The outlook is stable. At the same time, Standard & Poor's lowered its issue rating on Xinhua Finance's US$100 million senior unsecured notes due 2011 to 'B' from 'B+' and removed it from CreditWatch. The ratings still apply to date. * China Eyes Limited Impact from U.S. Subprime Crisis: Regulator ---------------------------------------------------------------- Shang Fulin, chairman of the China Securities Regulatory Commission, assured investors that the U.S. subprime mortgage crisis will have a limited impact on the country's financial markets as China is yet to fully liberalize the sector, XFN-Asia reports. However, Mr. Shang warned that the crisis, if not contained, may indirectly affect China's capital markets and the overall economy, since the problem could dampen credit prospects of Chinese firms, XFN-Asia relates. ========= I N D I A ========= SHREE RAMA: Incurs INR30.8-Mil. Net Loss in Qtr. Ended Dec. 31 -------------------------------------------------------------- Shree Rama Multi-Tech Ltd reported a net loss of INR30.8 million for the quarter ended Dec. 31, 2007, an improvement compared to the INR48.9-million loss booked in the same three-month period in 2006. The net loss narrowed with the improved revenues. Total income rose 41% to INR198.3 million in the three months ended Dec. 31, 2007, from the INR140.9 million earned in October to December 2006. With operating expenses of INR147.8 million, the company posted an operating profit of INR50.5 million. Interest of INR8.4 million pulled back up the company's bottom line but depreciation expenses of INR75.1 million brought back the company's bottom line to negative. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?27c6 Shree Rama Multi-Tech Ltd, an Ahmedabad-based packaging solutions provider. Its products include multilayer film, laminated tubes and laminated webs. The company incurred at least two consecutive net losses -- INR950.8 million in the year ended March 31, 2007, and INR216.9 million in the year ended March 31, 2006. SHYAM TELECOM: Net Loss Narrows to INR29 Mil. in Oct.-Dec. 2007 --------------------------------------------------------------- Shyam Telecom Ltd. booked a net loss of INR28.86 million in the three months ended Dec. 31, 2007, quite an improvement from the INR443.15-million net loss posted in the corresponding three- month period in 2006. The bottom line was pulled back up even with the slide in total revenues -- INR647 million in the latest quarter under review compared to INR1.33 million in October to December 2006. With the lesser revenues came lesser expenses. Operating expenditures decreased from 2006's INR1.74 billion to INR639.35 million in October to December 2007, bringing the company an operating profit of INR7.65 million. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?27c7 New Delhi, India-based Shyam Telecom Limited -- http://www.shyamtelecom.com/index.html-- and its subsidiaries' operations relate to investments, providing telecommunication and information technology services. The telecom products and services segment comprise of manufacturing and services in the related area. The turnkey projects and trading services segment includes the turnkey projects and trading in telecom products. The investment segment includes investments in the subsidiaries, which are dealing in telecommunication sectors. The software products and services segment includes the services in the area, including software and information technology related and information technology enabled services. It also offers Internet-related products, including data on wire, data on air and data on cable. The company's balance sheet as of March 31, 2007 showed a capital deficiency of INR1.02 billion on total assets of INR6.57 billion and total liabilities of INR7.59 billion. SINGER INDIA: Net Loss Down to INR800,000 in Oct.-Dec. 2007 ----------------------------------------------------------- Singer India Ltd.'s net loss narrowed to INR800,000 in the three months ended Dec. 31, 2007, from INR10.9-million loss incurred in the corresponding quarter in 2006. Revenue's for the Oct.-Dec. 2007 period totaled INR112.2 million, down 15% from the INR132.4 million earned last year. The lower net loss could be attributed to decreased operating expenses and interest charges. For the current quarter under review, the company incurred operating expenditures of INR108.6 million, compared to 2006's INR130.9 million. Interest charges went down from last year's INR11 million to INR2.9 million in Oct-Dec. 2007. The company has paid the final installment under OTS subsequently. Pending completion of requisite formalities, no adjustment for waiver of principle & interest has been carried out. Interest for the quarter and nine months period ended December 31, 2007 has been reworked and accounted for on the settlement basis. The company also booked INR1.4 million in depreciation and INR100,000 in taxes for the quarter. A copy of the company's unaudited financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?27c4 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. 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. TATA POWER: JV Completes Financing for 1,050-MW Maithon Plant ------------------------------------------------------------- The Maithon Power Ltd, a 74:26 joint venture between Tata Power Company Ltd and Damodar Valley Corporation has completed its financing for the 1,050 MW coal-based thermal power project set up in Dhanbad District of Jharkhand State, Tata Power disclosed in a filing with the Bombay Stock Exchange. The Project estimated at a cost of INR4,450 crore is being funded on a debt-equity ratio of 70:30. The promoters namely Tata Power and DVC would bring in equity in a ratio of 74% and 26% respectively. The INR3,115-crore debt for the project is financed by various banks led by State Bank of India. SBI Capital Markets Ltd is the sole financial advisor and arranger of debt for the project. The syndication was over subscribed by nearly INR1,050 crore with The State Bank of India Group taking the largest exposure to the tune of INR1,000 crore. The consortium of 17 banks, led by State Bank of India, include Allahabad Bank, Bank of Baroda, Canara Bank, Central Bank, Dena Bank, Indian Overseas Bank, J&K Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Tamilnadu Mercantile Bank, UCO bank, and more. Taking cognizance of the huge power deficit in the country, Tata Power and DVC have infused equity in excess of the upfront equity requirement as stipulated by the lenders. The promoters have allocated the funds prior to the financial closure to ensure the project is commissioned in time. Prasad R Menon, Managing Director, Tata Power said, "The closure of financing for Maithon project is an important milestone. The attractive financing demonstrates the faith of the tenders in the promoters, their execution capabilities and expertise to complete the project in time. The unique terms of debt financing provides us more flexibility in the execution of the project as well as help in controlling costs." MPL is a joint venture company between Tata Power and Damodar Valley Corporation and is executing 1,050 (2 x 525) MW Maithon Right Bank Thermal Power Plant. MPL has obtained all major clearances & permits for the project. The site preparatory works are in progress and orders for main equipments have been placed. The project will comprise of two generating units of which the first unit of 525 MW is expected to be commissioned by October 2010, which is in time to meet the 2010 Delhi Commonwealth Games requirements. The second unit will be commissioned by March 2011. The long-term coal linkage has been allotted from the nearby Bharat Coking Coal Ltd mines and water allocation is from the adjacent Maithon reservoir. MPL has also signed Power Purchase Agreements with DVC for 300 MW and is the lowest bidder for 309 MW power requirements for Distribution Licensees of Delhi. The joint venture has obtained open access from Power Grid Corporation of India to transmit power through their infrastructure to the power deficit Northern States. Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's has downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. * INDIA: Fitch Comments on SEBI's Proposed Regulations for REITs ---------------------------------------------------------------- Fitch Ratings has welcomed the draft regulations for the Real Estate Investment Trusts as proposed by the Securities and Exchange Board of India. As a supplier of debt ratings and an authorized credit rating agency under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, Fitch's particular area of interest is in the gearing level, property and management quality of REITs in India. As a general comment, Fitch believes that in an ideal environment, regulatory restrictions on gearing should not be necessary and that investors should be able to choose the risk-reward parameters that suit their needs. At the same time, Fitch understands the SEBI's aim of protecting investors, especially in the embryonic stage of the market's development. Other Asian countries have certainly taken the same approach and have done so very successfully. The experience in Singapore where gearing regulations began at 25% and have been subsequently increased to 35% and then 60% is evidence of the ability for the market to develop within the gearing constraints. The restriction of borrowings to 20% of gross assets is a positive from a credit perspective, and will certainly enhance the credit ratings of any REIT under this regulation, although the limitation also may have the effect of limiting the attractiveness of the REIT vehicle for investors. The draft regulations propose that each Indian REIT is required to have a "rating from a credit rating agency" at launch. In proposing the use of external credit ratings as a requirement for Indian REITs, it is important that all users understand the meaning of the ratings. Investors in REITs are equity holders of the entity while the credit rating is targeted at debt investors. A credit rating assesses the fund's ability to service and repay its debt and while this will assist investors in ranking the ability of an entity to do so, it does not comment on the success or failure of a REIT beyond this. While the gearing limitation imposed by the regulations is a fundamental input into the rating of a REIT, it is important to note that when assigning ratings, in addition to considering gearing levels, the agency considers the historical and prospective financial condition, quality of management, and operating performance of the issuer and of any guarantor, any special features of a specific issue or guarantee, the issue's relationship to other obligations of the issuer, as well as developments in the economic and political environment that might affect the issuer's financial strength and credit quality. In the case of a REIT, the quality of its underlying assets and the integrity of its legal structure are considered. In addition to the above Fitch Ratings believes the following points are worthy of mention. Property Quality The proposed regulations are suggested for all REITs regardless of the risk profile. As a result, the regulations imply that all REITs with a gearing ratio of 20% or less are a safe and secure investment. While the gearing ratio is an important aspect of the risk profile of a fund it is only one of a number of elements that should be taken into account by any debt investor. Typically, when analysing REITs, Fitch will review the type of asset (Office, Retail, Industrial, Hotel etc.), the quality of the property (Prime A-grade, B, C etc.) as well as the historical cash flow, quality and structure of management, any perceived or potential conflicts of interest, its financial profile, including liquidity position and financial flexibility, strategic plan and its ability to withstand a stressed environment. As the regulations are designed to ensure funds can service and repay their debt, then other aspects of the risk profile should also be addressed. As an example, all things being equal, a portfolio of residential properties will exhibit a lower risk profile than a portfolio of C-grade hotel assets. SEBI may wish to address this issue in the regulations. Limitation of Borrowings - Timing of Measurement of Debt Ratio Section 55 (1) of the draft regulations makes the general statement that a "scheme may borrow . . . but aggregate borrowings shall not at any time exceed one fifth of the value of total gross assets of the scheme". What is the implication if a REIT raised 20% debt and subsequently real estate assets fell in value? Should "at any time" be replaced by "at the time of entering into the debt"? This could be clarified in the regulations. Dividend Policy The draft regulations, like those for REITs in other jurisdictions, require a REIT to distribute at least 90% of its annual net income after tax but also states that "revaluation surplus credited to income . . .shall form part of net income for distribution to unit holders". A gain on revaluation is not a cash item and represents an increase of the asset value of the REIT. If required to pass this increased asset value through as dividends a REIT may need to either sell assets or borrow to pay dividends. If valuation increases by a large amount, the gearing limitation would prevent borrowing to pay sufficient dividends. For example, if a REIT had assets of INR100,000 and these were revalued to INR200,000 under Section 56, INR90,000 (90% of INR 100,000) would be passed through as dividends. As this is not a cash gain, the REIT would either have to borrow the INR90,000 which would conflict with the Section 55 requirement of the maximum 20% gearing or would be required to sell assets or raise equity to facilitate payment. An alternative to this would be to allow revaluation gains not to be passed through as dividends but to let the unit price adjust to changes in asset value, or to let the entity choose whether to pass it through as dividends. Secured V's Unsecured V's Entity Ratings When referring to the ratings of a US REIT or an Australian property trust we are typically referring to the Issuer Default Rating or entity rating. This rating may be different to the secured and/or unsecured rating of a particular REIT depending on its chosen capital structure. While the rating on a secured debt offering will give an indication of the likelihood of serviceability and repayment of that particular debt obligation, it does not necessarily give any indication as to the credit worthiness of the entity itself. The distinction between secured and unsecured debt ratings is not made in the proposed guidelines. A distinction is needed to ensure ratings across REITs are comparable. Rating Level We note that while credit ratings are required under the draft regulations, the level of the rating will not to be regulated. We view this as a positive development as it will allow investors to choose their own risk/reward parameters and, hopefully, encourage the development of a broad REIT market. A precedent was set in Singapore REIT legislation whereby regulations were different for REITs with a better risk profile as identified by the credit rating of an entity. Given the distinction made by ratings agencies between "investment grade" ('BBB-' and above rated securities) and "speculative grade" (entities or securities rated below 'BBB-') ratings it may be appropriate to propose a rating requirement of "investment grade" for cases when the property fund wishes to borrow in excess of 20% of the fund's deposited property in a similar manner to that undertaken by the Monetary Authority of Singapore regulations. Concentration Limits We note the draft regulations include concentration limits including, limitation on exposure to a single real estate project (15%) and limitation on exposure to real estate projects developed, owned, marketed or financed by a single group of companies (25%). While these concentration limits undoubtedly improve the credit quality of any REIT offering, our experience would indicate that the limitation on single real estate exposure and single group/developer/sponsor exposure would make it difficult for a REIT in its formative stages to comply. Experience in Singapore shows that the majority of REITs started out by being sponsored by a particular real estate or finance entity, and many have continued to have this link. For example, Suntec REIT began with exposure to a single development - the integrated Suntec City office towers and retail mall, while the inaugural and most successful Singapore REIT, CapitaMall Trust, started out with just three retail shopping malls in its portfolio, all contributed by its sponsor CapitaLand. Although not stated, it is likely the concentration limits have been devised to minimise conflicts of interest between a sponsor and the independently operated REIT and to minimise concentration risk on a single asset. Given the practical difficulties with these limits in a fledgling industry such as that of Indian REITs, it may be possible to mitigate these risks in other ways such as limiting exposure to a single tenant, rather than property, or by strengthening valuation practices to require multiple valuations using multiple methods or by requiring internal managers (as used in typical US REITs) rather than external managers. Besides the above credit issues, it would be helpful if SEBI could take up the following tax issues involved with the tax authorities for the benefit of the market: -- The guidelines propose that the REIT will be a trust under the Indian Trusts Act, 1882. As per the guidelines, the taxation will be at the trust level. But it would be good to clarify if the unitholder would be exempt from paying tax. -- Clarify if properties held in the trust would incur any property taxes. While ratings published by ratings agencies such as Fitch Ratings are used by the public and investor community in evaluating credit quality, it is important that users understand the limitations of such ratings. The agency's credit and research are not recommendations to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of any payments of any security. The ratings are based on information obtained from issuers, other obligors, underwriters, their experts, and other sources Fitch believes to be reliable, and does not audit or verify the truth or accuracy of such information. Ratings may be changed or withdrawn as a result of changes in, or the unavailability of, information or for other reasons. ================= I N D O N E S I A ================= ALCATEL-LUCENT SA: Extended Restructuring Projects 400 Job Cuts --------------------------------------------------------------- Alcatel-Lucent S.A. presented to its social partners an extension of the voluntary-based restructuring program, which was initiated in 2007. The extension is part of the global cost reduction program announced on Oct. 31, 2007 designed to align the company's resources to the realities of the telecom industry's difficult environment. This extension could result in the loss of some 400 positions, all of which will be done on a voluntary basis. The plan does not call for the closing of any Alcatel-Lucent locations in France. France remains one of the major research locations for Alcatel- Lucent for next-generation advanced technologies, with notably a strengthening of teams for the development of 4G mobile networks and WiMAX. Alcatel-Lucent has research activities in the Paris metropolitan area, as well as in Brittany and Alsace, and is a leading player of the French competitiveness clusters initiative. France also hosts one of the main Bell Labs research centers in Villarceaux, located in the Paris metropolitan area. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. FOSTER WHEELER: Improved Cash Flow Spurs S&P's Outlook Revision --------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. Foster Wheeler, a Clinton, New Jersey-headquartered provider of petrochemical and power-related engineering and construction services, reported total debt of approximately US$150 million at Sept. 30, 2007. "The outlook revision reflects Foster Wheeler's sustained improvements in profitability and cash flow generation," said S&P's credit analyst James T. Siahaan, "along with its ability to maintain a firm backlog of geographically diversified projects in the robust oil and gas and power markets." Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. The company has offices in China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. FREEPORT-MCMORAN: Unit Pays Government IDR17 Trillion in 2007 ------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc.'s Indonesian unit PT Freeport Indonesia paid a total of IDR17 trillion (US$1.8 billion) to the Indonesian government in 2007, Antara News reports. The company said that their obligations to the Indonesian government consisted of corporate income tax, employee income tax, regional tax and other kinds of taxes totaling US$1.4 billion. The company will also pay royalties of US$164 million and dividends of UD$216 million. According to the report, the 2007 contribution to government was bigger than the US$1.6 billion in 2006, due to fluctuations in commodity prices and the output of the company whose mines are located in Mimika district, Papua. In the period 2002-2007, the report recounts, the company paid the Indonesian government a total of US$6.9 billion dollars in corporate income tax, employee income tax and regional tax, US$5.5 billion in other taxes, 731 US$US dollars in royalties and US$654 million in dividends. The company obtained the right to mine gold and copper in Mimika district for another 40 years under its phase II work contract signed with the government in 1991, the report adds. About Freeport-McMoRan Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper & Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries, engages in the exploration, mining, and production of copper, gold, and silver. The company has operations in Indonesia. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 16, 2007, Fitch Ratings upgraded these ratings of Freeport- McMoRan Copper & Gold Inc. FCX -- US$1 billion Secured Bank Revolver to 'BB+' from 'BB'; -- 6.875% secured notes due 2014 to 'BB+' from 'BB'; -- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-'; -- 7% convertible notes due 2011 to 'BB' from 'BB-'. In addition, Fitch affirmed these ratings on FCX: -- Issuer Default Rating at 'BB'; -- US$500 million PT Freeport Indonesia/FCX Secured Bank Revolver at 'BBB-'; -- Convertible Preferred Stock at 'B+'. Fitch also assigned a rating of 'BB+' to FCX's new US$2.45- billion five-year term loan A. On March 29, 2007, Moody's Investors Service upgraded Freeport- McMoRan Copper & Gold Inc.'s corporate family rating to Ba2 from Ba3. On March 27, 2007, Standard & Poor's Ratings Services assigned its 'B' preferred stock rating to the proposed US$2.5 billion US6.75% mandatory convertible preferred stock offering of Freeport-McMoRan Copper & Gold Inc. GOODYEAR TIRE: Calls for Redemption of US$650 Mil. Secured Notes ---------------------------------------------------------------- The Goodyear Tire & Rubber Company has called for redemption on March 3, 2008, of all of its outstanding US$650 million of senior secured notes due 2011. The redemption will result in annualized interest expense savings of approximately US$75 million to US$80 million, of which about US$65 million will be realized in 2008. The notes are comprised of US$450 million of fixed rate notes, which currently bear interest at 11.25%, and US$200 million of floating rate notes, which currently bear interest at LIBOR plus 825 basis points. The contractual redemption prices are 105.5% of the principal amount of the fixed rate notes and 104% of the principal amount of the floating rate notes. In each case, accrued and unpaid interest will be paid to the redemption date. "These notes are our highest cost debt," said Damon J. Audia, Goodyear's vice president and treasurer. "Eliminating them is another step in our debt reduction process and helps us move closer to achievement of our next stage metrics." Audia said the company continues to evaluate other debt reduction opportunities. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. The ratings still apply to date. MEDIA: Venture Capital Firm Competes for 60% Linktone Shares ------------------------------------------------------------ US venture capital Broad Web Asia (BWA) has made an offer to buy 60% outstanding shares of Linktone Ltd., thus competing with Media Nusantara Citra for the acquisition, SinoCast China reports. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 30, 2007, Media Nusantara Citra (MNC) has agreed to acquire a minimum of 51% in China-based Linktone Ltd's outstanding shares through a combination of a tender offer for existing shares and subscription for newly issued shares. The company offered US$0.38 per ordinary share (US$3.80 per ADS) representing a 53.8% premium over Linktone's closing price of US$2.47 per ADS on November 27, 2007, the report said. According to Sinocast, The VC firm will purchase the same amount of shares from Linktone at a higher price of US$4.18 per ADR. The firm also commits to acquire 10 million ADRs from Linktone at up to US$4.18 each in the open market. BWA will also get 15 million new Linktone ADRs, the report relates. In exchange, Sinocast relates, Linktone will acquire BWA Entertainment Group. BWA will license Linktone Advertising Group to sell at most 25% of its web inventory, and share the advertising revenue, according to a five-year commercial agreement between the two parties, Sinocast notes. Furthermore, Linktone will become the exclusive mobile content partner of the Internet assets owned by BWA Network in accordance with another five-year agreement, Sinocast says. Sinocast adds that BWA will help Linktone promote its new site and wireless products with US$10 million, and purchase at least US$3 million of mobile phone and TV ads from Linktone Advertising Service Group in the future 36 months. 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. Moody's said the ratings outlook is stable. PT INCO: Nickel in Matte Production Exceeds 2007 Target ------------------------------------------------------- PT International Nickel Indonesia Tbk's annual production of nickel in matte in 2007 was approximately 169 million pounds, which exceeded the original target of 165 million pounds established for that year. President Director Arif Siregar was delighted to have achieved this milestone particularly in light of last year's strike at the company's operation in South Sulawesi. "We delivered what we promised while our environment record has continued to improve" he said. The company also reported that senior management had met with officials from the Department of Energy and Mineral Resources to discuss the company's obligations under its Contract of Work. At that meeting, the company presented plans to allow it to commence mining operations at Bahodopi and to construct a high pressure acid leach processing facility at Sorowako in substitution for the company's undertaking in the Contract of Work to construct a processing facility at Bahodopi. Under this plan, the ore from Bahodopi would be combined with ore from the Sorowako area to feed the existing pyrometallurgical processing facility in Sorowako. PT Inco would continue its exploration program at Bahodopi and continue to study options for developing a processing facility in the future. Final determination from the above plans will be published following an evaluation of the financial, technical, environmental and community effects of such plans have been carried out. To carry out the plan, the company will need to proceed with feasibility studied on the proposed high-pressure acid leach processing facility to be located in Sorowako. It is essential that the company concludes arrangements with the Government of the Republic of Indonesia and secure necessary permits to support such a significant capital investment. Any decision to proceed with that investment will require the approval of the Board of Directors and Board of Commissioners of the company. If all plans are approved by the DEMR and the company, it is expected that the proposed processing facility in Sorowako will produce approximately 22,000 tonnes of nickel. About PT Inco Headquartered in Jakarta, Indonesia, PT International Nickel Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer with a production facility and mine are in Sorowako, Sulawesi, where it has a contract agreement until 2025. It produces nickel matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Sorowako on the island of Sulawesi. Inco Limited of Canada holds a 60.8% stake of the company and Sumitomo Metal Mining Co Ltd. holds a 20.1% stake. * * * As of October 29, 2007, the company carried Standard and Poor's "BB-" long-term foreign and local issuer credit ratings; and Fitch Rating's "BB" LT Issuer Default rating. TELKOM: Collaborates with Huawei to Reduce Construction Costs ------------------------------------------------------------- PT Telekomunikasi Indonesia Tbk and Huawei Technologies Co. Ltd. have installed a CDMA2000 network for Telkom to help the operator save over 60% of its constructing costs in a project that started in May 2007 and took just five months to complete. Currently Huawei deploys over half of Telkom's national network, which covers the areas of Jakarta, West Java, Center Java and Sumatera. Mr. Eddy Kurnia, Vice President Public & Marketing Communication Telkom said, "We are greatly impressed by the hard work, quick response and positive working attitude shown by Huawei's team." On the other hand, Eddy added, with the success of this transformation of CDMA2000, Telkom will be able to serve the customers more both in term of quality and coverage. "We've just passed a critical point of transformation successfully, now we are very optimistic to give more to our Flexi customers." "We are delighted that our cutting-edge technology and services are helping Telkom to provide better services to the Indonesian population," said Mr. Ma Yue, President Director of PT. Huawei Tech. Investment, "Indonesia's telecommunications market is growing rapidly, and Huawei will continue to provide the best solutions to support Telkom's requirements and to help the operator achieve further cost-savings." About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings affirmed Telekomunikasi Indonesia's Long-term foreign and local currency ========= J A P A N ========= ALITALIA SPA: Sale Talks Continue Unless New Gov't Takes Over ------------------------------------------------------------- Negotiations to sell Italy's 49.9% stake in Alitalia S.p.A. to Air France-KLM S.A. cannot be stopped unless a new government is installed, Thomson Financial reports, citing transport minister Alessandro Bianchi. As previously reported in the TCR-Europe, Prime Minister Romano Prodi, tendered his resignation on Jan. 24, 2008, after losing a confidence vote in the Senate. Mr. Prodi earlier lost a majority in the Italian Senate after the Udeur party left the coalition government. President Giorgio Napolitano said he will defer a decision to accept the resignation pending consultations with all the political parties in the Parliament. According to Thomson Financial, Mr. Napolitano may either install an interim government to make electoral reforms or snap elections. "If the Prodi government goes to elections nothing stop," Mr. Prodi told Thomson Financial. "The procedure [for Alitalia] is fixed and it would be unreasonable to stop it. Mr. Bianchi added that if an election is called, Mr. Prodi's government would continue administration of the country, which would include concluding the Alitalia sale. "If, instead, there is another government then there is the need to rediscuss everything," Mr. Bianchi told Thomson Financial. Alitalia and Air France have until mid-March to present a final contract. 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: Anticipates Chapter 11 Emergence by March 31 --------------------------------------------------------- Delphi Corp. and its debtor-affiliates expect to consummate their First Amended Joint Plan of Reorganization on or before March 31, 2008, Delphi Corp. Vice President and Chief Restructuring Officer John D. Sheehan said in a regulatory filing with the U.S. Securities and Exchange Commission. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Court entered an order confirming the Debtors' Plan, as modified, on Jan. 25, 2008. The Plan contemplates the reorganization of the Debtors and the resolution of certain outstanding claims against and interests in the Debtors. On the Effective Date of the Plan, Delphi's existing Common Stock, as well as all rights or claims arising in connection therewith, will be cancelled. On or after the Effective Date, Reorganized Delphi will have outstanding up to 181,831,951 shares of New Common Stock. As of Jan. 17, 2008, there were 565,025,907 shares of Existing Delphi Common Stock issued and outstanding, Mr. Sheehan noted. The Plan provides for the adoption of four of Delhi Corp.'s incentive plans for its employees: (1) the Delphi 2007 Short-Term Incentive Plan, (2) the Delphi 2007 Long-Term Incentive Plan, (3) the Delphi Supplemental Executive Retirement Program, and (4) the Delphi Salaried Retirement Equalization Savings Program. The Delphi Incentive Plans will become effective on the Effective Date of the Plan. Eligible participants of the Delphi Incentive Plans will include Delphi's approximately 560 global executives, including Delphi's principal executive officer, principal financial officer, other executive officers and controller and chief accounting officer, Mr. Sheehan reported. The purpose of the STIP is to motivate and reward performance and provide cash incentive awards, limited to an annual individual maximum of US$7,500,000, to eligible employees who contribute to the company's success, according to Mr. Sheehan. The STIP is available for incentive programs not to exceed a period of one year for eligible employees. The purpose of the LTIP, Mr. Sheehan said, is to provide incentive award programs to attract and retain exceptional employees, to align those employees with the company's long-term strategies and to best align the employee interests with those of Delphi's stockholders. The LTIP is designed to permit the payment of compensation that qualifies as performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986 and provides for the grant of various stock-based and cash-based awards, including stock options, stock appreciation rights, restricted stock, and restricted stock units, Mr. Sheehan elaborated. The maximum number of shares of Delphi Common Stock available for issuance under the LTIP is equal to 8% of the number of fully diluted shares of Common Stock outstanding immediately after consummation of the Plan. Awards of stock options and stock appreciation rights are limited to an annual individual maximum of 1,000,000 shares. Awards of restricted stock and restricted stock units are limited to an annual individual maximum of 500,000 shares. Cash awards are limited to an annual individual maximum of US$10,000,000. The STIP and LTIP are administered by the Compensation and Executive Development Committee of the Delphi Corp. Board of Directors. Awards may be made under the STIP and LTIP until the tenth anniversary of the Effective Date. The SERP is an unfunded, nonqualified defined benefit plan that provides a benefit in conjunction with the Delphi Retirement Program for Salaried Employees, a tax-qualified defined benefit pension plan. The purpose of the DB SERP, according to Mr. Sheehan, is to assure that the company's eligible retiring salaried executive employees will receive an overall level of retirement benefits that are competitive with the peer group of companies selected by the Delphi Compensation Committee. Delphi administers the SERP separately and distinctly from the Retirement Program for Salaried Employees. The SRESP is a funded, nonqualified defined contribution plan that will replace the company's pre-existing supplemental retirement programs. The SRESP will be maintained primarily for the purpose of providing deferred compensation to certain Delphi executives, managers and other highly-compensated employees, Mr. Sheehan said. The purpose of the program, Mr. Sheehan explained, is to supplement the company's tax-qualified defined contribution savings plan and allow company nonelective contributions and matching contributions to be made into a nonqualified defined contribution savings plan in situations where legal limitations under the tax-qualified defined contribution savings plan have been reached. "A participant is always 100% vested in the amounts credited to his or her account that are attributable to his or her deferrals. A participant will also be 100% vested in his or her employer and matching contributions," Mr. Sheehan clarified. A full-text copy of the Delphi 2007 Short-Term Incentive Plan is available for free at the SEC's Web site: http://ResearchArchives.com/t/s?27b1 A full-text copy of the Delphi 2007 Long-Term Incentive Plan for U.S. employees is available for free at the SEC's Web site: http://ResearchArchives.com/t/s?27b2 A full-text copy of the Delphi Supplemental Executive Retirement Program is available for free at the SEC's Web site: http://ResearchArchives.com/t/s?27b3 A full-text copy of the Delphi Salaried Retirement Equalization Savings Program is available for free at the SEC's Web site: About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is a 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. 110; 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 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. FLOWSERVE CORP: Discloses Full Year EPS Range of US$5.10-US5.40 --------------------------------------------------------------- Flowserve Corp. has announced a 2008 full year EPS target range of between US$5.10 and US$5.40. In addition, the company also provided additional details about its pending 2007 results, including backlog, revenue and operating margin improvement, as well as its market outlook. As previously announced, bookings for the fourth quarter 2007 were US$1.1 billion and for full year 2007 were US$4.3 billion, both up 19 percent. The company's backlog on Dec. 31, 2007 was approximately US$2.3 billion, which is the highest year-end level in the company's history. The company expects full year 2007 revenue to be approximately US$3.75 billion, exceeding the previously announced target range of US$3.6 to US$3.7 billion. Flowserve also expects 2007 full year operating margin to be at or near an annual improvement of 300 basis points, the high end of its previously announced range. From a market outlook perspective, the company continues to see a strong level of investment from its customers in the global oil and gas market, which continues to feed its large project business. Based on project activity levels in power, chemical, water and other general industries, the company's outlook for increased investment by its customers in these segments also remains positive. In all its served industries, the company continues to invest in market share growth and believes that its annual record bookings in 2007 reflect success in this effort. From a geographical perspective, the company continues to see solid investment by its customers in the United States across its core markets. Internationally, where Flowserve receives approximately two-thirds of its business, the company also sees strength in its markets, including strong returns from its investments in China, India, Middle East and Latin America. Based on this strength in the company's end markets, Flowserve plans to increase its capital spending in 2008 over 2007 amounts in order to capitalize on projected future growth through more aggressive market penetration strategies and expansion of its global footprint in both low cost manufacturing capacity and Quick Response Centers. "We continue to see strong prospects for growth in our key end markets, and are excited about our outlook for 2008," said Lewis Kling, Flowserve President and Chief Executive Officer. "The expected EPS in 2008 is a result of our planned continued operational improvement driving both top and bottom line growth, as well as the anticipated tax planning strategies that are targeted to attain the lower end of an effective tax rate range of between 30 to 35 percent." About Flowserve Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. Flowserve has operations in Dominican Republic, Guatemala, Guyana, Belize, Belgium, Netherlands, Indonesia, Singapore, Japan, among others. * * * As reported in the Troubled Company Reporter-Europe on Aug. 16, 2007, Moody's Investors Service affirmed Flowserve Corporation's corporate family rating at Ba3 and probability of default at B1. Moody's also affirmed the Ba2 rating to the company's senior secured term loan and assigned a Ba2 rating to Flowserve's senior secured revolving credit facility. FORD MOTOR: January 2008 Sales Decreased 4% to 159,914 ------------------------------------------------------ Total Ford Motor Company sales in January, including Jaguar, Land Rover, and Volvo, were 159,914, down 4%. Demand for Ford's crossovers remained strong in January. Sales for the Ford Edge were 95% higher than a year ago and the Lincoln MKX was up 78%. Retail demand for Ford, Lincoln and Mercury cars also was strong in January, especially for the new Focus. Sales for the Focus were up 44% compared with a year ago, with retail sales up 33%. Combined retail sales for the Ford Fusion, Mercury Milan, and Lincoln MKZ also were higher than a year ago. "We're very pleased with this result," Jim Farley, Ford's group vice president, Marketing and Communications, said. "Our dealers really delivered this month, despite a challenging economic and competitive environment. "It's not going to get any easier -- at least for awhile," Mr. Farley said. "Recent monetary actions and the proposed stimulus package may help the economy later this year, but we're not pinning our hopes on that. Our plan is based on restructuring our business to be profitable at lower demand and changed mix while also accelerating the development of new products people want to buy." The next wave of new Ford products will arrive this summer -- the distinctively designed Ford Flex crossover and the elegant Lincoln MKS sedan. A new Ford F-150 pickup truck will debut later in the fall. Ford, Lincoln and Mercury sales totaled 148,355, down 4% compared with a year ago. 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 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. HERBALIFE LTD: Paying US$0.20 Per Share Dividend on March 24 ------------------------------------------------------------ Herbalife Ltd.'s board of directors has approved a quarterly cash dividend of US$0.20 per share to shareholders of record effective Feb. 29, 2008, payable on March 14, 2008. About Herbalife Ltd. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. * * * As reported in the Troubled Company Reporter-Europe on April 9, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Los Angeles-based Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an