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 Monday, February 11, 2008, Vol. 9, Issue 29 Headlines A U S T R A L I A ACTION TILT: Placed Under Voluntary Liquidation CAMWELL PTY: Members & Creditors to Meet on February 19 DARNOC PTY: Liquidator to Present Wind-Up Report on February 18 DI CANDILO HOLDINGS: Placed Under Voluntary Liquidation DI CANDILO & SONS: Undergoes Liquidation Proceedings GIBWAY PTY: Placed Under Voluntary Liquidation GILETE CSI: Annual General Meeting Set for February 22 MEANDERHAM PTY: Members' Meeting Set for February 18 RMS CORPORATION: Members to Receive Wind-Up Report on Feb. 13 SPENLEIGH INDUSTRIES: Joint Meeting Slated for February 15 C H I N A , H O N G K O N G & T A I W A N AFFLUENCE PICTURE: Court to Hear Wind-Up Petition on March 28 AQUAMATE SANITARY: Court to Hear Wind-Up Petition on April 2 BRAND NEW: Court to Hear Wind-Up Petition on April 2 CHINA ASIA: Court to Hear Wind-Up Petition on February 27 CHINA HERITAGE: Appoints New Liquidators CHINA STAR: Court to Hear Wind-Up Petition on February 27 FORTUNATE STAR: Court to Hear Wind-Up Petition on March 5 KAI YIP: Appoints New Liquidators KWONG YUEN: Creditors' Proofs of Debt Due on February 15 LENG LOI: Appoints New Liquidators MAXBUSY GROUP: Creditor's Meeting Fixed for February 25 TING CHEONG: Creditor's Meeting Fixed for February 13 YAOHAN BEST: Creditors' Proofs of Debt Due on February 15 I N D I A BANK OF INDIA: Raises INR1,360 Crore from Share Issue BPL LTD: Net Loss Tripled to INR294 Mil. in Oct.-Dec. 2007 GMAC LLC: Financial Unit Posts US$724MM Net Loss in Fourth Qtr. RPG LIFE: Fixes Feb. 22 as Record Date for Scheme of Arrangement TATA POWER: To Penetrate Infrastructure Sector I N D O N E S I A BANK CENTRAL: Doubles Number of Shares to be Repurchased BANK DANAMON: Plans To Issue Bonds for IDR2.25 Trillion BANK MANDIRI: To Delay US$300-Million Bond Issue BANK NIAGA: To Sell IDR500 Billion of Schroder's Fund BANK PERMATA: Develops Mobile Token J A P A N JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months JAPAN AIRLINES: Chairman to Leave Post on March 31 OKI ELECTRIC: Signs Marketing Deal with Alcatel-Lucent SOFTBANK CORP: Posts JPY46.7BB Net Income in Qtr. Ended Dec. 31 SOFTBANK CORP: Considering Next Move In Light of Microsoft's Bid K O R E A DURA AUTOMOTIVE: To Bypass Executives from 2008 Bonuses DURA AUTO: Reaches Settlement Pact w/ Nyloncraft for US$2 Mil. KOREAN EXPRESS: KDB Sells 3.43% Company Stake SSAMZIE: Discloses Conversion of 10th Bonds to 3,112 Shares SSAMZIE CO: Signs License Agreement with Korea Company * KOREA: Korean Banks Lose US$563 Million from Subprime Hit M A L A Y S I A ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10 KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007 MEGAN MEDIA: May Wind Up Operations After Creditor Talks Failed SOLUTIA INC: Aims to Assume Wal-Mart Deals Under Terms of Plan SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment N E W Z E A L A N D 24 HOURS: Levin & Vance Replace Fatupaito, McCloy as Liquidators ALPHA AVIATION: Commences Liquidation Proceedings BEAZLEY BROS: Wind-Up Petition Hearing Set for Today CALEB H CONTRACTING: Wind-Up Petition Hearing Set for Feb. 20 CER GROUP: Sales Revenue in 2007 Rose 31% to NZ$8.1 Million CONNECT SYSTEMS: Creditors' Proofs of Debt Due on Feb. 21 CONTINENTAL PANEL: Taps Crichton & Horne as Liquidators DREAM PROPERTY: Subject to CIR's Wind-Up Petition DUKE STREET: Court to Hear Wind-Up Petition on February 14 NO BAD PIZZAS: Fixes March 21 as Last Day to File Claims SALEPRO PLASTICS: Appoints Vance & Levin as Liquidators SALES & PROMOTIONS: Fixes February 21 as Last Day to File Claims WELLINGTON STEEL: Taps Shephard & Dunphy as Liquidators P H I L I P P I N E S WENDY'S INT'L: Earnings at US$14 Mil. in Qtr. Ended Dec. 30 S I N G A P O R E ASSOCIATED DEVELOPMENT: Contributories to Meet on February 15 BENCHMARK ELECTRONICS: Earns US$21 Mil. in Fourth Quarter 2007 CHOW CHO: Contributories' Meeting Set for February 15 GUAN GUAN: Creditors' Proofs of Debt Due on February 29 POLYONE CORP: Earns US$7.1 Million in 2007 Fourth Quarter SEA CONTAINERS: Inks Pact with Two Pension Schemes Trustees SEA CONTAINERS: Court Approves SC Iberia & YMCL Guarantees SEAGATE TECH: Board of Directors OK's US$2.5BB Share Repurchase SEAGATE TECHNOLOGY: S&P's BB+ Rating Unmoved by Share Repurchase - - - - - ================= A U S T R A L I A ================= ACTION TILT: Placed Under Voluntary Liquidation ----------------------------------------------- Action Tilt Tray & Low Loader Services Pty Ltd.'s members agreed on December 20, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Mark Conlan at RSM Bird Cameron Partners to facilitate the sale of its assets. The liquidator can be reached at: Mark Conlan c/o RSM Bird Cameron Partners Chartered Accountants 8 St Georges Terrace Perth, Western Australia 6000 Australia About Action Tilt Action Tilt Tray & Low Loader Services Pty Ltd. provides transportation services. The company is located at Subiaco, in Western Australia, Australia. CAMWELL PTY: Members & Creditors to Meet on February 19 ------------------------------------------------------- Camwell Pty Ltd. will hold a joint meeting for its members and creditors at 2:30 p.m. on February 19, 2008 . During the meeting, the company's liquidator, Barry Honey at McGrathNicol, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Barry Honey McGrathNicol Level 1, 5 Mill Street Perth, Western Australia 6000 Australia Telephone:(08) 6363 7600 Website: http://www.mcgrathnicol.com About Camwell Pty Camwell Pty Ltd. operates repair shops. The company is located at Adelaide, in South Australia, Australia. DARNOC PTY: Liquidator to Present Wind-Up Report on February 18 --------------------------------------------------------------- Anthony Schiffmann, Darnoc Pty Ltd's appointed estate liquidator, will meet with the company's members on February 18, 2008, to provide them with property disposal and winding-up reports. The Troubled Company Reporter-Asia Pacific that the company commenced liquidation proceedings on April 17, 2007. The liquidator can be reached at: Anthony Schiffmann BDO Kendalls Level 18, 300 Queen Street Brisbane, Queensland 4000 Australia About Darnoc Pty Located at Brisbane, in Queensland, Australia, Darnoc Pty Ltd. is an investor relation company. DI CANDILO HOLDINGS: Placed Under Voluntary Liquidation ------------------------------------------------------- DI Candilo Holdings Pty Ltd's members agreed on December 28, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Philip Rundell and Darren Weaver at Ferrier Hodgson to facilitate the sale of its assets. The liquidators can be reached at: Philip Rundell Darren Weaver Ferrier Hodgson BankWest Tower, Level 26 108 St Georges Terrace Perth, Western Australia 6000 Australia About DI Candilo Holdings DI Candilo Holdings Pty Ltd is a distributor of fabricated structural metal. The company is located at Bayswater, in Western Australia, Australia. DI CANDILO & SONS: Undergoes Liquidation Proceedings ---------------------------------------------------- DI Candilo & Sons Pty Ltd's members agreed on December 28, 2007, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Philip Rundell and Darren Weaver at Ferrier Hodgson to facilitate the sale of its assets. The liquidators can be reached at: Philip Rundell Darren Weaver Ferrier Hodgson BankWest Tower, Level 26 108 St Georges Terrace Perth, Western Australia 6000 Australia About DI Candilo & Sons DI Candilo & Sons Pty Ltd operates metals service centers and offices. The company is located at Bellevue, in Western Australia, Australia. GIBWAY PTY: Placed Under Voluntary Liquidation ---------------------------------------------- Gibway Pty Ltd.'s members agreed on January 3, 2008, to voluntarily liquidate the company's business. In line with this goal, the company has appointed Allan Davie at Charts Partners Pty Ltd to facilitate the sale of its assets. The Liquidator can be reached at: Allan Davie Charts Partners Pty Ltd GPO Box 2168 Brisbane, Queensland 4001 Australia About Gibway Pty Located at Brisbane, in Queensland, Australia, Gibway Pty Ltd is an investor relation company. GILETE CSI: Annual General Meeting Set for February 22 ------------------------------------------------------ Gilete CSI Pty Ltd will have its annual general meeting on February 22, 2008, at 2:30 p.m. During the meeting, the creditors will be asked to: -- resolve to approve the compromise of the debt owed by Colisa Pty Ltd to Gilete CSI; -- resolve to approve the remuneration of the liquidators pursuant to Section 473(3)(b)(i) of the Corporations Act 2001; and -- receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Martin Jones Ferrier Hodgson BankWest Tower, Level 26 108 St Georges Terrace Perth, Western Australia Australia About Gilete CSI Located at Joondalup, in Western Australia, Australia, Gilete CSI Pty Ltd is an investor relation company. MEANDERHAM PTY: Members' Meeting Set for February 18 ---------------------------------------------------- M. G. Mccann, Meanderham Pty Ltd.'s appointed estate liquidator will meet with the company's members on February 18, 2008, at 9:30 a.m., to provide them with property disposal and winding-up reports. As reported by the Troubled Company Reporter-Asia Pacific, the company commenced liquidation proceedings on June 28, 2007. The liquidator can be reached at: M. G. Mccann Grant Thornton Chartered Accountants Ground Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia About Meanderham Pty Meanderham Pty Ltd., which is also trading as Townsville Travelodge, operates hotels and motels. The company is located at Townsville, in Queensland, Australia. RMS CORPORATION: Members to Receive Wind-Up Report on Feb. 13 ------------------------------------------------------------- I. C. Francis, RMS Corporation Pty Ltd's appointed estate liquidator, will meet with the company's members on Feb. 13, 2008, at 11:00 a.m., to provide them with property disposal and winding-up reports. The liquidator can be reached at: I. C. Francis Taylor Woodings Chartered Accountants 30 The Esplanade, Level 6 Perth, Western Australia 6000 Australia About RMS Corporation RMS Corporation Pty Ltd operates non-classifiable establishments. The company is located at Redcliffe, in Western Australia, Australia. SPENLEIGH INDUSTRIES: Joint Meeting Slated for February 15 ---------------------------------------------------------- Spenleigh Industries Pty Limited will hold a joint meeting for its members and creditors at 11:00 a.m. on February 15, 2008. During the meeting, the company's liquidator, Peter A. Lucas at P. A. Lucas & Co., will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Peter A. Lucas P. A. Lucas & Co. Chartered Accountants ING Building, Level 8 100 Edward Street Brisbane, Queensland 4000 Australia About Spenleigh Industries Spenleigh Industries Pty Limited is a distributor of wood kitchen cabinets. The company is located at Underwood, in Queensland, Australia. ================================================ C H I N A , H O N G K O N G & T A I W A N ================================================ AFFLUENCE PICTURE: Court to Hear Wind-Up Petition on March 28 ------------------------------------------------------------ On January 10, 2008, Fortunate ChinaStar Overseas Limited was petitioned to have its operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on March 26, 2008, to hear the petition. The petitioners' solicitor can be reached at: Maurice Lee, Tsang Ng-Quinn & Tang Rooms 1804-6 Wing On House 71 Des Voeux Road Central, Hong Kong AQUAMATE SANITARY: Court to Hear Wind-Up Petition on April 2 ------------------------------------------------------------ On February 1, 2008, Paul Edward Dixon filed a petition to have Aquamate Sanitary Ware Europe Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on April 2, 2007, to hear the petition. The petitioners' solicitor can be reached at: Robertsons 57th Floor The Center 99 Queen's Road Central, Hong Kong BRAND NEW: Court to Hear Wind-Up Petition on April 2 ---------------------------------------------------- On February 1, 2008, Tse Hing Fai filed a petition to have Brand New Technology Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on April 2, 2008, to hear the petition. The petitioners' solicitor can be reached at: Robertsons 57th Floor The Center 99 Queen's Road Central, Hong Kong CHINA ASIA: Court to Hear Wind-Up Petition on February 27 --------------------------------------------------------- On November 30, 2007, Gwenny So Ling Chee filed a petition to have China Star (Asia) Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on February 27, 2008, to hear the petition. The petitioners' solicitor can be reached at: Fairbairn Catley Low & Kong 3rd Floor, Gloucester Tower The Landmark 15 Queen's Road Central, Hong Kong CHINA HERITAGE: Appoints New Liquidators ---------------------------------------- The shareholders of China Heritage Arts Foundation Limited met on January 16, 2008, and appointed Angus Hamish Forsyth as the company's liquidators. The liquidator can be reached at: Angus Hamish Forsyth 4th Floor and 5th Floor Central Tower 28 Queen's Road Central, Hong Kong CHINA STAR: Court to Hear Wind-Up Petition on February 27 --------------------------------------------------------- On November 30, 2007, Gwenny So Ling Chee filed a petition to have Fortunate ChinaStar Overseas Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on February 27, 2008, to hear the petition. The petitioners' solicitor can be reached at: Fairbairn Catley Low & Kong 3rd Floor, Gloucester Tower The Landmark 15 Queen's Road Central, Hong Kong FORTUNATE STAR: Court to Hear Wind-Up Petition on March 5 --------------------------------------------------------- On January 4, 2008, Dah Sing Bank Limited filed a petition to have Fortunate Star Development Company Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on March 5, 2008, to hear the petition. The petitioners' solicitor can be reached at: K.B. Chau & Co 16th Floor Wing Lung Bank Building 45 Des Voeux Road Central, Hong Kong KAI YIP: Appoints New Liquidators --------------------------------- The shareholders of Kai Yip Manufactory Limited met on January 31, 2008, and appointed Chan Chi Keung as the company's liquidators. The liquidator can be reached at: Chan Chi Keung Flat B, 12th Floor Block E Wylie Court, 21 Wylie Path Ho Man Tin Kowloon, Hong Kong KWONG YUEN: Creditors' Proofs of Debt Due on February 15 -------------------------------------------------------- The creditors of Kwong Yuen Construction Company Limited are required to file their proofs of debt by February 15, 2008, to be included in the company's dividend distribution. The company's liquidators are: Stephen Briscoe Nicholas Timothy Cornforth Hill 29th Floor, Ccaroline Centre Lee Gardens Two 28 Yun Ping Road Hong Kong LENG LOI: Appoints New Liquidators ---------------------------------------- At a meeting on February 1, 2008, the shareholders of Leng Loi Limited appointed Kan Tim Hei and Fok Pui Ling Linda as the company's liquidators. The liquidators can be reached at: Angus Hamish Forsyth Kan Tim Hei Fok Pui Ling Linda 31st Floor The Center 99 Queen's Road Central Hong Kong MAXBUSY GROUP: Creditor's Meeting Fixed for February 25 ------------------------------------------------------- Jacky CW Muk and Edward S. Middleton, Maxbusy Group Company Limited's appointed estate liquidators, will meet with the company's creditors on February 25, 2008, to provide them with property disposal and winding-up reports. The liquidators can be reached at: Jacky CW Muk Edward S. Middleton 27th Floor Alexander House 18 Charter Road Central, Hong Kong TING CHEONG: Creditor's Meeting Fixed for February 13 ----------------------------------------------------- Lau Lok Chi, Ting Cheong Metal Ware Factory Limited's appointed estate liquidator, will meet with the company's creditors on February 13, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Lau Lok Chi Auditorium Duke of Windsor Social Service Bldg. 15 Hennessy Road Hong Kong YAOHAN BEST: Creditors' Proofs of Debt Due on February 15 --------------------------------------------------------- The creditors of Yaohan Best Electrical (HK) Limited are required to file their proofs of debt by February 15, 2008, to be included in the company's dividend distribution. The company's liquidator is: Kenny King Ching Tam Room 908 9th Floor Nan Fung Tower 173 Des Voeux Road Central, Hong Kong ========= I N D I A ========= BANK OF INDIA: Raises INR1,360 Crore from Share Issue ----------------------------------------------------- Bank of India has raised INR1,359.81 crore from the placement of its equity shares that closed on Feb. 6, the bank disclosed in a filing with the Bombay Stock Exchange. According to the BSE filing, the bank has approved the issuance of 3,77,72,600 equity shares at a price of INR360 per share of face value of INR10 (issued at a premium of INR350 each share). SBI Capital Markets Ltd, A.K. Capital Services Ltd, Edelweiss Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company Ltd and Motilal Oswal Investment Advisors Pvt Ltd acted as book running lead managers to the issue. Headquartered in Mumbai, India, Bank of India -- http://www.bankofindia.com-- 2628 branches in India spread over all states/ union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * Moody's Investors Service gave a Ba2 rating to the bank's Foreign LT Bank Deposits. BPL LTD: Net Loss Tripled to INR294 Mil. in Oct.-Dec. 2007 ---------------------------------------------------------- BPL Ltd. widened its net loss to INR293.8 million in the three months ended Dec. 31, 2007, from the INR87.8-million loss booked in the corresponding quarter in 2006. The worsening bottom line is brought about by decreased revenues and soaring expenditures. Total income went down to INR213.2 million in the Oct.-Dec. 2007, from INR256 million in the same three-month period in 2006. Operating expenditures soared to INR447.3 million (INR278.8 million in 2006), bringing the company an operating loss of INR234.1 million. The bulk of the operating expenditure for the current quarter under review is from other expenditure aggregating INR281.4 million. According to the company, other expenditure includes INR226.9 million written off in investments in shares held by the company in Sanyo BPL Pvt Ltd due to reduction of share capital as approved by the High Court of Karnataka. The company also posted interest charges of INR29.2 million, depreciation of INR28.7 million and INR1.6 million in taxes. A copy of the company's financial results for the quarter ended Dec. 31, 2007, is available for free at: http://ResearchArchives.com/t/s?27e6 Headquartered in Bangalore, India, BPL Limited manufactures and distributes consumer electronic products such as televisions, video tape recorder, audio systems, emergency lanterns, electrocardiographs and monitors. The Group also manufactures home appliances like washing machines, refrigerators, vacuum cleaners, microwave ovens, gas tables, soft energy and consumer telecom products. Its plants are located at Kerala, Karnataka and Uttar Pradesh. The Group operates in India. In 2006, the Company obtained approval from the Kerala High Court for its financial restructuring scheme and the launch of the 50:50 joint venture with Sanyo for the CTV business. The restructuring has allowed BPL to focus and strategize on its core businesses like mobile phones, entertainment electronics, medical electronics, engineering plastics and tooling for automotive and consumer electronics industry. As a part of the restructuring exercise, BPL had recently sold off its dry cell business -- which operated through its subsidiary BPL Soft Energy Systems -- in a INR67 crore deal including liabilities to the Khaitans of Eveready Industries. The company incurred at least two consecutive annual net losses -- INR301.4 million in fiscal year ended March 31, 2007, and INR2.73 billion in FY2006. GMAC LLC: Financial Unit Posts US$724MM Net Loss in Fourth Qtr. --------------------------------------------------------------- GMAC Financial Services reported a 2007 fourth quarter net loss of US$724 million, compared to net income of US$1 billion in the fourth quarter of 2006. The effect on Residential Capital LLC from the continued disruption in the mortgage, housing and capital markets was the primary driver of adverse performance. Affecting results in the quarter were higher credit provision as a percent of assets, market driven valuation adjustments and increased funding costs at the company. Several significant items are reflected in results for the fourth quarter of 2007, including: -- US$563 million consolidated gain on the repurchase and retirement of ResCap debt, of which US$521 million was recognized at ResCap and US$42 million was recognized at GMAC; -- US$438 million gain related to the sale of residual cash flows and the deconsolidation of several on-balance sheet securitization structures, which included US$281 million of current period provision - the effect of this was an in-period net benefit of US$157 million; -- US$131 million restructuring charge. Comparisons to the fourth quarter of 2006 are affected by a US$791 million gain related to GMAC's conversion to a limited liability company and a US$570 million capital gain related to rebalancing the insurance investment portfolio in that period. Full Year Results For the full-year 2007, GMAC reported a net loss of US$2.3 billion, compared to net income of US$2.1 billion for the full-year 2006. Profitable results in the automotive and insurance businesses were more than offset by a US$4.3 billion loss at ResCap. Comparisons of full-year results are affected by the fourth quarter significant items previously noted well as goodwill impairments of US$455 million at ResCap in the third quarter of 2007 and US$695 million at Commercial Finance in the third quarter of 2006. "Losses in the fourth quarter decreased compared to the prior quarter," Eric Feldstein, GMAC chief executive officer, said. "However, GMAC's performance throughout 2007 was severely affected by the ongoing challenges in the mortgage, credit and capital markets. As a result, 2007 was a year of significant transformation for the organization -- driving aggressive actions designed to reduce risk, streamline operations and rationalize our cost structure. Steps taken included reducing the balance sheet by US$40 billion, bolstering liquidity, tightening underwriting standards, significantly restructuring operations and refocusing our business on core fundamentals. "We believe the steps taken position the company for future success," Mr. Feldstein concluded. Liquidity and Capital GMAC's consolidated cash and certain marketable securities were US$22.7 billion as of Dec. 31, 2007, up from US$18.3 billion at Dec. 31, 2006. Of these total balances, ResCap's consolidated cash and cash equivalents were US$4.4 billion at year-end, up from US$2 billion on Dec. 31, 2006. During the fourth quarter, GMAC purchased in the open market US$740 million of ResCap debt that was subsequently contributed to ResCap and retired as a measure to support the capital position at the mortgage unit. As of Dec. 31, 2007, ResCap's equity base was US$6 billion, above the minimum tangible net worth requirements in its credit facilities, and above the amount expected to be needed to support its ongoing operations. In addition, GMAC and ResCap may from time to time continue to purchase outstanding GMAC or ResCap debt in open market transactions or otherwise, as part of its liquidity and cash management strategy. Strategic Initiatives GMAC and ResCap continue to investigate strategic alternatives related to all aspects of ResCap's business. These strategic alternatives include potential acquisitions as well as dispositions, alliances, and joint ventures with a variety of third parties with respect to some of ResCap's businesses. GMAC and ResCap are in various stages of discussions with respect to certain of these alternatives, including, in some cases, execution of confidentiality agreements, indications of interest, non-binding letters of intent and other exploratory activities such as preliminary and confirmatory due diligence and conceptual discussions. GMAC and ResCap also have engaged advisers to explore the sale of certain parts of ResCap's operations. There are no substantive binding contracts, agreements or understandings with respect to any particular transaction. Further, there can be no assurances that any of these strategic alternatives will occur, or if they do, that they will achieve their anticipated benefits. At Dec. 31, 2007, the company's total debt amounted to US$193.15 billion compared to US$236.99 billion in 2006. About GMAC GMAC LLC, based in Detroit, is a provider of retail and wholesale auto financing, auto insurance and warranty products, and through its wholly-owned subsidiary Residential Capital LLC, residential mortgage products and services. GMAC reported a preliminary 2007 fourth quarter consolidated net loss of $724 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. * * * As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service placed GMAC LLC's Ba2 senior unsecured rating on review for possible downgrade. The action was in response to GMAC's affirmation of support for Residential Capital LLC, as disclosed in ResCap's Nov. 21, 2007 debt tender announcement. ResCap's ratings and outlook (Ba3 senior unsecured, negative outlook) were not affected by the tender announcement or this GMAC rating action. As reported in the Troubled Company Reporter on Nov. 16, 2007, Fitch Ratings has placed GMAC LLC and its related subsidiaries 'BB+' long-term Issuer Default Ratings on Rating Watch Negative. This action reflects the ongoing pressures in the company's residential mortgage subsidiary, Residential Capital LLC (ResCap, IDR 'BB+' by Fitch with Rating Watch Negative). RPG LIFE: Fixes Feb. 22 as Record Date for Scheme of Arrangement ---------------------------------------------------------------- RPG Life Sciences Ltd has fixed February 22, 2008, as the Record Date for the purpose of the scheme of arrangement it entered into with RPG Pharmaceuticals Ltd., Instant Holdings Ltd. and Instant Trading and Investment Company Ltd. The Scheme, which the Bombay Court sanctioned in December 2007, provides for these terms: 1. The company has sold its pharmaceuticals business along with all assets and liabilities on a going concern basis to RPG Pharmaceuticals (with effect from April 2, 2007) at consideration of INR46 crore. In full discharge of this consideration, RPG Pharmaceuticals will issue equity shares of face value of INR8 in the ratio of 1:1 to the shareholders of the company at total premium of INR34,50,49,200. RPG Pharmaceuticals would list the equity shares so issued on the Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange; 2. The company has sold its investments to Instant Holdings (w.e.f. April 1, 2007) at consideration of INR53 crore. In full discharge of this consideration, Instant Holdings would issue 99,50,000 equity shares of face value of INR10 to the company at aggregate premium of INR43.05 crore; 3. Instant Trading, subsidiary of the company, stands dissolved without winding up; and 4. The company would change its name to "Brabourne Enterprises Ltd" and "RPG Pharmaceuticals Ltd" would change its name to "RPG Life Sciences Ltd". Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of a default in debt servicing obligations towards institutional investors. TATA POWER: To Penetrate Infrastructure Sector ---------------------------------------------- Nevin John at The Economic Times writes that Tata Power Company Ltd. plans to cash in on the booming infrastructure sector using its engineering and construction competencies. A Tata Power spokesperson confirmed the plan saying they are examining opportunities in infrastructure business along with other Tata Group companies, The Times relates. According to the news agency, the company made the foray into the new segment after getting the go signal from its parent, Tata Sons. Tata Power started the foray with the leading of a consortium that submitted a bid for the city-side development of Udaipur airport, Mr. Jonh states. The other members of the consortium reportedly are Tril Airport Development and Singapore airport operator Changi. Tata Power is expected to bid for urban projects, briges and IT parks and convention centers, The Times adds. The news agency, citing unnamed sources, says that the company will establish a separate division for the infrastructure businesses that could later be reshaped as a subsidiary. 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. ================= I N D O N E S I A ================= BANK CENTRAL: Doubles Number of Shares to be Repurchased -------------------------------------------------------- PT Bank Central Asia Tbk, in relation to its second share repurchase program, revise the number of shares to be repurchased is up to 246,550,100 shares after stock split as opposed to 123,275,050 shares as disclosed on May 16, 2007, Reuters Investing Keys reports. According to the report, the program has an execution period of 18 months from the company's Extraordinary General Meeting dated May 15, 2007 and will end on November 15, 2008. PT Trimegah Securities has been appointed to conduct the share repurchase program, the report adds. Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk -- http://www.klikbca.com/-- offers individual and business products and services. The bank's individual services consist of savings accounts, home loans and car loans, remittance, collection and safe deposit facilities. The bank's business services consist of working capital loans, investment loans and bank guarantee for small and medium-sized enterprises. In addition, it provides export import facilities such as letters of credit, negotiation and discounting. The bank's subsidiaries include PT BCA Finance, BCA Finance Limited and BCA Remittance Limited. It has 772 branches in Indonesia, Singapore and New York, 42,958 EDCs and operates 4,425 ATMs. The bank serves 6.6 million accounts throughout Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on Nov. 2, 2006, that Fitch Ratings affirmed all the ratings of Bank Central Asia as follows: * Long-term foreign currency Issuer Default rating: BB- * Short-term foreign currency rating: B * Individual: C/D and * Support: 4. BANK DANAMON: Plans To Issue Bonds for IDR2.25 Trillion ------------------------------------------------------- PT Bank Danamon Tbk and its subsidiary PT Adira Dinamika Multi Finance Tbk have planned to sell IDR2.25 trillion bonds in the first half of 2008, Reuters Investing Keys reports citing Bisnis Indonesia. According to the report, the bank will sell IDR1.5 trillion bonds while ADMF will sell IDR750 billion bonds. Bank Danamon, the report notes, invited securities companies to underwrite the bonds with the term of between three to five years. The structure of the bonds will be the same for both companies, the report adds. Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia Tbk provides a range of products and services, including Consumer Banking, Small to Medium-Sized Enterprise and Commercial, Trade Finance, Treasury Product, Cash Management, Other Services, Financial Planning and e-Banking. Danamon Syariah is the Bank's business unit that provides its customers with syariah banking products and services. The bank also operates Danamon Simpan Pinjam, which caters to micro banking customers. DSP is divided into two groups: DSP to serve and help enterprises in micro and small-scale banking, and DSP for individual customers with fixed income. Bank Danamon is supported by 86 domestic branch offices, 325 domestic supporting branch offices, 25 domestic cash office, 739 supporting branches for DSP, six personal banking branch offices, 10 syariah branch offices and one overseas branch. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of PT Bank Danamon Indonesia Tbk: -- The foreign currency subordinated debt rating was raised to Ba2 from Ba3 -- Foreign currency long-term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D BFSR were unaffected. On Aug. 15,2007, Fitch Ratings upgraded the National Long-term rating of PT Bank Danamon Indonesia Tbk to 'AA(idn)' from 'AA- (idn)') while affirming all its other ratings as follows: * Long term foreign currency Issuer Default Rating (IDR) 'BB-' with a Positive Outlook, * Short term foreign currency IDR at 'B', * Individual Rating 'C/D', * Support Rating '4' and * Support Rating Floor 'B'. BANK MANDIRI: To Delay US$300-Million Bond Issue ------------------------------------------------ PT Bank Mandiri (Persero) Tbk may delay the plan to issue US$300 million bonds in the first quarter of 2008 due to unfavorable market situation, Reuters Investing Keys reports. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 20, 2007, Bank Mandiri planned to raise US$300 million in bonds between October and January, to help refinance its debts and fund an expansion. Mandiri President Director Agus Martowarodojo said the bank would wait for the proper time to issue the subordinated debt, as the global credit market has been hit by problems in the United States subprime market, the TCR-AP noted. Bank Mandiri, the report added, had short listed Barclays, BNP Paribas, Credit Suisse, Citibank and Deutsche Bank to underwrite the issue. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The outlook on the national rating remains stable. At the same time, all other ratings are affirmed, as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook -- Short-term IDR at 'B' -- Support at '4', and -- Support Floor at 'B+' On Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Mandiri. -- The foreign currency senior/subordinated debt ratings were raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. Indonesia's Mandiri aims for 20 pct 08 loan growth BANK NIAGA: To Sell IDR500 Billion of Schroder's Fund ----------------------------------------------------- PT Bank Niaga Tbk has planned to sell IDR500 billion of Schroeder's mutual fund in a bid to get IDR2.5 billion to IDR5 billion from the business in 2008, Reuters Investing Keys reports. According to the report, the Bank and Schroder's Investment Management Indonesia have just signed an agreement to sell the mutual fund to premium customers. Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * The bank also has the following existing global scale ratings assigned by Moody's Investors Service: -- issuer/foreign currency subordinated debt of Ba3; -- global local currency deposit of Baa3; -- foreign currency long-term/short-term deposit of B2/Not Prime; -- and bank financial strength of D. Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as: Long-term foreign Issuer Default ratings at 'BB-'; Individual at 'C/D'; and Support '4'. Fitch revised the Outlook for the ratings to positive from stable. BANK PERMATA: Develops Mobile Token ----------------------------------- PT Bank Permata Tbk develops mobile token as a media to authenticate Internet banking transaction in a bid to meet the more varied needs of corporate customers, Reuters Investing Keys reports, citing Bisnis Indonesia. The Bank, the report relates, said multi-layered security and verification process via password offered by the mobile token has made the service of Permata e-Business a solution to corporate customers in optimizing cash management service, According to the report, the service will enable customers to run business transaction without having to bring any additional authentication media. Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's -- http://www.permatabank.com/-- products and services include liabilities, asset, credit card and bancassurance, PermataFOREX, commercial banking, e-channels and preferred banking. The bank has approximately 318 domestic branches, sub branches and cash offices throughout the country. The bank's subsidiaries, which are engaged in the securities industry, the consumer finance and leasing sector, the general insurance business and the banking sector, include PT Bali Securities, PT Bali Tunas Finance, PT Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan Rakyat. As reported by the Troubled Company Reporter-Asia pacific on Oct. 19, 2007, Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Permata. The detailed ratings are: -- The foreign currency long-term deposit rating was raised to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa3 global local currency deposit rating and D- BFSR were unaffected. ========= J A P A N ========= JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months -------------------------------------------------------------- JAL Group announced consolidated results for the third quarter (October-December 2007 inclusive) and the first three quarters (April - December inclusive) of FY2007, the financial year ending March 31, 2008. For the first three quarters of FY2007, total operating revenue in the air transport segment -- JAL Groups core business -- improved significantly on the same period last year, up by JPY28.7 billion to JPY1,392.5 billion. Operating costs for the segment went down by JPY65.5 billion to JPY1,321.2 billion compared to the previous year. As a result, the JAL Group posted an operating income in the air transport segment of JPY71.2 billion in the first three quarters of FY2007, up JPY94.3 billion on last year. JAL Group Consolidated FY07 Results for the Period April - December 2007 Operating Revenue Over the nine month period, supply on international and domestic passenger routes measured in available seat kilometers (ASK) decreased respectively by 4.9% and 3.1%, as a result of network restructuring by shifting to high profit routes, suspending low profit routes and fleet downsizing, as outlined in the JAL Group Medium-term Corporate Revival Plan FY2007-2010. Mainly as a consequence of this, demand measured in revenue passenger kilometers (RPK) fell on international passenger routes by 3.7% and on domestic routes by 4.4%. However, due to an increase in unit price, operating revenue for the core air transport business segment which includes cargo, increased by 2.1% when compared to the same period last year, up by JPY28.7 billion to a total of JPY1,392.5 billion. Consolidated operating revenue declined by JPY32.9 billion or 1.9% from the same period last year to JPY1,701.1 billion. One main factor was a JPY58 billion decrease in non-air transport business revenue resulting from the exclusion of JALUX from the consolidated statement, after the trading company changed from a consolidated subsidiary to an equity method affiliate. Operating Expenses As a result of steady implementation of business structure and cost reforms outlined in the Medium-term Corporate Revival Plan, such as a review of all routes, fleet downsizing by introducing more fuel efficient medium and small size aircraft, and personnel cost reductions, the JAL Groups operating expenses decreased by 7.0% or JPY121.3 billion to JPY1,618.6 billion during the first three quarters of FY2007, when compared to last year. Operating, Ordinary & Net Income For the first three quarters of FY2007, the JAL Group recorded an operating income of JPY82.5 billion up JPY88.4 billion on last year, and an ordinary income of 79.2 billion yen up JPY86.9 billion on last year. The Group posted a net income of JPY20.4 billion up JPY29.8 billion when compared to the same 9 month period the previous year. Business Segment Outline (April - December 2007) International Passenger Demand: Tourism demand was weak on Europe routes and Hawaii routes due to a weakening of the yen. Reduced seat supply, a part of JALs route restructuring, led to a decrease in revenue passenger kilometers and passenger numbers on US mainland and Oceania routes. While demand over the nine-month period on China, Korea and Southeast Asia routes all increased on the previous year. Demand measured in revenue passenger kilometers was 96.3% from the same period last year. The revenue seat load factor rose 0.9 points to 71.9%. In total 10,061,760 international passengers were carried by JAL Group Airlines, almost identical to the number carried in the same period the year before. Supply: In addition to fleet downsizing, JAL has actively reduced flight frequency and suspended flights on low profit routes. On the other and, the airline has increased scheduled flights on high profit routes to such high growth markets as China, India and Vietnam, whilst increasing international charter flights to meet demand primarily from the baby boomer generation. Supply measured in available seat kilometers decreased by 4.9% from the same period last year. Unit price: In addition to an increase in business passenger demand and the shifting of resources to high profit routes, air fares were revised and the fuel surcharge was increased resulting in an increase in unit price of 8.3% compared to the same period last year. Revenue: Given the above, revenue increased by 4.3% from the same period last year up JPY23.6 billion to JPY572.9 billion. Domestic Passenger Demand: During the nine-month period, JAL implemented a number of measures that increased customer convenience and value through, for example, the launch of Japans first ever domestic first class cabin, the introduction of discount fares and the launch of seasonal promotional campaigns. Route restructuring and fleet downsizing which came into effect during FY2007, and a boost in demand from a one-off special fare made available in October 2006 to commemorate the final stage of JAL Group integration, meant that revenue passenger kilometers were 4.4% down on the previous year. The number of domestic passengers carried during the period by JAL Group airlines decreased by 4.6% to 31,915,821. Supply: Supply measured in available seat kilometer was 3.1% down on the same period last year, a result of fleet downsizing and a review of routes, including flight frequency adjustments, to more effectively meet demand. Unit price: Due to changes in passenger composition and an increase in air fares, unit price increased by 5.6% when compared to the same period last year. Revenue: Given the above, revenue increased by 1.0% from the same period last year by JPY5.2 billion to JPY520.1 billion. International Cargo Demand: Demand from Japan to North America declined over the period when compared to the same period last year mainly due to a reduction in belly space resulting from a decrease in the number of passenger flights operated. Demand from Japan to Europe increased as a result of better utilization of passenger aircraft belly space. Also, demand to China and Southeast Asia was strong and increased on the previous year, due mainly to increased supply from the introduction of 767 freighters. Demand from China to Japan increased from last year, but decreased from Europe, Southeast Asia and the US, due to for example, a reduction in available belly space the result of route restructuring and fleet downsizing. Revenue cargo ton kilometers (RCTK) were 2.2% down when compared to the same period last year. Unit price: Increased 0.9% from the same period last year. Revenue: Revenue decreased by 1.3% from the same period last year by JPY1.9 billion to JPY143.6 billion. Fuel costs The price of Singapore kerosene from April to December 2007 averaged US$88.1 per barrel, an increase on last year's average of US$81.9 per barrel. From the end of October onwards the average price of fuel was extremely high, regularly exceeding the US$100.00 per barrel mark. Despite this, through fleet renewal and downsizing, route restructuring and a range of fuel consumption reduction measures, JAL managed to reduce fuel costs over the period by 13.3 billion yen to JPY307.0 billion when compared to the same period last year. Personnel costs As a result of steadily implementing the various measures of the Medium-term Corporate Revival Plan, in the air transport segment personnel costs decreased over the 9-month period by JPY14.9 billion from the same period last year. To achieve JAL Groups target of reducing total personnel costs annually by JPY50 billion compared to FY2006, in FY2007 in Japan the company has already made large reductions to the summer and winter bonuses of staff, has offered special early retirement programs to cabin attendant and managerial level ground staff, and plans to revise retirement benefit related systems and reduce retirement benefit costs. Worldwide the Group has been increasing productivity by, for example, expanded introduction of Toyota Production System methods. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. JAPAN AIRLINES: Chairman to Leave Post on March 31 -------------------------------------------------- Toshiyuki Shinmachi, Japan Airlines' chairman, will quit from his post effective March 31 to give way to younger leadership, the Associated Press reports. Mr. Shinmachi became the airline's president in 2004, and was appointed chairman in 2006 to lead the company out of financial and organizational problems, the same report relates. JAL's chairman said that he has been successful in making the airline profitable, and now would like to make way for younger managers. Mr. Shinmachi implemented a restructuring plan that included shifting to fuel-efficient aircraft and dropping unprofitable routes, the result of which is a JPY13.1 billion third quarter profit for JAL, AP relates. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. Moody's said the rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. OKI ELECTRIC: Signs Marketing Deal with Alcatel-Lucent ------------------------------------------------------ Oki Electric Industry Co. Ltd. entered into an agreement with Alcatel-Lucent to jointly market OKI's mobile WiMAX terminals to the worldwide market. As part of the agreement, a demonstration showing how OKI terminals work with Alcatel-Lucent's WiMAX base stations will be featured at Alcatel-Lucent's booth at Mobile World Congress 2008, which will be held from Feb. 11 to 14 in Barcelona, Spain (Booth number: 8A147 in Hall 8). "We are pleased to be working with Alcatel-Lucent, a global leader in the field of advanced communications infrastructure technology, to bring to consumers useful, reliable mobile devices that will enable them to stay in touch with the people they care about and get the information they need no matter where they are," said Kichiro Akino, President of Network Systems Company at Oki Electric Industry. "This collaboration is an important step in promoting WiMAX technology worldwide because by working together we will be able to ensure seamless interoperability between OKI's various mobile WiMAX terminals and Alcatel-Lucent's WiMAX base stations, making both sets of products more useful to businesses and consumers alike." By joining the Open Customer Premises Equipment Program, OKI will work with Alcatel-Lucent to share market data enabling both companies to better define, test and introduce features earlier, ensure faster availability of end-to-end solutions and widen the offering of terminals. "In signing the Global Co-Marketing and Interoperability Testing Agreements, OKI joins and further enhances Alcatel-Lucent's Open CPE Program," said Karim El Naggar, Alcatel-Lucent's WiMAX Vice President. "This will enable the two companies to offer an end- to-end WiMAX 802.16e-2005 solution that leverages OKI's leadership in developing compact devices with minimal power consumption." The two companies will collaborate on conducting interoperability tests to obtain WiMAX Forum Certification and focus on offering new devices, developing features and improving overall performance on a wide range of devices, including CF cards to mobile terminals such as PCs, PDAs and UMPCs, data cards like USB dongles, and devices with a WiFi interface. OKI expects to begin shipping WiMAX compatible products in the second half of this year, in time to coincide with the commercial launch of mobile WiMAX service. About Alcatel-Lucent Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com. About Oki Electric Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. OKI provides top-quality products, technologies and solutions to its customers through its info-telecom system business, semiconductor business and printer business. All three businesses function as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit OKI's global web site at http://www.oki.com/ * * * As reported by the Troubled Company Reporter-Asia Pacific on Dec. 18, 2007. Rating and Investment Information, Inc. affirmed Oki Electric's issuer rating at BB+. According to R&I, little has improved in the performance of the company's mainstay info- telecom system business. This is due to the sluggishness in products for communication carriers despite the recovery in products for financial institutions, which had been stagnant after the special demand caused by the introduction of new bank notes in 2004. SOFTBANK CORP: Posts JPY46.7BB Net Income in Qtr. Ended Dec. 31 --------------------------------------------------------------- Softbank Corp. reported financial results for the fiscal third quarter ended Dec. 31, 2007. As widely reported, the Japanese mobile-phone carrier's quarter net income is JPY46.7 billion, up from JPY7.49 billion a year ago. Operating profit rose 9% to JPY92.4 billion, as gains in the broadband division and fixed-line operations turning profitable helped offset lower earnings at its mobile-phone unit, Bloomberg reports, citing the company's statement. Profit for the first nine months, according to the Associated Press, rose four times compared to the previous year, as Softbank succeeded in securing a bigger customer base as a result of price discounting and aggressive advertising. The company gained 561,000 users from Octoebr to December 2007, and 200,700 subscribers to its mobile service in January, bringing its total users to 17.81 million. Analyst Kenji Nishimura explained to Bloomberg that Softbank makes up for its discounting and providing of free content schemes through ring tone, music, game, and video clip downloads. Additionally, the company's nine-month revenue was helped by its stake sale in Alibaba Group, which fetched JPY57.2 billion in profit. Alibaba.com Ltd. is now trading in the Hong Kong stock exchange, the Wall Street Journal says. Softbank reported April to December profit of JPY93.2 billion, compared to JPY21.93 billion the previous year, the AP says. About Softbank Based in Tokyo, Japan, Softbank Corporation -- http://www.softbank.co.jp/-- is a leading Japanese telecommunications and media corporation. SoftBank was established on September 3, 1981. The company operates in eight business segments: * Broadband Infrastructure Segment * Fixed-line Telecommunications Segment * e-Commerce Segment * Internet Culture Segment * Broadmedia Segment * Technology Services Segment * Media & Marketing Segment * Overseas Funds Segment Softbank is also involved with leisure and service operations, e-finance, holding company functions for overseas operations, and back-office services in Japan. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. In 2006, SoftBank bought Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. As of March 31, 2007, the company's paid-in capital was JPY163.3 billion. * * * The Troubled Company Reporter-Asia Pacific reported on June 7, 2007, that Standard & Poor's Rating Agency lifted its long-term corporate credit and senior unsecured debt ratings to BB from BB- in light of the company's increasing earnings stability. The outlook for the long-term credit rating is stable. Moody's Investors Service, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K.K. SOFTBANK CORP: Considering Next Move In Light of Microsoft's Bid ---------------------------------------------------------------- Softbank Corp. is looking at ways to maximize the benefit it would get as a result of Microsoft Corp.'s US$44.6 billion unsolicited bid for Yahoo! Inc. Softbank owns 41% of Yahoo Japan Corp. and 3.9% of Yahoo Inc., Bloomberg News says. "If done properly, Yahoo brand value can increase as a result" Softbank's Chief Executive Officer Masayoshi Son was quoted by Bloomberg as saying. Yahoo "management should choose the way that doesn't reduce value." In a separate report from the Associated Press, Mr. Son said that he is in talks with Yahoo!'s chief executive, Jerry Yang, on how best to respond to Microsoft's takeover proposal. "We will consider the (Microsoft) bid in light of our overall Yahoo strategy," Mr. Son was quoted by Reuters as saying. "We have no intention of selling our Yahoo Japan stake." According to Mr. Son, Yahoo and Alibaba -- a Chinese search engine, are still the more popular choices in Asia compared to Google, AP relates. He attributed this to cultural difference. Meanwhile, the Wall Street Journal reports that as a result of Microsoft's Yahoo bid, investors poured into Softbank. The company's shares have also gained 12%, ending at JPY2,130 on Thursday. About Softbank Based in Tokyo, Japan, Softbank Corporation -- http://www.softbank.co.jp/-- is a leading Japanese telecommunications and media corporation. SoftBank was established on September 3, 1981. The company operates in eight business segments: * Broadband Infrastructure Segment * Fixed-line Telecommunications Segment * e-Commerce Segment * Internet Culture Segment * Broadmedia Segment * Technology Services Segment * Media & Marketing Segment * Overseas Funds Segment Softbank is also involved with leisure and service operations, e-finance, holding company functions for overseas operations, and back-office services in Japan. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. In 2006, SoftBank bought Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. As of March 31, 2007, the company's paid-in capital was JPY163.3 billion. * * * The Troubled Company Reporter-Asia Pacific reported on June 7, 2007, that Standard & Poor's Rating Agency lifted its long-term corporate credit and senior unsecured debt ratings to BB from BB- in light of the company's increasing earnings stability. The outlook for the long-term credit rating is stable. Moody's Investors Service, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K.K. ========= K O R E A ========= DURA AUTOMOTIVE: To Bypass Executives from 2008 Bonuses ------------------------------------------------------- DURA Automotive Systems Inc. and its debtor-affiliates have amended their 2008 Key Management Incentive Plan to better focus on the non-senior management KMIP participants with respect to two aspects: (1) The Debtors are not going forward with the proposed 2008 KMIP payments to their chief executive officer, chief financial officer, chief operating officer, and vice president of human resources; and (2) The Debtors intend to make all payments to approximately 104 non-Debtor employee participants in the 2008 KMIP from the Debtors' European non-debtor affiliates. The Amended 2008 KMIP maintains a two three-month performance measurement and pay-out periods, ending on March 31 and June 30, 2008: * Threshold pay-out: If the Debtors achieve 90% of adjusted EBITDA goals, participants will receive 50% of their individual target bonus opportunities; * Target opportunity pay-out: If the Debtors achieve 100% of adjusted EBITDA goals, participants will receive 100% of their individual target bonus opportunities. * Maximum pay-out: If the Debtors achieve 120% of adjusted EBITDA goals, participants will receive 150% of their individual target bonus opportunities. Participant's individual target bonus opportunities range from 5% to 45% of each participant's base salary at the Target Opportunity Payout. The Debtors have previously proposed a target bonus opportunities range range of 5% to 80%. Distribution of participant to target opportunity percentages: Target Opportunity Number of 2008 KMIP (% of base salary) Participants ------------------ ------------------- 45% 7 30% 16 25% 20 20% 26 15% 1 12% 40 The Debtors estimate to pay approximately US$2,500,000 at the Target Opportunity Payout, compared to their previous estimate of US$6,000,000. Accordingly, the Debtors ask the Court to approve the 2008 KMIP, as amended. The Debtors reserve their right to seek approval of an incentive plan for their senior managers. Marc Kieselstein, P.C., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, relates the Official Committee of Unsecured Creditors and the Debtors are in discussions regarding the merits of the 2008 KMIP. As of February 4, 2008, Mr. Kieseltein says there has been no appreciable progress in resolving the differences between the Debtors and the Creditors Committee. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTO: Reaches Settlement Pact w/ Nyloncraft for US$2 Mil. -------------------------------------------------------------- DURA Automotive Systems Inc. and its debtor-affiliates ask the U.S. Bankruptcy Courts for the District of Delaware to approve a US$2 million settlement agreement they entered into with Nyloncraft, Inc. In January 2002, the Debtors sold their plastics products business to Nyloncraft, Inc., for US$41,000,000. Of the proceeds, US$6,000,000 was in the form of a subordinated note executed by Nyloncraft, which provides that Nyloncraft will pay interest to the Debtors quarterly, and will repay US$4,000,000 of principal on Feb. 28, 2007, with the remainder due on Feb. 28, 2008. Shortly after the bankruptcy filing, the Debtors were informed that Nyloncraft was in financial covenant default with its senior secured lenders, as well as under the Nyloncraft Note. Nyloncraft would not be able to make further interest payments to the Debtors under the Nyloncraft Note. Accordingly, during the pendency of their Chapter 11 cases, the Debtors have not received interest payments on the Nyloncraft Note, which interest payments have accrued to approximately US$647,500 through Feb. 15, 2008. Nyloncraft was also unable to make the principal payment required by the note on Feb. 28, 2007. The Debtors and Nyloncraft conducted discussions over a compromise of the Nyloncraft Note amount payable to the Debtors. As a result of good-faith negotiations, the parties agree that Nyloncraft will pay US$1,997,500 to the Debtors in exchange for a release from obligations under the Nyloncraft Note. Daniel DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors have considered accepting part of the settlement amount in equity but have determined that an all-cash settlement is in the best interests of their estates. By settling the debt, Dura avoided becoming an unsecured creditor if the former subsidiary itself were to file in Chapter 11, William Rochelle at Bloomberg News says. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). KOREAN EXPRESS: KDB Sells 3.43% Company Stake --------------------------------------------- The Korea Express Co. Ltd.'s investor, KDB, has sold off 23,525 shares of the company, Reuters Investing Keys reports. According to the report, the shares were equivalent of 3.43% stake on the company. As a result, KDB now holds a 4.90% stake in the company. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. SSAMZIE: Discloses Conversion of 10th Bonds to 3,112 Shares ----------------------------------------------------------- Ssamzie Co., Ltd.'s 10th convertible bonds have been converted for 3,112 shares of the company at the conversion price of KRW1,285 per share, Reuters Investing Keys reports. According to the report, thhis brings the total number of the company's outstanding common shares to 20,933,551. The listing date of the new shares was on January 31, 2008. SSAMZIE Co., Ltd. specializes in the manufacturing, designs and sale of leather goods, cloths, hats and accessories. The company provides bags, wallets, shoes, hats, clothes and accessories under house brands such as SSAMIE, ISSAC, nom, GILI, SSAMZIE SPORT, SSAM, DALKI and acupuncture. Its target customers include teenagers and people in their mid-twenties. The company sells its products through stores, department stores and Internet shopping mall. It has stores in the United States, the United Kingdom and China. Korea Investors Service placed a BB rating on the company's issuer rating. SSAMZIE CO: Signs License Agreement with Korea Company ------------------------------------------------------ Ssamzie Co. Ltd. has signed a license agreement with a Korea- based company, Reuters Investing Keys reports. Under the business agreement, the report notes, the company granting the latter entity an exclusive right for a limited time (from January 15, 2008 to January 15, 2011) to use its brand SSAMZIE SPORT, in Korea and China markets. The contract amount is worth KRW1,050 million, the report adds. SSAMZIE Co., Ltd. specializes in the manufacturing, designs and sale of leather goods, cloths, hats and accessories. The company provides bags, wallets, shoes, hats, clothes and accessories under house brands such as SSAMIE, ISSAC, nom, GILI, SSAMZIE SPORT, SSAM, DALKI and acupuncture. Its target customers include teenagers and people in their mid-twenties. The company sells its products through stores, department stores and Internet shopping mall. It has stores in the United States, the United Kingdom and China. * KOREA: Korean Banks Lose US$563 Million from Subprime Hit ----------------------------------------------------------- South Korean banks lost US$563 million as of the end of December 2007 after investing in U.S. subprime mortgage-related instruments, Asia Pulse reports, citing the country's financial watchdog Financial Supervisory Service. According to the report, the country's watchdog said that seven local banks including Woori Bank invested US$682.5 million in U.S. collateralized debt obligations derived from subprime mortgages. The lenders' total loss accounted for 83% of their total CDO investments, the report notes. Among the seven lenders, Woori Bank posted the biggest losses with US$445 million, followed by the National Agricultural Cooperative Federation with US$107 million, Asia Pulse relates. Shinhan Bank, the report says, wrote down losses of about US$1.5 million from its subprime-related investments last year. Meanwhile, Korea Exchange Bank booked US$560,000 in valuation losses in the fourth quarter after posting a US$1.17 million loss from selling part of its CDO investments, the report adds. Service placed a BB rating on the company's issuer rating. =============== M A L A Y S I A =============== ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10 -------------------------------------------------------------- The Electronic Data System Corp. Board of Directors has declared a dividend on the common stock of US$0.05 per share, payable March 10, 2008, to shareholders of record as of the close of business Feb. 20, 2008. Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) -- http://www.eds.com/-- is a global technology services company delivering business solutions to its clients. The company founded the information technology outsourcing industry more than 40 years ago. The company delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. The company has locations in Argentina, Australia, Brazil, China, Chile, Hong Kong, India, Japan, Mexico, Puerto Rico, Singapore, Taiwan, Thailand, South Korea and Malaysia. * * * Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1' in July 2004, and its probability of default rating at 'Ba1' in September 2006. Moody's said the outlook is positive. Moody's said the ratings still hold to date. KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007 ---------------------------------------------------------------- Knoll Inc. announced results for its fourth quarter and year ended Dec. 31, 2007. Net sales were US$281.8 million for the quarter, an increase of 3.2% from fourth quarter 2006. Operating income was US$39.5 million, or 14.0% of net sales, an increase of 11% from the fourth quarter 2006, and net income was US$20.7 million, an increase of 15% over the fourth quarter 2006. For the full year, net sales were US$1.05 billion, an increase of 7.5% over full year 2006. Operating income was US$142.2 million, or 13.5% of net sales, an increase of 21.6% over full year 2006, net income was US$71.4 million, an increase of 21.8% over full year 2006. "For the 3rd year in a row now Knoll has continued to expand our industry leading operating margins, generate better than industry top-line growth and deliver more than 20% EPS growth for our shareholders," said Knoll Chief Executive Officer, Andrew Cogan. "While we are aware that our industry faces headwinds as we head into 2008, we are confident that the strength and diversity of our growth initiatives, the fullness of our new product pipeline and our cost discipline will allow us to continue to generate better than industry top-line performance as we work to achieve our mid-term 15% operating margin goals." Mr. Cogan added. "I want to congratulate and thank our Associates and Dealers on generating another year of industry leading performance. They have once again demonstrated that in the words of our founder Florence Knoll 'Good design is good business.'" Mr. Cogan stated. Mr. Cogan noted, "Net sales for the quarter were US$281.8 million, an increase of US$8.8 million, or 3.2%, over fourth quarter 2006, representing increased volume and price realization from previously implemented price increases. Our Specialty products experienced the strongest growth during the quarter as they also benefited from our fourth quarter acquisition of Edelman Leather." Backlog of unfilled orders at Dec. 31, 2007, was US$190.7 million, an increase of US$23million, or 13.7%, versus the prior year. Gross profit for the fourth quarter 2007 was US$99 million, an increase of US$9.9 million, or 11.1%, over the same period in 2006. Gross margin increased from 32.6% in the fourth quarter of 2006 to 35.1% in spite of the significant appreciation of the Canadian Dollar. The increase from the fourth quarter of 2006 largely resulted from additional volume, better pricing, and moderating inflation. Improved factory performance and global sourcing initiatives also contributed to the increase in gross margin. Operating expenses for the quarter were US$59.5 million, or 21.1% of sales, compared to US$53.5 million, or 19.6% of sales, for fourth quarter of 2006. The increase in operating expenses during the fourth quarter of 2007 was in large part due to the inclusion of Edelman Leather and increased investment spending in marketing and product development. Operating income increased, as a percentage of sales, to 14% from 13% in the same period in the prior year. Gross margin improvements from a year ago contributed to this increase. Net income for the fourth quarter 2007 was US$20.7 million as compared to US$18 million for the same quarter in 2006. Interest expense decreased US$0.9 million due to lower borrowing costs on the company's credit facility. For the year, net sales totaled US$1.05 billion an increase of US$73.6 million, or 7.5%, from 2006 net sales of US$982.2 million. The increase was attributable to additional revenues realized from price increases as well as higher volumes across all the company's product categories. The specialty businesses followed by International expansion and complimentary seating and storage products experienced the strongest growth in the year. Gross margins increased to 34.6% in 2007 compared to 32.5% in 2006. Additional volume, better pricing, and moderating inflation led to the increase. Improved factory performance and global sourcing initiatives also contributed to the increase. The increase in gross margin came in spite of the further appreciation in the Canadian Dollar. Operating expenses for 2007 were US$222.9 million, or 21.1% of sales, compared to US$202.1 million, or 20.6% of sales, for 2006. Increased investment spending on growth initiatives relating to new products and international expansion drove the increase along with increased incentive payments as a result of the higher sales and profits. The acquisition of Edelman Leather also impacted operating expense levels. The company generated 2007 net income of US$71.4 million compared to US$58.6 million in 2006. Net income in 2007 includes the write-off of deferred financing fees totaling US$0.7 million after tax as the company implemented the refinancing of its old credit facility with a new US$500 million revolving credit facility on June 29, 2007. Other income/expense in 2007 included an approximate US$4.2 million loss due to foreign currency translation and US$1.2 million loss related to the write off of deferred financing fees. Other income/expense in 2006 included an approximate US$563 thousand gain due to the foreign currency translation, a US$703 thousand loss on interest rate derivatives, and US$881 thousand gain in other miscellaneous income. Annual cash generated from operations in 2007 was US$102.2 million, compared to US$77.5 million the year before. Capital expenditures in 2007 totaled US$16.3 million compared to US$13.4 million for 2006. Investing activities in 2007 also included US$70.8 million for the acquisition of Edelman Leather. In addition, the Company repurchased approximately 2.3 million shares of its stock for US$48.1 million during the year. Also during the year the Company had net borrowings of US$18.2 million primarily to finance the purchase of Edelman Leather and repurchase shares. The company also paid dividends of US$21.7 million for the first three quarters of 2007, increasing to US$0.12 per share in the fourth quarter of 2007. Chief Financial Officer, Barry L. McCabe said, "During the quarter we were able to close the acquisition of Edelman Leather, increase our quarterly dividend and take advantage of our current stock price by repurchasing 1.1 million shares for a total repurchase of 2.261 million shares for the year. With our expanded bank facility, lowered leverage ratio and reduced borrowing costs, Knoll enters 2008 in the strongest financial position since our 2004 IPO and we are well positioned to take advantage of opportunities to continue to reduce our shares outstanding. Accordingly, we are pleased to announce the expansion of our share repurchase program by US$50 million." Expanded US$50 million Stock Repurchase Program On Feb. 4, 2008, the Knoll Board of Directors approved a US$50 million expansion of the company's previously announced stock repurchase program. The expanded repurchase program does not require the purchase of any minimum number of shares, but sets a limit on the total amount spent on repurchases. Before this expansion, the company had approximately US$17 million remaining under its US$50 million stock repurchase program announced in February 2006. Purchases under the repurchase program may be made from time to time in the open market, through privately negotiated transactions, or otherwise, and will depend on market conditions and applicable securities laws. First Quarter 2008 Outlook The company stated that it expects first quarter 2008 revenue to be in the US$258 - US$265 million range, an increase of 4.1%- 6.9% from the first quarter of 2007. The company added that on Feb. 4, 2008, its Board of Directors declared a quarterly cash dividend of US$0.12 per share payable on March 31, 2008, to stockholders of record on March 14, 2008. About Knoll Inc. Headquartered in East Greenville, Pennsylvania, Knoll Inc. (NYSE:KNL) -- http://www.knoll.com/-- designs and manufactures branded office furniture products and textiles, serves clients worldwide. It distributes its products through a network of more than 300 dealerships and 100 showrooms and regional offices. The company has locations in Argentina, Australia, Bahamas, Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland, Portugal and Singapore, among others. * * * Knoll Inc. carries Moody's Investors Service's B1 Corporate Family Rating and the company's US$200 million senior secured revolver and US$250 million senior secured term loan carry Moody's Ba2. Moody's assigned an LGD2 rating to both loans, suggesting note holders will experience a 27% loss in the event of a default. MEGAN MEDIA: May Wind Up Operations After Creditor Talks Failed --------------------------------------------------------------- Megan Media Holdings Bhd may wind up its operations following its failure to pursue a scheme of arrangement with creditor banks, the company disclosed to the Bursa Malaysia Securities Berhad. It will not resist any winding up action initiated by any creditor, Megan Media said in its disclosure. The Board believes that a court appointed liquidator is imminent and decisions dealing with the company's financial condition is best pursued by a liquidator. Accordingly, the company has withdrawn the Certificate of Solvency dated May 9, 2007, issued to Bursa Malaysia Securities. As reported by the Troubled Company Reporter-Asia Pacific on February 6, 2008, the company and its subsidiaries have defaulted on MYR899.96 million in maturing banking facilities. Megan Media, together with its operating subsidiaries -- Memory Tech Sdn Bhd and MJC (Singapore) Pte Ltd -- continues to be saddled with debts procured from banks on the back of its trading business which Investigative Accountants have now established as fraudulent. To top it all, several key management personnel crucial to its debt restructuring plans tendered their resignation early this year. Megan Media Holdings Berhad' s principal activities are manufacturing and trading data storage media products like Computer diskettes, video cassette tapes, compact disc recordable (CD-R's) and digital versatile disc recordable (DVD- R's). The Group operates in Malaysia, Singapore and other countries. The Troubled Company Reporter-Asia Pacific reported on June 11, 2007, that the Rating Agency Malaysia downgraded the long-term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3 (with a negative outlook) to D. The BaIDS carries a corporate guarantee from MTSB's holding company, Megan Media Holdings Berhad. Concurrently, RAM has lifted the Rating Watch (with a negative outlook) that had been placed on MTSB on May 9, 2007, following the failure of MTSB and MJC (Singapore) Pte Ltd, another wholly owned subsidiary of Megan Media, to repay their trade facilities amounting to MYR47.36 million. On June 19, 2007, the company was classified as a PN17 company, and was given eight months to submit a substantive plan to regularize its financial condition. SOLUTIA INC: Aims to Assume Wal-Mart Deals Under Terms of Plan -------------------------------------------------------------- Solutia Inc. and its debtor-affiliates intend to assume certain executory contracts with Wal-Mart Stores Inc., pursuant to the terms of the Debtors' confirmed Fifth Amended Joint Plan of Reorganization. In the ordinary course of operating under the Wal-Mart Contracts, Wal-Mart may be entitled to take credits or contractual adjustments for defective products, rebates or other contractually permitted items that are currently unknown or that will accrue after the date of the Debtors' assumption of the Wal-Mart Contracts. The parties have agreed that notwithstanding the proposed cure amounts of the contracts, Wal-Mart and its subsidiaries and affiliates are allowed to assert in the ordinary course any chargebacks that are currently unknown or that will accrue after the Assumption Date pursuant to the terms of the Wal-Mart Contracts without regard to the date on which Wal-Mart or its subsidiary or affiliate purchased the product giving rise to the Chargeback. Nothing in the Stipulation constitutes a waiver of the Debtors' rights to dispute any Chargeback for reasons other than that the claims were not made before the Assumption Date. About Wal-Mart Wal-Mart Stores Inc. (NYSE: WMT) -- http://www.walmart.com/-- operates retail stores in various formats around the world. The company operates through three segments: Wal-Mart Stores segment, which includes Supercenters, Discount Stores and Neighborhood Markets, Sam's Club segment and International segment. The Wal-Mart Stores segment consists of three different traditional retail formats, all of which operate in the United States, and Wal-Mart's online retail format, walmart.com. The Sam's Club segment consists of membership warehouse clubs, which operate in the United States, and the segment's online retail format, samsclub.com. At Jan. 31, 2007, its International segment consisted of retail operations in 12 countries and Puerto Rico. In October 2006, the company disposed of its South Korean and German operations. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 116; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported on Dec. 11, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%- 70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment ------------------------------------------------------------ Solutia Inc. on Wednesday filed a complaint in the United States Bankruptcy Court for the Southern District of New York against the three banks that had executed a firm commitment to fund a $2 billion exit financing package for Solutia, but to date have refused to meet this commitment. These banks are Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. Solutia is seeking a court order requiring the banks to meet their commitment and fund Solutia's exit from bankruptcy. The complaint also asserts that the banks should be stopped from invoking the clause they claim relieves them of their obligation due to their improper conduct and misrepresentations to the company, and further claims that the banks fraudulently induced Solutia to enter into the initial engagement by promising that the financing was firmly committed. Solutia and the banks have agreed that Solutia's claim to require immediate funding of the US$2 billion package should be heard by the Court on an expedited basis, with the trial to conclude by the end of February -- prior to the expiration of the banks' commitment. "This is not a 'best efforts' agreement," said Jeffry N. Quinn, chairman, president and CEO of Solutia Inc. "Solutia agreed to pay the banks an enhanced fee in exchange for their firm commitment to fund the full US$2 billion exit financing facility -- regardless of the results of the syndication process. We are extremely disappointed by their refusal to meet this commitment and have no choice but to pursue all of our legal remedies." On Oct. 25, 2007, the banks executed a firm commitment to fund a US$2 billion exit financing package for Solutia. These substantial, custom credit facilities and arrangements were specifically tailored to facilitate Solutia's prompt emergence from Chapter 11. On Nov. 20, 2007, the bankruptcy court approved the exit financing package. Nine days later, in reliance on the banks' firm lending commitment, the court found the plan of reorganization to be feasible and confirmed the plan. However, in late January -- shortly before the anticipated closing of the exit facility and Solutia's long- awaited emergence from Chapter 11 -- the banks notified Solutia that they were refusing to provide the funding, citing a so- called "market MAC" provision in their commitment letter and asserting that there has been a change in the markets since entering into the commitment. "It is a well-documented fact that the ongoing conditions in the credit markets began in the summer of 2007," said Quinn. "Well before the banks committed to Solutia's exit financing, they stated in public filings and through professional advice to Solutia that the credit markets were in disarray, and that the credit crisis would continue for months to come. Despite their concerns and negative outlook, the banks entered into a firm commitment to provide Solutia with this exit financing. The willingness of these banks to offer committed financing that was not subject to a successful syndi