/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080425.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, April 25, 2008, Vol. 11, No. 82 Headlines A U S T R A L I A SHARPER IMAGE: American Express Wants to End Rewards Promo SHARPER IMAGE: Mcauley Seeks US$279,683 for Goods & Services SHARPER IMAGE: Seeks to Employ RCR Real Estate Advisors SHARPER IMAGE: Court Approves Womble Carlyle as Counsel ZINIFEX LTD: Zinc Production Up to 146,278 Tonnes for Third Qtr. C H I N A & H O N G K O N G & T A I W A N ASAT HOLDINGS: Stock Now Trading Over-The-Counter ASAT HOLDINGS: Names Jeffrey R. Osmun as President BANK OF SHANGHAI: To Offer More Loans to Small Enterprises CHINA EASTERN: Borrows $337 Million For New Airplanes CHINA FISHERY: Unit to Buy Epesca Pisco for US$19.9 Million CHINA FISHERY: Dividend Payment Date Not Yet Scheduled CITIC PACIFIC: To Pay Dividend of HK$0.80 Per Share EMI GROUP: Restructuring Continues Despite Contractual Hurdles EVERBRIGHT BIOPHARMACEUTICAL: Places 12 Million New Shares EVERBRIGHT BIOPHARMA: Annual Report Posting Moved to May 15 FIAT SPA: Shows Interest in Acquiring Serb Car Maker Zastava JIANGXI COPPER: First-Quarter Net Profit Up 46.42% to CNY1.26BB LAND BANK: S&P Holds C+ Bank Fundamental Strength Rating PETROLEOS DE VENEZUELA: Gov't Approves Oil Sudden-Gains Tax WAN HAI LINES: S&P Cuts Rating on Unit's Corporate Bonds to BB+ YRC WORLDWIDE: Renews Asset-Backed Securitization Facility YRC WORLDWIDE: Agrees to Amendments on Aug. 17 Credit Agreement YRC WORLDWIDE: Fitch Holds 'BB+' ID Rating on Facility Amendment YRC WORLDWIDE: Moody's Cuts CF Rating to Ba2 I N D I A GERDAU SA: To Invest US$180 Million in CCA Tie-Up GERDAU SA: Quanex Shareholders Okay US$1.67 Billion Purchase GMAC LLC: Moody's Downgrades Senior Rating to B2 PRIDE INTERNATIONAL: Board Drops Ownership Threshold to 10% TATA MOTORS: U.S. Antitrust Okays Jaguar and Land Rover Purchase TATA STEEL: S&P Affirms BB Corp. Credit Rating; Revises Outlook I N D O N E S I A FREEPORT-MCMORAN: Reports US$1.1 Billion Net Income in 1Q 2008 J A P A N ALITALIA SPA: To Receive EUR300-Million Bridging Loan from Italy ELPIDA MEMORY: Poor Performance Cues Execs Salary Cuts SHOKO CHUKIN BANK: Conversion Doesn't Change Moody's BFSR at D K O R E A DIOMED HOLDINGS: Trustee Appoints 5-Member Creditors' Committee DIOMED: Wants to Hire McGuireWoods as Bankruptcy Counsel HYNIX SEMICONDUCTOR: Won't Buy Stake in Germany's Qimonda HYUNDAI MOTOR: Records 28% Increase in First-Quarter Net Profit TERADYNE INC: Earns US$21.8 Million in First Quarter 2008 M A L A Y S I A GOLD BRIDGE: Securities to be Listed Again in Bursa HARVEST COURT: Taps Chua Eng Chin as Audit Committee Chairman N E W Z E A L A N D AIR NEW ZEALAND: Moody's Affirms Ba1 Rating; Outlook Positive ALCATEL-LUCENT SA: Rebecca Hick to Lead New Zealand Channel Unit CHAMBERLAIN PARK PROPERTY: Creditors Must File Claims by May 4 D N BECKETT LIMITED: High Court Appoints Liquidators DON LAW REALTY: Shareholder Resolves to Liquidate Firm DONCASTER PROPERTY: Creditors Must File Claims by April 30 FRESH & FROZEN FOOD: Shareholders Appoint Liquidators HAWKES BAY: Shareholders Appoint Liquidator INTEGRITY REAL ESTATE: High Court Appoints Liquidators JOHNSONVILLE MOTELS: Commences Liquidation Proceedings JUST INTEGRITY 2000 LIMITED: High Court Appoints Liquidators KINLEITH LOG STACKERS: Creditors Must File Claims by May 7 MANABARS TECHNOLOGIES LIMITED: High Court Appoints Liquidators MATECO NZ: Commences Liquidation Proceedings NIGEL MILLAR MACHINERY: Court Appoints Joint Liquidators RITCHIE ENTERPRISES: Creditors Must File Claims by May 6 S & P TECHNOLOGIES: Creditors Must File Claims by May 5 SHELDRAKE LTD: Court to Hear Wind-Up Petition on June 6 STORE TRADING: Court to Hear Wind-Up Petition on June 6 THE HIGHWAY VILLAGE: A. V. Stephenson Appointed as Liquidator TMP QUALITY FIXING: Court Replaces Liquidators TOTAL FOOD SERVICES: Shareholders Appoint Liquidators XJL CARTAGE: Joint Liquidators Appointed P H I L I P P I N E S NIHAO MINERAL: Posts Php14.52 Million Net Loss for FY 2007 PLDT: Year 2007 Net Income Up by 21% to PHP39,274 Million PLDT: Schedules 1st Qtr Results Teleconference on May 6 SBARRO INC: Earns US$5.1 Million in Fourth Quarter Ended Dec. 30 S I N G A P O R E FRANKEL LEASING: Wind-Up Petition Hearing Set Today FUTURESTEEL ENGINEERING: Court Enters Wind-Up Order JURONG GARDENS: Requires Creditors to File Claims by May 5 SPENCER HOUSE: Creditors' Proofs of Debt Due on May 7 S R I L A N K A SANASA DEVELOPMENT: Fitch Lifts Nat'l. Long-term Rating to 'BB' T H A I L A N D FEDERAL-MOGUL: Asbestos Trust Wants Pneumo Claims Holders Barred GLOBAL TRADER: Administrator Launches Probe Into Affairs X X X X X X X X * Beard Group to Hold 1st Annual Healthcare Conference on May 30 * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= SHARPER IMAGE: American Express Wants to End Rewards Promo ---------------------------------------------------------- American Express Travel Related Services Company Inc. asks the U.S. Bankruptcy Court for the District of Delaware to lift the automatic stay to allow it to terminate its Rewards Participant Agreement with Sharper Image Corporation. William J. Burnett, Esq., at Flaster/Greenberg P.C., in Wilmington, Delaware, relates that on January 1, 2001, the Debtor and American Express entered into the Reward Participant Agreement wherein: (i) American Express will promote Rewards provided by the Debtor to all its Cardmembers, which Rewards include US$25 Gift/Rewards and US$50 Gift/Rewards for the Debtor; (ii) the Debtor is required to disclose any material restrictions on the ability of the Cardmembers to use or redeem the Rewards; and (iii) the Debtor cannot impose restrictions on the Rewards that were not originally set in the Agreement. Mr. Burnett explains that in the Debtor's request to Honor Prepetition Customer Programs, the Debtor made clear that it will not honor the Reward Participant Agreement including the Gift Cards provided to American Express under the Agreement. On a Court-approved Supplemental Motion, the Debtor was granted authorization to honor the Gift Certificates provided that a customer purchases goods that are worth at least 200% of the amount of the Gift Certificate. Mr. Burnett argues that the Debtor's imposition of a new restriction, that is strictly forbidden, constitutes a material breach of the Reward Participant Agreement and precluded the ability of the American Express customers to redeem the designated Rewards. According to Mr. Burnett, American Express believes that the Debtor's actions are imposing new burdens on American Express customers, which in turn will likely tarnish the positive goodwill of American Express brand associated with its customers participating in the Program and the overall value of the Rewards. "American Express will face significant pressures as its customers seek reimbursement for Gift Cards that are worth less than they bargained for," Mr. Burnett discloses. American Express, hence, wants the Court to modify the automatic stay to allow it to (i) exercise its contractual right to terminate the Rewards Participating Agreement 30 days starting March 26, 2008; or (ii) provide the Debtor with notice that American Express will exercise its option to allow the Rewards Participant Agreement to expire on June 30, 2008. Furthermore, American Express asks the Court to authorize the Debtor to file the Agreement under seal, and to direct that the Agreement will remain under seal, confidential and not be made available to anyone, except to counsel for the Debtor or others upon further order of the Bankruptcy Court. Mr. Burnett notes that the terms of the Agreement include confidential pricing information and reveal confidential detail of the relationship between American Express and its Rewards Program Participants. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D. Del., Case No. 08-10322). Steven K. Kortanek, Esq. At Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SHARPER IMAGE: Mcauley Seeks US$279,683 for Goods & Services ------------------------------------------------------------ Edwin McAuley Electronics (HK) Limited asks the U.S. Bankruptcy Court for the District of Delaware to allow it to exercise its rights to reclaim all unpaid products and goods received by Sharper Image Corp. within 45 days of the bankruptcy filing, pursuant to Uniform Commercial Code Section 2-702, other relevant statutes as enacted in all relevant jurisdictions, and Section 546(c) of the Bankruptcy Code. Edwin McAuley's records reflect 12 unpaid delivery invoices totaling US$278,923 and four rechargeable service invoices totaling US$759 that are the subject of the reclamation demand. Pursuant to Section 503(b)(9) of the Bankruptcy Code, Edwin McAuley asks the Court to allow its US$279,683 claim for goods and services delivered to the Debtor during the 20 days prior to the Petition Date, as an administrative expense claim. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D. Del., Case No. 08-10322). Steven K. Kortanek, Esq. At Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SHARPER IMAGE: Seeks to Employ RCR Real Estate Advisors ------------------------------------------------------- Sharper Image Corporation has determined that it requires the assistance of an experienced real estate consultant in addressing a variety of real estate issues that are sure to arise in its bankruptcy case, like analysis, assessment, marketing and disposition of its leased and owned properties, Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Wilmington, Delaware, says. Accordingly, the Debtor asks the U.S. Bankruptcy Court for the District of Delaware for permission to hire RCS Real Estate Advisors as its exclusive real estate consultant in its Chapter 11 case. The Debtor's primary purpose of employing RCS is to get RCS' assistance in assessing its properties in a way that maximizes value. Before the Petition Date, RCS had been engaged by the Debtor to conduct value analysis on its array of leases, and RCS has since been valuing the Debtor's own property in Arkansas. RCS' close coordination with the Sharper Image's management has made it well acquainted with the Debtor's businesses and property, Mr Kortanek explains. It is for these reasons and for the best interest of Sharper Image, its property, its creditors and all other interested parties, that it wisher to employ RCS. As real estate consultant, RCS will: (1) analyze all real estate assets owned by the Debtor and to conduct a review of the occupancy cost of each in relation to sales, volume and profitability. RSC is bound to discuss its findings and recommendations with Sharper Image after the review; (2) create a portfolio book for the Debtor's leases, indicating the current lease terms, sales, profits, occupancy cost and the store's contribution in relation to sales; (3) create a site ranking report by contribution, revenues, occupancy costs, for all or selected leases; (4) perform a rejection claim analysis on all or selected leases; (5) assist the Debtor in developing real estate goals -- the Real Estate Action Plan -- to determine which stores to close, renegotiate or retain under renegotiated terms, and existing stores to go forward with; (6) negotiate with landlords for the reduction of rents, for the modification or extension of terms for all or certain leases; (7) work with landlords and the Debtor for the accurate documentation of all lease modification proposals; to provide accurate and timely status reports regarding the status of these proposals; (8) attend in all court hearings, to meet with the Statutory Creditors' Committee and to meet with Sharper Image and its counsel; (9) coordinate with the Debtor, its counsel and affected landlords on all real estate matters particularly the status and on going changes of the Real Estate Action Plan; (10) perform desktop leasehold valuations for certain assets, to negotiate waivers, payout terms for prepetition cure amounts due to landlords in the case of lease assumptions, and conduct negotiations with respect to mitigating allowed rejection claims in the case of lease rejections; and (11) dispose all properties of the Debtor, by sale or otherwise, on the Debtor's terms and conditions, and subject to its sole authority and discretion by: -- reviewing all documents, -- marketing the Disposition Properties pursuant to a marketing program and budget, -- communicating with parties interested in the Disposition Property, -- responding, informing and negotiating with prospective buyers, and making recommendations to the Debtor, -- providing guidance to Sharper Image on methods to resolve issues that pertain to Disposition properties, -- working closely with the Debtor's counsel with regards to the hearing or auction, to obtain the attendance of all the interested parties through direct communications, supplementing the required notice process, -- working with the attorneys responsible for the implementation of the proposed transaction, reviewing documents, negotiating and assisting in resolving problems which may arise, and -- to appear in court during the term of retention, to testify or consult with the Debtor in matters involving the marketing or disposition of a Disposition Property. Inasmuch as RCS is employed by Sharper Image to perform highly specialized tasks, its compensation is result-oriented and directly related to the benefits received by the Debtor's estate in every transaction, requiring RCS to file periodic fee applications pursuant to Sections 330 and 331 of the Bankruptcy Code and in compliance with Rule 2016 of the Federal Rules of Bankruptcy Procedure, Mr. Kortanek says. RCS will be compensated on a per transaction basis based on a fee structure set forth in the parties' Retention Agreement. A copy of the Retention Agreement was not available as of press time. Given the transactional nature of RCS's engagement and the flat fee, percentage-based fee structure, the Debtor submits that recording and submission of detailed time entries for services rendered in this case is unnecessary and would be unduly burdensome to RCS. RCS will, however, file a final fee application in accordance with applicable Bankruptcy Rules and Local Rules. Ivan L. Friedman, president and chief executive officer of RCS, assures the Court that RCS is a "disinterested person," as that term is defined in the Bankruptcy Code and holds no interest adverse to Sharper Image and its estate. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D. Del., Case No. 08-10322). Steven K. Kortanek, Esq. At Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SHARPER IMAGE: Court Approves Womble Carlyle as Counsel ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Sharper Image Corp. to employ Womble Carlyle Sandridge & Rice, PLLC as its counsel, effective as of the Debtor's bankruptcy filing. However, absent further Court order, the retainer to be held by Womble Carlyle as security until the firm files its final fee application will only be applied to costs and expenses incurred in connection with the Chapter 11 case, Judge Kevin Gross said. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in in Wilmington, Delaware, discloses that his firm does not maintain a separate firm policy or practice in making conflict-related determinations. Mr. Kortanek states that as a general philosophy, Womble Carlyle refrains from suing other professionals without the firm management's prior approval. The firm's position in this regard only addresses direct lawsuits, and does not prevent the firm from otherwise taking a position adverse to any professional in the Debtor's case or in any related proceeding, he says. As reported by the Troubled Company Reporter on March 10, in its motion to employ the firm, it is stated that in exchange for the contemplated legal services, Womble Carlyle will be paid based on its applicable hourly rates: Professional Hourly Rate ------------ ----------- Attorney US$120 to US$750 Paraprofessionals US$30 to US$450 Rebecca L. Roedell, executive vice president and chief financial officer of Sharper Image, stated that Womble Carlyle received a US$40,000 retainer from the Debtor as security for payment of the firm's fees and expenses for professional services to be performed relating to the preparation for and prosecution of the Chapter 11 case. Prior to the Petition Date, Womble Carlyle incurred a total of US$19,341 in fees and expenses which was paid prepetition from the Retainer. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D. Del., Case No. 08-10322). Steven K. Kortanek, Esq. At Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ZINIFEX LTD: Zinc Production Up to 146,278 Tonnes for Third Qtr. ---------------------------------------------------------------- Zinifex Ltd.'s total zinc in concentration production for the quarter ended March 31, 2008 went up to 146,278 tonnes from 142,525 tonnes in the same period last year. Lead in concentrate production was down 14% to 12,974 tonnes from 15,070 tonnes in the previous year. Zinc prices have averaged US$2,774 per tonne this financial year to date, 24% lower than for the corresponding period last year. Market concerns over a large forecast zinc surplus, which has yet to appear, has been putting zinc prices under pressure. In addition the ongoing weakening of the US dollar is also impacting revenue. Lead prices strengthened at the end of the quarter, although they remain below the record highs experienced in the June 2007 Quarter. Year to date prices have averaged US$3,099 per tonne, 50% higher than the corresponding period last year, due to low stocks and ongoing concerns on reliability of supply. A major step in the strategy to grow Zinifex�s mining business was announced in March with our agreement to merge with Oxiana to create a new major diversified base and precious metals mining company. The merged business will have exceptional strength to add further shareholder value by capturing the growth in global demand for metals generated by China. The merger will be by way of a Zinifex Scheme of Arrangement in which Zinifex shareholders will receive 3.1931 Oxiana shares for each Zinifex share they own. The terms reflect a merger of equals with the merged entity to be owned 50% by Oxiana and Zinifex shareholders, respectively. Zinifex plans to dispatch a Scheme Booklet to shareholders in mid May to inform them of the merger process in preparation for a General Meeting that is currently proposed for June 16, 2008 at which they will be requested to vote on the Scheme. Directors of both companies are strongly supportive of the proposed merger. Zinifex�s offer for Allegiance Mining also reached a milestone on March 17, as it took a controlling interest in the company. Immediately following, the Board of Allegiance was reconstituted with the appointment of three Zinifex representatives and resignations of three former Allegiance directors. An interim Chief Executive Officer, Bruce McGowan, was also appointed. Work continues at Allegiance�s Avebury nickel project with pre-production testing to commence in May and wet commissioning of the concentrator throughout June. Production and ramp up to full capacity will occur across the September 2008 Quarter. The acquisition of Allegiance is an important step in Zinifex�s strategy of diversifying its exposure to high margin metals and expandable mines. It is also a perfect fit with the merged Zinifex and Oxiana making the combined entity the world�s second largest producer of zinc and a substantial producer of copper, nickel, lead, gold and silver. Zinifex's Century regional exploration program returned significant results at the Silver King Extension, the company's first prospect on its mine lease, with intersections of lead, zinc and silver. A second prospect has now opened at Watsons Lode, south of the mine lease, and drilling is in progress intersecting 5.5 metres of massive sulphides. Project Horizons drilling continues at our Rosebery Mine with an increase in resource expected when we report in June. Nearly 8,000 metres were drilled at Dugald River with an updated resource expected next quarter. Abour Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 18, 2007, that Fitch Ratings affirmed Zinifex Limited's 'BB+' long-term foreign currency Issuer Default Rating (IDR), following the announcement of an all cash offer for Allegiance Mining NL (Allegiance). Fitch's Web site as of April 21, 2008, says the rating outlook is positive. ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== ASAT HOLDINGS: Stock Now Trading Over-The-Counter ------------------------------------------------- ASAT Holdings Limited's American Depositary Shares are now trading on the OTC Bulletin Board under the symbol "ASTTY.OB.� The OTC Bulletin Board is a quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter securities. The Financial Industry Regulatory Authority (FINRA), a self-regulatory organization of the securities industry, oversees the OTC Bulletin Board. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- provides semiconductor package design, assembly and test services. With 19 years of experience, the company offers a definitive selection of semiconductor packages and manufacturing lines. ASAT�s advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company has operations in the United States, Hong Kong, China and Germany. * * * Standard & Poor's placed ASAT Holdings Limited's long term foreign and local issuer credit ratings at 'CCC-' in September 2007. The outlook is negative. ASAT HOLDINGS: Names Jeffrey R. Osmun as President -------------------------------------------------- ASAT Holdings Limited appointed Jeffrey R. Osmun as company president effective April 14, 2008. Mr. Osmun will also assume the title of Executive Vice President of Sales and Marketing where he will have overall responsibility for ASAT's worldwide sales organization. Mr. Osmun will be based in the United States and report to Tung Lok Li, ASAT's acting chief executive officer. The company also said that Joe Martin, former executive vice President of sales and marketing, will assume the new position of Chief Business Officer where he will formulate and implement business strategy for the Company. Mr. Martin will continue to report directly to Mr. Li and remain a member of the Board of Directors. Mr. Osmun brings to ASAT almost 20 years of semiconductor industry sales experience, including seven years at assembly and test provider STATS ChipPAC where he most recently served as corporate vice president of Worldwide Sales and Marketing. During this period, Mr. Osmun served as a key member of the leadership team responsible for the integration of ST Assembly Test Services Ltd. and ChipPAC in 2004, while at the same time leading the combined marketing, customer service and technical sales support organizations. "Jeff brings a proven record of success in managing global sales organizations in the semiconductor and assembly and test industries. I am pleased that a person of his caliber has agreed to join our executive team charged with leading the next phase of ASAT's growth,"said Mr. Li. In addition to his experience at STATS ChipPAC, Mr. Osmun most recently served as Corporate Vice President of Sales and Marketing at White Electronic Designs, an Arizona-based provider of advanced technology solutions. Mr. Osmun also worked in several sales and management positions, rising from sales engineer to national sales manager, during his 12 year career with Kyocera America, Inc. "ASAT is rebuilding a prominent position in the outsourced assembly and test industry by leveraging its expanding customer base, world-class customer service, leading-edge product platform and state-of-the-art manufacturing center in Dongguan,"said Mr. Osmun. "In the last year the company has delivered on its strategy to generate improved results and I look forward to contributing to its future success.� Mr. Osmun holds a Bachelor of Science degree in Mechanical Engineering from Lehigh University. About ASAT Holdings Limited Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- provides semiconductor package design, assembly and test services. With 19 years of experience, the company offers a definitive selection of semiconductor packages and manufacturing lines. ASAT�s advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company has operations in the United States, Hong Kong, China and Germany. * * * Standard & Poor's placed ASAT Holdings Limited's long term foreign and local issuer credit ratings at 'CCC-' in September 2007. The outlook is negative. BANK OF SHANGHAI: To Offer More Loans to Small Enterprises ---------------------------------------------------------- Bank of Shanghai plans to provide better financial services for local small enterprises in the future, SinoCast News reports, citing assistant to president He Qing. Mr. Qing told the news agency that in spite of the nation's tightening monetary policy, the bank still aim to prioritize the small enterprises' borrowing demands. Loans to small enterprises this year are predicted to leap 67%, five times the bank's total lending growth, the report notes. According to the report, loans offered to small enterprises make up about 10% of the bank's total corporate lending, which is expected to double within three years. Moreover, the same report relates, to encourage loans to small enterprises, the bank has included in its achievement appraisal for sub-branches certain targets on loans to be offered to small enterprises. Shanghai bank also adjusted its business structure, SinoCast says. In November 2007, it established an investment banking division to provide services, like venture capital, private equity investment, merger and acquisition, and domestic and overseas listing, for well- performing small enterprises, the report adds. The bank, Sinocast says, plans to conduct an investigation to its nearly 10,000 small enterprises customers in the city first and then make contact with venture capital firms and private equity firms at home and abroad. About Bank of Shanghai As a joint-stock commercial bank set up on Dec. 29, 1995, the Bank of Shanghai features a two-level operating structure within one legal entity, with the paid-up capital booked at RMB2.6 billion, comprising government-owned shares and shares held by corporations and by numerous individuals. As reported by Troubled Company Reporter-Asia Pacific, Fitch Ratings affirmed on August 31, 2007, the ratings of Bank of Shanghai, showing: (a) Long-term foreign currency Issuer Default rating at BB- with Stable Outlook; (b) Short-term foreign currency IDR at B; (c) Individual D; (d) Support at 3; and (e) Support Rating Floor at BB-. CHINA EASTERN: Borrows $337 Million For New Airplanes ----------------------------------------------------- China Eastern Airlines Corporation Limited is considering a new $337 million loan from abroad to fund its purchase of additional aircraft, Bruce Stanley of The Wall Street Journal reports. The carrier's move, WSJ relates, could either be a sign of desperation due to the company's mounting financial difficulties, or simply an attempt to benefit from the depreciating dollar. According an article posted April 16 by the Centre for Asia Pacific Aviation, despite reporting a return to profit in 2007, dealers said China Eastern Airlines' earnings prospects this year are clouded by a likely surge in operating costs as crude oil prices remain at record levels. CAPA says the carrier recorded a net profit of 269 million yuan for 2007, significantly lower than the 621.27 million yuan expected by analysts polled by Thomson Financial. On April 16, 2008, the Troubled Company Reporter-Asia Pacific, citing Bloomberg, reported that China Eastern Airlines plans to add 19 aircraft this year as economic growth spurs travel demand in China. The carrier is expected to receive 17 Airbus SAS planes and two Boeing Co. aircrafts, TCRAP's report added. Commenting on the planned loan, China Eastern executive director Luo Zhuping told Andrew Pasek- Vanburen at Xinhua Finance that, �We take out loans of all sorts very frequently to meet our operational needs, so these loans shouldn't be anything out of the ordinary." Meanwhile, in yet another burden to the carrier's balance sheet, a person familiar with the debt situation at China Eastern told WSJ that the company had missed payments totaling 3.74 billion yuan ($535 million) that were due at the end of February. About China Eastern Airlines Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. As of December 31, 2006, it operated a fleet of 205 aircraft, including 182 jet passenger aircraft and 11 jet freighters. The company operated a total of 423 routes serving a total of 136 foreign and domestic cities. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On Feb. 27, 2008, Fitch Ratings affirmed China Eastern Airlines Corp. Ltd.'s �B+� Long Term Issuer Default Rating and �B+� Local Currency Long Term Issuer Default Rating with a stable outlook. CHINA FISHERY: Unit to Buy Epesca Pisco for US$19.9 Million ----------------------------------------------------------- China Fishery Group Limited's unit, C.F.G Investment S.A.C, has signed an agreement to purchase Epesca Pisco S.A.C's issued share capital, Reuters reports. According to the report, the shares are priced at US$19.9 million, but is still on consideration. China Fishery Group Ltd's main operations are deep-sea industrial fishing in the Pacific and the provision of management services for fishing vessels. It employs over 600 crew and officers. Its catches are processed onboard and frozen, packed and delivered to market. It recently acquired Alexandra SAC, which operates in Peru's fishing and fishmeal processing markets. As reported by the Troubled Company Reporter - Asia Pacific on Feb. 20, 2007, Moody's Investors Service affirmed its B1 rating for CFG Investment SAC's senior unsecured notes, which are unconditionally and irrevocably guaranteed by China Fishery Group Ltd, following the issuance's completion. At the same time, Moody's affirmed CFG's B1 corporate family rating. Moody's has also removed both ratings from their provisional status. The ratings outlook is stable. CHINA FISHERY: Dividend Payment Date Not Yet Scheduled ------------------------------------------------------ China Fishery Group Limited has not yet determined a specific date for the payment of dividends to its shareholders. Reuters reports that China Fishery will be paying a first cash dividend of 3.29 Singapore cents per ordinary share (tax not applicable) for a par value of shares of SG$0.05. The company, the report relates, will also pay a final cash dividend of 2.19 Singapore cents per ordinary share (tax not applicable) for a par value of shares of SG$$0.05. China Fishery Group Ltd's main operations are deep-sea industrial fishing in the Pacific and the provision of management services for fishing vessels. It employs over 600 crew and officers. Its catches are processed onboard and frozen, packed and delivered to market. It recently acquired Alexandra SAC, which operates in Peru's fishing and fishmeal processing markets. As reported by the Troubled Company Reporter - Asia Pacific on Feb. 20, 2007, Moody's Investors Service on Feb. 16, 2007, affirmed its B1 rating for CFG Investment SAC's senior unsecured notes, which are unconditionally and irrevocably guaranteed by China Fishery Group Ltd, following the issuance's completion. At the same time, Moody's has affirmed CFG's B1 corporate family rating. Moody's has also removed both ratings from their provisional status. The ratings outlook is stable. CITIC PACIFIC: To Pay Dividend of HK$0.80 Per Share --------------------------------------------------- CITIC Pacific Limited's directors recommended, subject to the approval of the shareholders at the forthcoming Annual General Meeting, the payment of a final dividend of HK$0.80 per share in respect of the year ended December 31, 2007, Reuters reports. According to the report, the dividend is payable on May 13, 2008 to shareholders on the Register of Members at the close of business on May 8, 2008. Based in Hong Kong, CITIC Pacific Ltd -- http://www.citicpacific.com/-- is engaged in a range of businesses in China and Hong Kong, including steel manufacturing, property development and investment, power generation, aviation, infrastructure, communications and distribution. It is 29% indirectly owned by China International Trust & Investment Corporation. As reported by Troubled Company Reporter - Asia pacific on Dec. 26, 2007, Standard & Poor's Ratings Services affirmed its 'BB+' corporate credit rating on CITIC Pacific Ltd. (CITIC Pacific). The outlook is stable. At the same time, Standard & Poor's affirmed the 'BB+' issue rating on senior unsecured notes issued by CITIC Pacific Finance (2001) Ltd. and guaranteed by CITIC Pacific. On June 28, 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on CITIC Pacific Ltd to BB+ from BBB-. At the same time, it removed the rating from CreditWatch, where it had been placed with negative implications on April 7, 2006. The outlook is stable. In addition, the TCR-AP reported that Moody's Investors Service on June 16, 2006, assigned a Ba1 corporate family rating to CITIC Pacific Ltd and has withdrawn its Baa3 issuer rating. The senior unsecured rating for CITIC Pacific Finance (2001) Ltd's bond is downgraded to Ba1 from Baa3. The rating outlook is stable. This concludes the review initiated by the rating agency in April 2006. EMI GROUP: Restructuring Continues Despite Contractual Hurdles -------------------------------------------------------------- EMI Group Plc reiterated that its planned restructuring is on track despite contractual obstacles on implementing it, Reuters reports. Reuters' sources said some challenges appeared and slowed down EMI's restructuring plan. The issues include: * "key man" clauses in contracts that allow artists to leave EMI if a label president or A&R executive who signed the act leaves or is fired; * clauses in executive contracts that allow top employees to leave if their responsibilities change or the company comes under new ownership or management; and * meeting deadlines by certain sectors of the company. An EMI executive confirmed to Reuters that the overall restructuring is slow "because some people are missing their deadlines. The sources commented to Reuters that Terra Firma, which acquired EMI in August 2007 for GBP2.4 billion, may not have realized the extent to which the "key man" contracts exist within the label. Reuters' sources added that a number top EMI executives want to leave, claiming breach of contract due to impending changes in title or responsibilities. The sources said EMI is fighting executives in instances where it believes it is in the right. As reported in the TCR-Europe on Jan. 16, 2008, Terra Firma unveiled a restructuring plan for EMI. The plan entails: * positioning EMI's labels to ensure they will be completely focused on A&R and maximizing the potential of all their artists; * developing a new partnership with artists, based on transparency and trust, and helping all artists monetise the value of their work by opening new income streams such as enhanced digital services and corporate sponsorship arrangements; * bringing together all the group's key support activities including sales, marketing manufacturing and distribution into a single division with a unified global leadership; and * the elimination of significant duplications within the group to simplify processes and reduce waste. The changes, which will be implemented over the next six months, will enable the group to invest more in its A&R operations both to identify and sign promising new artists and to maximize the potential of its existing roster. About EMI Group plc Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries, with licensees in a further 20 and employs around 5,500 people. The group has operations in Brazil and China among others. In August 2007 EMI was acquired by private equity firm Terra Firma. At March 31, 2007, EMI Group's consolidated balance sheet revealed GBP1.5 billion in total assets, GBP2.65 billion in total liabilities resulting to GBP1.15 billion in shareholders' deficit. EVERBRIGHT BIOPHARMACEUTICAL: Places 12 Million New Shares ---------------------------------------------------------- Everpride Biopharmaceutical Company agreed to place 120,000,000 new shares to independent investors at the placing price of HK$0.25 per placing share, Reuters reports. According to the report, the placing shares represent 20% of the issued share capital of the company and approximately 16.67% of the issued share capital of the company as enlarged by the allotment and issue of the placing shares. The gross proceeds from the placing will be HK$30 million. The net proceeds from the placing of approximately HK$29 million. Based in Hong Kong, Everpride Biopharmaceutical Company Limited is an investment holding company. Through its subsidiaries, the company is engaged in the production and sales of the medicines known as Plasmin Capsule and Puli Capsule in Mainland China. The Troubled Company Reporter - Asia Pacific reported on April 18, 2008, that the company has a shareholder's equity deficit of US$0.02 million on total assets of US$14.19 million. EVERBRIGHT BIOPHARMA: Annual Report Posting Moved to May 15 ----------------------------------------------------------- Everpride Biopharmaceutical Company's release of its consolidated audited results will be further delayed to May 4, 2006, Reuters reports. Meanwhile, the report relates, the dispatch of the annual report for the year ended December 31, 2005, will be delayed to May 15, 2006. Based in Hong Kong, Everpride Biopharmaceutical Company Limited is an investment holding company. Through its subsidiaries, the company is engaged in the production and sales of the medicines known as Plasmin Capsule and Puli Capsule in Mainland China. The Troubled Company Reporter - Asia Pacific reported on April 18, 2008, that the company has a shareholder's equity deficit of US$0.02 million on total assets of US$14.19 million. FIAT SPA: Shows Interest in Acquiring Serb Car Maker Zastava ------------------------------------------------------------ Fiat SpA has expressed its intention to acquire Serbia's lone auto manufacturer, Zastava, various reports say citing outgoing Economic Minister Mladjan Dinkic. Representatives from Fiat are expected to arrive Serbia this week to start talks. The sale of Zastava was supposed to occur this month but was later moved to May due to the elections. Fiat, reports add, is said to be planning to invest up to EUR300 million in Zastava. Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/-- (BIT:F) is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. JIANGXI COPPER: First-Quarter Net Profit Up 46.42% to CNY1.26BB --------------------------------------------------------------- Jiangxi Copper Co Limited's first quarter net profit rose 46.42% year-on-year to CNY1.26 billion yuan after obtaining higher selling prices for its main products, China Daily News reports. According to the report, the company's operating revenue rose 49.32% year-on-year to CNY11.89 billion on higher prices and sales volumes achieved for copper cathode and sulphuric acid. Meanwhile, the report relates, operating costs were also up 46.9% year-on-year to CNY9.89 billion due to rising copper cathode costs and higher procurement expenses. Earnings per share came in at CNY0.42, against CNY0.29 a year earlier, the report adds. About Jiangxi Copper Jiangxi Copper Company Limited -- http://www.jxcc.com/-- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. LAND BANK: S&P Holds C+ Bank Fundamental Strength Rating -------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Land Bank of Taiwan to developing from positive. At the same time, it affirmed the 'A' long-term and 'A-1' short-term counterparty credit ratings on the bank, as well as the 'C+' bank fundamental strength rating. "The outlook revision mainly reflects the uncertainty surrounding Land Bank's credit profile over the next two to three years. The bank is likely to face rising pressure to maintain its profitability and asset quality if the domestic real estate market turns soft or competition intensifies," said credit analyst Andrew Wu. Nevertheless, Land Bank's financial strength is likely to improve if it completes a planned merger with the financially stronger Bank of Taiwan (A+/Stable/A-1). The Taiwan government plans to merge the two banks within three years. The ratings reflect Land Bank's established franchise, good funding capacity, and a degree of government support. Counterbalancing factors include the sensitivity of the bank's credit profile, due to its specialized real estate-related loans and its mediocre profitability. Land Bank's asset quality is sensitive to cycles in the domestic real estate market. Construction lending and mortgage loans accounted for more than 50% of the bank's total loans in 2007, up from 40% in 2003. However, the bank's ratio of impaired assets (including official NPLs and foreclosed property) to total loans was only 1.2% at the end of 2007, due to its adequate underwriting controls and good conditions in the real estate market. Land Bank's profitability is mediocre. Above-average funding costs from policy-related obligations and sizable low-margin mortgage lending hamper the bank's capacity to generate earnings. Its adjusted return on average assets (excluding sizable nonrecurring gains from real estate disposals) averaged 0.1% in 2006-2007. Its net interest margin was also low at 0.87% in 2007. PETROLEOS DE VENEZUELA: Gov't Approves Oil Sudden-Gains Tax ----------------------------------------------------------- Venuzuela's lawmakers have given their final nods to a new tax on windfall profits of Petroleos de Venezuela SA and other oil companies, Dow Jones Newwires reports. According to the report, the lawmakers gave their final approval on Apr. 15 to a law that required companies that export crude from Venezuela to share a portion of their sudden gains to the government. The levy will also apply to PdVSA's foreign partners including Total SA, StatoilHydro ASA, BP Plc, and Chevron Corp, Dow Jones states. The government will take in about 92 cents for every extra dollar when world prices are above US$70 a barrel and then 97 cents when they are above US$100 a barrel, Reuters cites Oil Minister Rafael Ramirez as saying. World oil prices hit a record above US$114 a barrel on April 15, the news agency points out. The tax is expected to contribute US$9 billion to the government's yearly revenues. About Petroleos de Venezuela SA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. WAN HAI LINES: S&P Cuts Rating on Unit's Corporate Bonds to BB+ --------------------------------------------------------------- Standard & Poor's Ratings affirmed its 'BBB-' long-term corporate credit rating on Wan Hai Lines Ltd. The outlook is stable. At the same time, Standard & Poor's lowered its issue rating on the unsecured corporate bonds of its fully owned subsidiary, Wan Hai Lines (Singapore) Pte. Ltd., to 'BB+' from 'BBB-'. Wan Hai irrevocably and unconditionally guarantees the bonds. "The rating affirmation reflects Wan Hai's stable performance on intra-Asia routes, together with strong demand on Middle East and European routes, which improved its EBITDA margin in 2007," said credit analyst Daniel Hsiao. The carrier's EBITDA rose by 53% to Taiwan dollar (NT$) 10.6 billion in 2007. Its cash and liquid financial assets declined by NT$5.47 billion due to high capital expenditure of NT$19.8 billion in 2007. As a result, Wan Hai's adjusted ratio of funds from operations (FFO) to debt improved slightly to 46% in 2007, from 45% in 2006. We expect the ratio to be about 40% over the next two years. Wan Hai has a somewhat aggressive new capacity expansion plan, at about 30% of its current fleet size, but this is below the top 50 global container-shipping operators' average of 50%. Nevertheless, the carrier is not immune from the high industry risks associated with cyclical demand and potential oversupply. The industry's high order book, coupled with a potential downturn in the global economy, could drive down freight rates and revenue. Wan Hai has increased its exposure to the highly competitive and volatile long-haul markets, which could enlarge its revenue base and profitability, but also raise its earnings volatility. Revenue from long-haul markets increased to 41% in 2007 from 24% in 2003. The lowered rating on the unsecured corporate bonds reflects Wan Hai's rising ratio of priority debt (including secured debt and operating lease obligations) to adjusted assets (total assets plus operating lease obligations). The ratio, which stood at 26% in 2007, is higher than the 20% threshold required for the rating to remain at the current level. The ratio is likely to increase over the next two years because of Wan Hai's greater use of operating leases. Wan Hai Line was founded in 1965. At the beginning, Wan Hai's business was mainly on the log transportation among Taiwan, Japan and the Southeast Asia. In 1976, in order to respond to the rapid development of international trade in the Asia Pacific area and the trend of international transportation containerization, Wan Hai has successfully transformed and entered the business of fully-container vessel shipping. Wan Hai has more than 30 years of experiences in shipping, comprehensive hardware and software equipment, and professional services from our staff. This has made Wan Hai the carrier with the most intensive voyages and complete service network in Asia. YRC WORLDWIDE: Renews Asset-Backed Securitization Facility ---------------------------------------------------------- On April 18, 2008, YRC Worldwide Inc. renewed its asset-backed securitization facility. The renewed facility will expire on April 16, 2009. The renewed facility: 1. reduces the financing limit available under the ABS facility from US$700 million to US$600 million, 2. reduces the letters of credit sublimit from US$325 million to US$125 million, 3. modifies the total leverage ratio consistent with the credit agreement amendment, 4. increases the loss and discount reserve requirements and 5. increases the administrative fee, calculated based on financing limit, and program fee, calculated based on utilization, to 50 basis points and 75 basis points. The interest rate under the ABS facility for conduits continues to be a variable rate based on A1/P1 rated commercial paper,weighted average interest rate of 3.35% at March 31, 2008, plus the program fee. The interest rate for Wachovia Bank National Association is one-month LIBOR, plus 100 basis points, as Wachovia will no longer use a conduit to purchase receivables under the ABS facility. The company expects interest expense to increase up to US$4.0 million annually with this renewal. The ABS facility utilizes the accounts receivables of these subsidiaries of the company: Yellow Transportation Inc.; Roadway Express Inc.; USF Holland Inc.; and USF Reddaway Inc. Yellow Roadway Receivables Funding Corporation, a special purpose entity and wholly owned subsidiary of the company, operates the ABS facility. Under the terms of the renewed ABS facility, the originators may transfer trade receivables to YRRFC, which is designed to isolate the receivables for bankruptcy purposes. A third-party conduit or committed purchaser must purchase from YRRFC an undivided ownership interest in those receivables. The percentage ownership interest in receivables that the conduits or committed purchasers purchase may increase or decrease over time, depending on the characteristics of the receivables, including delinquency rates and debtor concentrations. In connection with the renewal of the ABS facility, the company unconditionally guaranteed to YRRFC the full and punctual payment and performance of each of the Originators obligations under the ABS facility. YRRFC has pledged its right, title and interest in the guarantee to the administrative agent, for the benefit of the purchasers, under the third amended and restated receivables purchase agreement. About YRC Worldwide YRC Worldwide (Nasdaq: YRCW) -- http://www.yrcw.com/-- does business through two national less-than-truckload companies, YRC National Transportation, which comprises the long-haul operations that comprises the legacy Yellow and Roadway businesses (about 69% of total FY 2007 revenue), and through YRC Regional Transportation, a regional LTL business essentially comprising YRC's acquired USF companies (about 25% of revenue). Through its YRC Logistics business unit, the company also offers logistics and supply chain services. YRC's broad service offering includes next day and expedited service throughout most of the country. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Agrees to Amendments on Aug. 17 Credit Agreement --------------------------------------------------------------- On April 18, 2008, YRC Worldwide Inc. and certain of its foreign subsidiaries entered into Amendment No. 1 to the credit agreement, dated as of Aug. 17, 2007. The credit agreement, as amended, continues to provide the company with a US$950 million senior revolving credit facility, including sublimits available for borrowings under certain foreign currencies, and a US$150 million senior term loan. The credit agreement amendment will: 1. increase the company#s total leverage ratio from 3.0x to 3.75x for each of the fiscal quarters ended March 31, June 30 and Sept. 30, 2008 and 3.5x for each fiscal quarter thereafter, until such time as the company receives a rating of BBB- or better from Standard & Poor's and Ba1 or better from Moody's, in each case with a stable outlook. This was a proactive amendment however, as the company's total leverage ratio for the fiscal quarter ended March 31, 2008 was below 3.0x; 2. increase the interest rates and fees applicable to the revolving credit facility and term loan. The interest rate on amounts outstanding under the revolving credit facility and term loan is LIBOR plus 100 basis points and LIBOR plus 125 basis points and the facility fee for the revolving credit facility is 25 basis points. The company expects interest expense to increase US$1.5 # 4.0 million annually with this amendment; 3. require the company and its domestic subsidiaries to pledge these collateral: a. receivables not secured by the ABS facility or the company#s captive insurance companies, b. intercompany notes not secured by the ABS facility, c. fee-owned real estate parcels that have an estimated internal market value of US$2.5 million or greater, d. 100% of the stock of all domestic subsidiaries of the company, and e. 65% of the stock of first-tier foreign subsidiaries of the company other than the company's captive insurance companies; 4. require the company and its subsidiaries to pledge additional assets, including rolling stock and the remaining real estate if the total leverage ratio exceeds 3.5x at the end of any test period or if the company receives a rating of BB- or worse from Standard & Poor#s and Ba3 or worse from Moody's prior to the Fall Away Event; 5. require each domestic subsidiary of the company except for YRRFC to guarantee the credit facility; and 6. modify certain negative covenants, and in certain instances introduces new negative covenants, related to permitted liens, permitted acquisitions, permitted asset sales, and certain related mandatory prepayments from the proceeds thereof, and restricted payments. Upon the occurrence of the Fall Away Event, security interests in pledged collateral will be released, all negative covenant provisions,including the company's total leverage ratio, and the mandatory prepayment provision will revert to pre-credit agreement amendment levels and concepts and only material domestic subsidiaries and subsidiaries of the company that guarantee certain other indebtedness of the company or its subsidiaries will remain as guarantors. USF and Roadway Bonds The holders of USF Bonds and Roadway Bonds will receive an equal and ratable lien, pursuant to the terms of the respective bond indentures, in certain assets that are pledged under the credit facility. Pursuant to Section 1008 of the USF Bond indenture, holders of USF Bonds are entitled to an equal and ratable lien with respect to stock of the 'significant' subsidiaries of YRC Regional Transportation and any intercompany debt among Regional and its 'significant' subsidiaries. Currently, the 'significant' subsidiaries are USF Holland, USF Reddaway and YRC Logistics Services. Pursuant to Section 4.06(a) of the Roadway Bond indenture, holders of Roadway Bonds are entitled to an equal and ratable lien with respect to stock of subsidiaries of Roadway LLC, intercompany debt among Roadway and its subsidiaries and certain property owned by Roadway and its subsidiaries, including certain real estate and rolling stock. The description of the rights of the holders of USF Bonds and Roadway Bonds is qualified by reference to the respective indentures, which are filed as Exhibit 4.3.1 and Exhibit 4.4.1 to the company#s form 10-K for the year ended Dec. 31, 2007, respectively. About YRC Worldwide YRC Worldwide (Nasdaq: YRCW) -- http://www.yrcw.com/-- does business through two national less-than-truckload companies, YRC National Transportation, which comprises the long-haul operations that comprises the legacy Yellow and Roadway businesses (about 69% of total FY 2007 revenue), and through YRC Regional Transportation, a regional LTL business essentially comprising YRC's acquired USF companies (about 25% of revenue). Through its YRC Logistics business unit, the company also offers logistics and supply chain services. YRC's broad service offering includes next day and expedited service throughout most of the country. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Fitch Holds 'BB+' ID Rating on Facility Amendment ---------------------------------------------------------------- Following the announcement that YRC Worldwide Inc. has amended and restated its credit facility agreement, Fitch Ratings has taken these rating actions on YRCW and its Roadway LLC and YRC Regional Transportation, Inc. subsidiaries: YRC Worldwide Inc. -- Issuer Default Rating affirmed at 'BB+'; -- Credit facilities affirmed at 'BB+'; -- Senior unsecured downgraded to 'BB' from 'BB+'. Roadway LLC -- IDR affirmed at 'BB+'; -- Senior notes downgraded to 'BB' from 'BB+'. YRC Regional Transportation, Inc. -- IDR affirmed at 'BB+'; -- Senior notes downgraded to 'BB' from 'BB+'. Fitch's ratings apply to approximately US$1 billion in consolidated debt and a US$950 million revolving credit facility. The Rating Outlook for YRCW is Negative. The most significant revisions to YRCW's credit facility are a change in the facility's leverage covenant and a pledge of collateral to secure the facility. The leverage covenant, which is based on the ratio of balance sheet debt to 12 months EBITDA, has been raised to 3.75 times for the first three quarters of 2008. The ratio will then decline to 3.5x in the fourth quarter of 2008 through the facility's maturity in 2012. The prior leverage covenant was 3.0x for the duration of the agreement. In the event of certain credit ratings upgrades, the collateral securing the credit facility will be released, the leverage ratio covenant will decline to 3.0x and certain other provisions in the credit facility will revert back to their pre-amended status. In return for the loosened covenant, YRCW has agreed to secure the facility with a combination of hard assets, a portion of various subsidiaries' accounts receivable not already pledged as collateral under YRCW's asset backed securitization facility agreement, 100% of the capital stock of YRCW's U.S. subsidiaries, 65% of the stock of certain first-tier foreign subsidiaries and a security interest in certain intercompany notes. According to the indenture covering the outstanding US$225 million in Roadway notes due in December, the Roadway notes will also be secured by certain Roadway collateral pledged to the credit facility, including certain Roadway properties. In addition, the capital stock of the YRC Regional Transportation subsidiaries that has been pledged as collateral for the credit facility will also be shared as collateral with the two series of outstanding YRC Regional Transportation notes. In addition to the revisions to its credit facility, YRCW has also accelerated the renewal of its ABS facility. The facility had been scheduled to mature next month. The ABS facility, which is essentially a receivables sales program, is a key component of the company's liquidity, and YRCW regularly uses it for cash borrowings, as well as to back letters of credit. The limit on the renewed facility has been reduced to US$600 million from US$700 million, however, to account for the actual level of receivables generally available to support the program. The loosening of the leverage covenant significantly reduces the likelihood of a near-term default on the credit facility. Although YRCW has been slowly reducing its debt load over the past several years, a very weak industry demand environment has driven a sharp decline in YRCW's EBITDA over the past 12 months. Full-year EBITDA declined to US$489 million in 2007 from US$837 million in 2006, raising the company's year-end EBITDA leverage to 2.5x from 1.5x. With the sharp decline in EBITDA, concern had been growing recently that YRCW's EBITDA leverage would come uncomfortably close to, or might exceed, the prior covenant level of 3.0x by mid-2008. The addition of 75 basis points to the covenant in the first three quarters of this year is expected to provide sufficient headroom to avoid a covenant-triggered default in the near term. However, the covenant level's decline to 3.5x in the fourth quarter and beyond could be a concern if industry conditions continue to worsen throughout the year. The downgrade of the senior unsecured ratings reflects the addition of collateral to secure the credit facility, which has put the holders of the company's existing unsecured notes in a junior position in YRCW's capital structure. In addition, although the Roadway and YRC Regional Transportation notes are now secured by some collateral, Fitch believes the collateral coverage of these notes is relatively low, effectively putting holders of these notes in a position similar to that of the unsecured holders. As a result, Fitch has downgraded the secured Roadway and YRC Regional Transportation notes, as well. The Negative Rating Outlook reflects the near-term challenges that YRCW continues to face with the slowing of the U.S. economy. Although industry shipment levels appear to be stabilizing somewhat, they are stabilizing at weakened levels, and there are no indications yet of a significant improvement in demand in the near term. Should a persistently weak industry environment drive further declines in YRCW's financial performance, Fitch may downgrade the ratings further. YRC WORLDWIDE: Moody's Cuts CF Rating to Ba2 -------------------------------------------- Moody's Investors Service has lowered the ratings of YRC Worldwide Inc., Corporate Family Rating to Ba2 from Ba1. At the same time, Moody's downgraded the ratings of YRC Regional Transportation's senior notes and YRC Worldwide's convertible notes to Ba3 from Ba1, and upgraded the ratings of the notes issued by the company's Roadway subsidiary to Baa3 from Ba1. Under the terms of "equal and ratable" provisions contained in the indentures, these notes will be granted a security interest in certain assets of the company that ranks pari passu with the security interest granted on those assets under the company's amended bank credit facility. The rating outlook is negative. The downgrade of the Corporate Family Rating considers the continued challenging operating environment in the trucking sector which is expected to further constrain YRC's earnings and cash flow, resulting in weaker credit metrics. Moody's views favorably the company's announcement that it has amended its senior revolving credit facility to provide increased room under prescribed financial covenants as well as the renewal and amendment of its Asset Backed Securitization facility. The ability to comply with prior covenant levels would have become problematic for YRC in light of anticipated earnings weakness. The amended covenants will enable the company to maintain a good liquidity profile while implementing strategies to improve operating performance. According to David Berge, Vice President of Moody's, "there is still significant headwind facing the company from what is expected to be a deep and possibly prolonged recession in the trucking market." Moody's expects that YRC, like most less than truckload carriers, will report weak operating results through 2008. The company should benefit from recent cost saving initiatives, including the closure of unprofitable business units in its regional segment, and enhanced operating flexibility available under its new labor agreement with the Teamsters running through 2013. Nevertheless, cyclical operating pressures will continue to weigh on overall financial performance. Key credit metrics such as Retained Cash Flow to Debt, EBIT/Interest, and Debt to EBITDA are currently weaker than those of many industry peers. YRC has reduced its balance sheet debt since the 2005 acquisition of USF Corporation, yet with the erosion of earnings during 2007 financial metrics have deteriorated. Under Moody's analytic methodology, the company carries a high debt burden related to adjustments for multi- employer pension plans. While the multi-employer obligations are viewed as debt-like in Moody's analysis, it is important to note that they do not represent a large near term claim on cash. Moody's anticipates that YRC will continue to apply free cash flow to reduce indebtedness which should help to rebuild financial metrics over time. Moody's expects that the company will be able to generate sufficient operating cash flow through 2008 to cover repayment of the US$225 million of notes due in December. This will likely require that operating ratios of at least 96-97% are achieved for the second half of the year, and that cash contributions from working capital in the fourth quarter follow historical seasonal patterns. Given the challenges posed by the weak business environment, the recent covenant amendment provides important stability to the company's liquidity profile. YRC maintains a modest cash balance, and typically experiences seasonal variances in its working capital requirements; the fourth quarter generally exhibits a significant cash inflow from working capital reductions. The company's US$950 million revolving credit facility and US$150 million Term Loan contain a financial covenant limiting its ratio of debt to EBITDA, as defined in the agreement, to certain levels. While the company has remained in compliance with the covenant through the first quarter of 2008, continued earnings pressures might have resulted in the company being unable to remain compliant in future quarters. The recently announced amendment provides covenant headroom which should enable the company to maintain an adequate liquidity profile. In exchange for covenant relief, YRC is providing a collateral package comprised of certain parcels of real estate and accounts receivable not pledged to its securitization facilities. The company will also provide a pledge of 100% of stock of domestic subsidiaries and 65% of stock of first tier foreign subsidiaries. By virtue of the "equal and ratable" provision, the Roadway and YRC Regional notes will gain a security interest that ranks pari passu with the company's bank credit facility. The outlook remains negative in recognition of the sensitivity of cash flows and covenant cushion to changes in the company's operating ratio. Considering YRC's and the LTL sector's overall vulnerability to weaknesses in the U.S. economy and the uncertainty surrounding the depth and duration of the current economic downturn, Moody's believes there are significant challenges facing the company in reaching its margin and cash flow goals. The change in ratings of the senior notes, which had been rated the same as YRC's Corporate Family Rating prior to the amendment of the credit facility, reflects the effect of both the downgrade in the CFR as well as collateral protection granted lenders under the Roadway notes, which is not afforded to the YRC convertible notes. The indenture for the Roadway notes and the indenture for the YRC Regional Transportation notes provides that, in the event of YRC pledging collateral as security for any other debt instrument, the Roadway notes and YRC Regional Transportation notes will be secured equally and ratably by a pledge of specified collateral. However, Moody's views the collateral protection being afforded to the Roadway notes as substantially superior to that of the YRC Regional Transportation notes, effectively subordinating these notes to the Roadway notes. Per Moody's Loss Given Default methodology, the change in priority from senior unsecured class of debt to senior secured has a substantial positive impact on the expected recovery on these notes in the event of default. Conversely, the effective subordination of the unsecured YRC Convertible notes and the YRC Transportation notes to a substantial level of secured debt implies weaker recovery under those notes in the event of default. The ratings could be downgraded if the free cash flow in 2008 were to fall substantially below US$200 million, therefore requiring the company to rely more heavily on its revolving credit facility to refinance the December maturities and likely the notes maturing in May 2009 as well, assuming they cannot be refinanced in the capital markets. Ratings could also be lowered if weaker operating performance were to impair the likelihood of compliance with the new financial covenants in the company's credit facility, possibly requiring waivers or further amendments of terms. The ratings could be stabilized if free cash flows become strongly positive in 2008 and 2009, with operating ratios returning to the mid-90% range. The company will have to demonstrate the maintenance of a solid liquidity position throughout this period, with only minor and temporary reliance, if any, on the revolving credit facility to cover note maturities while maintaining ample cushion to covenants. Downgrades: Issuer: USF Corporation -- Senior Notes due 2009-2010, to Ba3 (LGD4-63%) from Ba1 Issuer: YRC Worldwide Inc. -- Probability of Default Rating, Downgraded to Ba2 from Ba1 -- Corporate Family Rating, Downgraded to Ba2 from Ba1 -- Senior Convertible Notes due 2023, to Ba3 (LGD4-63%) from Ba1 Upgrades: Issuer: Roadway LLC -- Senior Notes due 2008, to Baa3 (LGD2-14%) from Ba1 YRC Worldwide does business through two national less-than- truckload companies, YRC National Transportation, which comprises the long-haul operations that comprises the legacy Yellow and Roadway businesses (about 69% of total FY 2007 revenue), and through YRC Regional Transportation , a regional LTL business essentially comprising YRC's acquired USF companies (about 25% of revenue). Through its YRC Logistics business unit, the company also offers logistics and supply chain services. YRC's broad service offering includes next day and expedited service throughout most of the country. ========= I N D I A ========= GERDAU SA: To Invest US$180 Million in CCA Tie-Up -------------------------------------------------- Gerdau SA has teamed up with Central American steel corporation CCA. According to Gerdau, it will own a 30% stake and invest some US$180 million in CCA. Gerdau's President Andre Gerdau Johannpeter commented to Business News Americas, "The association listed Grupo Gerdau as a leading company in Central America and the Caribbean. The region is strategic and of special importance to the group." About CCA CCA is a steel corporation in Central America. It has a steel plant in Guatemala, four rolling units in Guatemala and Honduras and commercial offices in Guatemala, Honduras, and El Salvador. The corporation also has distribution units in Guatemala, Belize, El Salvador, Honduras, and Nicaragua. CCA has installed capacity of 500,000 tons per year of steel and 690,000 tons per year of rolled products and also holds a minority share in Honduran company Intrefica. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. GERDAU SA: Quanex Shareholders Okay US$1.67 Billion Purchase ------------------------------------------------------------ Quanex Corp. told the Associated Press that its shareholders have authorized Gerdau SA to purchase the firm for US$1.67 billion. As reported in the Troubled Company Reporter-Latin America on Feb. 22, 2008, Quanex set a special meeting of stockholders for March 31, 2008, to approve and adopt the agreement and plan of its merger with a subsidiary of Gerdau. Stockholders of record as of the close of business on Feb. 29, 2008, were entitled to vote at the special meeting. The AP relates that "with about 90% of the shares represented, over 99% were voted for the deal." Quanex's unit Quanex Building Products Corp. was "spun off from the parent." It will replace Quanex in the Standard & Poor's SmallCap 600, the AP states. About Quanex Corp. Quanex Corp., formerly Michigan Seamless Tube Company, is engaged in the production of engineered carbon and alloy steel bars, heat treated bars, aluminum flat-rolled products, flexible insulating glass spacer systems, extruded profiles, and precision-formed metal and wood products. The two markets served by the Company include vehicular products and building products. The segments served by the Company include Vehicular Products, Engineered Building Products and Aluminum Sheet Building Products. Quanex has 27 manufacturing facilities in 12 states in the United States. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. GMAC LLC: Moody's Downgrades Senior Rating to B2 ------------------------------------------------ Moody's Investors Service downgraded GMAC LLC's senior rating to B2 from B1; the rating remains on review for further possible downgrade. This action follows Moody's rating downgrade of ResCap LLC, GMAC's wholly-owned residential mortgage unit, to Caa1 from B2. The GMAC downgrade is based upon Moody's opinion that further operating weakness at ResCap poses risks to GMAC's capital position and liquidity that exceed previous estimates. In particular, we believe that for ResCap to have continued access to debt capital, GMAC may be required to provide additional indications of support to the unit and that it is likely to do so. As noted in the ResCap related press release, ResCap faces significant near-term refinancing needs. GMAC has strategic significance to GM, as its exclusive provider of consumer incentive financing for nearly all of its brands, and as a provider of inventory floorplan loans to GM's dealer base. As a consequence, we don't believe GMAC's owners intend to compromise the firm's credit profile to the point of weakening its ability to perform under its contractual asset origination and servicing obligations to GM. It is our belief, however, that the ResCap exposures that GMAC has accumulated to date, and may yet further accumulate, represent a risk concentration that could challenge the strength of the GMAC's credit standing. During its review, Moody's will examine GMAC's intentions for supporting ResCap through its difficulties, as well as the terms pertaining to any such support extension. "We consider GMAC's stand-alone strengths in its auto finance and insurance businesses to continue to provide support to its rating profile," Moody's said. Ratings downgraded and placed under review for further downgrade include: Issuer rating: to B2 from B1 Senior Unsecured: to B2 from B1 Preferred Stock: to Caa2 from Caa1 About GMAC LLC 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 ofUS$724 million. GMAC LLC has a subsidiary in India called GMAC Financial Services India Limited. PRIDE INTERNATIONAL: Board Drops Ownership Threshold to 10% ----------------------------------------------------------- Pride International Inc.'s Board of Directors has taken action under the company's Stockholder Rights Plan to lower, solely with respect to Seadrill Limited and its affiliates and associates, the threshold level of beneficial ownership of the company's common stock that would trigger the rights from 15% to 10%. Pride also announced that it has been notified by Seadrill of Seadrill's and its affiliates' acquisition, through undisclosed forward purchase contracts and other acquisitions from undisclosed parties, of approximately 9.9% of the company's outstanding common stock. Seadrill has advised the Company that it has made a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 to permit Seadrill to acquire Pride securities, but has neither provided the company with a copy of the filing nor informed the Company at what notification threshold the filing was made under the Act. Despite requests by the company, Seadrill has not provided information about its intentions, plans or proposals with respect to Pride or its acquisition of the common stock; any agreements, arrangements or understandings it has with third parties regarding Pride securities; the terms of the forward purchase contracts; the reasons for its Hart-Scott-Rodino filing; or the maximum ownership level specified in the filing. Seadrill also requested that Pride not publicly disclose its acquisition of Pride securities or its Hart-Scott-Rodino filing. Pride's Stockholder Rights Plan is intended to protect the company's stockholders from open-market accumulations and other abusive takeover activities. The Board of Directors of the company has taken the action with respect to the rights plan because Seadrill has not provided the Company with any information about its intentions, and the Board wants to make sure that all stockholders are protected appropriately. The plan was adopted in 2001 in connection with the Company's merger with Marine Drilling Companies to replace a similar plan in effect at Pride since 1998. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. TATA MOTORS: U.S. Antitrust Okays Jaguar and Land Rover Purchase ---------------------------------------------------------------- U.S. antitrust authorities have cleared Tata Motors Ltd.'s purchase of Jaguar and Land Rover from Ford Motor Co., Reuters reports. According to the U.S. Federal Trade Commission, antitrust authorities have completed their review of the US$2.3 billion deal between Tata and Ford without taking any action to block it, Reuters relates. The deal was formally announced on March 26, 2008. Tata will pay Ford the US$2.3 billion in cash upon closing of the transaction. The transfer of ownership is expected to close by the end of the next quarter, subject to applicable regulatory approvals, according to the Troubled Company Reporter-Asia Pacific on March 28, 2008. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero-coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA STEEL: S&P Affirms BB Corp. Credit Rating; Revises Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Tata Steel Ltd. to stable from positive and affirmed its 'BB' corporate credit rating on the company. At the same time, the 'BB' rating on Tata Steel's senior unsecured bank loans of US$750 million and US$500 million has been affirmed. The outlook revision reflects the persisting uncertainty on the infusion of additional equity, as envisaged in the initial funding plan for the acquisition of Corus (Corus Group PLC, not rated), and some increases in the capital commitments of the company, specifically for its expansion projects in India. "Tata Steel's initially proposed plan of issuing hybrid securities (US$2.56 billion) and equity (US$500 million), to partially fund the US$14 billion acquisition of Corus, has been deferred due to prevailing credit market conditions," said Standard & Poor's credit analyst Anshukant Taneja. Although Tata Steel intends to raise incremental equity (US$1 billion), this has been delayed and remains vulnerable to capital market-related risks. Concurrently, Tata Steel has accelerated the execution of some of the expansion projects in India, specifically the 2.9 million tons per annum (mtpa), entailing an outlay of about US$2.3 billion, and now is pursuing the US$3.9 billion 3 mtpa greenfield Orissa steel project with greater certainty. Total costs for these projects have also risen about 20% from the initial estimates given by the company, because of widening of scope and inclusion of mining-related investments in the project costs. "These events, along with potential investments in upstream coal and limestone resources, limit the upside potential on the current ratings," Mr. Taneja said. The 'BB' ratings continue to derive support from the enhanced scale and size of the combined entity. Tata Steel is now the sixth-largest steel manufacturer in the world. Volume growth and synergy gains, which have been in line with expectations, also add to the stability of current ratings. Geographical and product diversity has also increased, which is positive for the overall risk profile of the company. The increase in steel prices, which has been driven primarily by sustained demand and rising input (iron ore and coking coal) prices, is beneficial for the fully integrated operations of the company in India. This is reflected in the estimated 43% margin for the nine months ended December 2007 for Tata Steel (standalone operations). "However, the manufacturing operations of Corus do not benefit from upstream linkages. This significantly dilutes the positive impact of the integrated Indian operations on the overall profitability of the company," Mr. Taneja noted. ================= I N D O N E S I A ================= FREEPORT-MCMORAN: Reports US$1.1 Billion Net Income in 1Q 2008 -------------------------------------------------------------- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported first- quarter 2008 net income applicable to common stock ofUS$1.1 billion, US$2.64 per share, compared with US$476 million,US$2.02 per share, for the first quarter of 2007. FCX�s results included net losses on early debt extinguishments totaling US$6 million ($5 million to net income or US$0.01 per share) for first-quarter 2008 and US$88 million ($75 million to net income or US$0.31 per share) for first-quarter 2007. The results for the 2007 quarter include the operations of Phelps Dodge beginning March 20, 2007. James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, �Our first-quarter results reflect our continued focus on maximizing current production volumes and investing in future growth to meet increasing market requirements for the commodities we produce. As we crossed the one-year anniversary of our combination with Phelps Dodge in March, we are established as a financially strong global metals producer with significant current production capacity and reserves, exciting current growth projects and promising opportunities for future growth in major minerals districts around the world. The theme of our recently published 2007 annual report, �A World of Assets, A World of Opportunities,� highlights our portfolio of global operations and opportunities to expand production capacity, extend the lives of our mines and develop new ore bodies.� Highlights * Net income applicable to common stock for first-quarter 2008 totaled US$1.1 billion, US$2.64 per share, compared with US$476 million, US$2.02 per share, for first-quarter 2007. * Consolidated sales from mines for first-quarter 2008 totaled 911 million pounds of copper, 280 thousand ounces of gold and 20 million pounds of molybdenum, compared with 520 million pounds of copper, 956 thousand ounces of gold and 2 million pounds of molybdenum for first-quarter 2007. Pro forma first-quarter 2007 sales, including pre- acquisition Phelps Dodge sales, totaled 1.0 billion pounds of copper, 977 thousand ounces of gold and 19 million pounds of molybdenum. * Consolidated sales from mines are expected to approximate 4.2 billion pounds of copper, 1.4 million ounces of gold and 75 million pounds of molybdenum for the year 2008, including 930 million pounds of copper, 225 thousand ounces of gold and 18 million pounds of molybdenum for second- quarter 2008. * Operating cash flows totaled US$615 million, including working capital uses of approximately US$1.3 billion, for first-quarter 2008. Assuming average prices of US$3.75 per pound for copper, US$900 per ounce for gold and US$30 per pound for molybdenum for the remainder of 2008, operating cash flows in 2008 would exceed US$6.5 billion, including approximately US$6 billion for the remainder of 2008. Each US$0.20 per pound change in copper prices in the balance of the year would impact 2008 operating cash flows by approximately US$450 million. * Capital expenditures totaled US$508 million for first- quarter 2008. Projected 2008 capital expenditures approximate US$3 billion, including investments in development projects in the Americas and Indonesia, the Tenke Fungurume greenfield project in Africa and the project to restart the Climax molybdenum mine in Colorado. * Total debt approximated US$7.6 billion and consolidated cash was US$1.8 billion at March 31, 2008, compared with total debt of US$7.2 billion and consolidated cash of US$1.6 billion at December 31, 2007. Borrowings under FCX�s US$1.5 billion revolving credit facility totaled US$296 million at March 31, 2008. Consolidated copper sales of 911 million pounds in the first quarter of 2008 were slightly higher than previous estimates of 885 million pounds reported on January 23, 2008, primarily because of the timing of shipments. Production from North America was lower than previous estimates, while South America production was essentially as forecasted and Indonesia production exceeded prior estimates. Consolidated gold sales of 280 thousand ounces in first-quarter 2008 were higher than previous estimates of 170 thousand ounces because of mine sequencing at the Grasberg mine in Indonesia. As expected, consolidated gold sales in the first quarter of 2008 were significantly lower than the year ago period because of the mining in a lower ore grade section of the Grasberg open pit. Consolidated molybdenum sales approximated 20 million pounds in first-quarter 2008. Indonesia copper and gold sales in the first quarter of 2008 were significantly lower than in the first quarter of 2007 as a result of the expected mining in a lower ore grade section of the Grasberg open pit. At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold. PT Freeport Indonesia expects to continue mining in a relatively low-grade section of the Grasberg open pit in the second quarter of 2008 and in a higher- grade section in the second half of 2008. Approximately 64 percent of 2008 copper sales and 65 percent of 2008 gold sales are estimated in the second half of the year. FCX expects Indonesia sales of 1.2 billion pounds of copper and 1.3 million ounces of gold for the year 2008, compared with 1.1 billion pounds of copper and 2.2 million ounces of gold for the year 2007. PT Freeport Indonesia has several projects in progress throughout the Grasberg district, including developing its large-scale underground ore bodies located beneath and adjacent to the Grasberg open pit. The expansion of the currently producing Deep Ore Zone (DOZ) mine to 50,000 metric tons of ore per day is complete with first-quarter rates averaging 61,000 metric tons per day. A further expansion of the DOZ mine to 80,000 metric tons per day is under way with completion targeted by 2010. Other projects include the development of the high-grade Big Gossan mine, expected to ramp up to full production of 7,000 metric tons per day in 2011, and the continued development of the Common Infrastructure project, which will provide access to the Grasberg underground ore body, the Kucing Liar ore body and future development of the mineralized areas below the DOZ mine. PT Freeport Indonesia�s 2008 exploration efforts in Indonesia include testing extensions of the Deep Grasberg and Kucing Liar mine complex and evaluating targets in the area between the Ertsberg East and Grasberg mineral systems from the new Common Infrastructure tunnels. Initial drill results from the Common Infrastructure tunnel are positive and additional drilling is in process. FCX continues its efforts to resume exploration activities in certain prospective areas in Papua, outside Block A (the Grasberg contract area). The number of drill rigs operating on these and other programs near FCX�s mine sites increased from 26 at the end of March 2007 to 80 currently. A full-text copy of the company's press release is available for free at http://bankrupt.com/misc/freeport_mcmoran_1Q2008.pdf About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. As reported in the Troubled Company Reporter on April 10, 2008, Fitch Ratings upgraded the Issuer Default Rating and debt ratings of Freeport-McMoRan Copper & Gold Inc: FCX: -- Issuer Default Rating upgraded to 'BBB-' from 'BB+'; -- Unsecured notes due 2015 and 2017 upgraded to 'BBB-' from 'BB+'. -- 7% convertible notes due 2011 upgraded to 'BBB-' from 'BB+'. -- Convertible Preferred Stock upgraded to 'BB' from 'BB-'. On Feb. 21, 2008, Moody's Investors Service upgraded Freeport's corporate family rating to Ba1 from Ba2 and undertook these related rating actions: (i) upgraded to Baa1 (LGD1, 4%) from Baa2 the senior secured rating on Freeport's US$500 'million secured revolver; (ii) upgraded to Baa1 (LGD1, 9%) from Baa3 the senior secured ratings on Freeport's US$1 billion secured revolver and Freeport's 6.875% senior secured notes; and (iii) upgraded to Ba2 (LGD5, 74%) from Ba3 Freeport'sUS$6.0 billion of senior unsecured notes. Moody's also upgraded to Baa2 (LGD2, 16%) from Ba1 the ratings on Phelps Dodge's notes. Moody's said the ratings outlook for Freeport and Phelps is stable. ========= J A P A N ========= ALITALIA SPA: To Receive EUR300-Million Bridging Loan from Italy ---------------------------------------------------------------- The Italian government has approved a EUR300-million bridging loan to Alitalia S.p.A. to keep it afloat and prevent it from seeking bankruptcy protection, various reports say. As reported in the TCR-Europe on April 22, 2008, the incoming administration of Prime Minister-elect Silvio Berlusconi and the outgoing government of current Prime Ministe Enrico Prodi have initially agreed to provide a EUR150 million emergency financing to Alitalia, which only had EUR170 million in cash and credit as of March 31, 2008. Finance Minister Tommaso Padoa-Schioppa was quoted by Bloomberg News as saying that without the loan, Alitalia would have to seek protection from creditors. Mr. Prodi said Mr. Berlusconi asked him to raise the loan amount to EUR300 million to allow more "time to put together and organize possible alternative solutions," the Associated Press reports. Mr. Prodi noted that Alitalia has to repay the loan by end of 2008. State Aid Violation? The European Commission, meanwhile, would review the financing to Alitalia, whether it violates the European Union rule on state aid, Bloomberg News says citing spokesman Michele Cercone. Under EU's "one time, last time" principle, a company beneficiary of a state aid cannot receive additional rescue or restructuring funding within 10 years since its accepted financial assistance. AP quoted the Commission last week said Alitalia cannot receive further aid until 2011, since it took fiscal assistance in 2001. Italian Bidders AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian businessmen led by Mr. Berlusconi adviser Bruno Ermolli may form a group to bid for Alitalia, Bloomberg News says, citing an unsourced Il Messaggero report. According to Il Messaggero, AirOne will own 40% of the bidding vehicle, the banks will control 40% and Mr. Bruno's group will hold 20%. Mr. Berluconi has been insisting that an Italian consortium will present a binding offer for Italy's 49.9% stake in Alitalia in less than a month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ELPIDA MEMORY: Poor Performance Cues Execs Salary Cuts ------------------------------------------------------ Elpida Memory Inc. said it is reducing the compensation of its executives due to the company's poor performance in fiscal 2007. Elpida's President & CEO Yukio Sakamoto's salary will be reduced to 50% until a monthly operating profit is reestablished. Directors Shuichi Otsuka and Takao Adachi will get a 10% cut from their salaries, while eight corporate executive officers will have a 5% cut. In a statement Elpida states that the reason for its salary reduction is because DRAM pricing is highly volatile. In an attempt to secure a profit during a time of falling prices Elpida strives to lower costs by migrating to more advanced manufacturing processes and improving production efficiency, as well as expand sales of high value-added products, among other measures. One particular attempt to lower costs involved the April 2007 sale of outdated 200mm wafer processing equipment. Unfortunately, the fall in prices was worse than anticipated in FY 2007, outpacing company efforts to reduce production costs throughout the year. As described above, Elpida is now estimating business losses for the FY 2007 full term. As a reflection of the recent disappointing business performance relative to company goals Elpida executives have decided to accept a temporary lowering of their executive level compensation. About Elpida Memory Elpida Memory, Inc. -- http://www.elpida.com.-- is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technology expertise. Its 300mm manufacturing facilities, Hiroshima Plant and a Taiwan-based joint venture Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's advanced portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phone and digital consumer electronics. The Troubled Company Reporter-Asia Pacific reported on Dec. 10, 2007, that Standard & Poor's Rating Services assigned a BB- for Elpida Memory Inc.'s long-term corporate credit rating with a stable outlook reflecting the company's heavy financial burden, which is required to make regular large investments to maintain and improve its competitiveness. SHOKO CHUKIN BANK: Conversion Doesn't Change Moody's BFSR at D -------------------------------------------------------------- Moody's Investors Service has changed the rating outlook for the Aaa long-term deposit rating of Shoko Chukin Bank (SCB) to negative from stable. The bank's Prime-1 short-term deposit rating and D bank financial strength ratings are not affected. Also, SCB's baseline credit assessment (BCA), currently at 5, has been withdrawn. The outlook change reflects Moody's view that SCB's conversion into a special stock corporation and its disengagement from policy finance activities may lead to a decline in the probability of extraordinary support from the government over the medium term. The withdrawal of SCB's BCA reflects the bank's role as a deposit-taking institution and its participation in the Deposit Insurance System. Also, in Moody's view, SCB's standalone financial strength may better be measured by a bank financial strength rating, as the bank is to become more like other commercial banks -- including its deposit-taking. The new law governing SCB will take effect in October 2008, and SCB's status will convert to that of a special stock corporation. Following this development, a portion of the government's current ownership interest in SCB will be converted into "special reserves." According to the government plan, following the conversion, the government will likely reduce its ownership to approximately less than 50% during FY2008, and then to zero during 2013-2015. Special reserves will remain as a part of SCB's regulatory capital. The repatriation of special reserves to the government requires the resolution of SCB's shareholders' meeting. There is no fixed date for the repatriation, and the special reserves cannot be used as a source for SCB's dividend payments. Moody's expects there will be a high level of government control and involvement over SCB's activities until the privatization is completed. Shoko Chukin Bank is a government-owned financial institution with total assets of approximately JPY 11 trillion as of March 2007. ========= K O R E A ========= DIOMED HOLDINGS: Trustee Appoints 5-Member Creditors' Committee --------------------------------------------------------------- The United States Trustee for Region appointed five members to the Official Committee of Unsecured Creditors in Diomed Holdings Inc. and Diomed Inc.'s Chapter 11 cases. These members include: 1) Pioneer Optics Co. c/o Ron Hille, President 35 Griffin Road South Bloomfield, CT 06002 Tel: (860) 286-0071 Fax: (860) 286-0171 2) Stradis Healthcare d/b/a Professional Sterile Concepts c/o Bret T. Buhler, President 805 Marathon Parkway Lawrenceville, GA 30045 Tel: (770) 962-2425 Fax: (770) 962-2391 3) Endovenous Laser Associates c/o Robert J. Min, M.D. 29 Witherbee Avenue Pelham Manor, NY 10803 Tel: (914) 576-6484 Fax: (212) 746-8596 4) Endolaser Associates, LLC c/o Luis Navarro 327 East 65th Street New York, NY 10021 Tel: (212) 249-6117 Fax: (212) 517-5630 5) Luminetx Corporation c/o Rodney Schutt 1256 Union Avenue, 3rd Floor Memphis, TN 38104 Tel: (901) 252-3700 Fax: (901) 252-3701 About Diomed Holdings Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX: DIO) -- http://www.evlt.com/and http://www.diomedinc.com/-- develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed's EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy for use in cancer treatments, and dental and general surgical applications. The company sell its products through a direct sales force, and a network of distributors in the EU, Latin America and Mexico, the UK, the US, Japan, Australia, South Korea, the Peoples' Republic of China, and Canada. The company and its affiliate filed for Chapter 11 protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750 and 08- 40749). Douglas R. Gooding, Esq., at Choate Hall & Stewart, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of US$10 million to US$50 million. DIOMED: Wants to Hire McGuireWoods as Bankruptcy Counsel -------------------------------------------------------- Diomed Holdings Inc. and Diomed Inc. ask permission from the U.S. Bankruptcy Court for the District of Massachusetts to employ McGuireWoods LLP as their general bankruptcy counsel. McGuireWoods will, among other things, advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their business and properties. Mark E. Freedlander, Esq., a partner at the firm, tells the Court that the firm's professionals bill: Attorneys US$325 - US$710 Paralegals US$175 Mr. Freedlander assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About Diomed Holdings Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX: DIO) -- http://www.evlt.com/and http://www.diomedinc.com/-- develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed's EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy for use in cancer treatments, and dental and general surgical applications. The company sell its products through a direct sales force, and a network of distributors in the EU, Latin America and Mexico, the UK, the US, Japan, Australia, South Korea, the Peoples' Republic of China, and Canada. The company and its affiliate filed for Chapter 11 protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750 and 08- 40749). Douglas R. Gooding, Esq., at Choate Hall & Stewart, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of US$10 million to US$50 million. HYNIX SEMICONDUCTOR: Won't Buy Stake in Germany's Qimonda --------------------------------------------------------- Hynix Semiconductor Inc. denied rumors that it is considering to acquire a stake in German memory chip maker Qimonda, Reuters reports. "We have not been approached. We have not discussed such a deal. This has nothing to do with us," a Hynix spokesman was quoted by Reuters as saying. Headquartered in Echon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. The company has operations in Russia, and the United States. * * * As reported in the Troubled Company Reporter-Asia Pacific reported on June 19, 2007, Moody's Investors Service upgraded to Ba2 from Ba3 Hynix Semiconductor Inc's senior unsecured bond rating and corporate family rating. At the same time, Moody's assigned a Ba2 senior unsecured bond rating for Hynix's proposed US$500 million issuance. Moody's said the outlook for the ratings is stable. HYUNDAI MOTOR: Records 28% Increase in First-Quarter Net Profit --------------------------------------------------------------- Hyundai Motor Co.'s first quarter net profit increased 28% to KRW392.7 billion (US$395.8 million), missing a KRW559.2 billion forecast by 10 analysts in a Reuters poll. The result, the report relates, compares to KRW307.4 billion net a year ago and a CNY338 billion net profit in the fourth quarter of 2007. According to the report, the company's operating profit increased 61% to KRW529.1 billion from a year ago but missing a CNY574.8 billion forecast. Sales rose 22% to KRW8.2 trillion won, slightly outperforming a forecast of 8.11 trillion won, with a 14 percent growth in unit sales, the report notes. Reuters relates that Hyundai Motor sold 442,971 vehicles in the first quarter of 2008 compared a revised 387,463 a year earlier. Judy Hua and Lucy Hornby of Reuters write that due to the missed forecast, company shares fell as derivatives losses ballooned, offsetting higher sales fuelled by a weak local currency. Analysts told Reuters that continued weakness in the won and increased production from new factories in China and India are expected to lift Hyundai's earnings this year, but higher oil and raw materials prices are set to buffet margins. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company re-established itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since reduced to about 45%. The Company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter-Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the falling United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. TERADYNE INC: Earns US$21.8 Million in First Quarter 2008 --------------------------------------------------------- Teradyne, Inc., reported sales of US$297 million in the first quarter of 2008. Net income for the first quarter was US$21.8 million, or US$0.12 per diluted share, on a non-GAAP basis, which excludes amortization of acquired intangible assets and special items, and US$2.4 million or US$0.01 per diluted share on a GAAP basis. Bookings for the first quarter were US$321 million, and included a full quarter of Nextest bookings of US$33 million. "We're off to a good start in 2008, with order growth in System on Chip (SOC) test and a strong showing by our new memory test business unit,� said Mike Bradley, Teradyne president and CEO. �Wireless solutions dominated our first quarter bookings, as FLEX (R) test systems once again cracked the 100-unit mark. In addition, our new product pipeline in both SOC and memory test showed good momentum on the design-in front.� Guidance for the second quarter of 2008 is for sales of US$310 million to US$330 million, with earnings per diluted share between US$0.14 and US$0.19 on a non-GAAP basis, and US$0.07 to US$0.12 on a GAAP basis. Non-GAAP guidance excludes US$8 million of estimated restructuring and other charges, net, as well as acquired intangible amortization of US$5 million. About Teradyne, Inc. Teradyne Inc. (NYSE:TER) -- http://www.teradyne.com/-- is a supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2007, Teradyne had sales of US$1.1 billion and currently employs about 3,700 people worldwide. The company has direct subsidiaries in these countries, Costa Rica, the United Kingdom, Mexico, Korea, France and China. * * * Teradyne Inc. still carries S&P's "B+" long term foreign issuer credit and long term local issuer credit ratings which was placed on Dec. 13, 2002. =============== M A L A Y S I A =============== GOLD BRIDGE: Securities to be Listed Again in Bursa --------------------------------------------------- Gold Bridge Engineering & Construction Berhad's securities were uplifted yesterday, April 24, 2008, to the Bursa Malaysia Securities Berhad following the company's submission of its annual report for the financial year ended June 30, 2007. About Gold Bridge Headquartered in Kuala Lumpur, Malaysia, Gold Bridge Engineering & Construction Berhad develops residential and commercial properties and provision of civil engineering and general construction services. The Company's other activities include boat building and repairing of ships, manufacturing and supplying of ready-mixed concrete and provision of related services, management of golf and beach resort and investment holding. Operations are carried out principally in Malaysia. The Company has incurred losses in the past. It also defaulted on several loan facilities, which caused it to fall under Bursa Malaysia Securities Berhad's Practice Note 1/2001 category. Ernst & Young have expressed a significant doubt about the group's and the company's abilities to continue as going concerns after auditing annual consolidated audited accounts for the year ended June 30, 2007. The auditor pointed to the group and the company's net losses attributable to equity holders of MYR49,234,514 and MYR24,346,767 respectively and net current liabilities of the group and of the company of MYR115,806,799 and MYR25,919,289 respectively. Furthermore, the group and the company have defaulted in the repayment of bank borrowings totaling to MYR6,311,782 and MYR4,178,366 respectively, while the group and the company have also not paid their tax liabilities of MYR73,380,810 and MYR22,951,425 respectively. HARVEST COURT: Taps Chua Eng Chin as Audit Committee Chairman ------------------------------------------------------------- Harvest Court Industries Bhd has appointed Chua Eng Chin as the company's chairman of Audit Committee and as a non-executive director. Meanwhile, Ng Swee Kiat tendered his resignation as the company's member of Audit Committee. The company's Audit Committee composes now of: * Chua Eng Chin -- Chairman * Zainuri Bin Zainal -- Member * Sukhinderjit Singh Muker � Member Headquartered in Selangor, Malaysia, Harvest Court Industries Berhad -- http://www.harvestcourt.com/-- is engaged in kiln drying, saw milling and manufacturing of timber doors and related products. Other activities include development of residential and commercial properties and jetty services and provision of construction works and related maintenance services. The Group is also involved in the provision of marketing and management services and investment in shares and securities. The Group operates in Malaysia and Australia. The Group has defaulted on several loan facilities because of a reduction in sales from 2002 onwards due to a weak global market as a result of the Iraqi and the severe acute respiratory syndrome, or SARS, as well as its inability to raise funds via the equity market due to weak market sentiment. Due to its financial position, Harvest Court had embarked on an exercise to restructure, including a debt restructuring and capital reduction. The Company's proposed corporate exercise was rejected by the Securities Commission in November 2005, on grounds that the proposals are not comprehensive and are not capable of resolving all its financial problems. Its appeal to reconsider the rejection was also junked by the Commission on February 24, 2006. The Harvest Court Board is now in talks with lenders and major creditors for its next course of action. Harvest Court Industries Bhd's unaudited balance sheet as of June 30, 2007, went upside down by MYR16.49 million. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Moody's Affirms Ba1 Rating; Outlook Positive ------------------------------------------------------------- Moody's Investor's Service has affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. The outlook remains positive. "Despite the likelihood of more turbulent conditions ahead for the airline industry, Air New Zealand's rating remains well supported by a dominant position in its core domestic market, sound financial metrics for its Ba1 rating and an efficient low- age aircraft fleet", says Ian Lewis, a Moody's Vice President. "While it is clear that softer economic conditions and higher jet fuel costs will impact the company, Air New Zealand's financial metrics and solid market position provide it with the potential to evolve into an investment grade rating over the medium-to-long term" adds Lewis, who is also Lead Analyst for the company. "On the other hand Air New Zealand is not exempt from the adverse global conditions that currently threaten the industry - including the impact of slowing domestic and international economies - and which are likely to represent reasonable challenges over coming months," says Lewis. The rating outlook remains positive in light of the strong metrics and robust operational franchises shown by Air New Zealand for its rating level. The rating may experience an upward trend if the company manages the current adverse operating environment and in anticipation of the heavy spending portion of its capital cycle, now due to recommence in 2011, without materially compromising its credit profile. Such an outcome may be reflected by sustained metrics as follows: EBITDA margin above 20%, adjusted debt to EBITDA at or near 4x, and EBIT/Interest coverage at or near 2.5x. On the other hand, the rating may experience negative pressure if increased competition, adverse economic conditions and/or sustained high oil prices significantly undermines profit margins and leverage. Indicators Moody's would look for include EBITDA margins trending towards 15%, Debt/EBITDA at or above 6x and EBIT/Interest coverage below 2x. Air New Zealand, based in Auckland, is New Zealand's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. ALCATEL-LUCENT SA: Rebecca Hick to Lead New Zealand Channel Unit ---------------------------------------------------------------- Alcatel-Lucent SA has appointed Rebecca Hick as channel manager for its Enterprise Business division in New Zealand. Ms. Hick will lead a growing sales team and manage a multi- channel network of resellers to promote Alcatel-Lucent�s market- leading portfolio of enterprise products. An ICT specialist, Ms. Hick joins Alcatel-Lucent from Fronde, an IT services company, where she was client business manager and consultant. Prior to that she held similar roles at Vodafone, Air New Zealand and ASB bank. "I am looking forward to working with the sales team at Alcatel- Lucent and our channel partners in New Zealand to provide the kind of advanced communications solutions businesses in New Zealand need to compete in this global environment," Ms. Hicks said. "We have the advantage of strong and successful channel partnerships in New Zealand with such companies as Cogent, Datacraft and DownerCommspec." She noted that in 2007 Cogent Communications and Vodafone secured a pilot contract with NZ Steel, deploying Alcatel- Lucent�s Omni PCX IP PBX solution to provide mobile extension capabilities as part of NZ Steel�s unified communications facelift. "This is very much the kind of success story I will work to emulate in 2008 and beyond," she said. "New Zealand is an important market for Alcatel-Lucent,� said Sean O�Halloran, Vice President of Enterprise Business, Australasia. "We are pleased to be able to add someone with Rebecca�s talent and depth of experience to help us meet the needs of our customers here." In the past 12 months Alcatel-Lucent has announced two major projects with New Zealand enterprises. Transpower awarded the company a five-year, multi-million dollar, network integration and transformation contract, and Kordia selected Alcatel- Lucent�s IP routing products to support the delivery of Freeview TV simultaneously over both satellite and terrestrial networks. "With her strong background in software, services and applications, Rebecca Hick�s appointment will further strengthen the New Zealand team to continue transforming customer�s businesses, and is testament to our commitment over the coming year to grow our Australasian Enterprise business." About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe on April 4, 2008, Moody's Investors Service affirmed the ratings for Alcatel-Lucent, which include a Ba3 corporate family rating for Alcatel-Lucent and a Not-Prime for its short term debt, as well as Ba3 ratings for senior and B2 ratings for subordinated debt that was issued originally by the predecessor companies Alcatel S.A. and Lucent Technologies, Inc. Moody's said the outlook for the ratings is Negative. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. CHAMBERLAIN PARK PROPERTY: Creditors Must File Claims by May 4 -------------------------------------------------------------- Robin Winston Hargrave, chartered accountant of O�Halloran HMT Limited, was appointed liquidator of Chamberlain Park Property Limited on April 3, 2008. Creditors have until May 4, 2008, to file their claims. The liquidator can be reached at: O�Halloran HMT Limited PO Box 6004 Wellesley Street Auckland Telephone: (09) 366 5065 Facsimile: (09) 366 5001 D N BECKETT LIMITED: High Court Appoints Liquidators ---------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators D N Beckett Limited by the High Court on April 1, 2008. Creditors have until July 1, 2008, to make their claims and to establish any priority their claims may have, or be excluded from the benefit of any distribution. The liquidators can be reached at: PricewaterhouseCoopers 188 Quay Street (Private Bag 92162) Auckland Telephone: (09) 355 8509 Facsimile: (09) 355 8013 DON LAW REALTY: Shareholder Resolves to Liquidate Firm ------------------------------------------------------ On April 2, 2008, it was resolved by special resolution of the shareholder that Don Law Realty Limited be liquidated and that Gregory Paul Spicer, chartered accountant, be appointed liquidator for that purpose. Creditors have until April 30, 2008, to file their proofs of claim or be excluded from the benefit of any distribution. The liquidator can be reached at: G. P. Spicer Spicer & Associates Limited 30 Queen Street (PO Box 351) Levin Telephone: (06) 368 6199 Facsimile: (06) 368 2278 DONCASTER PROPERTY: Creditors Must File Claims by April 30 ---------------------------------------------------------- Mark van Rossem, chartered accountant, was appointed liquidator of Doncaster Property Limited on March 27, 2008. Creditors have until April 30, 2008, to file their claims, or be excluded from the benefit of any distribution. The liquidator can be reached at: TVR Chartered Accountants Limited PO Box 8155 Symonds Street Auckland Telephone: (09) 373 4634 Facsimile: (09) 368 1600 FRESH & FROZEN FOOD: Shareholders Appoint Liquidators ----------------------------------------------------- Iain Bruce Shephard and Christine Margaret Dunphy were appointed jointly and severally as liquidators of Fresh & Frozen Food Distributors Limited pursuant to a special resolution of shareholders on April 1, 2008. The liquidators can be reached at: Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street Wellington Telephone: (04) 473 6747 Facsimile: (04) 473 6748 HAWKES BAY: Shareholders Appoint Liquidator ------------------------------------------- Shareholders of Hawkes Bay Manufacturing Limited appointed John Francis Managh on April 1, 2008, as liquidator. The liquidator can be reached at: 50 Tennyson Street (PO Box 1022) Napier Telephone/Facsimile: (06) 835 6280 INTEGRITY REAL ESTATE: High Court Appoints Liquidators ------------------------------------------------------ Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of Integrity Real Estate Limited by the High Court on April 1, 2008. Creditors have until July 1, 2008, to make their claims and to establish any priority their claims may have, or be excluded from the benefit of any distribution. The liquidators can be reached at: PricewaterhouseCoopers 188 Quay Street (Private Bag 92162) Auckland Telephone: (09) 355 8509 Facsimile: (09) 355 8013 JOHNSONVILLE MOTELS: Commences Liquidation Proceedings ------------------------------------------------------ On March 17, 2008, it was resolved that Johnsonville Motels Limited be liquidated and that Anne Veronica Stephenson, chartered accountant of Wellington, be appointed liquidator for this purpose. The liquidator can be reached at: PO Box 11051 Wellington 6142 Telephone: (04) 473 1980 Facsimile: (04) 473 9483 JUST INTEGRITY 2000 LIMITED: High Court Appoints Liquidators ------------------------------------------------------------ Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of Just Integrity 2000 Limited by the High Court on April 1, 2008. Creditors have until July 1, 2008, to make their claims and to establish any priority their claims may have, or be excluded from the benefit of any distribution. The liquidators can be reached at: PricewaterhouseCoopers 188 Quay Street (Private Bag 92162) Auckland Telephone: (09) 355 8509 Facsimile: (09) 355 8013 KINLEITH LOG STACKERS: Creditors Must File Claims by May 7 ---------------------------------------------------------- On March 31, 2008, it was resolved that Kinleith Log Stackers Limited be liquidated and that Kim S. Thompson, insolvency practitioner of Hamilton, be appointed liquidator. Creditors have until May 7, 2008, to prove their debts or claims and to establish any title that they may have to priority, or be excluded from the benefit of any distribution. The liquidator can be reached at: PO Box 1027 Hamilton Telephone: (07) 834 6813 Facsimile: (07) 834 6104 e-mail: kim@kstca.co.nz MANABARS TECHNOLOGIES LIMITED: High Court Appoints Liquidators -------------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators Manabars Technologies Limited by the High Court on April 1, 2008. Creditors have until July 1, 2008, to make their claims and to establish any priority their claims may have, or be excluded from the benefit of any distribution. The liquidators can be reached at: PricewaterhouseCoopers 188 Quay Street (Private Bag 92162) Auckland Telephone: (09) 355 8509 Facsimile: (09) 355 8013 MATECO NZ: Commences Liquidation Proceedings -------------------------------------------- On March 31, 2008, it was resolved by special resolution that Mateco NZ Limited, trading as Toolworld, be liquidated and that Kim S. Thompson, insolvency practitioner of Hamilton, be appointed liquidator. Creditors have until May 7, 2008, to prove their debts or claims and to establish any title that they may have to priority, or be excluded from the benefit of any distribution. The liquidator can be reached at: KIM S. THOMPSON, Liquidator PO Box 1027 Hamilton Telephone: (07) 834 6813 Facsimile: (07) 834 6104 e-mail: kim@kstca.co.nz NIGEL MILLAR MACHINERY: Court Appoints Joint Liquidators -------------------------------------------------------- Stephen John Tubbs, chartered accountant, and Colin Anthony Gower, insolvency practitioner, were appointed joint liquidators of Nigel Millar Manufacturing Limited by order of the High Court on March 31, 2008. Creditors have until May 31, 2008, to file their proofs of claim or be excluded from the benefit of any distribution. Creditors and shareholders may direct inquiries to: Barbara King BDO Spicers Spicer House, Level 6 148 Victoria Street Christchurch Telephone: (03) 353 5528 Facsimile: (03) 353 5526 RITCHIE ENTERPRISES: Creditors Must File Claims by May 6 -------------------------------------------------------- Shareholders of Ritchie Enterprises Limited appointed Boris van Delden and John Trevor Whittfield, insolvency practitioners of Auckland, jointly and severally as liquidators on April 1, 2008. Creditors are required to file their claims by May 6, 2008, or to excluded from the benefit of any distribution. The liquidators can be reached at: McDonald Vague PO Box 6092 Wellesley Street Post Office Auckland Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Web site: http://www.mvp.co.nz S & P TECHNOLOGIES: Creditors Must File Claims by May 5 ------------------------------------------------------- Shareholders of S & P Technologies Limited appointed Boris van Delden and John Trevor Whittfield, insolvency practitioners of Auckland, jointly and severally as liquidators on March 31, 2008. Creditors are required to file their proofs of claim by May 5, 2008, or be excluded from the benefit of any distribution. The liquidator can be reached at: McDonald Vague PO Box 6092 Wellesley Street Post Office Auckland Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Web site: http://www.mvp.co.nz SHELDRAKE LTD: Court to Hear Wind-Up Petition on June 6 ------------------------------------------------------- On February 1, 2008, Alan Ross Matheson, Alison Maree Marshall and Matheson Marshall Investments Limited filed an application in the High Court at Auckland to put Sheldrake Limited into liquidation. The application will be heard before the High Court at Auckland on June 6, 2008, at 10:45 a.m. The plaintiffs' solicitor is: Anthony J. Nolan 324 Victoria Street (PO Box 1268) Hamilton Telephone: (06) 834 0365 Facsimile: (06) 838 9244 STORE TRADING: Court to Hear Wind-Up Petition on June 6 ------------------------------------------------------- On March 10, 2008, Expeditors International (NZ) Limited filed an application in the High Court at Auckland to liquidate Store Trading Limited. The application will be heard before the High Court at Auckland on June 6, 2008, at 10:45 a.m. The plaintiff's solicitor is: Kevin Patrick McDonald Kevin McDonald & Associates, Solicitors Takapuna Towers, Level 11 19-21 Como Street (PO Box 331065 or DX BP 66086) Takapuna, Auckland Telephone: (09) 486 6827 Facsimile: (09) 486 5082 THE HIGHWAY VILLAGE: A. V. Stephenson Appointed as Liquidator ------------------------------------------------------------- On March 17, 2008, it was resolved that The Highway Village (1984) Limited be liquidated and that Anne Veronica Stephenson, chartered accountant of Wellington, be appointed liquidator for this purpose. The liquidator can be reached at: PO Box 11051 Wellington 6142 Telephone: (04) 473 1980 Facsimile: (04) 473 9483 TMP QUALITY FIXING: Court Replaces Liquidators ---------------------------------------------- TMP Quality Fixing Limited had previously appointed Gerald Stanley Rea and Paul Graham Sargison as liquidators on Feb. 11, 2008, but as Court application proceedings had already commenced, the Court replaced the earlier liquidators. The High Court at Auckland appointed Thomas Lee Rodewald and Robert James Neilson as joint and several replacement liquidators of TMP Quality Fixing Limited on March 12, 2008. The new liquidators can be reached at: Rodewald Hart Brown Limited 127 Durham Street (PO Box 13380) Tauranga Telephone: (07) 571 6280 Web site: http://www.rhb.co.nz TOTAL FOOD SERVICES: Shareholders Appoint Liquidators ----------------------------------------------------- Iain Bruce Shephard and Christine Margaret Dunphy were appointed jointly and severally as liquidators of Total Food Services Limited pursuant to a special resolution of shareholders on April 1, 2008. The liquidators can be reached at: Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street Wellington Telephone: (04) 473 6747 Facsimile: (04) 473 6748 XJL CARTAGE: Joint Liquidators Appointed ---------------------------------------- Dennis Clifford Parsons and Katherine Louise Kenealy were appointed joint and several liquidators of XJL Cartage Limited on April 1, 2008. The liquidators can be reached at: Indepth Forensic Limited PO Box 278 Hamilton ===================== P H I L I P P I N E S ===================== NIHAO MINERAL: Posts Php14.52 Million Net Loss for FY 2007 ---------------------------------------------------------- NiHAO Mineral Resources International Inc. incurred a Php14.52 million net loss on a consolidated basis for the full fiscal year 2007, the company said in a regulatory filing. According to the company, it has not started it commercial operations as a mining company, but, has performed exploration studies on some prospects. Relative to this, the company said it incurred exploration and development costs of Php9.1 million and professional fees of Php1 million. To keep the company as a going concern, NiHAO disclosed that operating costs reached a total of Php4.37 million, a 375% increase from 2006 of Php0.92 million. The increase in expenses is attributable mainly to salaries of employees and legal fees amounting to Php1.14 million and Php0.89 million, respectively. Thee expenses, net of interest earned from savings deposit reported a net operating loss carry over of Php13.44 million in 2007, a 1,359% higher than reported loss of Php0.92 million in 2006. The company�s wholly owned subsidiary, Mina Tierra Gracia Inc., a mining company, incurred a total of Php1.08 million costs for six months operations in Botolan, Zambales. On a consolidated basis, total assets were at Php67.67 million, while total liabilities is pegged at Php71.96 million and stockholders� equity is a negative Php4.29 million. The company reflected in its financial statements the acquisition of Mina Tierra Gracia in October 2007 resulting to an increase in the company�s total assets from Php0.05 million in 2006 to Php68.48 million in 2007. To fund the acquisition and to continue as a going concern, the company increase advances from Oyez!!! Corporation -- one of its top 20 shareholders -- thereby, increasing the liabilities from Php4.87 million in 2006 to Php71.69 million in 2007. The advances made to the company by the majority stockholders were converted to equity resulting to a full subscription of its authorized capital stock of Php100 million. The valuation of the shares equivalent to 14,960,000 was approved by the Securities and Exchange Commission in August 2007. Nihao has a pending application with the Philippine Stock Exchange to list the said shares. The company relies on its majority stockholders for internal and immediate source of liquidity. Other sources include collections from its subsidiaries small scale mining operations. External sources would come from proceeds of the company�s planned stock rights offering of Php500 million. About NiHAO Mineral Headquartered in Makati City, Philippines, NiHAO Mineral Resources International Inc. was originally incorporated on July 9, 1975 as Summit Minerals Inc., a company engaged in mining exploration. On February 24, 1994, the Securities and Exchange Commission approved the change in the company's primary purpose to that of a holding company and the change in its corporate name to Magnum Holdings Inc. On June 28, 2007, the SEC approved another change in the company's primary purpose to that of exploration, development and operation of mineral properties and the mining of metallic and non-metallic minerals. The company also subsequently changed its corporate name to NiHAO Mineral Resources International Inc. The operations of NI have been suspended since August 2000. The suspension is for the purpose of minimizing the losses occasioned by unfavorable business conditions. PLDT: Year 2007 Net Income Up by 21% to PHP39,274 Million --------------------------------------------------------- Philippine Long Distance Telephone Company's total revenues increased Php12,138 million or 9% for the year ended December 31, 2007, to Php151,862 million from Php139,724 million in year ended December 31, 2006, the company said in a regulatory filing. The increase, according to the company, was primarily due to an increase in service revenues primarily resulting from the continued growth of wireless business and an increase in ICT revenues largely due to the effects of the full-year consolidation of the financial results of SPi, CyMed and Level Up! and the continued increase in customer interaction service revenues, which was partially offset by a continued decrease in fixed line revenues. In addition, the revenue increase was to due an increase in foreign exchange gains, primarily due to the effect of foreign exchange revaluation as a result of the higher level of appreciation of the Philippine peso in 2007, which was partially offset by a decrease in other income. The revenue contribution of its wireless business accounted for 62% and 60% of total revenues for 2007 and 2006, respectively. Consolidated net income in 2007 was Php39,274 million, an increase of Php6,693 million, or 21%, compared to Php32,581 million in 2006. As at December 31, 2007, consolidated cash and cash equivalents and short-term investments totaled Php30,862 million. The company's principal sources of consolidated cash and cash equivalents in 2007 were cash flows from operating activities amounting to Php77,418 million, drawings from Smart�s, PLDT�s and ePLDT�s debt facilities aggregating Php7,647 million and short-term credit facilities totaling Php502 million. The funds were used principally for dividend payments of Php28,470 million, capital outlays of Php24,824 million, total debt principal payments of Php18,258 million and interest payments of Php5,891 million. Principal sources of consolidated cash and cash equivalents in 2006 were cash flows from operations amounting to Php69,211 million, drawings from long-term and short-term credit facilities totaling Php9,724 million and Php211 million, respectively, and equity funds raised through the issuance of capital stock amounting to Php66 million in 2006. The funds were used principally for capital outlays of Php20,674 million (including capitalized interest of Php549 million), payments of long-term and short-term debt totaling Php29,366 million and interest payments of Php7,528 million. The company's balance sheet as of December 31, 2007, showed total assets of Php240,158 million, total liabilities of Php127,813 million and total stockholders' equity of Php112,345 million. About PLDT Headquartered in Manila, PLDT is an integrated provider of fixed-line, broadband, cellular and ICT services. As at February 2008 it had 31 million cellular, 1.7 million fixed-line and 0.6 million broadband subscribers and is the country's leading telecommunications service provider equating to market shares of 55%, 60% and 70% respectively. Major shareholders are First Pacific and NTT/NTT DoCoMo, with effective common shareholdings of 26.3% and 20.9% as of 6th February 2008. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 24, 2008, Moody's Investors Service affirmed Philippine Long Distance Telephone Company's Ba2/positive foreign currency bond rating. PLDT: Schedules 1st Qtr Results Teleconference on May 6 ------------------------------------------------------- Philippine Long Distance Telephone Company will hold a teleconference to discuss the company�s 2008 First Quarter Financial and Operating Results on Tuesday, May 6, 2008, at 3:00 p.m., Manila Time. Headquartered in Manila, PLDT is an integrated provider of fixed-line, broadband, cellular and ICT services. As at February 2008 it had 31 million cellular, 1.7 million fixed-line and 0.6 million broadband subscribers and is the country's leading telecommunications service provider equating to market shares of 55%, 60% and 70% respectively. Major shareholders are First Pacific and NTT/NTT DoCoMo, with effective common shareholdings of 26.3% and 20.9% as of 6th February 2008. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 24, 2008, Moody's Investors Service affirmed Philippine Long Distance Telephone Company's Ba2/positive foreign currency bond rating. SBARRO INC: Earns US$5.1 Million in Fourth Quarter Ended Dec. 30 ---------------------------------------------------------------- Sbarro Inc. reported net income of US$5.1 million for the quarter ended Dec. 30, 2007, as compared to US$11.5 million for the quarter ended Dec. 31, 2006. The decrease in net income resulted from a decline in company store sales in the quarter as well as higher commodity cost. Revenues were US$104.7 million for the quarter ended Dec. 30, 2007, as compared to US$97.3 million for the quarter ended Dec. 31, 2006. The fourth quarter of 2007 consisted of thirteen weeks as compared to twelve weeks in the fourth quarter of 2006. The one week difference in 2007 generated revenues of approximately US$6.5 million. During the quarter the company had a same store sales decrease of 1.8% as consumers reacted to economic headwinds. This decline in same store sales was offset in part by revenue generated from new company owned stores opened in 2007 as well as an increase in revenues from the company's franchised restaurants. The company's franchised restaurants experienced same store sales growth of 2.1% for its domestic franchised stores and 12.8% for its international franchised stores as well as increased revenue generated from new franchised stores opened in 2007. EBITDA, as calculated in accordance with the terms of the company's bank credit agreement, was US$23.9 million for the fourth quarter ended Dec. 30, 2007, as compared to US$24.7 million for the fourth quarter ended Dec. 31, 2006. The one week difference in 2007 generated EBITDA of approximately US$900,000. EBITDA decreased in the quarter as a result of both the decline in company store sales and the increased commodity cost offset in part by a reversal of corporate bonuses which had been accrued in prior quarters and was reversed as a result of not meeting the EBITDA thresholds contained in the plan. Year to Date Financial Results On Jan. 31, 2007, MidOcean SBR Acquisition Corp., an indirect subsidiary of MidOcean SBR Holdings LLC, an affiliate of MidOcean Partners III L.P., and certain of its affiliates, merged with and into the Sbarro Inc. in exchange for consideration of US$450 million in cash, subject to certain adjustments. As a result of the merger, the company is now an indirect wholly owned subsidiary of MidOcean SBR Holdings. The company has reported operating results and its financial position for all periods presented as of and prior to Jan. 30, 2007 (prior to completion of the merger) as those of the predecessor company and for all periods from and after Jan. 31, 2007 (from completion of the merger) as those of the successor company. The company's operating results for the year ended Dec. 30, 2007, are presented as the combined results of the predecessor and successor companies. The presentations of combined results is not consistent with the requirements of GAAP; however, the company's management believes that it is a meaningful way to present the results of operations for the year ended Dec. 30, 2007. Combined revenues were US$358.8 million for the year ended Dec. 30, 2007, as compared to US$349.8 million for the year ended Dec. 31, 2006. The revenue increase was primarily driven by same-store sales growth of 1.5% in company-owned stores, 4.3% in domestic franchise stores and 6.7% in international franchise stores as well as revenue from new stores opened in 2007 in both company owned and franchised restaurants. Revenues related to real estate operations, which were transferred to certain of the company's former shareholders in connection with the merger, were US$300,000 for 2007 compared to US$2.1 million for 2006. Combined net loss for the year ended Dec. 30, 2007, was US$30.0 million as compared to US$9.9 million net income for the year ended Dec. 31, 2006. Included in the combined net loss or the year ended Dec. 30, 2007, was US$31.4 attributable to special event bonuses in connection with the merger, as well as higher depreciation and interest cost resulting from the merger. Combined EBITDA for the year ended Dec. 30, 2007, as calculated in accordance with the terms of the company's bank credit agreement, was US$58.2 million as compared to US$60.3 million for the year ended Dec. 31, 2006. The decline in EBITDA was attributable to higher commodity costs in 2007, in particular cheese which rose US$.51 per pound or Us$4.1 million. These higher commodity costs were offset in part by a decline in corporate bonuses as the EBITDA thresholds in the plan were not met. Management's Comments Peter Beaudrault, chairman of the Board, president and chief executive officer of Sbarro, commented, "We faced unprecedented headwinds in our fourth quarter as comp store sales declined by 1.8% and commodity costs rose at the same time. Our team managed through these headwinds and delivered results for the year that were lower than our expectations, but respectable. We opened 33 company owned restaurants and 81 franchised restaurants. Our international franchised store pipeline grew to in excess of 1,100 at year end 2007. "Our EBITDA, as calculated in accordance with our credit agreement, while lower than last year by US$2.1 million, was respectable in light of increased cheese cost of US$4.1 million." Mr. Beaudrault further commented, "We have taken the necessary steps to operate in this new paradigm of higher commodity costs. We expect to continue our new store opening program in 2008 in both our company owned restaurants and our franchised restaurants while we manage our way through the current economic and commodity headwinds." Total Indebtedness As of Dec. 30, 2007, the company had total indebtedness of US$332.1 million and up to US$25.0 million of additional availability under its Senior Credit Facilities, less $3.8 million of outstanding letters of credit. In addition, the Senior Credit Facilities provide for an uncommitted incremental facility of up to US$50.0 million. Balance Sheet At Dec. 30, 2007, the company's consolidated balance sheet showed US$636.77 million in total assets, US$501.14 million in total liabilities, and US$135.63 million in total stockholders' equity. The company's consolidated balance sheet at Dec. 30, 2007, also showed strained liquidity with US$45.22 million in total current assets available to pay US$50.12 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the year ended Dec. 30, 2007, are available for free at http://researcharchives.com/t/s?2ad8 About Sbarro Inc. Headquartered in Melville, New York, Sbarro Inc. -- http://www.sbarro.com/-- and its franchisees develop and operate family oriented cafeteria-style Italian restaurants principally under the "Sbarro", "Mama Sbarro", "Carmela's", "Sbarro The Italian Eatery" and "Sbarro Fresh Italian Cooking" names. The company has approximately 1,030 restaurants in 41 countries among them are Guatemala, El Salvador, Honduras, The Bahamas, the Philippines and Romania. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts. * * * Sbarro Inc. still carries Moodys' Invetors Service's Caa1 senior unsecured debt rating assigned on July 10, 2006. ================= S I N G A P O R E ================= FRANKEL LEASING: Wind-Up Petition Hearing Set Today --------------------------------------------------- A petition to have Frankel Leasing Pte Ltd.'s operations wound up will be heard before the High Court of Singapore today, April 25, 2008, at 10:00 a.m. The Hongkong and Shanghai Banking Corporation Limited filed the petition on March 31, 2008. The Petitioner's solicitors are: Rajah & Tann LLP 4 Battery Road #15-01 Bank of China Building Singapore 049908 FUTURESTEEL ENGINEERING: Court Enters Wind-Up Order --------------------------------------------------- On March 27, 2008, the High Court of Singapore entered an order to have Futuresteel Engineering Pte. Ltd.'s operations wound up. Subweld Engineering & Fabrication Pte. Ltd. filed the petition against the company. Futuresteel Engineering's liquidator is: Goh Boon Kok c/o M/s Goh Boon Kok & Co. 1 Claymore Drive, #08-11 Orchard Towers (Rear Block) Singapore 229594 JURONG GARDENS: Requires Creditors to File Claims by May 5 ---------------------------------------------------------- Jurong Gardens Pte Ltd, which is in voluntary liquidation, requires its creditors to file their proofs of debt by May 5, 2008, to be included in the company's dividend distribution. The company's liquidators are: Chia Soo Hien Leow Quek Shiong c/o BDO Raffles 5 Shenton Way #07-01 UIC Building Singapore 068808 SPENCER HOUSE: Creditors' Proofs of Debt Due on May 7 ----------------------------------------------------- The creditors of Spencer House Capital Management (Asia) Pte Ltd are required to file their proofs of debt by May 7, 2008, to be included in the company's dividend distribution. The company's liquidator is: Tam Chee Chong 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 ================= S R I L A N K A ================= SANASA DEVELOPMENT: Fitch Lifts Nat'l. Long-term Rating to 'BB' --------------------------------------------------------------- Fitch Ratings Lanka upgraded the National Long-term rating of Sanasa Development Bank Ltd to 'BB(lka)' from 'BB-(lka)' (BB minus(lka)). The upgrade reflects the materialisation of SDB's planned capital program, and is supported by the bank's good profitability and asset quality, albeit constrained somewhat by the risks inherent to the microfinance segment. The Outlook is Stable. In 2006, the Central Bank of Sri Lanka increased the minimum capital requirement for licensed specialised banks to LKR1.5 billion, with a phased deadline, i.e. 50% of the shortfall at FYE08 and full compliance by FYE09. To achieve this, SDB has to date raised LKR330 million of capital from the Thrift and Credit Cooperative Societies Movement, as well as from local and foreign institutions. In addition, the management informed Fitch that it has secured further institutional commitments of approximately LKR550m of capital to be infused by FYE09. SDB's equity as at FYE07 was LKR840m. Loan growth in FY07 was high at 48% (51% in FY06), mainly driven by housing loans and MFI loans. SDB is primarily involved in MFI-based lending routed through the TCCS Movement and the bank's branch network, which accounted for 41% of the total loan portfolio as at FYE07. Housing loans and leases accounted for 30% and 17% respectively. SDB also had a sizeable pawn broking loan segment (gold-backed loans) which accounted for 12% of loans. The bank's NPL ratio improved to 3.9% at FYE07 from 4.2% at FYE06 and Net NPL/Equity ratio remained steady at 21.6%. However, Fitch notes that due to recent high loan growth, these ratios could deteriorate as the portfolio seasons. At a pre-provision level, SDB's ROA remained steady at 2.8% in FY07 from 2.9% in FY06. Since CBSL introduced general provisioning for licensed specialised banks, the increase in provisioning caused SDB's overall ROA to dip somewhat to 1.3% in FY07 from 1.5% in FY06, although Fitch views that its ROA is still comparable with its peers. Time deposits and savings deposits accounted for 70% of SDB's funding mix at FYE07 (75% at FYE06). In the past, SDB leveraged the TCCS Movement to mobilise significant deposits but due to recent branch expansion, SDB has been successful in garnering deposits from the general public - as at FYE07, only 27% of deposits were from the TCCS Movement vis-a-vis 39% at FYE06. SDB is a licensed specialised bank established as the apex credit institution of the TCCS Movement. SDB's primary aim is to strengthen the TCCS Movement - a credit cooperative with a 100 year history - so that it could develop into a sustainable rural credit institution. Given its objectives, profit is not SDB's sole motive. At FYE07, SDB was 75%-owned by the TCCS Movement, with an asset base of LKR8.6bn. =============== T H A I L A N D =============== FEDERAL-MOGUL: Asbestos Trust Wants Pneumo Claims Holders Barred ---------------------------------------------------------------- The Asbestos Personal Injury Trust established under Federal- Mogul Corp. and its debtor-affiliates' Fourth Amended Joint Plan of Reorganization asks the U.S. Bankruptcy Court for the Southern District of New York to issue a preliminary injunction restraining and enjoining more than 20,000 holders of Pneumo Asbestos Claims, both known and unknown, from commencing or continuing prosecution, enforcement or recovery of their claims against Cooper and Pneumo Abex until the Court enters a ruling regarding a Plan A Settlement. The Reorganized Debtors' Fourth Amended Joint Plan of Reorganization provides for the implementation of two alternative settlement agreements as a means of resolving the claims asserted by Cooper Industries, LLC, and Pneumo Abex, LLC, and other Pneumo Asbestos Claimants. The Plan A Settlement requires Cooper and Pneumo Abex to make approximately US$756 million in contributions to the Pneumo Abex Subfund of the Asbestos Personal Injury Trust and extends a third party injunction pursuant to Section 524(g)(4)(A)(ii) of the Bankruptcy Code to Cooper, Pneumo Abex and certain of their affiliates. The Plan B Settlement resolves Cooper's and Pneumo Abex's claims in return for a US$140 million payment from the Asbestos PI Trust. As reported in the Troubled Company Reporter on Nov. 12, 2007, the Court confirmed the Fourth Amended Plan and approved the Plan B Settlement. The Plan became effective the following month but the Plan B Settlement has not been implemented pending the Court's ruling on the Plan A Settlement. Pursuant to the Plan B Settlement, the Asbestos Trust placed the US$140 million Settlement Amount in an escrow account. The Settlement Amount will either be released to Cooper and Pneumo Abex, in the event the Plan B Settlement is implemented, or returned to the Trust for distribution to its beneficiaries if the Court approves the Plan A Settlement. While the decision regarding the Plan A Settlement is pending, Cooper and Pneumo Abex continue to incur expenses defending Pneumo Asbestos Claims in the tort system, Kathleen Campbell Davis, Esq., at Campbell & Levine, LLC, in Wilmington, Delaware, relates. On April 10, 2008, Cooper advised the Asbestos Trust in writing that unless an injunction is in place staying Pneumo Asbestos Claims by May 31, 2008, it will send a notice causing the Plan B Settlement Agreement to become effective. Cooper added that it would forbear from sending that notice for so long as the injunction remains in place and is effective. Ms. Davis says the Plan B Settlement gives Cooper the unilateral right to terminate the Plan A Settlement and cause the Plan B Settlement to be implemented after giving notice to Pneumo Abex, Federal-Mogul Corp., the Official Committee of Asbestos Claimants, and the Future Claims Representative. A list of the known Pneumo Asbestos Claimants is available for free at http://bankrupt.com/misc/fmc_pneumoclaimants.pdf Ms. Davis says in the absence of injunctive relief, the Asbestos Trust will suffer substantial and irreparable injury consisting of, among other things, the loss of the US$140 million Settlement Amount that would otherwise be available for distribution to Trust beneficiaries. She contends that an injunctive relief will provide the necessary breathing room to keep all parties to the Plan A Settlement committed to the Settlement and allow time for the Court to fully develop its decision regarding the Plan A Settlement. The Asbestos Trust believes that the Plan A Settlement is far more advantageous to its beneficiaries than the Plan B Settlement, Ms. Davis tells the Court. To recall, more than 95% of Pneumo Asbestos Claimants voted in favor of the Plan A Settlement and the FCR and the Asbestos Committee have also expressed their belief on the record that the Plan A Settlement provides fair and equitable treatment to Pneumo Asbestos Claimants, Ms. Davis says. A temporary injunction will not result in any undue hardship to the Pneumo Asbestos Claimholders who may ultimately receive the benefit of the Plan A Settlement, or, at worst, return to the tort system, Ms. Davis avers. About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has operations in other locations which includes, among others, Mexico, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. (Federal-Mogul Bankruptcy News, Issue No. 166; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 10, 2008, Moody's Investors Service confirmed the ratings of the reorganized Federal-Mogul Corporation -- Corporate Family Rating, Ba3; Probability of Default Rating, Ba3; and senior secured bank credit facilities, Ba2. Moody's said the outlook is stable. The financing for the company's emergence from Chapter 11 bankruptcy protection has been funded in line with the structure originally rated by Moody's in a press release dated Nov. 28, 2007. As reported on Jan. 7, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Southfield, Michigan-based Federal-Mogul Corp. following the company's emergence from Chapter 11 on Dec. 27, 2007. S&P said the outlook is stable. GLOBAL TRADER: Administrator Launches Probe Into Affairs -------------------------------------------------------- Smith & Williamson Ltd., the administrator of Global Trader Europe Ltd., has commenced an in-depth probe into the company's affairs, Ben Bland writes for the Daily Telegraph. Kirkland & Ellis and Macfarlanes, the Daily Telegraph relates, is assisting Smith & Williamson with the investigation, which also seeks to determine whether there was any suggestion of wrongful and fraudulent trading, including "transactions at an undervalue." However, Mark Trafeli, general counsel of GTE's parent company New World Trader, dismissed Smith & Williamson's move as "expected and very ordinary," saying the law requires due consideration of such matters in each and every liquidation," the Daily Telegraph discloses. Meanwhile, GTE's creditors, who are at risk of losing 85% of their money, expressed distress over the administrator's rate of progress as costs reaches above GBP500,000. Stephen Cork of Smith Williamson, on the other hand, argued "our duty is to undertake a full and proper investigation into the affairs of the company in order to establish the extent to which legal actions against any and all parties may be taken," the paper adds. As previously reported in the TCR-Europe on Feb. 20, 2008, Global Trader experienced a regulatory capital deficit as a result of a single client margin call default. Thus, under these circumstances GT Europe applied, at the close of business on Wednesday, Feb. 13, 2008, to the Financial Services Authority in the United Kingdom for a Variation of Permission - the official method by which companies change the terms of their authorization, limiting principal activities to closing existing trades. Purple Capital, together with the Board and management of GT Europe, continues to evaluate alternatives for the re- capitalization of the company, including the possible introduction of an international equity partner. However, to ensure that the various alternatives can be evaluated within an orderly operational structure and regulated financial exposure, GT Europe, on Feb. 15, 2008, applied, with the permission of the FSA, to be managed under Administration. Global Trader Europe Global Trader Europe Limited is held independently as the owner of the international operations of the Global Trader group. Global Trader -- http://www.gt247.co.za/-- is a pioneering international financial institution offering a Spread Trading and a Contract for Difference execution and advisory service to both institutional and private clients investing in international and domestic markets. Global Trader was founded in Europe in 2000. Since then it has grown its global reach into South Africa, North America and Asia, with a physical presence in the United Kingdom, South Africa, Thailand, Canada and Russia. Worldwide, Global Trader is authorized and regulated by the Financial Services Authority in the United Kingdom. Global Trader is an authorized Financial Services Provider by the Financial Services Board of South Africa and registered as a derivatives dealer with the Securities and Exchange Commission of Thailand. Global Trader is a Member of the London Stock Exchange and is a derivative member of the JSE Limited. Global Trader is run by a group of market professionals who share a common goal to redefine trading. Applying their extensive financial backgrounds with leading Global Investment banks and software houses, the management team have built Global Trader into an international trading house. Global Trader is 100% owned by Purple Capital Limited -- http://www.purplecapital.co.za/-- a financial services investment holding company. =============== X X X X X X X X =============== * Beard Group to Hold 1st Annual Healthcare Conference on May 30 ---------------------------------------------------------------- The Beard Group, Renaissance American Management, and the Health Industry Council of the Dallas-Fort Worth Region presents the First Annual Southwest Healthcare Transactions Conference to be held on May 30, 2008 at the Four Seasons Resort and Club, Dallas at Las Colinas. Healthcare professionals and their advisors face a daunting task of strategic planning in a financial market undergoing turbulence unseen in decades. The first-ever conference, focusing on successful strategies for mergers, acquisitions, divestitures, and restructurings, is designed to illuminate the issues and bring some greater clarity of understanding. The organizers have put together a blue-ribbon faculty who are doing the deals that are getting done. Conference participants will be looking both at trends in the industry, financing strategies, and case studies of innovative deals. This is not a fine-points-of-the-law conference, but one that will leave one better prepared to plan and execute one's next transaction. To download the agenda or register for the conference, visit: http://www.renaissanceamerican.com. The conference will include: * Valuation Impact of Regulatory Issues * Pre-Closing Due Diligence and Post-Closing Integration for Profit Enhancement * Healthcare M&A Market: Where to Next? * Exit Strategies using Special Purpose Acquisition Corporations * Dealmaker Trends between Not-For-Profits and For-Profits * Investors� Roundtable: Perspectives of the Private Equity Firms * Corporate Finance Perspectives: Current Equity and Debt Trends * Plus Case Study: Legacy Medical Village, a Physician-Driven Model General sponsors include the Alvarez & Marsal, Bank of Texas' Healthcare Banking Group, GE Healthcare Financial Services, Hill Schwarts Spilker Keller LLC, K&L Gates, Patton Boggs LLP, and PricewaterhouseCoopers' Transaction Services. Cadwalader, Cain Brothers, Deloitte, Drinker Biddle, KaufmanHall, Latham & Watkins LLP, Principle Valuation LLC, Proskauer Rose LLP and Wellspring Partners serve as sustaining sponsors. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA Advance Healthcare Group Ltd AHG 15.65 -6.78 Allstate Exploration NL ALX 18.20 -42.75 Austar United Communications Limited AUN 525.67 -234.87 Austindo Resources Corporation N.L. ARX 62.77 -15.88 Biron Apparel Ltd BIC 19.71 -2.22 Croesus Mining N.L. CRS 16.00 -13.81 Evans & Tate Ltd ETW 103.76 -50.22 Hutchison Telecommunications (Aust) Ltd. HTA 1637.04 -1443.69 Intellect Holdings Limited IHG 15.25 -10.88 KH Foods Ltd KHF 38.40 -6.79 Lafayette Mining Limited LAF 105.24 -190.86 Renison Consolidated Mines NL RSN 38.83 -3.94 Tooth & Co. Ltd. TTH 120.47 -87.64 ViaGOLD Capital Limited VIA 15.49 -3.11 CHINA AND HONG KONG Anhui Koyo (Group) Co., Ltd. 000979 64.28 -30.78 Asia TeleMedia Limited 376 16.97 -7.53 Baiyin Copper Commercial Bldg. (Group) Co. 000672 24.47 -2.40 Beiya Industrial (Group) Co., Ltd 600705 462.13 -20.57 Brilliant Arts Multi-Media Holding Ltd 8130 11.62 -2.32 Cangzhou Chemical Industrial Co.Ltd 600722 379.30 -2.89 Chang Ling (Group) Co., Ltd. 000561 85.06 -80.88 Chia Tai Enterprises International Ltd. 121 316.12 -8.92 China HealthCare Holdings Ltd 673 25.44 -3.37 China Liaoning Int. Co-op Hldgs. Co. Ltd. 000638 15.43 -5.70 Chongqing Changjiang River Water Transpt. 600369 98.87 -0.06 Chongqing Int'l Enterprise Investment Co. 000736 19.88 -15.67 Dongxin Electrical Carbon Co., Ltd 600691 34.19 -2.90 Dynamic Global Holdings Limited 231 44.64 -9.70 Everpride Biopharmaceutical Company Limited 8019 14.19 -0.02 Ever Fortune Intl. Hldgs. Limited 875 14.41 -4.03 Far East Golden Resources Group Limited 1188 46.98 -14.92 Fujian Changyuan Investment Co., Ltd. 000592 24.20 -19.62 Fujian Sannong Group Co.,Ltd. 000732 42.50 -100.37 Fujian Start Computer Group Co.Ltd 600734 114.76 -16.98 Guangdong Meiya Group Co., Ltd. 000529 70.62 -59.86 Guangxia (Yinchuan) Industry Co., Ltd. 000557 48.71 -59.63 Guangzhou Oriental Baolong Automotive Co 600988 15.78 -11.11 Guangdong Hualong Groups Co., Ltd 600242 15.23 -46.94 Hainan Dadonghai Tourism Centre Co., Ltd 000613 18.34 -8.39 Hans Energy Company Limited 554 85.00 -0.49 Hebei Baoshuo Co.,Ltd 600155 293.56 -199.47 Heilongjiang Black Dragon Co., Ltd 600187 113.45 -74.67 Hisense Electric Co., Ltd 921 596.71 -94.69 Hualing Holdings Limited 382 262.90 -32.17 HuaTongTianXiang Group Co., Ltd. 600225 52.77 -42.02 Huda Technology & Education Development Co. Ltd. 600892 17.12 -0.39 Hunan Genuine New Material Group Co.,Ltd 000156 77.57 -77.92 Jiangsu Chinese Online Logistics Co. Ltd. 000805 13.75 -32.33 Jiaozuo xin'an Science & Technology Co 000719 50.82 -25.45 Junefield Department Store Group Ltd. 758 12.93 -5.39 Lan Bao Technology Information Co.,Ltd. 000631 29.44 -22.70 Mianyang Gao Xin Industrial Dev (Group) 600139 23.90 -15.65 New City China Development Ltd 456 253.47 -25.03 Paladin Ltd. 495 167.43 -6.23 Plus Holdings Ltd. 1013 18.52 -3.34 Qinghai Salt Lake Industry Group Co Ltd. 000578 105.64 -4.91 Qinghai Sunshiny Mining Co., Ltd. 600381 55.58 -55.04 Regal Real Estate Investment Trust 1881 945.38 -234.68 Sanjiu Yigong Biopharmaceutical & Chem 000403 218.51 -3.48 Shanghai Worldbest Pharmaceutical Co.Ltd 600656 66.75 -13.42 Shanghai Xingye Housing Co.,Ltd 600603 16.23 -49.40 Shenyang Hejin Holding Co., Ltd. 000633 103.86 -3.16 Shenzhen China Bicycle Co., (Hlds) Ltd. 000017 34.21 -238.76 Shenzhen Dawncom Business Tech & Service 000863 32.57 -137.55 Shenzhen Kondarl (Group) Co., Ltd. 000048 112.05 -15.98 Shenzhen Shenxin Taifeng Group Co.,Ltd. 000034 69.92 -53.39 Stellar Megaunion Corporation 000892 54.33 -152.43 Success Information Industry Group Co. 000517 77.23 -17.78 SunCorp Technologies Limited 1063 75.28 -5.03 Suntek Technology Co., Ltd 600728 49.03 -14.65 Suntime International Economic Trading 600084 372.80 -50.59 Taiyuan Tianlong Group Co. Ltd 600234 19.47 -89.51 Tianjin Marine Shipping Co. Ltd 600751 111.03 -3.59 Tianyi Science & Technology Co., Ltd 600703 45.82 -41.20 Tibet Summit Industry Co., Ltd 600338 90.92 -4.05 Winowner Group Co. Ltd. 600681 23.34 -72.39 Yueyang Hengli Air-Cooling Equipment Inc. 000622 40.27 -14.34 Yun Sky Chemical (Int) Hldg. Ltd 663 29.31 -1.13 Zarva Technology (Group) Co., Ltd. 000688 25.83 -175.37 Zhang Jia Jie Tourism Development Co.Ltd 000430 51.01 -8.25 INDIA Andrew Yule & Co. Ltd ANY 81.41 -30.90 Artson Engr. ART 10.31 -0.71 Ashima Ltd. ASHM 96.57 -42.59 Balaji Distiller BLD 45.66 -74.20 Birla VXL Ltd NVXL 98.77 -14.62 CFL Capital Financial Services Ltd CEATF 24.03 -43.80 Core Healthcare Ltd. CPAR 185.37 -241.91 Dish TV India Limited DITV 239.48 -12.62 Elque Polyesters ELQP 13.04 -22.66 Ganesh Benzoplst GBP 82.16 -38.25 Gujarat Sidhee Cement Ltd. GSCL 59.44 -0.66 Himachal Futuris HMFC 603.36 -13.34 HMT Limited HMT 316.41 -175.33 IFB Inds Ltd. IFBI 40.50 -70.82 India Steel Works Limited ISI 56.76 -1.47 JCT Electronics Ltd. JCTE 117.60 -50.17 Jenson & Nic Ltd JN 14.81 -81.79 JK Synthetics Ltd JKS 17.99 -2.61 JOG Engineering VMJ 50.08 -10.08 Kalyanpur Cement KCEM 38.11 -48.48 Lloyds Metals LYDM 70.72 -10.25 Lloyds Steel Ind LYDS 404.38 -86.45 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 95.67 -85.81 Modi Rubber Ltd MDR 38.41 -28.82 Mysore Cements MYC 82.02 -14.57 Panchmahal Steel Ltd. PMS 51.02 -0.33 Panyam Cements PYC 17.18 -18.32 Parekh Platinum PKPL 59.66 -75.55 Remi Metals Gujarat Ltd. RMM 45.06 -51.10 Rollatainers Ltd RLT 19.20 -18.86 RPG Cables Ltdd NRPG 55.40 -3.10 Sandur Manganese & Iron Ores Ltd. SMIO 32.57 -2.61 Shree Rama Multi Tech Ltd. NSRMT 71.22 -29.91 Sil Businesse Enterprises Ltd. SILB 12.46 -19.96 Surat Textile Mills Ltd. GCTY 15.97 -8.85 Tata Teleservices (Maharashtra) Limited NTTLS 657.28 -73.89 TVS Electronics TVSEL 30.73 -1.57 UB Engineering UBE 31.43 -2.86 Usha (India) Ltd. USHAIN 12.06 -54.51 INDONESIA Ades Waters Indonesia Tbk ADES 25.94 -24.09 Argo Pantes Tbk ARGO 217.96 -15.70 Citatah Tbk CTTH 21.87 -0.42 Eratex Djaja Ltd. Tbk ERTX 34.14 -2.09 Fatrapolindo Nusa Industri Tbk FPNI 25.81 -0.72 Jakarta Kyoei Steel Works Tbk JKSW 29.30 -39.32 Karwell Indonesia Tbk KRW 35.71 -3.11 Panca Wiratama Sakti Tbk PWSI 34.99 -28.33 Primarindo Asia Infrastructure Tbk BIMA 11.56 -22.57 Steady Safe Tbk SAFE 17.60 -6.99 Teijin Indonesia Fiber Corp. Tbk TFCO 279.56 -10.58 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 17.77 -18.88 JAPAN Banners Co., Ltd 3011 46.33 -14.11 Heiwa Okuda Co., Ltd 1790 82.68 -6.66 NIWS Co., HQ Ltd. 2731 541.08 -33.01 Orient Corporation 8585 37956.19 -1109.02 Trustex Holdings, Inc. 9374 102.84 -7.81 KOREA Ados Co., Ltd. 036270 18.22 -32.17 Choya Corporation 3592 75.46 -2.24 Cosmos PLC Co., Ltd 053170 19.31 -4.95 DaiShin Information & Communication Co. 20180 740.50 -158.45 E-Rae Electronics Industry Co., Ltd 45310 45.47 -10.37 E Star B Co., Ltd. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Hantel Co. Ltd. 041940 34.36 -1.78 nTorino Corporation Inc. 032590 35.94 -9.46 Oricom Inc. 10470 82.65 -40.04 Rocket Electric Co., Ltd. 000420 77.37 -4.76 Seji Co., Ltd. 053330 37.25 -0.31 Starmax Co., Ltd 17050 76.61 -1.50 Tong Yang Magic Co., Ltd. 23020 355.15 -25.77 Unick Corporation 11320 36.54 -4.45 MALAYSIA CNLT Far East Berhad CNLT 45.12 -3.71 Foremost Holdings Berhad FMST 10.97 -0.08 Harvest Court Industries Bhd HAR 10.81 -5.62 Lityan Holdings Berhad LIT 23.34 -26.55 Mangium Industries Bhd MANG 14.36 -18.73 Megan Media Holdings Berhad MMHB 40.91 -248.31 PanGlobal Berhad PGL 178.78 -171.24 Paxelent Corp PAXE 15.68 -3.47 Putera Capital Berhad PCAP 10.56 -4.70 Sunway Infrastructure Berhad SIB 399.84 -10.08 Techventure Bhd TECH 37.38 -11.21 Wembley Industries Holdings Bhd WMY 125.80 -283.68 Wonderful Wire & Cable Berhad WW 22.72 -1.94 PHILIPPINES APC Group Inc. APC 71.75 -218.13 Atlas Consolidated Mining and Development Corp. AT 61.14 -16.74 Benguet Corp. BC 55.45 -44.94 Central Azucarera de Tarlac CAT 35.74 -1.80 Cyber Bay Corporation CYBR 12.49 -64.98 East Asia Power Resources Corporation PWR 94.52 -82.10 Fil Estate Corp. FC 36.10 -7.75 Filsyn Corporation FYN 20.88 -9.68 Gotesco Land, Inc. GO 18.68 -10.86 Mariwasa Manufacturing, Inc. MMI 71.98 -0.78 Prime Orion Philippines Inc. POPI 99.69 -82.12 Unioil Resources & Holdings Co, Inc. UNI 11.37 -11.44 United Paragon UPM 22.80 -29.23 Universal Rightfield Property UP 45.12 -13.48 Uniwide Holdings Inc. UW 62.99 -38.58 Victorias Milling Company Inc. VMC 175.01 -38.64 SINGAPORE ADV Systems Auto ASA 21.96 -7.54 Chuan Soon Huat Industrial Group Ltd CSH 42.09 -3.64 Falmac Limited FAL 10.57 -4.70 Gul Technologies GUL 172.80 -3.04 HLG Enterprise HLGE 123.41 -7.36 Informatics Holdings Ltd INFO 20.42 -11.65 Lindeteves-Jacoberg Limited LJ 201.79 -59.61 L&M Group Inv LNM 56.91 -10.59 Pacific Century Regional PAC 56.00 -32.80 TAIWAN CIS Technology Inc. 2326 33.74 -18.91 Pacco Tech Co Ltd 5510 16.01 -7.00 Protop Technology Co., Ltd. 2410 55.69 -13.46 Yeu Tyan Machine 8702 39.57 -271.07 THAILAND Bangkok Rubber PCL BRC 89.62 -81.26 Bangkok Steel Industry Public Co. Ltd BSI 378.66 -120.56 Central Paper Industry PCL CPICO 13.25 -241.78 Circuit Electronic Industries PCL CIRKIT 21.90 -75.21 Datamat Public Co., Ltd DTM 17.55 -1.72 ITV Public Company Limited ITV 44.70 -73.07 Kuang Pei San Food Products Public Co. POMPUI 18.78 -14.07 Living Land Capital PCL LL 10.65 -3.16 New Plus Knitting Public Company Limited NPK 10.08 -2.03 Quality Construction Products PCL QCON 76.13 -293.83 Safari World Public Company Limited SAFARI 128.58 -13.64 Sahamitr Pressure Container Public Co. Ltd. SMPC 27.26 -34.59 Siam General Factoring PCL SGF 30.18 -6.79 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Thai-Denmark PCL DMARK 19.57 -3.02 Universal Starch Public Company Limited USC 103.61 -48.62 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Azela Jane E. Taladua, Rousel Elaine C. Tumanda, Valerie Udtuhan, Marie Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***