/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080501.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 Thursday, May 1, 2008, Vol. 11, No. 86 Headlines A U S T R A L I A ABC LEARNING CENTRES: To Post AU$89 Million Loss in 2008 ALLCO FINANCE: Japan Unit Placed in Trading Halt BRIGHTPOINT INC: Subsidiary Acquires Hugh Symons Business CENTRO PROPERTIES: Gets One-Week Extension to Pay AU$5.6BB Debt CENTRO PROPERTIES: Posts AU$190.9MM Dec. 2007 Investment Income COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study DUNCAN J BASSETT: Commences Liquidation Proceedings GLOBAL MARKETING: Michael Smith Appointed as Liquidator LUJAN INVESTMENTS: Alex Koutzoumis Appointed as Liquidator NRG ENERGY: Moody's Changes Outlook to Stable; Holds Ba3 Ratings PEARCE DESIGN: Commences Liquidation Proceedings ROO GROUP: Net Loss Up to $12MM in Quarter Ended December 31 SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney SHARPER IMAGE: Committee Wants to Retain Cooley as Lead Counsel SHARPER IMAGE: Committee Wants to Retain Loughlin as Advisor SHARPER IMAGE: Committee Wants to Retain Whiteford as Counsel SMARTIRE SYSTEMS: CFO Finkelstein Quits; Dodge Named Interim CFO SYNOPSIS SOLUTIONS: To Declare Final Dividend on May 30 C H I N A & H O N G K O N G & T A I W A N CHINA EASTERN: Posts First-Quarter Net Profit of CNY210.8Mil. CHINA EASTERN: Adds Flights for Sanya-Moscow Routes CHINA EASTERN: Directors Approve Various Renewal Agreements ELEPHANT TALK: Kabani & Co Expresses Going Concern Doubt GREENTOWN CHINA: Annual General Meeting Slated for May 23 HAINAN AIRLINES: 1st Qtr. Net Income Increases to CNY286.7 Mil. HAINAN: Hires Mr. Chusid as General Manager for North America HEXCEL CORP: S&P Maintains 'B3' Corp. Rating With Stable Outlook HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating SHIN KONG: S&P Affirms D+ Bank Fundamental Strength Rating YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating ZTE CORP: Seals Belarus IPTV Project Contract I N D I A ESSAR OIL: Unit Bids for 2 Offshore Blocks in Australia GENERAL MOTORS: To Cut One Shift of Full-size Truck Production GMAC LLC: Financial Arm Posts $589MM Net Loss in 2008 1st Qtr. ICICI BANK: Khandwala Puts “Buy” Rating on Firm's Shares IFCI LTD: Incurs INR425.20 Mil. Net Loss in Qtr. Ended March 31 QUEBECOR WORLD: Randy Benson Named Chief Restructuring Officer QUEBECOR WORLD: Posts US$2 Billion Net Loss for Full Year 2007 QUEBECOR WORLD: Quebecor Inc. Issues Clarification TATA POWER: Refinances Bridge Loan to Fund Stake Purchase I N D O N E S I A BANK RAKYAT: Reports IDR1.4 Trillion Net Profit in 1Q 2008 EXCELCOMINDO PRATAMA: Earns IDR368 Billion in 1st Quarter 2008 INDOFOOD: Reports IDR383 Billion 1st Quarter 2008 Net Profit GOODYEAR TIRE: Earns US$147 Million in 2008 First Quarter MEDCO ENERGI: Mitsubishi LNG Project May Cost US$1.4 Billion J A P A N BANCO BRADESCO: Net Income Up 23.3% to BRL2.1 Billion in 1Q 2008 BANCO BRADESCO: Units Earn BRL746 Million in First Quarter 2008 BANCO BRADESCO: Forms Unit to Handle Credit Card Operations BANCO BRADESCO: Won't Enter Commercial Banking Segment Abroad COREL CORP: Reports $18M Stockholders' Deficit, Lower Net Loss FORD MOTOR: Inks Master Economics Offer Agreement with CAW JASDAQ SECURITIES: May Resort to Merger to Keep Business SADIA SA: To Form Joint Venture With Kraft Foods K O R E A DAEWOO ELECTRONIC: Ziontech, et al. Acquire 945,300 Shares DURA AUTOMOTIVE: Files First Revised Chapter 11 Plan Supplements DURA AUTOMOTIVE: Unable to File 2007 Annual Report on Time KENERTEC CO: Moves Private Placement Listing Date to May 28 KENERTEC: Unit to Acquire 85% Stake in Ratanak Kenertec N E W Z E A L A N D AIR NEW ZEALAND: To Increase Domestic Fares by May 6 AMRIT GLASS LIMITED: Reynolds Appointed as Liquidator AURUM UPHOLSTERY: Court to Hear Wind-Up Petition Today CLASSIC MOTORS: Court to Hear Wind-Up Petition Tomorrow CLICK SOUND (2004): Claim Filing Deadline is May 20 CLUBZONE LTD: Court to Hear Wind-Up Petition Tomorrow DOTCARD (AUSTRALASIA) LIMITED: Claim Filing Deadline is July 9 EURO BUILDERS: Creditors Must File Claims by May 23 GENEVA FINANCE: S&P Lifts LT Counterparty Credit Rating to CCC GENEVA FINANCE: To List on NZX by July 1 "at the Latest" INTERNATIONAL ENVIRONMENTAL: Court Appoints Liquidators GRAND VIEW HOLDINGS: Commences Liquidation Proceedings INTO THE LIGHT CONSULTANCY: Faces Sloane's Wind-Up Petition MFS PACIFIC FINANCE: Presents Draft Moratorium Proposal QUICK FREIGHT LIMITED: Commences Liquidation Proceedings RPM DIRECT LIMITED: Creditors Must File Claims by July 9 THAI KITCHEN (NEW LYNN) LIMITED: Court Appoint Liquidators WOULD CAFE LTD: Court to Hear Wind-Up Petition on May 7 P H I L I P P I N E S * PHILIPPINES: Pre-Need Industry First Qtr 2008 Sales Down 27% - - - - - ================= A U S T R A L I A ================= ABC LEARNING CENTRES: To Post AU$89 Million Loss in 2008 -------------------------------------------------------- The Australian Associated Press reports that ABC Learning Centres expects to post a loss of up AU$89 million this year. ABC co-founder Eddy Groves told the AAP that "the company had been hit hard by a number of external factors, including changing interest rates and changes in the debt market, but conceded communication to the market was poor." "We have not helped ourselves internally," the AAP quotes Mr. Groves as saying. "We cannot blame it all on external factors. We certainly have not communicated well with the market. We need to improve that." According to the report, ABC Chairman Sallyanne Atkinson and Chief Financial Officer James Black have decided to step down on their own accord. ABC plans to reduce its debt by AU$485 million by selling 60% of its portfolio of childcare centres in the U.S. to Morgan Stanley Private Equity for US$700 million, the AAP relates. About ABC Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter-Asia Pacific, the company's Sydney trading on Feb. 26, 2008, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. ALLCO FINANCE: Japan Unit Placed in Trading Halt ------------------------------------------------ Katherine Jimenez of The Australian reports that Allco Finance Group's Rubicon Japan Trust was placed in a trading halt on Tuesday, pending news on the refinancing of a debt facility with the Shinsei Bank. According to Ms. Jimenez, Rubicon asked Shinsei Bank and Credit Suisse for an extension of the deadline to repay its JPY5.5 billion debt. Rubicon is supposed to repay JPY4.9 billion to Shinsei Bank on May 6. The Australian relates that in a brief statement, Rubicon said it requested the trading halt because "we believe that there will be information regarding the refinancing of the Shinsei Bank debt facility which we will soon be in a position to release to the market". Allco Finance Group is also trying to restructure a corporate debt facility of up to AU$1.15 billion. About Allco Finance Allco Finance Group Ltd. is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The Company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The Company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings (Aust) Limited. Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid puttings its operations in the hands of administrators. According to The Age, Allco board is faced with four problems: -- Meeting a fast-approaching deadline to refinance at least US$250 million in debt. -- Ensuring there is enough cash to cover its continuing, and much larger, loan commitments. -- Renegotiating or pulling out of a recently announced joint venture deal to buy US$1.7 billion of US power stations, of which Allco would fund half by debt and equity. -- Signing the company's accounts, for which they will be personally liable, that would allow the suspension on Allco's beleaguered shares to be lifted. BRIGHTPOINT INC: Subsidiary Acquires Hugh Symons Business --------------------------------------------------------- Brightpoint Inc.'s wholly-owned subsidiary, Brightpoint Great Britain Limited, has acquired the Hugh Symons Group Ltd.'s wireless distribution business. Brightpoint Great Britain Ltd. acquired the assets in exchange for GBP294,000 (approximately US586,000) and the value of inventory at date of closing. In addition, Brightpoint agreed to contingent cash earn out payments based upon certain operating performance measures which may be payable on the 1st, 2nd and 3rd anniversary of closing. The total earn out payments shall in no event exceed GBP3.6 million (approximately US7.2 million). Mr. Hugh Roper and other key former members of Hugh Symons Group Ltd.'s wireless distribution business will join Brightpoint Great Britain Ltd. and will continue to be involved with the management and operation of the business. "The acquisition will strengthen our position in Europe," stated Steen F. Pedersen, President for Brightpoint Europe. "We have been looking for an opportunity to enter the UK market for the past few years. We believe that we have found the right opportunity. Hugh Symons Group Ltd. has been developing the smart phone market in UK, which is an important element of our growth strategy. Additionally, we want Hugh Roper and his team to further expand the business with other Brightpoint models like the customized logistic services model." "I believe that the ownership of Brightpoint gives us huge opportunities in UK," stated Hugh Roper, Managing Director and sole-shareholder of Hugh Symons Group Ltd. "I am convinced that our UK team together with the knowledge and competences from Brightpoint will be a powerful platform for further development of the business. I am looking forward to develop Brightpoint Great Britain Ltd. into a full-blown value adding distributor and logistic provider." Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- distributes wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. CENTRO PROPERTIES: Gets One-Week Extension to Pay AU$5.6BB Debt --------------------------------------------------------------- Centro Properties Group's lenders gave the company until May 7, 2008, to refinance AU$5.6 billion or US$5.2 billion of debt as it works to sell assets, Laura Cochrane of Bloomberg News reports. The company's debt repayment deadline was supposedly yesterday, April 30. Centro's lenders, according to Bloomberg, include Commonwealth Bank of Australia, Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and BNP Paribas. Early last month, Centro Properties said in a statement that it requested the Australian Securities Exchange to grant a trading halt of its stapled securities. A report on the shares trading halt by Laura Cochrane of Bloomberg News was cited in yesterday's issue of the Troubled Company Reporter. Meanwhile, Centro Properties said in a statement Monday last week that there have been offers received for Centro’s interest in the Centro Australia Wholesale Fund. The Group said it has reviewed the offers and is reconsidering the marketing strategy for the interest to achieve the most value, which may include selling the CAWF properties in smaller portfolios or individually. The company also noted that the Centro America Fund process started later than the CAWF process and is ongoing with offers currently being considered. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of $24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. CENTRO PROPERTIES: Posts AU$190.9MM Dec. 2007 Investment Income --------------------------------------------------------------- Centro Properties Group reported AU$190.9 million in net property investment income for December 2007 compared to AU$175.7 million in December 2006. Net services business income for December 2007 was AU$138.4 million up from AU$63.8 million in December 2007. Distributable income attributable to ordinary securityholders for December 2007 was AU$185.9 million while net AIFRS profit was (AU$1,112.4) million. This compares to distributable income attributable to ordinary securityholders of AU$162.8 million and net AIFRS profit of AU$157.3 million in December 2006. Total Australian sales as of December 31, 2007, was AU$10,505 million. Centro Properties Group also recorded US property portfolio value of US$13.6 billion at December 2007 compared to US$5.4 billion in December 2006, while Australian property portfolio value for December 2007 was AU$9.5 billion compared to AU$8.4 billion in December 2006. Balance sheet data as of December 31, 2007, showed total assets of AU$8,000 million financed by AU$3,892 million in borrowings, AU$2,409 million in equity and AU$1,699 million in other liabilities. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of $24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. COEUR D'ALENE: To Complete Palmarejo Project Feasibility Study -------------------------------------------------------------- Coeur d'Alene Mines Corp.'s Chief Financial Officer Mitchell Krebs told Business News Americas that the firm wants to complete in June a feasibility study for its Palmarejo silver- gold project in Chihuahua, Mexico. The study will include the first proven and probable reserves estimate for the Palmarejo deposit, BNamericas says, citing Ms. Krebs. According to BNamericas, "Palmarejo's measured and indicated resources stand at 88.7 million ounces of silver and one million ounces of gold, with additional inferred resources of 61.4 million ounces of silver and 700,000 ounces of gold. The current mine plan foresees a commercial production rate of 4,500 tons per day throughput, with annual output of nearly 10.4 million ounces of silver and 115,000 ounces of gold at cash costs, net of gold byproduct, of negative US$0.41 per ounce of silver." Ms. Krebs told BNamericas that before Coeur d'Alene acquired the Palmarejo project, processing equipment with a capacity of 6,000 tons per day -- including ball mills and sag mills -- were bought. "So we will have about 1,500 tons per day of excess capacity that we will hopefully take up with added production from the other nearby deposits, like Guadalupe and La Patria. Hopefully, although not immediately, but in the first couple of years of production, we can bump production from 4,500 tons per day up to 6,000 tons per day," Ms. Krebs commented. The Palmarejo project will be "in commercial production" at 4,500 tons per day by 2009, with about 2,500 tons per day coming from the open pit and 2,000 tons per day coming from underground, BNamericas says, citing Ms. Krebs. "Capital expenditures to get Palmarejo into commercial production are estimated at US$225 million," Ms. Krebs told BNamericas. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. DUNCAN J BASSETT: Commences Liquidation Proceedings --------------------------------------------------- At a final meeting held yesterday, April 30, 2008, John Greer, the liquidator appointed by the members of Duncan J Bassett Services Pty Limited, presented an account showing the manner in which the winding up of the company has been conducted and the property disposed of. The meeting was held at the offices of Griffiths, Forrest & Greer, Chartered Accountants, Level 7, 276 Pitt Street, in Sydney, Australia. GLOBAL MARKETING: Michael Smith Appointed as Liquidator ------------------------------------------------------- At a general meeting of the members of Global Marketing Company Pty Ltd, formerly trading as Banjara Classic Indian Restaurant, held March 17, 2008, it was resolved that the company be wound up voluntarily. The members appointed Michael John Morris Smith of Smith Hancock as liquidator of the company. The liquidator can be reached at: Michael John Morris Smith Smith Hancock Level 4, 88 Phillip Street Parramatta NSW 2150 LUJAN INVESTMENTS: Alex Koutzoumis Appointed as Liquidator ---------------------------------------------------------- Lujan Investments Pty Ltd's shareholders resolved, at a general meeting held on March 19, 2008 , that the company be wound up voluntarily. Mr. Alex Koutzoumis was appointed as liquidator of the company. The liquidator can be reached at: Alex Koutzoumis Holden & Bolster Avenir Pty Ltd Level 31, Australia Square 264-278 George Street Sydney NSW 2000 NRG ENERGY: Moody's Changes Outlook to Stable; Holds Ba3 Ratings ---------------------------------------------------------------- Moody's Investors Service changed the rating outlook for NRG Energy, Inc. to stable from negative, and upgraded its Speculative Grade Liquidity Rating to SGL-1 from SGL-2. The rating agency also affirmed all of NRG's ratings, including its Corporate Family Rating at Ba3, the Probability of Default Rating at Ba3, and the senior unsecured debt at B1. "The change in rating outlook reflects an expectation of continued stable cash flow for the foreseeable future, execution of a more balanced capital allocation program, and the continued use of joint ventures and other arrangements which mitigate risk and lower future capital expenditure requirements, "said A.J. Sabatelle, VP -- Senior Credit Officer of Moody's. "The upgrade in NRG's liquidity rating to SGL-1 factors in, among other things, the substantial reduction in working capital requirements following recent modifications to several of NRG's counterparty agreements," said Mr. Sabatelle. The rating affirmation reflects relatively stable cash flows expected at NRG given the company's competitive position in several key markets and the degree of forward hedges in place for the next several years. NRG's adjusted cash flow (CFO pre- W/C) to total adjusted debt has averaged approximately 15% for the past three years and 16% in 2007. Moody's expects this financial metric to modestly improve during 2008 due to continued steady operating cash flow generation and permanent consolidated debt reduction, including debt retirement of around $475 million under the company's secured term loan, the bulk of which occurred in December 2007 and March 2008. The rating affirmation and outlook change considers management's efforts to balance shareholder and creditor interests through its deployment of discretionary cash. While Moody's believes that the company will continue to pursue a capital allocation strategy that returns to shareholders an average rate of 3% annually (or approximately $250 million to $300 million each year), the company has complimented this capital return program with associated debt retirement. Additionally, the rating action considers NRG's approach to managing a substantial capital investment program that include the use of joint venture arrangements for all of the company's largest generation projects, and the execution of long-term power purchase arrangements with load serving entities at other projects in conjunction with re-powering initiatives. Notwithstanding this measured approach, Moody's observes that potential capital investments for NRG over the next several years are quite substantial when compared to the company's $10 billion market capitalization. For 2008, NRG will be able meet its capital expenditure requirements with operating cash flow as free cash flow (operating cash flow less dividends and capital expenditures) is expected to approximate $250 million (or about 3% of total consolidated debt), which incorporates a more than $700 million year-over-year increase in capital investment, principally for re-powering and environmental related requirements. The upgrade of NRG's speculative grade liquidity rating to SGL-1 from SGL-2 reflects Moody's expectation that NRG will maintain a very good liquidity profile over the next 12-month period as a result of its generation of strong internal cash flows, maintenance of significant cash balances and access to substantial credit availability. The upgrade considers the recent increase in credit availability following NRG's successful exchange of collateral with its largest counterparties, enabling the return of $622 million in letters of credit, and acknowledges the expected further increase in liquidity that should follow upon completion of the sale of ITISA to a subsidiary of Brookfield Asset Management for $288 million, subject to purchase price adjustments. NRG's stable rating outlook reflects Moody's expectation for continued generation of relatively predictable cash flow for this wholesale power company due to the fleet's competitive position and hedging strategy. The stable outlook considers continued execution of management's capital allocation policy, which has resulted in lower consolidated debt, and factors in NRG's measured strategy for capital investment, including the use of joint ventures and execution of key contractual arrangements to mitigate risk. In light of better macroeconomic conditions for power generators, including lower reserve margins in certain regions and a long-lead time for large base load construction, Moody's expects improved financial performance in the intermediate term for most wholesale power companies, including NRG. The ratings for NRG could be upgraded if such conditions lead to an improvement in key financial metrics including adjusted cash flow (CFO pre-W/C) to total adjusted debt rising to the high teens level on a sustainable basis, while maintaining its discipline in executing its capital allocation program. An additional consideration concerning any upgrade would be a deeper understanding around the numerous growth initiatives at the company, including the recent formation of Nuclear Innovation North America, a joint venture with Toshiba Corp. The rating could be downgraded if the degree of shareholder initiatives accelerates over the next twelve to eighteen months or if the company chooses to finance its capital investment program or any acquisition with higher than anticipated levels of debt. Additionally, should margins compress across NRG's generation fleet due to weaker macroeconomic factors or an extended forced outage causing adjusted cash flow (CFO pre-W/C) to total adjusted debt to fall below 12% for an extended period, the rating could be downgraded. Upgrades: Issuer: NRG Energy, Inc. -- Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2 -- Multiple Seniority Shelf, Upgraded to a range of 73 - LGD5 to 17 - LGD2 from a range of 78 - LGD5 to 22 - LGD2 -- Senior Secured Bank Credit Facility, Upgraded to 17 - LGD2 from 22 - LGD2 -- Senior Unsecured Regular Bond/Debenture, Upgraded to 73 - LGD5 from 78 - LGD5 Outlook Actions: Issuer: NRG Energy, Inc. -- Outlook, Changed To Stable From Negative Issuer: NRG Holdings, Inc. -- Outlook, Changed To Rating Withdrawn From No Outlook Withdrawals: Issuer: NRG Holdings, Inc. -- Senior Secured Bank Credit Facility, Withdrawn, previously rated (P)B2 Headquartered in Princeton, New Jersey, NRG Energy, Inc. owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia and Germany. PEARCE DESIGN: Commences Liquidation Proceedings ------------------------------------------------ PEARCE DESIGN & CONSULTING PTY LIMITED's members resolved, at a general meeting held on March 18, 2008, that the company be wound up voluntarily. Bruce Gleeson of Jones Partners, Insolvency & Business Recovery was appointed as liquidator of the company. The liquidator can be reached at: Bruce Gleeson Jones Partners Insolvency & Business Recovery Level 13 189 Kent Street Sydney, Australia Telephone: (02) 9251-5222 ROO GROUP: Net Loss Up to $12MM in Quarter Ended December 31 ------------------------------------------------------------ ROO Group Inc. reported financial results for the quarter and year ended Dec. 31, 2007, the reporting period immediately prior to the assumption of executive management responsibilities by the KIT Capital group. The net loss for the quarter ended Dec. 31, 2007, was $12.5 million compared to net loss of $5.0 million in the same period last year. The net loss for the quarter ended Dec. 31, 2007, includes non-cash items totaling approximately $1.1 million in stock-based compensation and other compensation payments, compared to $860,000 in the same period last year, and $4.1 million relating to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the quarter was $7.3 million. The increase in net loss for the quarter is attributed to continued investments in building out our technology platform, the cost of running the RBS business unit, which was still in the research and development phase, well as legal fees and costs associated with headcount reduction. Weighted average common shares outstanding for the three months ended Dec. 31, 2007, was 38,953,109 compared to 21,920,172 for the same period in the prior year. The RBS business unit, which was researching peer-to-peer networking technology, was closed down in January 2008. For the year ended Dec. 31, 2007, the net loss was $34.6 million compared to net loss of $14.6 million in 2006. The net loss includes non-cash items totaling approximately $4.7 million in stock-based compensation and other compensation payments, compared to $2.6 million in 2006, and $4.1 million relating to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the year was $25.8 million. The increase in net loss for the year is attributed to the cost of development of the VX Platform, the acquisition of strategic assets of Wurld Media and the cost of running the RBS business unit, well as a ramp up of operations and sales personnel. Weighted average common shares outstanding for the year ended Dec. 31, 2007 was 34,869,325 compared to 15,901,049 for the same period in the prior year. At Dec. 31, 2007, the company's balance sheet showed total assets of $18.115 million, total liabilities of $6.76 million and total shareholders' equity of $11.355 million. The company also made several key corporate action statements, including: (a) The conversion of all of the company's outstanding 10 million super-voting preferred shares into an aggregate of 400,000 common shares, well as the extinguishment of all shelf preferred shares, thereby resulting in the extinguishment of the entire class of preferred stock; (b) The concurrent issuance of 8.65 million fully vested warrants to Robert Petty and Robin Smyth as part of restructured employment agreements, but unrelated to future employment; (c) The execution of share purchase agreements with selling shareholders towards acquiring the remaining 49% of Sputnik Agency, ROO's profitable, interactive online advertising subsidiary, pursuant to the agreement in principle originally reached on March 16, 2008; and (d) The corporate re-branding of ROO Group, including re- naming the company to 'KIT Digital Inc.'. About ROO Group Headquartered in New York, ROO Group Inc. (OTC BB: RGRP) -- http://www.roo.com/-- is a provider of digital media solutions and advercasting technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and mobile communication devices. ROO was founded in 2001 and went public in 2003. ROO has over 100 employees with worldwide operations in New York, Los Angeles, London and Australia. Going Concern Doubt Moore Stephens PC expressed substantial doubt about ROO Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and negative cash flows from operations. SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted Sharper Image Corp. authority to employ Weil, Gotshal & Manges LLP as its attorneys to perform the extensive legal services that will be necessary during the Chapter 11 case. According to Rebecca L. Roedell, executive vice president and chief financial officer of Sharper Image, the Debtor selected WG&M because of the firm's extensive general experience and knowledge and, in particular, its recognized expertise in the field of debtor's protections, creditors' rights and business reorganizations under Chapter 11 of the Bankruptcy Code. Ms. Roedell related that WG&M has become familiar with the Debtor's business, affairs, and capital structure because prior to the Petition Date, in February 2008, WG&M has provided assistance and advice to the Debtor with respect to formulating, evaluating, and implementing various restructuring, reorganization, and other strategic alternatives. Also, WG&M assisted and advised the Debtor in connection with the preparation for the Chapter 11 case. WG&M will represent the Debtor in coordination with Womble Carlyle Sandridge & Rice, PLLC. WG&M and Womble have discussed a division of responsibilities in connection with representation of the Debtor and will make every effort to avoid and minimize duplication of services in the representation of the Debtor, Ms. Roedell adds. The Debtor proposed to pay WG&M its customary hourly rates for services rendered that are in effect from time to time and to reimburse WG&M according to its customary reimbursement policies. Harvey R. Miller, Esq., a partner at WG&M, assured the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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.D., 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: Committee Wants to Retain Cooley as Lead Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Cooley Godward Kronish LLP as its lead counsel, nunc pro tunc to the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, relates that the Creditors Committee selected Cooley Godward because the attorneys in the bankruptcy group at the firm have significant experience representing creditors' committees in retail Chapter 11 cases throughout the country. As the Creditors Committee's lead counsel, Cooley Godward will: (a) attend the meetings of the Creditors Committee; (b) review financial information furnished by the Debtor to the Creditors Committee; (c) negotiate the budget and the use of cash collateral; (d) review and investigate the liens of purported secured parties; (e) confer with the Debtor's management and counsel; (f) coordinate efforts to sell assets of the Debtor in a manner that maximizes the value for unsecured creditors; (g) review the Debtor's schedules, statement of affairs and business plan; (h) advise the Creditors Committee as to the ramifications regarding all of the Debtor's activities and motions before this Court; (i) file appropriate pleadings on behalf of the Creditors Committee; (j) review and analyze the Debtor's financial advisor's work product and reports to the Creditors Committee; (k) provide the Creditors Committee with legal advice in relation to the case; (l) prepare various applications and memoranda of law submitted to the Court for consideration and handle all other matters relating to the representation of the Creditors Committee that may arise; (m) assist the Creditors Committee in negotiations with the Debtor and other parties in interest on an exit strategy for this case; and (n) perform other legal services for the Creditors Committee as may be necessary or proper in this proceeding. Seven Cooley Godward professionals are expected to have primary responsibility for providing services to the Creditors Committee: Professional Hourly Rates ------------ ------------ Lawrence C. Gottlieb US$850 Jay R. Indyke US$760 Cathy R. Hershcopf US$680 Richard S. Kanowitz US$680 Brent Weisenberg US$525 Seth Van Aalten US$470 Brian W. Byun US$335 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Mr. Gottlieb, a partner at Cooley Godward, assures the Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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.D., 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: Committee Wants to Retain Loughlin as Advisor ------------------------------------------------------------ The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Loughlin Meghji + Company as its financial advisor, nunc pro tunc to the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, relates that the Creditors Committee selected Loughlin because of the firm's experience and expertise, and the complex nature of the Debtor's business and financial affairs. As the Creditors Committee's financial advisor, Loughlin will: (a) assist and advise the Creditors Committee in the analysis of the current financial position of the Debtor; (b) assist and advise the Creditors Committee in its analysis of the Debtor's business plans cash flow projections, restructuring programs, selling, general and administrative structure, and other reports and analyses prepared by the Debtor or their professionals, in order to assist the Creditors Committee in its assessment of the business viability of the Debtor, the reasonableness of projections and underlying assumptions, the impact of market conditions on forecast results of the Debtor, and the viability of any restructuring strategy pursued by the Debtor or other parties in interest; (c) assist and advise the Creditors Committee in its analysis of proposed transactions for which the Debtor seeks Court approval; (d) assist and advise the Creditors Committee in its analysis of the Debtor's internally-prepared financial statements and related documentation in order to evaluate performance of the Debtor as compared to its projected results; (e) attend and advise at meetings and calls with the Creditors Committee, its counsel and representatives of the Debtor and other parties; (f) assist and advise the Creditors Committee and its counsel in the development, evaluation and documentation of any Plan of Reorganization or strategic transaction; (g) assist and advise the Creditors Committee in its analysis of the Debtor's hypothetical liquidation analyses under various scenarios; and (h) assist and advise the Creditors Committee in other service as may be necessary and advisable. The services to be provided by Loughlin will be at the request and direction of the Creditors Committee, so as to avoid duplicative efforts among the Creditors Committee's professionals retained in the Chapter 11 case. In exchange for the contemplated services, Loughlin will be paid based on the firm's applicable hourly rates: Professional Hourly Rates ------------ ------------ Principal/Managing Director US$625 to US$750 Director US$425 to US$495 Senior Associate US$375 Associate US$325 Analyst US$250 Paraprofessional US$125 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Kenneth Simon, Esq., a partner at Loughlin, assures the Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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.D., 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: Committee Wants to Retain Whiteford as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sharper Image Corp. seeks the authority of the U.S. Bankruptcy Court for the District of Delaware to retain Whiteford Taylor Preston LLC as its Delaware counsel, nunc pro tunc as the Debtor's bankruptcy filing. Steven D. Sass, co-chairperson of the Creditors Committee, states that due to the size and the complex nature of the Chapter 11 case as well as the significant relief sought by the Debtor during the early stages of the case, there was an immediate need for Whiteford Taylor to perform services for the Creditors Committee. Mr. Sass relates that the Creditors Committee selected Whiteford Taylor because of the firm's substantial experience appearing before Courts in Delaware and representing committees and creditors in complex reorganization cases. As the Creditors Committee's Delaware counsel, Whiteford Taylor will: (a) provide legal advice with respect to the Creditors Committee's rights, powers and duties in the Chapter 11 case; (b) assist lead counsel in preparing, filing and serving all necessary applications, answers, responses, objections, orders, reports and other legal papers; (c) represent the Creditors Committee in any matters arising in the bankruptcy case; (d) assist the Creditors Committee in its investigation and analysis of the Debtor; (e) represent the Creditors Committee in all aspects of confirmation proceedings; and (f) perform all other legal services for the Creditors Committee that may be necessary or desirable in the proceedings. In exchange for the contemplated services, Whiteford Taylor will be paid based on the firm's applicable hourly rates: Professional Hourly Rates ------------ ------------ Shareholders US$390 to US$530 Associates US$280 to US$370 Legal Assistants/Paralegals US$210 to US$250 Five Whiteford Taylor professionals are expected to have primary responsibility for providing services to the Creditors Committee: Professional Hourly Rates ------------ ------------ Margaret M. Manning US$385 Daniel A. Griffith US$410 Cara Chasney US$250 Kathleen G. McCruden US$210 Jennifer L. Tittsworth US$210 The firm will be reimbursed for reasonable expenses incurred in rendering services to the Creditors Committee. Ms. Manning, a partner at Whiteford Taylor, assures the Court that her firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. 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.D., 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) SMARTIRE SYSTEMS: CFO Finkelstein Quits; Dodge Named Interim CFO ---------------------------------------------------------------- Chief Financial Officer Jeff Finkelstein resigned from SmarTire Systems Inc. for personal reasons. SmarTire says there is no disagreement with Mr. Finkelstein on any matter relating to the company's operations, policies or practices. The Board of Directors of SmarTire appointed David A. Dodge as interim Chief Financial Officer. Mr. Dodge previously served as Vice President and Chief Financial Officer of NeoMedia Technologies, Inc., a publicly traded software development company, from 2002 to 2007. From 1999 to 2002, prior to assuming Chief Financial Officer responsibilities, Mr. Dodge held the positions of Financial Reporting Manager and Financial Planning Director at NeoMedia. Before joining NeoMedia, Mr. Dodge was an auditor with Ernst & Young LLP from 1997 to 1999. Mr. Dodge holds a B.A. in economics from Yale University and an M.S. in accounting from the University of Hartford, and is also a Certified Public Accountant. About SmarTire Systems Based in British Columbia, Canada, SmarTire Systems Inc. (OTC Bulletin Board: SMTR) -- http://www.smartire.com/-- develops and markets technically advanced tire pressure monitoring systems for the transportation and automotive industries that monitor tire pressure and tire temperature. Its TPMSs are designed for improved vehicle safety, performance, reliability and fuel efficiency. The company has three wholly owned subsidiaries: SmarTire Technologies Inc., SmarTire USA Inc. and SmarTire Europe Limited. The company has operations in Australia and New Zealand. SmarTire Systems Inc.'s balance sheet at Jan. 31, 2008, showed total assets of $3.406 million and total liabilities of $34.865 million, resulting to total shareholders' deficit of $31.159 million. Going Concern Doubt As reported in the Troubled Company Reporter on July 4, 2007, BDO Dunwoody LLP, in Vancouver, Canada, conducted its audit of SmarTire Systems Inc.'s consolidated financial statements for the year ended July 31, 2006, in accordance with Canadian reporting standards which do not permit a reference to such events and conditions which cast substantial doubt about a company's ability to continue as a going concern when these are adequately disclosed in the financial statements. The company has incurred recurring operating losses and has a deficit of $104 million as at July 31, 2006. The ability of the company to continue as a going concern is in substantial doubt and is dependent on achieving profitable operations, and obtaining the necessary financing in order to achieve profitable operations. SYNOPSIS SOLUTIONS: To Declare Final Dividend on May 30 ------------------------------------------------------- Synopsis Solutions Pty Limited will declare its first and final priority employee superannuation dividend on May 30, 2008. The deadline for creditors to prove their debts or claims was April 22, 2008. The company's liquidator is: Michael G. Jones Jones Partners Insolvency & Business Recovery Telephone: (02) 9251-5222 ================================================== C H I N A & H O N G K O N G & T A I W A N ================================================== CHINA EASTERN: Posts First-Quarter Net Profit of CNY210.8Mil. ------------------------------------------------------------- China Eastern Airlines Corporation Limited, in a filing with the Hong Kong Stock Exchange, said first-quarter net profit attributable to shareholders was CNY210 million, up 142% as compared with the same period in 2007. Basic earnings per share rose 134% to CNY0.0433. Thomson Financial notes the company had booked a loss of CNY490.86 million in 2007, but has reported profits in the first quarter of 2008 due to higher traffic and a stronger yuan. The company's operating revenue in the first quarter increased 14.25% year-on-year to CNY10.61 billion, while operating costs improved 12.53% at CNY9.66 billion due to higher jet fuel costs. During the same period, the company booked a gain of CNY642.74 million due to the local currency's appreciation, against a loss of CNY154.82 million a year earlier. The company, in the stock exchange filing, acknowledged that net financial costs decreased by 515.14% during the first quarter compared with the same period in 2007 due to the the exchange gains as a result of the continued appreciation of the yuan. Non-operating income decreased 35.14% due to a reduction in subsidy income. The company also said total assets rose 2% to CNY68.5 billion as of March 31 from CNY67.1 billion as of the end of last year, while owner's equity of the company increased 3.17% to CNY3 billion from CNY2.9 billion at the end of 2007. The net earnings per share attributable to the shareholders of the company is CNY0.6060 for the first quarter, up 3.17% from CNY0.5882 at the end of 2007, the company noted. The company did not disclose the amount of cash it had at the end of the reporting period. It had reported holding CNY1.66 billion in cash and cash equivalents at the end of 2007. However, the company said that during the first quarter: -- net cash flow generated from operating activities decreased by 55.92% compared to same period in 2007 due to increase in cash payment to and for employees; -- net cash flow generated from investment activities increased by 137.82% attributable to the increase in cash received from disposal of fixed assets, intangible assets and other long term assets; and -- net cash flow generated from fund raising activities increased by 140.77% due to the increase in cash received from borrowing. 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 EASTERN: Adds Flights for Sanya-Moscow Routes --------------------------------------------------- China Eastern Airlines' Moscow office opened nonstop passenger and cargo flights from Sanya to Moscow on April 26, China Hospitality News reports. According to the report, the operation will start with one flight every two weeks, using an Airbus A340-300 aircraft. Li Jun, general manager of China Eastern Airlines Moscow office, told the news agency that the tourism communication and cooperation between Sanya and Moscow will be further strengthened with the opening of the new flights. About China Eastern 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. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. CHINA EASTERN: Directors Approve Various Renewal Agreements ----------------------------------------------------------- China Eastern Airlines Corporation Limited, in a filing with the Hong Kong Stock Exchange, said that the company's board of directors passed certain resolutions during their third regular meeting for this year held on April 28, 2008. The company meeting was presided by Board Chairman Li Fenghu. During the meeting, the directors considered and unanimously: 1. considered and approved the 2008 first quarterly financial report of the Company; 2. considered and approved the 2008 first quarterly report of the Company and decided to publish it together with the first quarterly financial report in both Hong Kong and Shanghai on April 29, 2008; 3. considered and approved the: -- Property Leasing Renewal Agreement to be entered into between the Company and China Eastern Air Holding Company, -- Financial Services Renewal Agreement to be entered into between the Company and Eastern Air Group Finance Company Limited, -- Import and Export Agency Renewal Agreement to be entered into between the Company and Eastern Aviation Import & Export Company, -- Maintenance Services Renewal Agreement to be entered into between the Company and Shanghai Eastern Aviation Equipment Manufacturing Corporation, -- Catering Services Agreement to be entered into between the Company and Eastern Air Catering Investment Co. Ltd., -- Sales Agency Services Renewal Agreement to be entered into between the Company and four other companies including Shanghai DongMei Aviation Tourism Co. Ltd., and -- Advertising Services Renewal Agreement to be entered into between the Company and Shanghai Eastern Aviation Advertising Company Limited. 4. agreed to authorize the Chairman of the Company to release the notice for the 2007 Annual General Meeting of the Company before May 15, 2008. About China Eastern 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. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. ELEPHANT TALK: Kabani & Co Expresses Going Concern Doubt -------------------------------------------------------- Kabani & Company, Inc., raised substantial doubt about the ability of Elephant Talk Communications, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company’s net loss of US$12,057,732, working capital deficit of US$24,429,464, accumulated deficit of US$29,019,832 and cash used in operations of US$3,449,351. The increase in net cash used in operating activities for the year ended Dec. 31, 2007, is primarily due to the increase in loss of US$7,228,067 in 2007, decrease in accounts receivable of US$991,412, increase in prepaid expenses of US$183,556, decrease in accounts payable and customer deposits of US$916,376, decrease in deferred revenue of US$11,444 and increase in accrued expenses and other payable of US$1,428,141. Net cash used in investment activities for the year ended Dec. 31, 2007, was US$2,037,269. Cash used to purchase plant and equipment was US$2,154,559, restricted cash deposit for inter-connect was US$23,266, cash paid for acquisition of subsidiary was US$241,883 and cash obtained from acquisitions was US$382,439. Net cash received by financing activities for the year ended December 31, 2007 was US$9,085,991. The Company received US$8,498,471 from the sales of shares of its common stocks and US$561,520 from third parties. As a result, the Company recorded a cash and cash equivalent balance of US$4,366,312 as of Dec. 31, 2007, a net increase in cash and cash equivalent of US$4,034,311 for the year ended Dec. 31, 2007. Management has devoted considerable efforts during the period ended Dec. 31, 2007, and in the first few months of 2008 towards obtaining additional equity financing, controlling of salaries and general and administrative expenses, management of accounts payable, settlement of debt by issuance of common shares and strategically acquire profitable companies that bring synergies to the company’s products and services. Management believes the company’s existing available cash, cash commitments, cash equivalents and short term investments as of Dec. 31, 2007 in combination with continuing contractual commitments will be sufficient to meet our anticipated capital requirements until the May 2008. The company posted a net loss of US$12,057,732 on total revenues of US$47,361,028 for the year ended Dec. 31, 2007, as compared with a net loss of US$4,829,663 on total revenues of US$158,292 in the prior year. At Dec. 31, 2007, the company's balance sheet showed US$24,608,228 in total assets and US$34,322,539 in total liabilities, resulting in US$9,714,311 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$9,661,500 in total current assets available to pay US$34,090,964 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2ae8 About Elephant Talk Based in Orange, California, Elephant Talk Communications Inc. (OTC BB: ETLK) -- http://www.elephanttalk.com/-- until recently was engaged in the long distance telephone business in China and the Special Administrative Region Hong Kong. The company currently operates a switch-based telecom network with national licenses and direct fixed line interconnects with the Incumbents/National Telecom Operators in eight (8) European countries, one (1) in the Middle East (Bahrain), licenses in Hong Kong and the U.S.A. and partnerships with telecom operators in Scandinavia, Poland, Germany and Hong Kong. GREENTOWN CHINA: Annual General Meeting Slated for May 23 --------------------------------------------------------- Greentown China Holdings Limited will be holding an Annual General Meeting at 3:00 p.m. on May 23, 2008, at Chater Room, 2nd Floor, Mandarin Oriental Hotel, 5 Connaught Road, Central, Hong Kong. At the meeting, the participants will discuss on: 1. the audited consolidated financial statements and the reports of the Directors and of the auditors for the year ended December 31, 2007; 2. declaration of a final dividend; 3. re-election of retiring Directors and determining the Directors’ remuneration; 4. re-appointment of auditors and fixing of their remuneration; 5. passing with or without amendments certain resolutions, including the exercise by the Directors during the relevant period of all the powers of the Company to purchase its shares, subject to and in accordance with the applicable laws. The Register of Members of the Company will be closed from May 21, 2008, until May 23, 2008, both days inclusive, during which period no transfer of shares will be registered. To qualify for the proposed final dividend and to attend and vote at the Annual General Meeting, all transfers of shares, accompanied by the relevant share certificates and appropriate transfer forms, must be lodged with the Company’s share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited at: Rooms 1806-07, 18th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong Registration is until 4:00 p.m. of May 20, 2008. About Greentown China Greentown China Holdings Limited is a residential property developer in China. The company has operations in Shanghai, Beijing and other selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province and Urumqi in Xinjiang Uygur Autonomous Region. It develops residential properties targeting middle- to higher-income residents in China. The company has three main product series: villas, which are typically independent houses with one or two storeys; low- rise apartment buildings, which are typically 3 to 5 storeys, and high-rise apartment buildings, which are typically higher than six storeys. Many of its residential developments are integrated residential complexes, which typically have a total site area over 150,000 square meters, and offer a combination of different product series with ancillary facilities, such as clubhouses, kindergartens and grocery stores. * * * The TCR-AP reported on Dec. 5, 2007, that Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to 'BB-' from 'BB'. The outlook is stable. At the same time, Standard & Poor's lowered the long-term debt ratings on the company's US$400 million senior unsecured notes and its CNY2.31 billion convertible notes to 'BB-' from 'BB'. On September 18, 2007, Moody's Investors Service downgraded Greentown China Holdings Ltd's corporate family and senior unsecured bond ratings to Ba3 from Ba2. The outlook for both ratings is stable. This concludes the ratings review initiated on June 25, 2007. HAINAN AIRLINES: 1st Qtr. Net Income Increases to CNY286.7 Mil. --------------------------------------------------------------- Hainan Airlines Co. Limited's first-quarter net income surged more than fivefold to CNY286.7 million (US$41 million), or CNY0.08 a share, from CNY51.2 million, or CNY0.014, in 2007, Irene Shen of Bloomberg News reports. According to the report, the company attributed the increase in net income on a stronger yuan and higher ticket sales. Bloomberg relates that the airline benefited from a 4.2% appreciation in the yuan, that cut their dollar-denominated debt's value, and the increased demand for Hainan province flights. The airline's first-quarter sales rose 3.4% to CNY3.57 billion, the report notes. Bloomberg says the airline aims to boost overall passenger numbers 16% to 16.75 million. The airline flew 14.5 million passengers last year, an increase of 0.7%. About Hainan Airlines Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HAINAN: Hires Mr. Chusid as General Manager for North America ------------------------------------------------------------- Hainan Airlines Co Limited appointed Joel Chusid as general manager for North American, and promoted Xinyu (Frank) Fang as branch manager of the Seattle office, Travel Daily News reports. According to the report, both officials will be responsible for the establishment of the airline's presence in Seattle, launching the new nonstop service between Seattle and Beijing, and introducing the Hainan Airlines brand to North American travelers. Hainan Airlines will launch its first service to North America with new nonstop flights from Seattle to Beijing beginning on June 9, 2008, the report notes. About Hainan Airlines Based in Haikou, Hainan Province, the People's Republic of China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is an airline company that operates nearly 500 domestic routes in more than 80 major cities. It also provides scheduled and non- scheduled international flights from Hainan Province to Southeast Asia and other Asian countries. The airline currently holds Xinhua Far East China Rating's CC issuer credit rating that was placed on October 31, 2005. HEXCEL CORP: S&P Maintains 'B3' Corp. Rating With Stable Outlook ---------------------------------------------------------------- Moody's Investors Service affirmed Hexcel Corporation's Corporate Family and Probability of Default ratings of Ba3, and the B1 rating of Hexcel's subordinated notes, but raised the rating on the Secured Bank Credit Facilities to Baa3 from Ba1. The rating outlook remains stable. Because about $96 million of the term loan portion of the Credit Facilities was repaid, recovery expectations are higher under Moody's Loss Given Default methodology and the rating on the Credit Facilities was raised one notch to Baa3 The claim of the Credit Facilities in the waterfall benefits from substantial collateral, up-stream guarantees from Hexcel's material domestic subsidiaries as well as a significant level of subordinated debt. The Ba3 Corporate Family and Probability of Default ratings balance the company's modest scale, significant market presence, strong credit metrics, and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow. The rating also recognizes concentration aspects in Hexcel's customer base and the cyclical nature of the build rate for new commercial aircraft. Recent performance demonstrates healthy interest coverage and significantly lower leverage, and flows from a combination of higher production rates in commercial aerospace and wind energy, increasing percentage use of composite materials in new aircraft, sustained margins, and the application of proceeds from business divestitures to reduce indebtedness. Moody's expects favorable operating trends to continue, but the company's plan for substantial capital expenditures is likely to result in no better than break-even free cash flow in the near term. Consequently, debt is not expected to be reduced. Hexcel could generate strong free cash flow once the heavy capital investments begin to ebb and the build-rates for larger aircraft progress to a normalized production level. The ratings are further supported by Hexcel's strong competitive position in what is expected to be a continuing robust environment for OEM aircraft suppliers. While Hexcel is anticipated to generate credit metrics at levels at or above those typical for the Ba3 rating, the rating considers uncertainty in the pace at which the Airbus A380 (on which Hexcel will have $3 million content per aircraft, according to the company) and the ongoing delays in production of Boeing's B787 (on which Hexcel will have between $1.3 million to $1.6 million of content per aircraft, according to the company). Also, a shareholder activist group has proposed three alternative nominees to Hexcel's board of directors (the shareholders meeting is scheduled for May 8, 2008) and has further said that shareholder value has not been maximized. Uncertainty of future financial policies constrains the rating. The stable rating outlook reflects Moody's expectations for continued healthy operating margins and revenue growth in an ongoing robust commercial aerospace environment and is supported by the firm's satisfactory liquidity profile despite the prospects for break-even free cash flow in 2008. The stable outlook also assumes that any developments relating to the production and delivery schedule of the A380 or B787 will have no material negative impact on the company's margins or working capital requirements. Ratings upgraded with revised Loss Given Default Assessments: -- $125 million secured revolving credit facility, Baa3 (LGD- 2, 14%) from Ba1 (LGD-2, 22%) -- $87 million secured term loan, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) Ratings affirmed with revised Loss Given Default Assessment: -- Corporate Family, Ba3 -- Probability of Default, Ba3 -- $225 million senior subordinated notes, B1 (LGD-4, 69%) The last rating action was on April 3, 2007 at which time Hexcel's Corporate Family and Probability of Default ratings were up-graded to Ba3 from B1. Hexcel Corporation, headquartered in Stamford, Connecticut, is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense, and certain industries. Revenues in 2007 were approximately $1.2 billion. HEXCEL CORP: Moody's Keeps Ba3 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed Hexcel Corporation's Corporate Family and Probability of Default ratings of Ba3, and the B1 rating of Hexcel's subordinated notes, but raised the rating on the Secured Bank Credit Facilities to Baa3 from Ba1. The rating outlook remains stable. Because about US$96 million of the term loan portion of the Credit Facilities was repaid, recovery expectations are higher under Moody's Loss Given Default methodology and the rating on the Credit Facilities was raised one notch to Baa3. The claim of the Credit Facilities in the waterfall benefits from substantial collateral, up-stream guarantees from Hexcel's material domestic subsidiaries as well as a significant level of subordinated debt. The Ba3 Corporate Family and Probability of Default ratings balance the company's modest scale, significant market presence, strong credit metrics, and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow. The rating also recognizes concentration aspects in Hexcel's customer base and the cyclical nature of the build rate for new commercial aircraft. Recent performance demonstrates healthy interest coverage and significantly lower leverage, and flows from a combination of higher production rates in commercial aerospace and wind energy, increasing percentage use of composite materials in new aircraft, sustained margins, and the application of proceeds from business divestitures to reduce indebtedness. Moody's expects favorable operating trends to continue, but the company's plan for substantial capital expenditures is likely to result in no better than break-even free cash flow in the near term. Consequently, debt is not expected to be reduced. Hexcel could generate strong free cash flow once the heavy capital investments begin to ebb and the build-rates for larger aircraft progress to a normalized production level. The ratings are further supported by Hexcel's strong competitive position in what is expected to be a continuing robust environment for OEM aircraft suppliers. While Hexcel is anticipated to generate credit metrics at levels at or above those typical for the Ba3 rating, the rating considers uncertainty in the pace at which the Airbus A380 (on which Hexcel will have US$3 million content per aircraft, according to the company) and the ongoing delays in production of Boeing's B787 (on which Hexcel will have between US$1.3 million to US$1.6 million of content per aircraft, according to the company). Also, a shareholder activist group has proposed three alternative nominees to Hexcel's board of directors (the shareholders meeting is scheduled for May 8, 2008) and has further said that shareholder value has not been maximized. Uncertainty of future financial policies constrains the rating. The stable rating outlook reflects Moody's expectations for continued healthy operating margins and revenue growth in an ongoing robust commercial aerospace environment and is supported by the firm's satisfactory liquidity profile despite the prospects for break-even free cash flow in 2008. The stable outlook also assumes that any developments relating to the production and delivery schedule of the A380 or B787 will have no material negative impact on the company's margins or working capital requirements. Ratings upgraded with revised Loss Given Default Assessments: -- US$125 million secured revolving credit facility, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) -- US$87 million secured term loan, Baa3 (LGD-2, 14%) from Ba1 (LGD-2, 22%) Ratings affirmed with revised Loss Given Default Assessment: -- Corporate Family, Ba3; -- Probability of Default, Ba3; -- US$225 million senior subordinated notes, B1 (LGD-4, 69%). The last rating action was on April 3, 2007 at which time Hexcel's Corporate Family and Probability of Default ratings were up-graded to Ba3 from B1. Hexcel Corporation, headquartered in Stamford, CT, is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense, and certain industries. Revenues in 2007 were approximately US$1.2 billion. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. SHIN KONG: S&P Affirms D+ Bank Fundamental Strength Rating ---------------------------------------------------------- Standard & Poor's Ratings affirmed its 'BBB+' long-term and 'A- 2' short-term counterparty credit ratings on Taiwan Shin Kong Commercial Bank. The outlook on the long-term rating is stable. At the same time, Standard & Poor's affirmed its 'D+' bank fundamental strength rating on the bank. "The ratings reflect Shin Kong Bank's importance to the Shin Kong Financial Holding Co. Ltd. [Shin Kong FHC; BBB/Stable/A-3] group, as well as the bank's adequate capitalization," said credit analyst Andy Chang. Counterbalancing factors include the bank's mediocre core earnings generating capability and small market position. Shin Kong Bank is the core member of Shin Kong FHC group, a midsize insurance-centric financial holding company with a well- established domestic franchise and customer base. The bank has effective cross-selling activities under the group's bancassurance strategy, and contributed about 11 % of the first-year premiums of Shin Kong Life Insurance Co. Ltd. (BBB+/Stable/--) in 2007. Shin Kong Bank accounted for about 21% of the group's consolidated equity at the end of 2007. Shin Kong Bank's core earnings are mediocre due to the bank's scale disadvantage and intense competition in the domestic banking sector. The bank accounted for only about 1% of total system assets at the end of 2007. Its pre-provision (excluding one-time disposal gain/losses) return on average assets (ROAA) and ROAA were only 0.6% and 0.4%, respectively, in 2007. The bank's capitalization is adequate. Its ratio of adjusted total equity to assets stood at 5.2% at the end of 2007. Shin Kong Bank's asset quality is adequate, supported by its clean-up of problematic loans and increasingly sophisticated underwriting skills. The bank's ratio of impaired assets (including official NPLs and foreclosed property) stood at 2.6% at the end of 2007. Its loss coverage ratio was 55% at the same time. YRC WORLDWIDE: Posts US$45.8 Million Net Loss in First Quarter -------------------------------------------------------------- YRC Worldwide Inc. reported a first quarter 2008 loss of US$45,875,000 on operating revenue of US$2,232,592,000. This compares to a net income of US$1,279,000 on operating revenue of US$2,328,342,000 for the three months ended March 31, 2007. The company also said that the results included the previously announced reorganization charges related to USF Holland and USF Reddaway and losses on property disposals. The results also included unfavorable actuarial adjustments primarily related to prior-year development of self-insurance claims. At March 31, 2008, the company had total assets of US$5,011,025,000 and total debts of US$1,174,510,000. "The soft economy, severe winter weather and record fuel prices created a very difficult operating environment in the first quarter," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "With that said, we have taken a number of actions that address the areas within our control and we are seeing benefits from those efforts. Despite the macroeconomic challenges that we are facing, we believe that we have turned the corner and expect meaningful earnings improvement starting with the current quarter," Zollars continued. Although the practice of providing earnings guidance was suspended in 2007, due in great part to uncertainty in the economy, which remains difficult to predict, the company determined that investors should be provided with additional near-term clarity regarding the anticipated performance of YRCW. Based upon the internal actions the company has already implemented, including securing a more competitive labor contract, renewing its credit agreement, and making footprint changes at YRC Regional Transportation, YRCW expects to earn between US$.30 and US$.40 per share in the second quarter, which ends June 30, 2008. "Given our solid action plans and the momentum that is underway, we are excited about the future of YRC and what we can do for our customers, employees and investors," stated Zollars. Segment Information Key segment information for the first quarter 2008 included: * YRC National Transportation LTL revenue per hundredweight up 6.3% from first quarter 2007 and LTL tonnage per day down 8.9% * YRC Regional Transportation LTL revenue per hundredweight up 5.4% compared to last year and LTL tonnage per day down 10.1% * YRC Logistics revenue and operating income consistent with last year despite the weak economy About YRC Worldwide YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. 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: Refinancing Risks Cue S&P to Confirm 'BB' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings on YRC Worldwide Inc., including the 'BB' corporate credit rating, and removed the ratings from CreditWatch, where they had been placed with negative implications on Feb. 21, 2008. The outlook is negative. The ratings had been placed on CreditWatch because of heightened concerns over the company's refinancing risk, earnings performance, and liquidity position over the next year, given the slowing U.S. economy and continuing pressures in the trucking sector. "The company has since obtained an amendment to its credit facility that allows additional covenant relief, and has renewed its 364-day asset-backed security facility, which was due to expire on May 16, 2008," said Standard & Poor's credit analyst Anita Ogbara. YRC has meaningful debt maturities over the next year and expects to use some combination of free cash flow, refinancing, and capacity under its amended bank facility to meet these maturities. "We believe the additional covenant relief provides sufficient room and expect the company to remain in compliance with its covenants," the analyst added. At the same time, Standard & Poor's lowered its issue-level rating on Yellow Corp.'s unsecured debt to 'B+' from 'BB' (two notches lower than the corporate credit rating on YRC Worldwide Inc.). S&P assigned a recovery rating of '6' to this debt, indicating the expectation for negligible (0-10%) recovery in the event of a payment default. The issue-level rating on the now partly secured notes at Roadway LLC is unchanged at 'BB'. S&P assigned a recovery rating of '4' to this debt, indicating the expectation for average (30%-50%) recovery. YRC is the largest less-than-truckload trucking company in North America, generating US$9.6 billion in annual revenues. YRC competes with large LTL companies Arkansas Best Corp. (US$1.8 billion in revenue) and Con-Way Inc. (US$4.2 billion in revenue) and with numerous smaller long-haul and regional LTL companies. Conditions in the trucking sector have deteriorated over the past several quarters and will likely not improve materially over the near term, given the weaker U.S. economy. YRC has pursued selective acquisitions in the past that have helped the company gain market share and increase its product offering. However, these acquisitions have stretched the company's financial profile, and YRC has not yet rationalized these acquired LTL operations. To improve profitability, YRC plans to streamline operations, reduce overhead, and manage costs more effectively. YRC has formalized plans to improve financial performance and is targeting US$100 million in cost savings over the next few quarters through the combination of terminal rationalization, elimination of redundant activities, and other cost reductions. S&P expects YRC's financial results to improve by early 2009 in response to various operating initiatives and as the freight environment improves. S&P could lower the ratings if financial results do not improve and the expected improvement in credit protection measures fails to materialize or if access to liquidity becomes constrained. S&P could revise the outlook to stable if YRC's credit metrics return to expected levels, and the improvement appears sustainable. YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. 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. ZTE CORP: Seals Belarus IPTV Project Contract --------------------------------------------- ZTE Corporation penetrated the Eastern European IPTV market by sealing an IPTV project contract with the Republican Unitary Telecommunication Enterprise (RUE) Beltelecom, a National Telecommunications Operator of the Republic of Belarus. Since May 2006, Beltelecom has been initiating the national IPTV development and conducting IPTV trial tests with leading providers in the industry. ZTE beats other competitors in the contract bid with its network video technology, which has a solid network performance infrastructure design, and one of the most reliable and comprehensive end-to-end multimedia solutions in the industry that meets sophisticated needs of multimedia service providers. "We are honored to be selected by Beltelecom for its national IPTV project. We have an extensive track record and IPTV system deployment experience with service providers in various international markets," said Mr. Yu Yifang, General Manager of ZTE Multimedia and Terminal Product Lines. "This new and significant customer win not only validates our proven capability in offering reliable IPTV network video solution, but also another key milestone for our IPTV expertise in penetrating international markets." Beltelecom, which is wholly owned by the State Republic, is the only telecom fixed-line provider and general internet provider with advanced telecommunication networks in the country. Established in July 1995, the company was transformed to RUE Beltelecom in 2004 by Order of the Ministry of Communications and Informatization. Today, Beltelecom has nine State-level unitary telecommunication enterprises, and six joint ventures under these enterprises. In addition to regulating the country's national fixed-line business and data transmission backbone infrastructure, Beltelecom is a shareholder of three mobile telecom providers in Belarus. Over the years, ZTE has conducted major IPTV trials in China as well as deployed IPTV systems in Europe, Asia Pacific, Latin America and other regions. In December 2007, ZTE clinched a major contract win with China Netcom Group Corporation (CNC) for the world's first AVS-IPTV commercial network development bid. The company has also sealed deals to construct IPTV projects for China Telecom, including the world's largest H.264 standard- based IPTV network for Shanghai Telecom. To-date, ZTE holds more than 50% of China's current IPTV market. About ZTE Corp Headquartered in Shenzhen, China, ZTE Corp's principal activities are the production and sale of general system and communication terminal equipments. The group operates both in the domestic and international market. * * * The Troubled Company Reporter-Asia Pacific reported on April 24, 2008, that Fitch Ratings affirmed ZTE Corporation's Long-term foreign currency and local currency Issuer Default Ratings at 'BB+'. The rating Outlook remains Stable. In December 2006, Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. ========= I N D I A ========= ESSAR OIL: Unit Bids for 2 Offshore Blocks in Australia ------------------------------------------------------- Essar Oil's wholly owned subsidiary, Essar Exploration and Production Ltd, has bid for 100% interest in two shallow-water offshore blocks in Australia, writes Pratim Ranjan Bose for the Business Line. According to the report, the bidding round ended on April 17 and the award is expected within a month. Moreover, S.R. Agarwal, Essar Exploration's CEO, told Business Line in an interview that the company has also tied up with a global major having US$15-20 billion market capitalisation for bidding in consortium for offshore blocks offered under NELP-VII in India. About Essar Oil Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are to develop, explore, produce, and refine oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65 billion and INR2 billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. GENERAL MOTORS: To Cut One Shift of Full-size Truck Production -------------------------------------------------------------- General Motors Corp. is eliminating one shift of production at its full-size pickup truck assembly plants in Pontiac, Michigan; Flint, Michigan; and Oshawa, Ontario; and its full-size SUV assembly plant in Janesville, Wisconsin. The decisions were made to bring production capacity more in line with market demand. Under this plan, approximately 88,000 units of full-size pickup and 50,000 units of full-size SUV production will be removed from [UTF-8?] North American production capacity for the remainder of the 2008 calendar year. Based on current plans, the shift reductions will be effective on these dates: * Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra): July 14; * Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL): July 14; * Pontiac Assembly (Chevrolet Silverado, GMC Sierra): July 14; * Oshawa Truck (Chevrolet Silverado and GMC Sierra): Sept. 8. The full-size pickup truck and full-size SUV segments have [UTF-8?]softened for the entire industry -â€“ down 15 and 26%, respectively, through the first quarter of 2008. Nonetheless, GM remains the segment leader in both instances, with nearly 40% share of full-size trucks and more than 63% share in the full- size SUV market. "With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," Troy Clarke, president GM North America, said. "This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market." Mr. Clarke noted that with the market shifting toward cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave and GMC Acadia. He added that the company is continuing to explore options to increase car and crossover production, but there are no changes to car production at this time. The full-size truck production cuts will result in lower staffing requirements at all four plants, and those details will be worked out over the next several weeks with the United Auto Workers and Canadian Auto Workers unions. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on April 28, 2008, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The CreditWatch update follows downgrades of 49%-owned subsidiaries GMAC LLC (B/Negative/C) and Residential Capital LLC (CCC+/Watch Neg/C). The rating actions on Residential Capital LLC and GMAC were triggered by the resignation of the only independent directors at Residential Capital LLC. GMAC LLC: Financial Arm Posts $589MM Net Loss in 2008 1st Qtr. -------------------------------------------------------------- GMAC LLC's unit, GMAC Financial Services reported a 2008 first quarter net loss of $589 million, compared to a net loss of $305 million in the first quarter of 2007. Profitable results in the global automotive finance and insurance businesses were more than offset by significant declines in the international mortgage operation of Residential Capital, LLC. Affecting results in the quarter were market-driven valuation adjustments and lower net financing revenue. "Continued volatility in the capital and credit markets put pressure on first quarter results," GMAC Chief Executive Officer Alvaro de Molina said. "While the actions we have taken to date to reduce risk, reduce leverage and streamline the cost structure have produced results, there is still more to do to stabilize ResCap and position the overall company for profitable growth. Moving through this unprecedented market environment clearly requires endurance, and liquidity is the key enabler. GMAC has made prudent liquidity management a top priority including holding high levels of cash, expanding the use of GMAC Bank and working with our banking partners on an approach to renew bank facilities." Liquidity and Capital GMAC's consolidated cash and certain marketable securities were $18.6 billion as of March 31, 2008, down from $22.7 billion at Dec. 31, 2007. Of these total balances, ResCap's consolidated cash and cash equivalents were $4.2 billion at quarter-end, down from $4.4 billion at Dec. 31, 2007. The decline in cash is due mainly to open market debt repurchases, unsecured debt maturities and an increase in originations. During the fourth quarter of 2007 and first quarter of 2008, GMAC purchased ResCap debt for $750 million in the open market, which was contributed to ResCap and retired during the first quarter. In exchange for the capital contribution, GMAC received shares of a new class of ResCap preferred equity that is equal to the market value of the debt at the time of the contribution. GMAC took this measure to further support the capital position at ResCap, while still maintaining consideration for GMAC's investors and stakeholders. As of March 31, 2008, ResCap's total equity base was $5.8 billion, exceeding its minimum tangible net worth requirements in its credit facilities. Global Automotive Finance GMAC's global automotive finance business reported net income of $258 million in the first quarter of 2008, compared to net income of $398 million in the year-ago period. Strong vehicle origination and wholesale penetration were offset by weaker credit performance which drove unfavorable valuation adjustments, higher credit loss provisions and increased operating expenses related to restructuring, remarketing and servicing initiatives. In addition, affecting performance was lower gain on sale of receivables and deterioration in the residual performance of off-lease vehicles. New vehicle financing originations for the first quarter of 2008 increased to $12.9 billion of retail and lease contracts from $12.3 billion in the first quarter of 2007, despite lower industry sales levels in North America. Used vehicle originations for the quarter remained stable at $2.1 billion, the same amount as the year-ago period. This reflects refinement of the diversification strategy to better balance credit risk. Delinquencies decreased in the first quarter of 2008 to 2.42% of managed retail assets, versus 2.52% in the prior year period. The decrease reflects additional underwriting and servicing measures taken in late 2007, which included expanding collection resources, increasing contact with higher-risk borrowers and strategically tightening underwriting. Credit losses have increased to 1.34% of managed assets, versus 1.13% in the first quarter of 2007. The actions taken have stemmed delinquencies in the first quarter, although losses increased as a result of higher year-end delinquency levels and loss severity in North America. In addition, international operations posted higher credit losses as a result of a maturing portfolio in Asia Pacific and weakness in Latin America; however, losses remain in line with expectations. Delinquency trends in the international operation improved in the first quarter. In February, GMAC disclosed a restructuring plan for its North American automotive finance operations that would consolidate 20 regional offices into five business centers in the U.S. and Canada and reduce the workforce by approximately 930 employees. GMAC expects to incur a total of $65 to $85 million in restructuring charges related to severance and other employee- related costs and the closure of facilities. During the first quarter, GMAC incurred $11 million of restructuring charges and the majority of the remaining charges are expected to occur in the second half of the year. As a result of the restructuring, GMAC expects an annual run rate savings of approximately $175 million. Insurance GMAC's insurance business recorded net income of $132 million, compared to net income of $143 million in the first quarter of 2007. Results primarily reflect investments related to growth initiatives in the U.S. The total value of the insurance investment portfolio was $7.2 billion at March 31, 2008, compared to $6.7 billion at March 31, 2007. The year-ago level reflects a dividend payment to GMAC. The majority of the investment portfolio is in fixed income securities with less than 10% invested in equity securities. On April 8, 2008, GMAC disclosed a plan related to the insurance business that aids in maintaining the current A - (excellent) financial strength rating issued by A.M. Best. The plan includes a dividend by GMAC of 100% of the voting interest in the insurance business to GMAC's shareholders, while GMAC continues to hold 100% of the economic interest in the business. This plan is expected to preserve the value of the insurance operations and enable growth initiatives to continue worldwide. Real Estate Finance ResCap reported a net loss of $859 million for the first quarter of 2008, compared to a net loss of $910 million in the year-ago period. The aggressive actions taken to reduce risk and rationalize the cost structure have favorably affected results in the U.S. residential finance business. These improvements, however, were offset by significant deterioration in international operations. Results in the quarter are attributable to market- driven valuation adjustments on mortgage loans held for sale, real estate assets and mortgage related investment securities. Partially offsetting these losses was a $480 million gain recognized from the retirement of $1.2 billion (face value) of debt. ResCap's U.S. residential finance business experienced improved results in the first quarter 2008, compared to the prior year. Prime conforming loan production increased to $15.4 billion in the first quarter of 2008, versus $9.6 billion in the year-ago period, the servicing portfolio posted strong results and operating expense targets were achieved. Deterioration in the mortgage market continues, however, driving increased charge- offs, lower valuations and higher cost of funds. The international mortgage business experienced a significant decline in the first quarter 2008 related to illiquidity in the global capital markets and weakening consumer credit in certain markets. This environment drove significant realized and unrealized losses in mortgage loans held for sale and investment securities. As a result, ResCap has reduced the size of its balance sheet and limited production of mortgages in overseas markets to only those products with market liquidity. The business lending operation also experienced continued pressure in the first quarter related to the decline in home sales and residential real estate values. Earlier this month, ResCap disclosed additional restructuring efforts in its international business aimed to further reduce the cost structure and change the business model to reflect current market conditions. In the U.K., approximately 280 positions will be eliminated and mortgage origination activity will be reduced. In Continental Europe, ResCap has suspended all new mortgage originations and refocused the business on asset management activities. As expected, ResCap has significant near-term liquidity requirements, which include approximately $4 billion in unsecured and $13 billion in secured debt maturities through the remainder of 2008. To meet these requirements, management is actively pursuing various alternatives including: potential secured funding to be provided by GMAC, ongoing and potential utilization of available committed lines of credit, the liquidation of certain assets, the extension of maturities and the refinancing or modification of our existing indebtedness. These efforts are ongoing and have not yet been completed. About GMAC LLC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. * * * As reported in the Troubled Company Reporter on April 25, 2008, 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. ICICI BANK: Khandwala Puts “Buy” Rating on Firm's Shares -------------------------------------------------------- Khandwala Securities has assigned a "buy" rating on ICICI Bank's shares, Moneycontrol.com reports. Moneycontrol.com relates that the target price for ICICI Bank's shares is INR1425. ICICI Bank's Net Interest Margins (NIMS) although have remained stable for FY08 at 2.2%, NIMs has improved during Q4FY08 to 2.4% from 2.3% in corresponding quarter last year. NIMs have expanded gradually during the year, from 1.9% in Q1FY08 to 2.4% in current quarter. NIMs have expanded on the back of improved CASA deposits, utilization of equity issuance of USD 5 billion and lower spike in bulk deposits rates in the month of March 2008 compared to last year, Moneycontrol.com adds citing a Khandwala Securities research report dated April 28, 2008. According to Moneycontrol.com., Khandwala Securities expects that ICICI Bank will continue its growth streak and net profit by 25-30% over next two years; although there are concerns on decreasing ROE after further capital issue and increase in NPA. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings on Feb. 5, 2007, gave ICICI Bank's Subordinated Debt a BB rating. The bank currently carries Moody's Investors Service's Ba2 Foreign Long Term Bank Deposits rating, which was places on Feb. 5, 2003. IFCI LTD: Incurs INR425.20 Mil. Net Loss in Qtr. Ended March 31 --------------------------------------------------------------- IFCI Ltd has posted a net loss of INR425.20 million in the three months ended March 31, 2008, as compared to a net profit of INR6.68 billion recorded in the same quarter of 2007. Total Income has decreased from INR10.94 billion in the quarter ended March 31, 2007, to INR4.51 billion in the current quarter under review. The company booked an operating profit of INR1.31 billion for the three months ended March 31, 2008. Depreciation for the quarter aggregated INR18.8 million while taxes totaled INR1.71 billion. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE QUEBECOR WORLD: Randy Benson Named Chief Restructuring Officer -------------------------------------------------------------- Quebecor World Inc. has appointed Randy Benson, Chief Restructuring Officer of the company. Mr. Benson will report to the Restructuring Committee of the Board of Directors. "We are very pleased to have someone of Randy's experience and capabilities joining Quebecor World at this time," said Jacques Mallette, President and CEO, Quebecor World. "Randy brings valuable experience in working with other companies going through a financial restructuring process. He will work closely with our senior management team and the Creditors' Committees, as we develop our restructuring plan with a view of quickly emerging from creditor protection as a strong company in our industry." Mr. Benson most recently served as Chief Restructuring Officer for Hollinger Inc and prior to that held the same position at Ivaco Inc. Mr. Benson was Senior Vice-President and Chief Financial Officer at Call-Net Enterprises-Sprint Canada Inc. and before that he served as a division president at Parmalat Canada and as Executive Vice-President and Chief Financial Officer of Beatrice Foods Inc. He is the principal of R.C. Benson Consulting Inc., a management consulting company focused on providing strategic analysis, chief executive management, and financial and operational restructuring expertise. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, and Switzerland. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. QUEBECOR WORLD: Posts US$2 Billion Net Loss for Full Year 2007 -------------------------------------------------------------- Quebecor World Inc. reported that for full year 2007 it generated revenues of US$5.7 billion compared to US$6.1 billion in 2006 and a net loss of US$2.2 billion or (US$16.85) per share compared to a net income of US$28.3 million or a net loss of US$ 0.04 per share the previous year taking into account dividends on preferred shares. Full-year results included a goodwill impairment charges, and impairment of assets, restructuring and other charges net of income taxes of US$2.1 billion or (US$16.26) per share, compared to US$87.3 million or (US$0.67) per share in 2006. The cash component of this charge was US$42.7 million in 2007 compared to US$76.4 million in 2006. Excluding these charges, the adjusted net loss was US$54.9 million or (US$0.58) per share in 2007 compared to adjusted net income of US$117.9 million or diluted earnings per share of US$0.64 for the same period in 2006. Operating income before IAROC and goodwill impairment charge in 2007 was US$90.1 million compared to US$241.5 million in 2006. On the same basis, EBITDA was US$461.9 million in 2007 compared to US$579.9 million in 2006. The reduction of EBITDA in 2007 is principally explained by US$80 million in largely non-cash, additional specific charges, compared to the prior year. Quebecor World's full-year 2007 revenues reflect a reduction in volume in its North American operations, in particular as the result of several plant closures as the company moved to complete its three-year restructuring and retooling program. In addition to goodwill, IAROC and specific charges, the decrease in profitability reflects volume reduction, pricing pressure, underperforming European assets and higher financial expenses not fully compensated by cost reductions and efficiency gains. On January 21, 2008, Quebecor World filed for creditor protection in the United States and Canada due to the inability of the Company to raise new capital in the current market environment and to complete the sale of its European operations. The filing was necessary to ensure the long-term viability of the Company within a process that ensures fair and equitable treatment for all stakeholders. "We have made important and substantial efforts to stabilize our business and to reach out to all our stakeholders in this process," said Jacques Mallette, President and CEO, Quebecor World. "I am pleased with what we have accomplished so far, and it demonstrates the support of our customers, our suppliers and our employees to our business going forward. We continue to renew and earn new business with important customers across our global platform including, most recently, McGraw Hill, Wenner Media and RONA." Bankruptcy Update Since the initial filing, the company received the final order for its US$1 billion DIP (debtor-in-possession) financing from the US court. As stated in the Monitor's report of April 1, 2008, the company had unrestricted cash balances of US$160 million and access to revolving credit facility of up to US$400 million. The company believes that this financing and its ability to generate significant cash flow from operations will allow it to emerge from creditor protection as a strong company in its industry. The company continues to serve all its global customers with superior products and enhanced value-added services as illustrated by the recent launch of its integrated multi-channel solutions offering designed to increase the efficiency of its customers advertising campaigns. To assist in its efforts to emerge from creditor protection as quickly as possible, the Company has appointed Mr. Randy Benson, Chief Restructuring Officer of the company. Mr. Benson has extensive experience in working with other companies going through a financial restructuring process. He reports to the Restructuring Committee of the Board of Directors. "The restructuring process is proceeding as planned. To date we have passed several important milestones and we are actively developing our five-year business plan which we expect to be completed in the second quarter. The appropriate creditors and ad hoc committees have been established in the U.S. and Canada and we are pursuing an active and ongoing dialogue," added Mr. Mallette. "To date we have had more than 60 uncontested motions approved in the U.S. process which is a strong indication of everyone's focus and determination to make this process a success by exiting creditor protection as soon as possible." Fourth Quarter Results For the fourth quarter of 2007, the company generated revenues of US$1.5 billion compared to US$1.6 billion in 2006, and a net loss of US$1.8 billion or (US$13.87) per share compared to net income from continuing operations of US$11.6 million or US$0.03 per share in the same period last year. Fourth quarter results included impairment of assets, restructuring and other charges (IAROC) and a goodwill impairment charge, net of income taxes, of US$1.8 billion or (US$13.81) per share compared to US$33.0 million or (US$0.25) per share in 2006. The cash component of this charge was US$5.1 million in 2007 compared to US$21.1 million in 2006. Excluding these charges, the adjusted net loss was US$1.9 million or (US$0.06) per share for the fourth quarter of 2007 compared to adjusted net income of US$44.6 million or diluted earnings per share of US$0.28 for the same period in 2006. Operating income before IAROC and goodwill impairment for the fourth quarter of 2007 was US$1.8 million compared to US$74.2 million for the same period in 2006. On the same basis, EBITDA was US$130.3 million for the fourth quarter of 2007 compared to US$170.2 million for the same period in 2006. In the fourth quarter 2007, the Company incurred US$45 million in additional specific charges compared to the fourth quarter of 2006. These charges were largely non-cash. Excluding these additional charges, EBITDA in the fourth quarter 2007 was slightly higher than during the same period in 2006. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, and Switzerland. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. QUEBECOR WORLD: Quebecor Inc. Issues Clarification -------------------------------------------------- Following the release of the financial results of Quebecor World Inc. for the 2007 financial year, Quebecor Inc. specifies that Quebecor World is a legal entity distinct from Quebecor and Quebecor World's announced net losses have no impact on Quebecor's liquidity. On January 21, 2008, Quebecor World Inc. placed itself under the protection of the Companies' Creditors Arrangement Act in Canada and Chapter 11 of the Bankruptcy Code in the United States. As a result, Quebecor Inc. does not expect to realize any future earnings on its investment in Quebecor World. Quebecor Inc. has not secured Quebecor World's commitments, including its debt and advances under its securitization programs. In accordance with generally accepted accounting principles, Quebecor Inc. ceased consolidating the result of Quebecor World as of Jan. 21, 2008. Quebecor Inc. plans to release its financial results for the 2007 financial year and the results of its Quebecor Media subsidiary for the first quarter of 2008 during the week of May 5, 2008. About Quebecor Inc. Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B) is a holding company with interests in two companies, Quebecor Media Inc. and Quebecor World Inc. Quebecor holds a 54.7% interest in Quebecor Media, which owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, the largest publisher of newspapers in Canada; Quebecor MediaPages, a publisher of print and online directories; TVA Group Inc., operator of the largest French-language over-the-air television network in Quebec, a number of specialty channels, and the English-language over-the-air station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publisher and distributor Quebecor Media Book Group Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products, and Le SuperClub Videotron ltee, a DVD and console game rental and retail chain. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, and Switzerland. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. TATA POWER: Refinances Bridge Loan to Fund Stake Purchase --------------------------------------------------------- In a regulatory filing with the Bombay Stock Exchange, Tata Power Company Ltd disclosed that it has refinanced its bridge loan taken for the acquisition of 30% equity stakes in major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, as well as related trading companies owned by PT Bumi Resources Tbk. Tata Power company has successfully refinanced US$650 million out of a total of US$950 million bridge loan taken at the time of acquisition. The US$950 million bridge loan had a tenor of one year of which US$850 million is being refinanced with long-term loans. The refinancing consists of a non-recourse US$580 million facility and a USO 270 million facility with recourse to the company. The non-recourse facility has a door-to-door tenor of six years and the recourse facility has a door-to-door tenor of seven year and the pricing on the facilities is competitive for loans of such nature. The financing has been provided by a group of banks led by five mandated lead arrangers including Barclays Capital, Bank of India, ICICI Bank State Bank of India and Sumitomo Mitsui Banking Corporation. Tata Power will evaluate the option of refinancing the balance US$100 million of the bridge loan at an appropriate time within the residual bridge loan tenor. Speaking on the occasion, Mr. Prasad R Menon, Managing Director, Tata Power said, "We are happy to refinance the bridge loan at competitive pricing in such challenging financial markets. The rising coat prices in the international market reinforce our belief that our investment in Indonesian coal companies is timely and pragmatic". About Tata Power Tata Power Company Ltd -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds has been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. ================= I N D O N E S I A ================= BANK RAKYAT: Reports IDR1.4 Trillion Net Profit in 1Q 2008 ---------------------------------------------------------- PT Bank Rakyat Indonesia Tbk BBRI.JK reported a net profit of IDR1.4 trillion in the first quarter of 2008, compared with IDR1.2 trillion in the same period in 2007. Bank Rakyat's net interest income for the first quarter 2008 was IDR4.6 trillion, compared with IDR3.9 trillion in the same period in 2007. The bank also disclosed that: * loans reached IDR118.4 trillion or grew at 30.06% year-on- year, driven by micro and small commercial segments; * deposits was at IDR159.6 trillion or grew at 30.96% year- on-year, still maintaining Low Cost Funds at preferable level; * fee based income grew year-on-year 55.01% supported by large number of accounts; and * extending asset growth for 31.74% year-on-year to be allocated in the productive assets. A full-text copy of Bank Rakyat's first quarter 2008 financial results is available for free at: http://bankrupt.com/misc/bankrakyat_1Q2008.pdf According to Nury Sybli and Harry Suhartono of Reuters, analysts expect Bank Rakyat to post a net profit of IDR6.2 trillion in 2008, up from IDR4.84 trillion in 2007. About RBI Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. EXCELCOMINDO PRATAMA: Earns IDR368 Billion in 1st Quarter 2008 -------------------------------------------------------------- In the first quarter of 2008, PT Excelcomindo Pratama Tbk recorded robust revenue growth of 51% compared to the 1Q 2007 and slightly increased as compared to the last quarter. Highlights for First Quarter ended March 31, 2008: * Revenue at IDR2.7 trillion (Increased 51% YoY ) * EBITDA at IDR1.1 trillion (Increased 47% YoY ) * EBITDA margin at 42% * Net Income at IDR368 billion (Increased 109% YoY ) * Total subscribers at 18.4 million (Increased 82% YoY) “We are satisfied with our performance in 1Q 2008 against the industry. This achievement is the result of our key strategies that have been consistently implemented since 2007. We provide comparable quality and best value with clear and aggressive pricing to our subscribers which have strengthened our brand awareness and we have seen a good response from our subscribers,” said Hasnul Suhaimi, President Director of XL. XL revenue grew by 51% YoY and 1% QoQ to IDR2.7 trillion. The growth was driven by a strong increase in minutes volume and subscriber base. As of March 31, 2008, XL had 18.4 million subscribers, an increase of 82% YoY. To sustain its voice tariff competitiveness, XL evolved its voice tariff in 2 stages during the first quarter. First, in Jan 2008, XL reduced its on-net and off-net voice tariff to IDR0.1/second. Then in March 2008, XL launched a new voice tariff mechanism of charging one rate per call regardless of the duration for on-net calls which is much cheaper and affordable. The tariff is as low as IDR300 sampai puas (one call rate “all you can eat”) for Sumatera, Sulawesi and Eastern Indonesia and IDR600 sampai puas for Java including greater Jakarta and also for Kalimantan. Compared to 1Q 2007, XL's EBITDA increased by 47% to IDR1.1 trillion; an increase of 4% QoQ. EBITDA margin for Q1 2008 was 42% as a result of XL's strong focus on productivity and efficiency. In 1Q 2008, XL recorded net income of IDR368 billion, growth of 109% YoY and 287% QoQ. “During the 1Q 2008, we have deployed 1,133 BTS nationwide bringing our total BTS to 12,290. By the end of 2007, we have covered 90% of the national population. Thus, our additional BTS during 1Q 2008 is focused in capacity expansion rather than coverage expansion in order to handle increased MoU as a result of our aggressive pricing strategy. We will allocate up to US$1 billion for capex in 2008 with a focus on capacity expansion,” said Hasnul Suhaimi. A full-text copy of XL's first quarter 2008 financial results is available for free at: http://bankrupt.com/misc/excelcomindo_1q2008.pdf In accordance with AGMS result held on April 4, 2008, XL will distribute a cash dividend based on 2007 performance on May 16, 2008 totaling IDR142 billion or IDR20/share, an increase of 115% compared to previous year dividend. On April 28, 2008, Telekom Malaysia Berhad’s Board announced that the process of the TM Group demerger and the acquisition by Indocel Holding Sdn Bhd from Khazanah Nasional Berhad’s entire shareholding in XL was completed on April 25, 2008. As a result, Indocel Holding Sdn Bhd’s shareholding in XL is 83.8%. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its all centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 29, 2008, Moody's Investors Service affirmed PT Excelcomindo Pratama Tbk's Ba2 local currency issuer rating and changed the outlook to stable from positive. At the same time, Moody's affirmed XL's Ba2 senior unsecured foreign currency rating. Concurrently, PT Moody's Indonesia affirmed the company's national scale rating of Aa1.id. Moody's said the outlook for all ratings is stable. On Dec 12, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit ratings on Excelcomindo Pratama and removed them from CreditWatch with negative implications. The outlook is stable. The 'BB-' ratings on all foreign currency senior unsecured debt were also affirmed. In May 2007, Fitch Ratings affirmed PT Excelcomindo Pratama Tbk's Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'BB-'. The Outlook remains Stable. At the same time, Fitch affirmed the 'BB-' rating on its senior unsecured notes programme. INDOFOOD: Reports IDR383 Billion 1st Quarter 2008 Net Profit ------------------------------------------------------------ PT Indofood Sukses Makmur Tbk reported that its net profit for the first quarter of 2008 reached IDR382.93 billion, up 116% from a year ago, Reuters reports. Reuters relates that Indofood's net sales jumped 51.8 percent to IDR8.85 trillion. On March 31, 2008, Indofood released its financial results for the year ended December 31, 2007, which provides that: * Consolidated net sales grew 27.0% to IDR27.86 trillion from IDR21.94 trillion in 2006, resulting from the growth in sales across most of the Strategic Business Group (SBG). * Operating profit increased 46.8% to IDR2.89 trillion with operating margin improving to 10.4%, compared with IDR1.97 trillion and 9.0%, respectively in 2006. * Net income rose significantly to IDR980.36 billion or IDR115 per share, from IDR661.21 billion or IDR78 per share in 2006, despite higher minority interest as a result of placement and listing of IndoAgri shares on the Singapore Stock Exchange in February 2007. * Net cash provided by operation was IDR2.50 trillion, compared with IDR1.54 trillion in 2006, driven by strong operating profit growth. PT Indofood Sukses Makmur Tbk (Indofood) -- http://www.indofood.co.id/-- is Indonesia's premier processed foods company. Its products, including instant noodles, wheat flour, branded edible oils and fats, baby foods, snack foods, food seasoning, lead domestic market shares. Indofood is currently the largest instant noodles manufacturer and the largest flour miller in the world, with installed capacities of approximately 13 billion packs and 3.6 million tons per annum, respectively. Indofood's products are distributed mainly through its subsidiaries, including Indomarco, independent distributors, as well as some cooperatives, which bring the Company's products to more than 150,000 retail outlets in the country. Total employees as of December 1999 were 42,172. A combination of shrinking profits, escalating costs, losses, competition and a declining rupiah prompted the Company to cut around 2,000 or 4.4% of its workforce and slash 40 products from its range in 2005. In 2005, Indofood's total outstanding debt fell to IDR6.8 trillion from IDR7.9 trillion in 2004. The United States dollar-denominated debts also fell to US$190.6 million in the same period from US$317.4 million in 2004. The Troubled Company Reporter-Asia Pacific reported on July 19, 2006, that Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Indofood at the company's request. GOODYEAR TIRE: Earns US$147 Million in 2008 First Quarter --------------------------------------------------------- The Goodyear Tire & Rubber Company reported record first quarter sales and its highest first quarter net income in several years. Goodyear's first quarter 2008 sales were US$4.9 billion, a 10% percent increase compared with the 2007 quarter, offsetting lower volumes with higher prices, a richer product mix and favorable currency translation. Improved pricing and product mix in all four businesses drove revenue per tire up 7% over the 2007 quarter, reflecting the company's successful strategy to focus on high-value-added tires. Lower volume primarily resulted from weak original equipment markets in North America as well as soft consumer replacement demand in North America and Europe, particularly for low-value-added tires. "Our excellent first quarter results demonstrate the success of our strategies to grow our higher-margin premium product lines, reduce costs and pay down debt," said Robert J. Keegan, chairman and chief executive officer. "Each of our four businesses improved margins and operating income as we capitalized on attractive growth opportunities in targeted market segments," he said. "While the economy remains a concern, we continue to be confident about the opportunities we see in the market and our ability to take advantage of them," Keegan said. "Over the last five years, our strategic decisions have better positioned Goodyear to face an economic downturn and to emerge as a stronger competitor." Goodyear said it made additional progress during the first quarter on its plan to achieve US$1.8 billion to US$2 billion in gross cost savings by the end of 2009. "We have now achieved more than US$1.2 billion in savings since beginning this plan and remain on target to reach our four-year goal," Keegan said. Segment operating income set a first quarter record at US$367 million in 2008, up 62% from US$226 million in the strike- affected 2007 first quarter. Gross margin was 19.9% for the 2008 first quarter compared to 16.8 percent last year. Segment operating income benefited from improved pricing and product mix of US$157 million, which more than offset increased raw material costs of US$13 million. Favorable currency translation positively impacted sales by US$341 million and segment operating income by US$27 million in the quarter. First quarter 2008 net income from continuing operations was US$147 million (60 cents per share). This compares to a loss from continuing operations of US$110 million (61 cents per share) in the year-ago quarter. Including discontinued operations, Goodyear had a net loss of US$174 million (96 cents per share) in 2007's first quarter. All per share amounts are diluted. The 2008 quarter included after-tax financing fees related to debt repayment of US$43 million (18 cents per share), US$13 million (5 cents per share) in after-tax rationalization charges, an after-tax gain on asset sales of US$33 million (13 cents per share) and an after-tax gain on an excise tax settlement in Latin America of US$8 million (3 cents per share). The 2007 quarter was impacted by after-tax charges of US$64 million (35 cents per share) due to salaried benefit plan changes, an estimated US$34 million (19 cents per share) related to the 2006 United Steelworkers strike and US$31 million (17 cents per share) in rationalization and accelerated depreciation charges. Business Segments All three of the company's businesses outside of North America achieved record sales for any quarter during the 2008 first quarter as the emerging markets businesses continued to grow. Segment operating income increased in all four businesses. Segment operating income for the Latin America and Asia Pacific businesses were records for any quarter. Segment operating income for the Europe, Middle East and Africa business was a first quarter record. North American Segment North American Tire's first quarter sales decreased 1% from last year. The 2007 quarter included approximately US$150 million in sales from T&WA, which was divested in December 2007. Sales in the 2008 quarter were impacted by reduced original equipment volume resulting from lower vehicle production and a decline in the consumer replacement tire market, particularly for low- value-added tires. Sales benefited from strong pricing and product mix as well as market share gains for Goodyear and Dunlop brand tires in the consumer replacement market. Segment operating income increased US$52 million primarily due to improved pricing and product mix of US$67 million, which more than offset increased raw material costs of US$5 million. Lower selling, administrative and general expenses and structural cost savings, including savings from the 2006 contract with the USW, were partially offset by lower volume and transitional manufacturing costs. The company estimates the USW strike reduced 2007 first quarter sales by US$102 million and segment operating income by US$34 million. EMEA Segment Europe, Middle East and Africa Tire's first quarter sales were a record for any quarter and increased 16% over last year due to favorable currency translation, improved pricing and product mix and market share gains in the consumer replacement and commercial replacement markets. Segment operating income was a first quarter record and up 24% due to improved pricing and product mix of US$40 million, which more than offset increased raw material costs of US$4 million. Favorable currency translation and lower selling, administrative and general expenses offset higher manufacturing costs related to ongoing labor issues in France and higher transportation costs. Latin America Segment Latin American Tire's first quarter sales were a record for any quarter and increased 29% over 2007 due to improved pricing and product mix and favorable currency translation. Segment operating income was a record for any quarter, increasing 46% compared to the prior year. Improved pricing and product mix of US$37 million, a US$12 million gain from the settlement of an excise tax case and favorable currency translation more than offset higher manufacturing costs and selling, administrative and general expenses. Asia Pacific Segment Asia Pacific Tire's first quarter sales were a record for any quarter and up 21% over last year due to favorable currency translation, higher volume and improved pricing and product mix. Segment operating income increased 69% and was a record for any quarter. The improvement was due to improved pricing and product mix of US$13 million, which more than offset US$4 million in increased raw material costs, as well as higher volume, favorable currency translation and lower selling, administrative and general expenses. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 60 facilities in 26 countries and employs 80,000 people worldwide. Goodyear has subsidiaries in New Zealand, Venezuela, Peru, Mexico, Luxembourg, Finland, Korea and Japan, among others. * * * As reported by the Troubled Company Reporter-Latin America on March 7, 2008, Fitch Ratings upgraded The Goodyear Tire & Rubber Company's Issuer Default Rating to 'BB-' from 'B+' and senior unsecured debt rating to 'B+' from 'B-/RR6'. MEDCO ENERGI: Mitsubishi LNG Project May Cost US$1.4 Billion ------------------------------------------------------------ Leony Aurora of Bloomberg News reports that "PT Medco Energi Internasional and Mitsubishi Corp. may spend a higher-than- estimated US$1.4 billion to build Indonesia's fourth liquefied natural gas plant after metal prices rose." The plant is a joint project among Medco Energi (20% stake), Mitsubishi (51% stake) and PT Pertamina (29% stake). In August 2007, the project was estimated to cost US$1.2 billion. Bloomberg relates that Lukman Mahfoedz, chief of Medco's exploration and production unit, said the plant may start producing the fuel in the first quarter of 2012. Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). ========= J A P A N ========= BANCO BRADESCO: Net Income Up 23.3% to BRL2.1 Billion in 1Q 2008 ---------------------------------------------------------------- Banco Bradesco presented its main figures for the first quarter of 2008. The Report on Economic and Financial Analysis containing the complete Financial Statements is available on the investor relations Web site http://www.bradesco.com.br/ir Highlights: -- Net Income in the first quarter 2008 stood at BRL2.102 billion (up 23.3% in relation to the net income of BRL1.705 billion in the same quarter of 2007), corresponding to EPS of BRL0.68 and return of 32% on Average Shareholders' Equity. -- Net Income comprised BRL1.356 billion from financial activities, which accounted for 65% of the total, and BRL746 million from insurance, private pension plan and certificated savings plan activities, which accounted for 35% of Net Income. -- Market capitalization grew by 12.1% compared to first quarter 2007, reaching BRL93.631 billion in March 2008 (BRL104.959 billion on April 25, 2008). -- The balance of total assets in March 2008 stood at BRL355.517 billion, an increase of 26.1% in relation to March 2007. Annualized return on average total assets was 2.4%, versus 2.5% in the same period of 2007. -- The total loan portfolio grew to BRL169.408 billion, 38.5% higher than a year ago. Loans to individuals totaled BRL62.226 billion (up 34.3%), while operations with corporate clients totaled BRL107.182 billion (up 41%). -- The sum of funds raised and managed was BRL506.805 billion, an increase of 24.5% from the BRL406.970 billion in March 2007. -- Shareholders' Equity was BRL32.909 billion in the first quarter of 2008, an increase of 26.4% versus first quarter 2007. The Capital Adequacy Ratio stood at 13.9%. -- Remuneration to shareholders in the period in the form of interest on shareholders' capital paid and provisioned totaled BRL740 million, equivalent to 35.2% of Net Income of the same quarter. -- The Efficiency Ratio in 12 months stood at 41.7%, an improvement compared to the 42.1% in March 2007. -- In the first quarter 2008, investments in infrastructure, information technology and telecommunications amounted to BRL573 million, up 20.6% million in relation to the first quarter of 2007. -- Taxes and contributions, including social security, paid or provisioned in the period, stemming from the main activities developed by Bradesco Organization, totaled BRL1.697 billion, equivalent to 80.7% of Net Income. -- Banco Bradesco has Brazil's largest private customer service network, with 3,169 branches, 26,735 ATMs in the Bradesco Dia&Noite (Day&Night) Network, 4,221 ATMs in the Banco24Horas (24HourBank) Network, 12,381 Bradesco Expresso outlets, 5,851 Postal Bank branches, 2,825 corporate site branches and 357 branches of Finasa Promotora de Vendas. -- On Jan. 21, Grupo Bradesco de Seguros e Previdencia, through Bradesco Seguros S.A., entered into a "Quotas Assignment Agreement" with Marsh Corretora de Seguros Ltda., with a view to acquiring control of Mediservice - Administradora de Planos de Saude Ltda. The transaction represents an important strategic step that will allow for expanding the client base with scale gains. -- On March 6, Banco Bradesco BBI S.A. entered with the shareholders of Agora Corretora de Titulos e Valores Mobiliarios S.A., into a "Private Instrument of Commitment of Merger of Shares and Other Covenants", aiming at the acquisition of its total capital. Agora Corretora is Brazil's largest brokerage firm in online purchase and sale transactions of shares to individuals (home broker), with around 29,000 active clients. The operation is subject to the approval by the respective government agencies and to the due diligence results. -- On March 27, Brazil's Central Bank (BACEN) approved: (i) the increase in the Capital Stock in the amount of BRL1.2 billion, from BRL19 billion to BRL20.2 billion, through the subscription of new shares introduced at the Special Shareholders' Meeting held on Jan. 4, 2008, and ratified at the Special Shareholders' Meeting held on March 24, 2008; and (ii) an increase in the capital stock in the amount of BRL2,8 billion, from BRL20.2 billion to BRL23 billion, with a 50% stock bonus, through the capitalization of part of the balance in the "Profit Reserve - Statutory Reserve" account, as resolved at the Special Shareholders' Meeting held on March 24, 2008. -- Banco Bradesco is the Brazilian bank with the best placement in the ranking of the world's 2,000 largest companies, ranking 85th, according to Forbes, one of the most respected international economy, finances and businesses magazines. -- Regarding Social Responsibility, for more than 50 years, Fundacao Bradesco has been dedicated to educating low- income children, adolescents and adults. Since its creation, the foundation has provided free and high- quality education to some 2 million students, with this figure rising to 2.5 million once the distance-learning programs are included. With an estimated budget of BRL220.069 million, this year Fundacao Bradesco will be able to provide assistance on more than 411,000 occasions in the many segments in which it operates. Among the people assisted, 110,415 students will have free high- quality education. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Units Earn BRL746 Million in First Quarter 2008 --------------------------------------------------------------- Banco Bradesco SA's insurance, private pension, and savings bond businesses' net profit increased 41.0% to BRL746 million in the first quarter this year 2008, compared to the same period in 2007, Business News Americas reports. According to Banco Bradesco, the units' return on equity increased to 37.8% in the first quarter 2008, compared to 33.0% in the first quarter 2007, while equity rose 26.2% year-on-year to BRL9.15 billion. BNamericas relates that the units' operating income grew 47.7% to BRL1.07 billion in the first quarter 2008, from the first quarter 2007. Their financial income rose 9.75% to BRL698 million. The report says that claims paid rose 14.8% to BRL1.64 billion in the first quarter 2008, compared to the same period last year, and the combined ratio improved to 83.9% from 85.1%. BNamericas notes that insurance, private pension, and savings bonds contributed 35% to Banco Bradesco's "bottom line," which increased 23.3% to BRL2.10 billion in the first quarter 2008, compared to the same period in 2007. The insurance divisions accounted for 39% of Banco Bradesco's recurring net income, which rose 11.8% to BRL1.91 billion in the first quarter 2008, from the first quarter 2007, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Forms Unit to Handle Credit Card Operations ----------------------------------------------------------- Banco Bradesco SA's Chief Executive Officer Marcio Cypriano told journalists that the bank has created a unit to handle credit card operations. Business News Americas relates Banco Bradesco's Vice President Milton Vargas said that the bank saw the need to form a subsidiary because credit card lending increased "significantly with the March 2006 acquisition of Amex in Brazil and growing private label operations with retailers." "It's important to have a separate credit card company to get a hold on the strong growth in this segment," Mr. Vargas commented to BNamericas. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Won't Enter Commercial Banking Segment Abroad ------------------------------------------------------------- Banco Bradesco SA's Chief Executive Officer Marcio Cypriano told journalists that the bank won't venture into the commercial banking segment outside Brazil. Banco Bradesco will stick to the local market and "ride the current wave of continued lending growth," reporters say, citing Mr. Cypriano. Mr. Cypriano commented to Business News Americas, "We wouldn't risk going abroad, not in the short or medium-term. The opportunities for growth in Brazil are still really big." According to BNamericas, Mr. Cypriano said that Banco Bradesco launched a broker dealer in London in 2007, which "has done well and stirred the bank to move forward with plans to open an office in Asia." The current increase in lending in Brazil will continue as higher salaries encourage more loans and economic stability lets firms to make investments, Mr. Cypriano added. "A long-standing demand for consumer loans is now beginning to be met" with people making higher salaries, BNamericas says, citing Mr. Cypriano. The report says that Mr. Cypriano sees retail loan growth in the banking sector at large to slow down slightly compared to 2007. Mr. Cypriano commented to BNamericas, "Growth in both loans to SMEs [small and medium-sized enterprises] and large corporates means companies are investing and they believe in economic growth. Despite a recent increase in interest rates, no company [polled by Bradesco's economic research department] has stopped making investments." Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. COREL CORP: Reports $18M Stockholders' Deficit, Lower Net Loss -------------------------------------------------------------- Corel Corporation reported financial results for its first quarter ended Feb. 29, 2008. Generally Accepted Accounting or GAAP net loss in the first quarter of fiscal 2008 was $30,000 compared to GAAP net loss of $11.9 million in the first quarter of fiscal 2007. Non-GAAP adjusted net income for the first quarter of fiscal 2008 was $6.7 million compared to non-GAAP adjusted net income for the first quarter of fiscal 2007 of $2.7 million. At Feb. 29, 2008, the company's showed $255.9 million in total assets and $273.6 million in total liabilities, resulting in a $17.7 million total stockholders' deficit. Liquidity and Capital Resources As of Feb. 29, 2008, its principal sources of liquidity are cash and cash equivalents of $28.8 million and trade accounts receivable of $29.8 million. As a part of its senior credit facility, the company also entered into a five-year $75 million revolving line of credit facility, of which $75 million is unused as at Feb. 29, 2008. Cash provided by operations decreased by $12.1 million to $6.4 million for the three months ended Feb. 28, 2008, compared to $18.4 million for the three months ended Feb. 28, 2007. The decrease is due to the receipt of cash for royalty revenues in advance of its related obligation in the first quarter of fiscal 2007. Cash used in financing activities was $0.7 million for the three months ended Feb. 29, 2008, compared to the cash provided by financing activities of $91.9 million for the three month period ended Feb. 28, 2007. In the first quarter of fiscal 2008, it made $0.8 million of payments against its long-term debt and its capital lease obligations. In the first quarter of fiscal 2007, the company obtained a $70 million term loan and used $23 million of its operating line of credit to finance its acquisition of InterVideo. We have since repaid the entire balance on the line of credit. Cash used in investing activities was $1.4 million in the three months ended Feb. 29, 2008, a significant decrease from the cash used of $120.5 million in the three months ended Feb. 28, 2007. The cash outlay in the first quarter of fiscal 2008 was for the purchase of long-lived assets relating mostly to technology licenses, and significant investment in computer hardware. The cash outlay in the first quarter of 2007 reflects the purchase of InterVideo on Dec. 12, 2006, and the remaining interest in Ulead on Dec. 28, 2006, for an aggregate of $120.4 million. About Corel Corporation Corel Corp. (NASDAQ: CREL)(TSX: CRE) -- http://www.corel.com/-- is a developer of graphics, productivity and digital media software with more than 100 million users worldwide. The company's product portfolio includes some of CorelDRAW(R) Graphics Suite, Corel(R) Paint Shop Pro(R) Photo, Corel(R) Painter(TM), Corel DESIGNER(R), Corel(R) WordPerfect(R) Office, WinZip)R), WinDVD(R) and iGrafx(R). Corel's products are sold in more than 75 countries through a network of international resellers, retailers, original equipment manufacturers, online providers and Corel's global websites. The company's headquarters are located in Ottawa, Canada with major offices in the United States, United Kingdom, Germany, China, Taiwan and Japan. FORD MOTOR: Inks Master Economics Offer Agreement with CAW ---------------------------------------------------------- Following early background negotiations, Ford Motor Company of Canada Ltd. and the Canadian Auto Workers union have reached an agreement on a Master Economics Offer that will now become the centerpiece of all-out collective bargaining aimed at reaching a tentative agreement between the two sides later this week. For a full tentative agreement to be reached, agreement also must now be attained on all local agreements, such as skilled trades, health and safety. That tentative agreement must then be ratified by CAW members at all Canadian locations. The current collective agreement expires at midnight September 16. The Master Economics Offer was endorsed unanimously by members of the CAW-Ford Master and local bargaining committees at a special meeting in Toronto on Monday. Highlights of the Master Economics Offer: * Three year contract, expiring midnight Sept. 14, 2011; * No changes in base wages; * No two-tier system for wages, pensions or benefits; * Extended the life of the St. Thomas assembly plant through life of agreement (to 2011) The product commitment was scheduled to end in 2010; * COLA payments frozen for remainder of current contract, and first year of the new contract. Quarterly COLA wage adjustments resume under existing formula Dec. 2009; * US$2200 "productivity & quality" bonus to be paid upon ratification; * Inflation-indexed pension increases for both existing and new retirees in second and third year; * Significant savings in health costs (stricter cap on long- term care, 10% co-pay on drugs to US$250 annual maximum per family); * Modest improvements in health benefits and spousal insurance benefit; * New-hire grow-in system, where wages, COLA, SUB benefits, and time-off provisions are phased in (starting at 70% of base wages) over the first three years of work; after three years, wages reach 100% of base wages; * Reduction in vacation pay by 40 hours per year, compensated with special US$3500 cash payment in January 2009; * Improved restructuring benefits and renewed income security funds; * Commitment to explore Canadian opportunities to establish a pre-funded, off-balance-sheet Retiree Health Benefit Fund. The offer includes a mixture of modest gains and cost savings that in the CAW’s judgment will ensure that Canadian facilities over the life of the agreement will remain in the ballpark for new investment opportunities. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on March 31, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for USUS$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. In November 2007, Moody's Investors Service affirmed the long- term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. JASDAQ SECURITIES: May Resort to Merger to Keep Business --------------------------------------------------------- The Jasdaq Securities Exchange Inc. is projected to fall into the red for the first time in fiscal 2007 amid falling stock prices, the Asahi Shimbun reports, citing sources. According to the report, Jasdaq has judged that it will be difficult to continue as an independent market making a merger deal with the Osaka Securities Exchange more likely. Jiji Press relates, citing informed sources, that the prospect emerged as the board of Jasdaq will likely be controlled by members supporting the integration after a coming general meeting of its shareholders. Jasdaq, Jiji Press says, will compile a list of candidates for board directors in mid-May for submission to the shareholder meeting, scheduled on June 10. Jiji Press adds that in July, OSE will launch a tender offer for Jasdaq with the aim of acquiring more than two-thirds of outstanding Jasdaq shares from the Japan Securities Dealers Association and other shareholders. The JSDA holds some 70 percent stake in Jasdaq, according to Jiji Press. Jasdaq Securities Exchange Inc. -- http://www.jasdaq.co.jp/-- was authorized in December 2004 as a new market. The firm operates the Jasdaq stock market for startups. SADIA SA: To Form Joint Venture With Kraft Foods ------------------------------------------------ Sadia S.A. has signed a partnership agreement with Kraft Foods Brasil S.A. and Kraft Foods Holdings, Inc., for the formation of a joint venture, a regulatory filing with the U.S. Securities and Exchange Commission discloses. The joint venture, of which Kraft will hold 51% of the voting shares while Sadia the remaining 49%, will manufacture, market and distribute, in Brazil, cheese products, including those currently marketed by Kraft under the Philadelphia brands, as well as cheese products and cheese spreads sold under the Sadia brand. The joint venture will take the form of a closed corporation with its registered address and industrial park located in Curitiba-PR, the SEC filing relates. The corporation will have its own independent structure and corporate governance. Sadia estimates at BRL30 million the initial investment to set up the business. The company expects revenues of the joint venture to reach BRL40 million in its first year of business. Upon the execution of the final documents by the parties, as required by the partnership agreement, the JV will commence its activities by the second half of August 2008. In addition to the partnership pact, Sadia and Kraft also executed a distribution agreement pursuant to which Sadia will market and distribute the whole portfolio of cheese products manufactured by Kraft, on an exclusive basis. Sadia believes the partnership with Kraft represents an important step towards strengthening the company in the segment of cheese and is in full alignment with its strategy of growth and creation of value. Headquartered in Sao Paulo, Brazil, Sadia S.A. -- http://www.sadia.com-- operates in the agro industrial and food processing sectors in Brazil and primarily produces a range of processed products, poultry, and pork. The company distributes around 1,000 different products through distribution and sales centers located in Brazil, China, Japan, and Italy, among others. * * * As reported by the Troubled Company Reporter-Latin America on Feb. 26, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Sadia S.A. The outlook is stable. ========= K O R E A ========= DAEWOO ELECTRONIC: Ziontech, et al. Acquire 945,300 Shares ---------------------------------------------------------- Four related parties of Ziontech Co. Limited acquired a combined total of 945,300 shares of Daewoo Electronic Components Co. Limited, Reuters reports. According to the report, the acquired shares are equivalent to a 6.88% stake in the company. Ziontech and its seven related parties now hold a combined 17.80% stake in Daewoo, the report notes. Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo Electronics placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. In September 2006, the consortium led by Videocon Industries submitted a bid for a controlling stake in Daewoo. DURA AUTOMOTIVE: Files First Revised Chapter 11 Plan Supplements ---------------------------------------------------------------- DURA Automotive Systems, Inc., and its debtor-affiliates delivered to the U.S. Bankruptcy Court for the District of Delaware supplements to their Revised Joint Plan of Reorganization, dated March 31, 2008. The Debtors, in the Plan Supplements, disclose that, pursuant to the Revised Plan, they intend to implement various reorganization transactions on or after the effective date of the Plan. The Debtors intend to implement several taxable sale transactions, including the: (a) formation of New Dura, with nominal capitalization by certain Dura creditors or a nominee on behalf of them; (b) formation of New Dura Holdings, which in turn will form New Dura Opco; (c) transfer by Dura Operating Corporation to Dura Automotive Systems, Inc., of assets with an estimated value between $1,500,000 and $5,000,000, which assets will include one or more of plants that have ceased operations, plants that are operating, and stock in certain subsidiaries; (d) transfer by DASI of all of its stock in DOC to New Dura Opco in exchange for the Convertible Preferred Stock and New Common Stock; (e) distribution by DASI of Convertible Preferred Stock and New Common Stock to its creditors, which stock will be held by one or more independent third parties after the Effective Date; (f) continued existence of DASI and continued ownership of the remaining assets, some of which may be leased to New Dura Opco; and (g) the taxable sale transaction will require a stock transfer agreement and may require a transition services agreement and stockholders agreement. The Debtors also intend to reorganize certain of their debtor and non-debtor entities in the United Kingdom and Canada for tax purposes. The Debtors will also consolidation these entities into surviving Reorganized Debtors: -- Dura G.P. -- Dura Automotive Systems of Indiana, Inc. -- Universal Tool & Stamping Company, Inc. -- Patent Licensing Clearinghouse L.L.C. -- Mark I Molded Plastics of Tennessee, Inc. -- Dura Brake Systems L.L.C. -- Dura Cables North LLC -- Dura Cables South LLC -- Atwood Mobile Products, Inc. and certain subsidiaries -- Trident Automotive, L.P. The Debtors also disclose that they do not intend to file or adopt revised organizational documents, except for: -- a certificate of incorporation and bylaws for New Dura; -- a registration rights agreement; -- certificates of incorporation and bylaws for New Dura Holdings and New Dura Opco; and -- constituent documents required to create any other new entity formed as part of a Plan Restructuring. Other Plan Supplements delivered to the Court are: * a list of executory and unexpired leases to be assumed, available for free at: http://bankrupt.com/misc/DURA_LeasesAssumed.pdf * a list of executory and unexpired leases to be rejected, available for free at: http://bankrupt.com/misc/DURA_LeasesRejected.pdf * a list of compensation and benefits programs and unexpired directors' and officers' liability insurance policies to be assumed, available for free at: http://bankrupt.com/misc/DURA_ProgramsAssumed.pdf * a list of compensation and benefits programs and unexpired directors' and officers' liability insurance policies to be rejected, available for free at: http://bankrupt.com/misc/DURA_ProgramsRejected.pdf Debtors Object to Delay in Confirmation Hearing The Debtors ask the Court to deny J.W. Korth's request to extend the date of the confirmation hearing and the date to submit confirmation objections. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, says the delay would not benefit any parties-in-interest, least of all Senior Notes holders like Mr. Korth. Furthermore, Mr. Madron says the Debtors face looming deadlines to confirm and consummate their Revised Plan and any failure to meet those deadlines could unnecessarily jeopardize the Revised Plan. Mr. Madron notes that, contrary to Mr. Korth's claims, Mr. Korth has already received all of the information he is entitled to receive under the Court Order entered pursuant to Rule 2004 of the Federal Rules of the Bankruptcy Procedure. Mr. Korth may have stated that the information provided by the Debtors contains a variety of deficiencies, however, Mr. Madron notes that in each instance, either: (i) the Debtors have already supplied the information prior to Mr. Korth's request to extend the confirmation hearing; (ii) the Debtors were still gathering the requested information at the time Mr. Korth requested for the delay; or (iii) the Court did not order the information be produced because it did not exist. Mr. Madron asserts that Mr. Korth has had more than sufficient time within which to conduct the additional discovery he wanted. "Mr. Korth is seeking to delay the Revised Plan's confirmation hearing at a time when he has already had many months in which to take discovery of the underlying assets and financial condition of the Debtors," Mr. Madron says. Korth Talks Back Mr. Korth argues that the Debtors have failed to refute or explain these concerns: * huge conflict of interest, which might be detrimental to all stakeholders; * "broad brush" Liquidation Analysis did not value the Debtors' subsidiaries as individual going concerns; * failure to valuate 422 patents and even mention them or the subsidiary holding them; * unexplained write down of $900,159,000 in investment to $200,000,000; and * Lawrence Denton's employment contract as DURA's CEO with a "Sales Incentive Clause," which properly could be invoked prior to DURA emerging from Chapter 11 "Failure to clearly refute or explain these concerns tacitly admits they exist and the Court should take them under consideration when it is making its decision whether or not the unsecured creditors may receive a higher value through liquidation rather than under the Revised Plan of Reorganization," Mr. Korth says. Mr. Korth admits that he has received a lot of material from the Debtors but he states that a large part of the information was received on April 21, 2008. Mr. Korth says he still has to catalog the new information before he can hire a financial consultant. He says it will take at least 45 days from the day he received the materials to take the depositions necessary to understand the Debtors' operations and produce an independent valuation. Mr. Korth believes that the cost for the delay will be substantially less than $1,000,000. Judge's Decree The Honorable Kevin J. Carey denies Mr. Korth's request to inspect the Debtors' books and records. However, the Court directs the Debtors to provide to Mr. Korth: (1) an explanation why the patents held by the Debtors are contained in the particular place within the Debtors' corporate structure, and how the patents are incorporated into the valuation of the Debtors provided in the Disclosure Statement; and (2) a calculation of the amount identified in the Debtors' most recent monthly operating report as investment in non- debtor subsidiaries. All information the Debtors will disclose is subject to a Court- approved confidentiality agreement and protective order between the Official Committee of Unsecured Creditors and Mr. Korth. About DURA Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006, (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had $1,503,682,000 in total assets and $1,623,632,000 in total liabilities. On April 3, 2008, the Court approved the Debtors' revised Disclosure Statement explaining their revised Chapter 11 plan of reorganization. A plan confirmation hearing is set for May 13, 2008. (Dura Automotive Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Unable to File 2007 Annual Report on Time ---------------------------------------------------------- DURA Automotive Systems, Inc., was unable to file its annual financial report on Form 10-K for the year ended Dec. 31, 2007, with Securities and Exchange Commission. According to a SEC filing, DURA was unable to timely file a Form 10-K by March 31, 2008, without unreasonable effort and expense. C. Timothy Trenary, DURA's vice president and chief financial officer, related that the company is currently addressing various material weaknesses, which has delayed the completion of the financial and other information to be included in the 2007 Form 10-K. The company, he said, is working diligently to finalize its financial statements for the year ended Dec. 31, 2007, and is providing Deloitte & Touche LLP with the information necessary to complete the audit of the company's consolidated financial statements. Mr. Trenary added that Deloitte has informed the DURA's Audit Committee that its report on the company's consolidated financial statements will include an explanatory paragraph indicating that substantial doubt exists as to the company's ability to continue as a going concern. DURA, according to Mr. Trenary, does not intend to include any adjustments to its financial statements to reflect the possible future effects that may result from the uncertainty of its ability to continue as a going concern. DURA expects to report a substantial net loss for the year ended Dec. 31, 2007, Mr. Trenary said. The 2007 net loss results from the decline in business and the overall industry conditions, increased raw material costs than in prior years, impact of closing certain facilities, and moving businesses to lower cost countries based on the company's restructuring plans. The 2007 net loss will include charges for facilities consolidation, asset impairments, restructuring and reorganization. In 2007, DURA has incurred a significant amount of professional fees and debt termination charges associated with its reorganization, Mr. Trenary said. Effective Oct. 30, 2006, certain interest on unsecured prepetition debt has not been accrued as provided for under the Bankruptcy Code. This result in reporting lesser interest expense in 2007 compared to 2006. Furthermore, during the third quarter of 2007, the company completed the sale of its Atwood Mobile Products division, which will also impact the financial results in 2007. DURA has not filed quarterly financial reports on Form 10-Q for the quarterly periods ended April 1, July 1, and Sept. 30, 2007. About DURA Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006, (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had $1,503,682,000 in total assets and $1,623,632,000 in total liabilities. On April 3, 2008, the Court approved the Debtors' revised Disclosure Statement explaining their revised Chapter 11 plan of reorganization. A plan confirmation hearing is set for May 13, 2008. (Dura Automotive Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). KENERTEC CO: Moves Private Placement Listing Date to May 28 ----------------------------------------------------------- Kenertec Co. Limited has amended the listing date for the private placement of 1,315,000 common shares, which was announced on April 17, 2008, Reuters reports. According to Reuters, the new listing date has been changed to May 28, 2008 from May 20, 2008. Headquartered in Gyeongsangbuk Province, Korea, Kenertec Co., Ltd. -- http://www.kenertec.co.kr/-- is provides industrial burners and energy-related equipment. The company operates two main divisions: Furnace division, which provides regenerative combustion systems, including regenerative combustion industrial furnace burners, regenerative combustion radiant tube burners, regenerative combustion raddle burners, radiant combustion devices, direct heat-treatment burners, flat flame burners, turndish-heating burners, high-spray burners, low-nitrogen-oxide radiant tube burners, oxygen burners, flare stack burners and rotary kiln burners, and Energy division, which provides cogeneration systems, community energy systems and energy diagnosis equipment. Korea Ratings gave the company's convertible bond a BB rating on Jan. 30, 2007. KENERTEC: Unit to Acquire 85% Stake in Ratanak Kenertec ------------------------------------------------------- Kenertec Co. Limited's wholly owned subsidiary, Kenertec Resources Co. Limited, will acquire an 85% stake in Ratanak Kenertec Resources Co Ltd for KRW 14,919 million, in a bid to acquire a mining in Cambodia, Reuters reports. Reuters relates that Ratanak Kenertec Resources, a mining company, have signed a contract with Ratanak Stone Cambodia Development Co. Ltd. to acquire 100% of an iron mine in Cambodia. The deal is expected to settle on August 31, 2008, Reuters says. Headquartered in Gyeongsangbuk Province, Korea, Kenertec Co., Ltd. -- http://www.kenertec.co.kr/-- is provides industrial burners and energy-related equipment. The company operates two main divisions: Furnace division, which provides regenerative combustion systems, including regenerative combustion industrial furnace burners, regenerative combustion radiant tube burners, regenerative combustion raddle burners, radiant combustion devices, direct heat-treatment burners, flat flame burners, turndish-heating burners, high-spray burners, low-nitrogen-oxide radiant tube burners, oxygen burners, flare stack burners and rotary kiln burners, and Energy division, which provides cogeneration systems, community energy systems and energy diagnosis equipment. Korea Ratings gave the company's convertible bond a BB rating on Jan. 30, 2007. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: To Increase Domestic Fares by May 6 ---------------------------------------------------- Tracy Withers of Bloomberg News reports that "Air New Zealand Ltd. will raise fares on domestic services for the second time in six weeks because of record high jet fuel costs." According Ms. Withers, in a statement e-mailed to Bloomberg News, the airline said it will increase fares by an average 3 percent from May 6. The carrier's latest fare increase was March 26. The New Zealand Herald relates that Trans-Tasman fares are also being reviewed. Bloomberg notes that Air New Zealand is the fourth airline to raise fares since late March joining Qantas Airways Ltd., All Nippon Airways Co. and Delta Air Lines Inc. Ms. Withers relates that Norm Thompson, Air New Zealand's deputy chief executive officer, said in the statement that the airline is committed to driving down costs within its control. The New Zealand Herald said Air New Zealand regretted having to lift fares so soon but it "could not continue to absorb the significantly higher cost of fuel." The Herald notes that Singapore jet fuel per barrel had increased from US$130 on March 17 to US$144 on April 30. Based in Auckland, New Zealand, Air New Zealand Ltd is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. Moody's Investors Service, on Sept. 4, 2007, affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. At the same time, it has changed the outlook on the rating to positive from stable. ANZ carries Standard & Poor's Ratings Services' 'BB' corporate credit rating, with stable outlook. AMRIT GLASS LIMITED: Reynolds Appointed as Liquidator ----------------------------------------------------- On April 9, 2008, Amrit Glass Limited was placed into liquidation and Grant Bruce Reynolds was appointed as liquidator. The liquidator fixed May 20, 2008, as the last day for creditors to file their proofs of claim. The liquidator can be reached at: Reynolds & Associates Limited PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 AURUM UPHOLSTERY: Court to Hear Wind-Up Petition Today ------------------------------------------------------ On March 13, 2008, an application to put Aurum Upholstery Limited into liquidation was filed in the High Court at Dunedin. The application will be heard before the High Court at Dunedin today at 10:00 a.m. The plaintiff is Tradestaff Group Limited and its solicitor is: KEVIN PATRICK MCDONALD Kevin McDonald & Associates 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 CLASSIC MOTORS: Court to Hear Wind-Up Petition Tomorrow ------------------------------------------------------- On December 13, 2007, an application to put Classic Motors and Restoration Limited into liquidation was filed in the High Court at Auckland. The application will be heard before the High Court at Auckland on Friday, May 2, 2008, at 10:45 a.m. The plaintiff is the Commissioner of Inland Revenue and its solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way (PO Box 76198) Manukau, Auckland 2241 Telephone: (09) 985 7274 Facsimile: (09) 985 9473 CLICK SOUND (2004): Claim Filing Deadline is May 20 --------------------------------------------------- On April 10, 2008, Click Sound (2004) Limited was placed into liquidation and Grant Bruce Reynolds was appointed as liquidator. The liquidator fixed May 20, 2008, as the last day for creditors to file their proofs of claim. The liquidator can be reached at: Reynolds & Associates Limited PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 CLUBZONE LTD: Court to Hear Wind-Up Petition Tomorrow ----------------------------------------------------- On December 11, 2007, an application to put Clubzone Limited into liquidation was filed in the High Court at Auckland. The application will be heard before the High Court at Auckland on Friday, May 2, 2008, at 10:45 a.m. The plaintiff is the Commissioner of Inland Revenue and its solicitor is: Simon John Eisdell Moore, Crown Solicitor Meredith Connell Forsyth Barr Tower, Level 17 55-65 Shortland Street (PO Box 2213 or DX CP 24063) Auckland DOTCARD (AUSTRALASIA) LIMITED: Claim Filing Deadline is July 9 -------------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of Dotcard (Australasia) Limited by the High Court on April 9, 2008. The liquidators fixed July 9, 2008, as the last day for creditors 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 8000 Facsimile: (09) 355 8013 EURO BUILDERS: Creditors Must File Claims by May 23 --------------------------------------------------- The High Court at Auckland on April 1, 2008, appointed John Trevor Whittfield and Boris van Delden, insolvency practitioners of Auckland, jointly and severally as liquidators of Euro Builders Limited. Creditors have until May 23, 2008, to file their proofs of claim. 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/ GENEVA FINANCE: S&P Lifts LT Counterparty Credit Rating to CCC -------------------------------------------------------------- Standard & Poor's Ratings raised its long-term counterparty credit rating on New Zealand finance company Geneva Finance Ltd. (Geneva) to 'CCC' from 'CC'. The three-rating-notch upgrade follows Geneva debtholders' acceptance of a recapitalization and new funding proposal, and Geneva's banker support to the proposal. The proposal will provide more funding certainty in the short term, and will materially strengthen the company's capitalization. At the same time, the rating was removed from CreditWatch with developing implications, where it was initially placed on Nov. 5, 2007. The outlook on the rating is negative. Concurrently, the insurer financial strength and counterparty credit ratings on Geneva's sister company Quest Insurance Group Ltd. (Quest) were removed from CreditWatch developing and raised to 'CCC' with a negative outlook. Rating actions on Quest reflect the insurer's core status within the Geneva group, which means that the ratings on Quest are expected to remain equalized with that on Geneva. Quest will also undertake a reconstruction that will strengthen its balance sheet. Geneva has taken steps to reduce overheads by closing down all but one of its branches and retrenching staff. It has also tightened its credit policy by not extending new loans to higher-risk segments, and by increasing resources on collections activity. While the company's immediate prospects have improved, we expect that Geneva will face increasing challenges within the segment that it operates. The New Zealand economic conditions have become more difficult and Geneva's clients will likely face more tightening pressures on their household budgets, which could result in higher credit delinquencies. "The negative outlook reflects our view that over the next two years, economic and operating conditions will become more challenging for the finance sector including Geneva," Standard & Poor's credit analyst Sharad Jain said. "In addition, the closure of most of Geneva's branches means that it has reverted to being a mainly centralized business. This change has resulted in a number of one-off material losses over the past several months. Consequently, a return to profitability has yet to be proven and the company will need to manage its operations, cash position, and banker relationship carefully. The rating could be lowered if credit conditions or financial performance does not improve significantly or if Geneva's banker withdraws its support." GENEVA FINANCE: To List on NZX by July 1 "at the Latest" -------------------------------------------------------- Ninety-three percent of Geneva Finance Limited's debenture and subordinated note holders approved on April 28, 2008, the company's capital restructuring plan, helping the company avoid a receivership, various reports say. Geneva Finance committed to listing on the New Zealand Stock Exchange on July 1, at the latest, The New Zealand Herald reports. Under the restructuring plan, The Sunday Star Times relates, the company proposed: -- Geneva to list on the NZAX, with 15% of debenture-holders' and 55% of subordinated note-holders' investments converted to ordinary shares; -- the remaining investments will be repaid in a scheduled plan; -- all interest will continue to be paid monthly, at the increased minimum rates of 11% for debenture holders and 13% for subordinated note holders; and -- 40% of the outstanding debenture principal will be repaid with interest over eleven months from May 2008. Tamsyn Parker of The New Zealand Herald writes that several hundred debenture holders and subordinated noteholders attended on Monday a meeting at Auckland's Ellerslie Convention Centre to hear what the board had to say about its proposal. Ms. Parker relates that for many, the decision had already been made last year. The Troubled Company Reporter-Asia Pacific previously reported that Geneva Finance Ltd's investors approved on Nov. 5, 2007, a proposed loan moratorium to give the company time to negotiate a funding package that could bring it back to a stable position. The moratorium provided the company an extension of six and half months on all investment maturities. Geneva Director Brian Walshe told investors that Geneva had been forced to go to a moratorium after funding problems were escalated by the failure of a number of finance companies, Ms. Parker reports. Reports quote Geneva Chief Executive Officer Shaun Riley as saying: "The company remains operational and continues to lend following the stabilisation and consolidation that took place during the six-month moratorium period. This period allowed Geneva to generate a NZ$26 million cash reserve, and the final step of gaining investor approval for our proposal for capital reconstruction has put the company in a strong and stable position." According to The Sunday Star Times, the company’s primary banker, Bank of Scotland, has indicated its continued support by retaining a NZ$35 million funding facility for a further three- year term. Management Reshuffle Ms. Parker relates that the company will have a management reshuffle before the listing. According to The Herald, Chief Financial Officer David O'Connell will replace Glen Walker as managing director; Mr. Walker and Mr. O'Connell will form the basis for a new board alongside independent chairman Brian Walsh and preference shareholder Peter Francis. Two more positions on the board will be filled by independent directors, the report states. Independent adviser Grant Samuel will make recommendations for appointments over the coming weeks, The Herald adds. In a separate report, Ms. Parker writes that the business has been left with 120 staff members and will continue to maintain its eight regional representatives. About Geneva Finance Geneva Finance Limited -- http://www.genevafinance.co.nz/-- has 21 professionally branded retail finance branches throughout New Zealand to facilitate lending receivables collection and credit management -- mirroring the trading bank consumer retail distribution strategy while affording the company face-to-face contact with applicants and security evaluations. Geneva is owned by Financial Investment Holdings. INTERNATIONAL ENVIRONMENTAL: Court Appoints Liquidators ------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of International Environmental Engineering Limited by the High Court on April 9, 2008. The liquidators fixed July 9, 2008, as the last day for creditors 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 8000 Facsimile: (09) 355 8013 GRAND VIEW HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------------ On April 7, 2008, Grand View Holdings Limited was placed into liquidation and Grant Bruce Reynolds was appointed as liquidator. The liquidator fixed May 20, 2008, as the last day for creditors to file their proofs of claim. The liquidator can be reached at: Reynolds & Associates Limited PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 INTO THE LIGHT CONSULTANCY: Faces Sloane's Wind-Up Petition ----------------------------------------------------------- On March 7, 2008, an application to put Into the Light Consultancy Limited into liquidation was filed in the High Court at Auckland. The application will be heard before the High Court at Auckland on Friday, June 6, 2008, at 10:45 a.m. The plaintiff is Sloane Enterprises Limited and its solicitor is: A. M. DOUGLAS Wynn Williams & Co, Solicitors BNZ House, Level 7 129 Hereford Street Christchurch MFS PACIFIC FINANCE: Presents Draft Moratorium Proposal ------------------------------------------------------- MFS Pacific Finance, now known as OPI Pacific Finance, discloses in a filing with the New Zealand Stock Exchange that it has now provided the Trustee and its advisors with a draft moratorium proposal, and is working with them to finalise the moratorium documentation that needs to be sent to Stockholders as quickly as possible. In this respect it is mindful of the deadline for the release to it of the AU$20 million payment. The Company said stockholders and their advisors should wait until they receive the moratorium documentation before making assumptions as to the amount that they might receive under the moratorium. "The moratorium process is complex and is taking sometime to work through. However, Pacific Finance's Directors are satisfied with progress and remain of the firm belief that the moratorium proposal, if it is approved by Stockholders, will provide Stockholders with a significantly better outcome than under any receivership scenario." Tamsyn Parker of The New Zealand Herald relates that some 12,000 investors have been waiting since February to find out the details of the promised moratorium proposal. According to David Hargreaves of The Dominion Post, at the end of 2007, debenture holders were owed NZ$245.8 million and unsecured noteholders NZ$54.4 million. Negotiations with Octaviar Negotiations with Octaviar around key aspects of its involvement in the moratorium are, in the view of Pacific Finance's Directors, sufficiently advanced for the moratorium proposal to proceed. Octaviar is formerly known as MFS Limited and is OPI Pacific Finance's ultimate parent. Octaviar is still negotiating with Pacific Finance and its other large unsecured creditors in relation to it reaching accommodation with them in respect of its indebtedness. However, the Directors of Pacific Finance do not consider that the finalisation of that process is necessary in order for the moratorium proposal to proceed. AU$20 Million Payment Made by Octaviar About AU$20 million on account of Octaviar's obligations to Pacific Finance is currently being held in trust but is not yet accessible by the Company. Octaviar's Interim Financial Report indicates that in the event that Pacific Finance enters into a moratorium by May 19, 2008, the AU$20 million will be released to Pacific Finance as an initial payment under either the Put Option, or a standstill arrangement to be agreed between Octaviar and its large unsecured creditors (including Pacific Finance). Should Pacific Finance not enter into a moratorium by May 19, 2008 -- and Octaviar does not otherwise agree to an extension of that date -- then the AU$20 million must be returned to Octaviar. Accordingly, the moratorium documentation is expected to be released this week and the meeting held on May 19, 2008. Put Option Provision As at December 31, 2007, Pacific Finance had approximately AU$455 million in assets. At that date, Pacific Finance had NZ$245.8 million in Debentures and NZ$54.4 million in Notes on issue. Octaviar has made a provision for impaired assets of AU$246 million in its accounts in relation to its potential obligations to Pacific Finance under the Put Option. Octaviar's Interim Financial Accounts note a number of factors that have contributed to the significant increase in that provision, including decreasing property values, increasing construction costs and a lack of alternative sources of funding for borrowers. At this stage, the Company is not able to provide firm figures on the amount that it will receive by way of loan recoveries, from the realisation of its assets and from Octaviar under the standstill arrangement referred to in Octaviar's Interim Financial Report until a Short Form Prospectus, which is required to be issued with the moratorium documentation, has been registered. However it confirms that, as the majority of its loans and investments are located in Australia, it will be faced with the same issues as have caused Octaviar to increase the provision for its Put Option obligations, and that these will impact on the figures. Throughout the term of the moratorium it expects that it will recognise as an asset an amount that is equivalent to Octaviar's Put Option obligations. In a separate report, Mr. Hargreaves adds that Octaviar expects further losses of about AU$1 billion because of events since late last year. The Troubled Company Reporter-Asia Pacific reported on Feb. 13, 2008, that MFS Pacific Finance defaulted on interest payments to its 12,000 New Zealand investors after its parent company halted support. QUICK FREIGHT LIMITED: Commences Liquidation Proceedings -------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of Quick Freight Limited by the High Court on April 9, 2008. The liquidators fixed July 9, 2008, as the last day for creditors 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 8000 Facsimile: (09) 355 8013 RPM DIRECT LIMITED: Creditors Must File Claims by July 9 -------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of RPM Direct Limited by the High Court on April 9, 2008. The liquidators fixed July 9, 2008, as the last day for creditors 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 8000 Facsimile: (09) 355 8013 THAI KITCHEN (NEW LYNN) LIMITED: Court Appoint Liquidators ---------------------------------------------------------- Vivian Judith Fatupaito, insolvency practitioner, and Colin Thomas McCloy, chartered accountant, both of Auckland, were appointed joint and several liquidators of Thai Kitchen (New Lynn) Limited by the High Court on April 9, 2008. The liquidators fixed July 9, 2008, as the last day for creditors 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 8000 Facsimile: (09) 355 8013 WOULD CAFE LTD: Court to Hear Wind-Up Petition on May 7 ------------------------------------------------------- On December 13, 2007, an application to put Would Cafe Limited into liquidation was filed in the High Court at Auckland. The application will be heard before the High Court at Auckland on Wednesday, May 7, 2008, at 10:45 a.m. The plaintiff is the Commissioner of Inland Revenue and its solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way (PO Box 76198) Manukau, Auckland 2241 Telephone: (09) 985 7274 Facsimile: (09) 985 9473 ===================== P H I L I P P I N E S ===================== * PHILIPPINES: Pre-Need Industry First Qtr 2008 Sales Down 27% -------------------------------------------------------------- Sales of the pre-need industry in the Philippines plunged by 27.06% to Php3.84 billion in the first quarter of 2008, down from Php5.26 billion a year ago, R.A.M. Rubio of Business World reports, citing data from the Philippine Securities and Exchange Commission. The industry is expected to slowdown amid competition with other products such as mutual funds, Jose Alberto T. Alba, Prudentialife Plans, Inc. president, told Business World. Business World relates that a few years back, several pre-need firms, including College Assurance Plan Philippines Inc. and Platinum Plans Philippines Inc., were forced to apply for corporate rehabilitation due to liquidity problems, which disrupted servicing of maturing plans. ********* 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 ***