text: TCRAP_Public/070619.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 Tuesday, June 19, 2007, Vol. 10, No. 120 HeadlinesA U S T R A L I AAEP INDUSTRIES: Earns US$6.2 Mil. in 2nd Quarter Ended April 30CLEVELAND-CLIFFS: Agrees to Buy PinnOak for US$450 Mil. in CashDELTA AIR: Amends Credit Card Processing AgreementEVANS & TATE: Restructure with ANZ Pushed ThroughFORTESCUE METALS: Moody's Reviews Ba3 Debt Rating for DowngradeGETTY IMAGES: Financial Filing Prompts S&P's Positive WatchC H I N A & H O N G K O N GCHINA MINSHENG: Mulls Bond Sale to Raise CNY20 BillionENERSYS INC: Reports US$10.6-Mil. Net Income in 2007 4th QuarterFIAT SPA: To End Joint Venture Witch China's Nanjing AutoICBC: May Take Over Huarong Asset; Looks to Form ConglomerateRIM SEMICONDUCTOR: April 30 Balance Sheet Upside-down by US$1.6MSANMINA-SCI: Posts US$26.1-Million Net Loss for March QuarterSHENZHEN DEVELOPMENT: Plans to Raise CNY16 Bil. Via Bonds IssueTCL MULTIMEDIA: Parent to Issue Shares to Fund LCD ProjectTTM TECHNOLOGIES: Debt Reduction Prompts S&P to Revise OutlookI N D I ABAUSCH & LOMB: Warburg Pincus Buyout Raises Fears on OutsourcingBRISTOW GROUP: Completes US$300 Mil. Sr. Notes Private OfferingGENERAL MOTORS: Carlyle & Blackstone In for Final Bid, FT SaysKINETIC ENGINEERING: Engine & Gearbox Unit Win OrdersI N D O N E S I AALLIANCE ONE: Restating Results for First Three Quarters of 2007BANK MANDIRI: Pefindo Assigns "idAA-" Corporate RatingBEARINGPOINT INC: Hires John Distefano as VP & Exec. DirectorHILTON HOTELS: Enters Into Partnership with Moet HennessyINCO LTD: Steelworkers Reach Tentative Agreement w/ ContractorsINDOSAT TBK: Moody's Keeps Ba1 Local Currency Issuer RatingPHILLIPS-VAN: Good Performance Cues S&P's Positive CreditWatchPERTAMINA: To Take Over Medco Energi's Madura SharesPERUSAHAAN LISTRIK: Moody's Puts B1 Rating on Proposed USD BondsJ A P A NAMAZON.COM: S&P Upgrades Corporate Credit Rating to BBBOSTON SCIENTIFIC: Court Bars Motion to Disallow Some ClaimsGOODWILL GROUP: Welcia and Wisnet Express Interest to Buy FirmNOVA CORP: Trade Ministry Bans New Contracts with StudentsNOVA CORP: Plans to Issue Shares to Gain Back Public TrustRESONA HOLDINGS: Ties Up with Dai-Ichi to Pay JPY2.3-Bil. DebtK O R E ABIOMET INC: LVB Acquisition Commences US$11 Billion Tender OfferDURA AUTOMOTIVE: Wants to Amend Terms of US$300MM DIP FacilityHYNIX SEMICONDUCTOR: Moody's Lifts Rating on Good PerformanceREMY INTERNATIONAL: To File Prepackaged Chapter 11 ProtectionM A L A Y S I AFINISAR CORP: Audit Comm. Completes Initial Stock Grant ReviewFINISAR CORP: Reports Preliminary 4th Qtr.& Annual 2007 ResultsINTERPUBLIC GROUP: Provides Update on SEC InvestigationLITYAN HOLDINGS: Unit Bags Tenaga's MYR57MM Worth of ContractsMALAYSIA AIRLINES: Wants More Flight Out of Subang AirportMEGAN MEDIA: Bank of East Asia Seeks Payment on Unit's LoanMP TECHNOLOGY: CIMB Appoints Receivers to UnitsSOLUTIA INC: Court Sets July 10 Disclosure Statement HearingN E W Z E A L A N DA2 CORP: Incurs NZ$5-Million Operating Loss in FY2007AIR NEW ZEALAND: Extends Vancouver-Auckland Non-Stop ServiceAMERICAN GREETINGS: Moody's Holds Ba1 Rating on Low Growth RatesTRUSTPOWER LTD: Net Profit Up 20% to NZ$97 Million in FY2007P H I L I P P I N E SACESITE: Annual Stockholders' Meeting Set for June 20APC GROUP: Clarifies News on PLDT's Acquisition of PhilcomCHIQUITA: Inks Plantation Improvement Pact with CoosemuparCHIQUITA BRANDS: Europe Sales Volume Down 4% in April-May 2007DEL MONTE: Earns US$36.7 Million in 4th Quarter Ended April 29IPVG CORP: Annual Stockholders' Meeting Set for July 26PHIL. BANK OF COMMS: Posts PHP234.93-Million Net Income for 2006PHIL. LONG DISTANCE: In Discussions to Acquire Equity in PhilcomSAN MIGUEL: Employees' Pension Fund Brings Holdings to 15.76%* Moody's Issues Annual Report on the PhilippinesS I N G A P O R EINTERPOOL: Commences Tender Offer for US$230MM of 6% Sr. NotesLEAR CORP: European Commission Clears US$5.3 Billion Icahn DealLEE TUNG: Wind-Up Petition Hearing Set for July 9NEWENT INVESTMENTS: Placed Under Voluntary LiquidationPETROLEO BRASILEIRO: In Talks with Producers on Ethanol PricePETROLEO BRASILEIRO: Mulls Hiring Regasification VesselPETROLEO BRASILEIRO: Argentina Fines Firm for Fuel InsufficiencySTATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good PerformanceSYSTOME THERAPEUTICS: Accepting Proofs of Debt Until July 16T H A I L A N DASIA HOTEL: Postpones Extraordinary General Shareholders MeetingBANK OF AYUDHYA: Warrants Exercise Date Set for June 29COMPASS EAST: Turns Around w/ THB277,394 Net Income for 1st Qtr.DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of TrustDAIMLERCHRYSLER: Chrysler to Invest US$450MM in Kenosha PlantDAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say* BOND PRICING: For the Week 11 June to 15 June 2007 - - - - - - - -================= A U S T R A L I A=================AEP INDUSTRIES: Earns US$6.2 Mil. in 2nd Quarter Ended April 30--------------------------------------------------------------- AEP Industries Inc. reported financial results for its fiscal second quarter ended April 30, 2007.Net sales decreased 3% in the second quarter of fiscal 2007 to US$187.8 million compared with US$193.3 million in the second quarter of fiscal 2006, despite a 9% increase in sales volume. The decrease is primarily the result of a 12% decrease in average selling prices, driven by lower resin costs. The effect of foreign exchange on net sales in the 2007 period was a net positive US$2.6 million, primarily reflecting the impact of the strengthened Euro.Net income for the three months ended April 30, 2007, was US$6.2 million, as compared to US$18.2 million in the second quarter of 2006. For the first six months of fiscal 2007, net sales decreased US$18.9 million or 5% to US$367.1 million compared with US$386 million in the same period last year. The decrease in net sales was the result of a 13% selling price decrease resulting from resin price decreases mitigated by a sales volume increase of 8% combined with the net positive impact of foreign exchange of US$5 million, primarily reflecting the impact of the strengthened Euro.Net income for the six months ended April 30, 2007 was US$16.8 million as compared to US$18.4 million in 2006. Balance Sheet Data and LiquidityThe company ended the first half of fiscal 2007 US$342.3 million in total assets, US$269 million in total liabilities, and US$73.3 million in total stockholders' equity as of April 30, 2007. The company had with a net debt position of US$178.9 million, compared with US$192.5 million at the end of fiscal 2006.Working capital amounted to US$102.3 million at April 30, 2007, compared to US$85.5 million at Oct. 31, 2006. The increase in working capital of US$16.8 million was substantially due to an increase in inventories resulting primarily from our increased investment in raw materials, a decrease in accrued expenses, primarily from bonus payments accrued at Oct. 31, 2006, and made in December and January 2007, and a decrease in short term borrowings of our foreign operations.The company believes its cash and cash equivalents on hand at April 30, 2007, and its cash flow from operations, combined with the availability of funds under its credit facility and credit lines available to its foreign subsidiaries for local currency borrowings, will be sufficient to meet its working capital, capital expenditure and debt service requirements for at least the next 12 months. At April 30, 2007, the company had an aggregate of US$129.7 million available under its various credit facilities.A full-text copy of the company's second quarter 2007 report is available for free at http://ResearchArchives.com/t/s?20f9 "We are pleased to note that year-to-date income from continuing operations improved an impressive US$3.6 million over the prior year, sales volume increased a substantial 8% and basic earnings per share from continuing operations increased US$0.59 over the prior year to US$2.13 per share," stated Brendan Barba, chairman and chief executive officer of the company."Our confidence in and commitment to our company and its future remains strong and are evidenced by our continuing purchases of our own stock." About AEP IndustriesAEP Industries Inc. (Nasdaq: AEPI) -- http://www.aepinc.com/-- manufactures and markets plastic packaging films, includingpolyethylene, polyvinyl chloride and polypropylene flexiblepackaging products for the industrial and agriculturalapplications. AEP operates in eight countries in North America,Europe and Asia Pacific. On Feb. 10, 2005, the company disposedoff AEP Industries Packaging France SAS and on March 25, 2005, the Group disposed off Termofilm SpA. On Feb. 23, 2006, the company acquired Mercury Plastics Inc. The company has operations in Belgium and Australia. * * *AEP Industries Inc. carries Moody's Investors Service's Ba3 long-term corporate family rating, B1 senior unsecured debt rating, and Ba3 probability-of-default rating. The outlook remains stable.The company also carries Standard & Poor's B+ long-term foreign and local issuer credit ratings. The outlook is positive.CLEVELAND-CLIFFS: Agrees to Buy PinnOak for US$450 Mil. in Cash---------------------------------------------------------------Cleveland-Cliffs Inc. has agreed to acquire PinnOak Resources, LLC, and its subsidiary operating companies, for US$450 million in cash plus approximately US$150 million in debt.Payment of 25 percent of the cash portion will be deferred until Dec. 31, 2009. The transaction is expected to close within 60 days and is subject to regulatory clearances."This acquisition represents an attractive expansion opportunity for our company. When combined with our Australian coking and thermal coal operation, the Sonoma Project, the company will control a 10 million ton position, with the majority being for export," commented Joseph A. Carrabba, Cleveland-Cliffs chairman, president and chief executive officer. "It marks yet another step in the execution of our strategy to deepen Cliffs' exposure to faster growing international markets and further diversify its mineral sales."The transaction is expected to increase Cliffs' 2008 revenues by approximately US$400 million and add approximately US$100 million in EBITDA. Due to customer transition issues, full-year 2007 revenues are expected to be approximately US$300 million. The transaction will have minimal earnings impact to Cliffs in 2007 as it covers acquisition and integration costs."We are excited to welcome the PinnOak team to the Cliffs organization as they provide a depth of experience and an additional growth platform consistent with the Company's strategic objectives," Carrabba added. PinnOak ProjectsPinnOak is a privately owned domestic producer of high-quality, low-volatile metallurgical coal.PinnOak's operations include two complexes comprising three underground mines -- the Pinnacle and Green Ridge mines in southern West Virginia, and the Oak Grove mine near Birmingham, Alabama. Combined, the mines have the capacity to produce in excess of seven million tons of premium-quality metallurgical coal annually.The Pinnacle complex, located in Pineville, West Virginia, comprises the Pinnacle and Green Ridge properties. In operation since 1969, Pinnacle produces a high-quality, low-volatile metallurgical coal and boasts the only longwall plow system in the United States. The Green Ridge mine, opened in 2004, also produces a premium-quality product. Coal from both mines is processed by the Pinnacle Preparation Plant and then shipped to the customer via the Norfolk Southern rail line and exports from the port of Norfolk, Virginia.Located in Adger, Alabama, the Oak Grove mine has been in operation since 1975 producing high-quality, low-volatile, very low-sulfur product, which is in high demand due to its excellent coking characteristics. Processing from this mine is done at the Concord Preparation Plant and product is transported domestically by rail, barge or truck. International shipments initiate from the port of Mobile, Alabama.Approximately 80 percent of PinnOak's total 2007 production is slated for the international steel market, with the balance committed to integrated steelmakers in the United States. The company produced approximately 3.9 million tons of coal in 2006 and has current estimated reserves of 140 million tons. About Cleveland-Cliffs Inc. Based in Cleveland, Ohio, Cleveland-Cliffs Inc. (NYSE:CLF) -- http://www.cleveland-cliffs.com/-- produces iron ore pellets in North America, and sells the majority of its pellets to integrated steel companies in North America and Canada. Thecompany operates six iron ore mines located in Michigan, Minnesota and Eastern Canada. The company is a majority owner of Portman Limited, an iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. * * *Cleveland-Cliffs, Inc.'s preferred stocks carry Moody's InvestorService's 'B3' rating.DELTA AIR: Amends Credit Card Processing Agreement--------------------------------------------------Delta Air Lines has amended its Visa/MasterCard processing agreement to eliminate the US$1.1 billion holdback previously required.This holdback consisted of an US$800 million cash reserve and a related US$300 million letter of credit. Pursuant to the amendment, the entire amount of the cash reserve was returned to Delta and the letter of credit was terminated. No future holdback or cash reserve is required except in limited circumstances.As a result of these changes, Delta expects to end the quarter with US$4.2 billion in liquidity, including a fully available,US$1 billion revolving line of credit."This new agreement reflects the strong confidence of the financial markets in our ability to deliver on our plan's commitments," said Edward H. Bastian, Delta's executive vice president and chief financial officer.The company also updated its June 2007 quarter guidance today, stating that it expects to achieve operating margins of 11 percent to 12 percent(a). The company affirmed its previous capacity guidance issued in April 2007, which showed consolidated domestic capacity reductions of 4 percent to 6 percent, with an associated increase in international capacity of 14 percent to 16 percent, compared to the June 2006 quarter."Our plan remains on track, with our restructuring driving improvements to both unit revenues and unit costs," Bastian continued. "In this highly competitive industry, Delta is uniquely positioned in its ability to reallocate existing assets to right-size the domestic network and focus on international growth opportunities."Delta also filed today a Form 8-K with the Securities and Exchange Commission that provides additional information about the amendment to the credit card processing agreement and the June 2007 quarter guidance. About Delta AirHeadquartered in Atlanta, Georgia, Delta Air Lines (NYSE:DAL)-- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. * * *As reported in the Troubled Company Reporter on May 2, 2007, Standard & Poor's Ratings Services raised its ratings on Delta Air Lines Inc. (B/Stable/--), including raising the corporate credit rating to 'B', with a stable outlook, from 'D', following the airline's emergence from Chapter 11 bankruptcy proceedings.EVANS & TATE: Restructure with ANZ Pushed Through-------------------------------------------------Evans & Tate Limited disclosed with the Australian Stock Exchange that it has reached an in-principle agreement with its bank, Australia and New Zealand Bank, and Pendulum Capital Pty Limited for its financial restructure and that the parties are now moving to formalize the Restructure Plan by negotiating and executing legally binding documentation.The terms of the Restructure Plan are similar to the terms of the restructure plan announced by ETW to the market on May 10, 2007, excepting: * ANZ will be partnered by Pendulum representing an investor group; * The proposed share purchase plan will be replaced by a larger capital raising to be offered to shareholders as a non-renounceable rights issue.Under the Restructure Plan and following the placement to ANZ, ETW will undertake a non-renounceable rights issue, fully underwritten by ANZ and Pendulum, to raise approximately AU$16.7 million at 5 cents per share. The issue will be on a 1 for 2 basis to all shareholders, comprising the restructured equity base of ETW. Shareholders who take up their entitlement will receive one free option for every two shares subscribed for. The options will have a five-year term and be exercisable at any time at 7.5 cents.Under the Restructure Plan, relevant ETW security holders will be invited to meet and asked to approve (in their relevant classes): * the issue of 429,645,454 ETW shares in exchange for ANZ forgiving AU$45 million in principal debt. ANZ will sell half of these shares to the Pendulum Investor Group for an undisclosed sum; * the conversion of the convertible notes into ordinary shares at a converstion ration of 4.18 ordinary shares for each note; and * the conversion of Wines into ordinary shares at a ration of 2 ordinary shares for each Wines.The effect of the agreement (if completed) will be to reduce ETW's existing debt to ANZ to approximately AU$55 million.The proceeds of the rights issue will be used primarily for working capital, capital works and possibly other strategic acquisitions. Given that the proceeds of the rights issue will be used in part for working capital purposes, ETW will no longer require AU$5 million working capital facility from ANZ. This means that the ongoing facilities will be approximately AU$55 million rather than the AU$60 million previously announced.The in principle agreement is subject to the completion of satisfactory due diligence by ANZ and Pendulum and is not legally binding on all parties until formal documentation is executed. The Board of ETW will continue to examine all alternate offers for the restructure of the company.Chairman John Hopkins said, "We are pleased that the restructuring process is progressing. We look forward to refocusing our attention on the running of a premium wine business."Mr. Hopkins also said the ANZ has reaffirmed its current intention not to withdraw its financial support of ETW and it will continue to provide financial facilities to enable ETW to carry on its day-to-day operations.ETW will request that the trading of its securities be reinstated by the ASX with immediate effect. About Evans & TateHeadquartered in Wembley, Western Australia, Evans & Tate Limited -- http://www.etw.com.au/-- is an Australian wine company listed on the Australian Stock Exchange. The primary businesses of the Evans & Tate Wine Group are the production, marketing and distribution of a number of branded, exclusive labeled and unbranded wines; contract winemaking; wine trading; viticultural services; and wine tourism through its Visitor Centers.The Troubled Company Reporter - Asia Pacific reported on September 15, 2006, that Evans & Tate Limited posted a loss of AU$63.9 million for the 2005-2006 financial year, down 12% on the corresponding figure for the previous year.The TCR-AP report also stated that as of June 30, 2006, the company's balance sheet revealed strained liquidity with AU$90.930 billion in total current assets available to pay AU$152.377 billion of total current liabilities coming due within the next 12 months. Further, Evans & Tate's June 30, 2006 balance sheet also showed total liabilities of AU$207.445 billion exceeding total assets of AU$139.792 billion, resulting to total shareholders' deficit of AU$67.653 billion. Going ConcernThe same TCR-AP report adds that Evans & Tate says that the financial report has been prepared on a going concern basis, noting that as at June 30, 2006, certain matters are considered pertinent when considering the ability of the consolidated entity to continue as a going concern.The company notes that if it is unable to continue as a going concern, it will be required to realize its assets and extinguish its liabilities other than in the normal course of business and at amounts that may be different to those stated in the financial report.FORTESCUE METALS: Moody's Reviews Ba3 Debt Rating for Downgrade---------------------------------------------------------------Moody's Investors Service has put the senior secured Ba3 rating of FMG Finance Pty Ltd, the financing vehicle for the Fortescue Metals Group, on review for possible downgrade, following an announcement that the company is considering a new fund-raising exercise to expand its iron ore project."The review will focus on the funding mix which the company intends to employ to finance the expansion" said Dr. David Howell, a VP at Moody's."The rating could be maintained at the current level or could undergo a downgrade, depending on the debt characteristics of instruments ultimately assumed, the proportion of debt to equity in the resultant capital structure, and the effect the expansion plan will have on the project's original timetable," says Dr. Howell."Moody's will also review the progress of the existing project according to the original budget and timetable," adds Dr. Howell.Fortescue Metals Group, based in Perth, is constructing an iron ore mine, rail and port in Western Australia's Pilbara region. When completed, the project will produce 45 million tons or iron ore per annum for export. About Fortescue MetalsHeadquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. In 2005, Fortescue's chief executive officer, Andrew Forrest, admitted to a AU$500-million blowout on the cost of port and rail infrastructure in the Pilbara Project because of price hikes for steel, fuel, construction materials, and contract labor. The Company also disclosed that the hampered progress of the Pilbara Project brings in the possibility that the Company may not meet its ore delivery schedule and pushes up costs at resource developments across Western Australia. In May 2005, the Australian Stock Exchange pressured Fortescue to explain matters about the project and to explain how the Company would be able to dispose of its lower grade order for 95% of the price obtained by rivals BHP Billiton and Rio Tinto for their top-quality products. The ASX then referred the matter to the Australian Securities and Investments Commission, which commenced a legal action against the Company. The ASIC alleges that Fortescue is engaged in misleading and deceptive conduct and has failed to comply with its continuous disclosure obligations when it announced various contracts with Chinese entities on August 23 and November 5, 2004. In particular, Fortescue did not disclose that the Chinese parties had not reached a concluded agreement on fundamental aspects of the projects and they had merely agreed that they would in the future jointly develop and agree on the "agreed" matters. The ASIC is seeking civil penalties of up to AU$3 million against Fortescue. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006 Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure.GETTY IMAGES: Financial Filing Prompts S&P's Positive Watch -----------------------------------------------------------Standard & Poor's Ratings Services said revised its CreditWatch implications on Getty Images Inc. to positive from developing, following the company's filing of its SEC 10-Q forms for its first and third quarters, and its 2006 Form 10-K. The corporate credit rating on the company remains at 'B+'.S&P originally placed the ratings on CreditWatch with developing implications on Dec. 4, 2006, after the company had received notices from bondholders that the delay of its third-quarter 10-Q filing constituted an event of default."We will resolve the CreditWatch following a discussion with management and an evaluation of the operating outlook," said Standard & Poor's credit analyst Tulip Lim.Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom and Argentina. ================================ C H I N A & H O N G K O N G================================CHINA MINSHENG: Mulls Bond Sale to Raise CNY20 Billion------------------------------------------------------ China Minsheng Banking Corp. plans to sell CNY20 billion (US$2.6 billion) worth of bonds to boost capital and finance loan growth, Shanghai Daily reports. According to the report, the company will raise CNY8 billion selling three-year fixed-rate bonds and will sell another CNY12 billion of three-year and five-year floating-rate bonds. China Minsheng Banking Corporation Ltd's principal activity isthe provision of commercial banking services that include absorbing public deposits, providing short term, medium term,and long term loans, making domestic and internationalsettlement, discounting bills and issuing financial bonds.On September 4, 2006, the Troubled Company Reporter - AsiaPacific reported that Fitch Ratings affirmed on September 5,2006, China Minsheng Banking Corp.'s Individual D/E and Support4 ratings.ENERSYS INC: Reports US$10.6-Mil. Net Income in 2007 4th Quarter----------------------------------------------------------------EnerSys announced its financial results for the fourth quarter and full year of fiscal 2007. Net earnings for the fourth quarter were US$10.6 million, compared to net earnings of US$11.7 million for the same period in 2006, and exceeds the previous guidance of US$0.15 to US$0.19 per diluted share provided on Feb. 7, 2007.Net sales for the fourth fiscal quarter of 2007 were US$413.6 million compared to US$353.2 million in the comparable period of the prior year, or an increase of 17.1%.Net earnings for fiscal 2007 were US$45.2 million or US$0.97 per share basic and US$0.95 per share diluted, including a US$0.05 per share favorable impact from two legal settlements, a US$0.04 per share non-recurring tax benefit and a US$0.01 per share unfavorable impact of legal and professional fees related to a shelf registration statement and secondary offering, plus an abandoned acquisition. This compares to net earnings of US$30.7 million or US$0.66 per basic and diluted share in the prior fiscal year, which included a US$0.12 per share unfavorable impact primarily related to restructuring activities. Excluding the highlighted charges and credits, adjusted net earnings for fiscal 2007 were US$41.4 million or US$0.89 per basic and US$0.87 per diluted share, compared to adjusted net earnings for fiscal year 2006 of US$36.6 million or US$0.79 per basic and US$0.78 per diluted share.Net sales for fiscal 2007 were US$1,504.5 million compared to US$1,283.3 million in the prior year, or an increase of 17.2%."High commodity costs continue to impact our business. In spite of these costs, we have been able to continue to grow our revenues and sustain our earnings. We believe that the combination of our product quality and the high level of service we offer to our customers represents the best value in our industry and has allowed us to increase our selling prices to largely offset these costs. In addition, we continue to derive benefit from our cost reduction programs," stated John D. Craig, chairman, president and chief executive officer. Mr. Craig added, "We anticipate that adjusted diluted net earnings per share for our first quarter of fiscal 2008 will be between US$0.24 and US$0.28, which excludes the expected charge of US$10 million or approximately US$0.14 per share from our European restructuring actions as described in our press release of May 23, 2007."EnerSys Inc. -- http://www.enersys.com/-- (NYSE: ENS) manufactures industrial battery through 21 manufacturing and assembly facilities worldwide. Headquartered in Reading, Pennsylvania, the company is uniquely positioned to provide expertise in designing, building, installing and maintaining a comprehensive stored energy solution for industrial applications throughout the world. The company's products and services are focused on two primary markets: Motive Power (North & South America) or (Europe) and Reserve Power (Worldwide), (Aerospace & Defense) or (Speciality Batteries). The company's facilities are located at China, France, Mexico, Germany, and the United Kingdom, among others. * * *As reported in the Troubled Company Reporter-Latin America onMay 21, 2007, Standard & Poor's Ratings Services revised itsoutlook on industrial battery manufacturer EnerSys to stablefrom negative. Standard & Poor's also affirmed all its ratingson the company, including its 'BB' corporate credit rating.FIAT SPA: To End Joint Venture Witch China's Nanjing Auto--------------------------------------------------------- Fiat Spa appears certain to terminate its joint venture partnership with Nanjing Automobile Corp. after the Chinese company failed to make its promised investment in the project, Xinhuanet News says, citing a report from the Shanghai Securities News. Xinhuanet quotes Fiat China President Franco Amadei as saying: "The delayed reciprocal investment and inaction by NAC has been intolerable to Fiat." Fiat Chief Executive Officer Sergio Marchionne also said Fiat will no longer put new models into production at Nanjing Fiat, a joint venture established in 1999 between NAC and Fiat. Fiat will also quit from the joint venture's management team, Mr. Marchionne told the Shanghai Securities. Xinhuanet recounts that Fiat had planned to invest EUR500 million in the joint venture over five years in a drive toward meeting the company's 2010 sales goal of 300,000 vehicles in China. However, Nanjing Fiat sold only 30,668 vehicles last year and NAC has no plans for additional investment in the Fiat joint venture as it concentrates in developing auto brands it owns, the report says. In addition, Fiat had also decided not to let Nanjing Fiat produce the D200 sedan and would "make separate arrangements" for production of the Alfa Romeo in China. The Troubled Company Reporter - Asia Pacific reported on June 15, 2007, that Fiat Spa and China's Chery Automobile were considering setting up a joint venture in China to manufacture Fiat vehicles, specifically the Alfa Romeo sedan. About Fiat S.p.A.Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgicalproducts and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale delLavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,Bulgaria, China, Czech Republic, Denmark, France, Germany,Greece, Hungary, India, Ireland, Italy, Japan, Lituania,Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * *Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat S.p.A. to BB+ from BB. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable.The company carries Fitch Ratings' Issuer Default rating and senior unsecured rating at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action.In addition, Fiat Spa also carries Moody's Investors ServicesBa3 Corporate Family Rating with positive outlook. The long- term senior unsecured ratings as well as the short-term non-Prime rating also remains.ICBC: May Take Over Huarong Asset; Looks to Form Conglomerate------------------------------------------------------------- The Industrial and Commercial Bank of China may take over Huarong Asset Management Corp. as part of efforts to form a financial conglomerate, Reuters reports, citing the China Securities Journal. According to the report, the bank may take a controlling stake or purchase Huarong outright.The bank, according to the Shanghai Daily, is expanding into securities, leasing and other financial services. Senior management of ICBC and Huarong are exploring new ways to cooperate, the report adds. Huarong was set up in 1999 to help dispose of non-performing assets that ICBC had accumulated over decades in its role as a key policy bank. Huarong remained a major institutional investor in the bank.The bank's president, Yang Kaisheng, was the president of Huarong from 1999 to 2004.The Industrial and Commercial Bank of China -- http://www.icbc.com.cn/-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China. ICBC conducts operations across China as well as in major international financial centers.On Sept. 18, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed ICBC's Individual D/E rating.Moody's Investors Service upgraded on December 6, 2006, to D-from E+ the Bank Financial Strength Rating for Industrial and Commercial Bank of China. The D- BFSR has a stable outlook. The upgrade concludes a review of ICBC's BFSR started onAugust 9, 2006.RIM SEMICONDUCTOR: April 30 Balance Sheet Upside-down by US$1.6M----------------------------------------------------------------Rim Semiconductor Company's balance sheet at April 30, 2007, showed US$7,058,491 in total assets and US$8,705,387 in total liabilities, resulting in a US$1,646,896 total stockholders' deficit.The company's balance sheet at April 30, 2007, also showed strained liquidity with US$450,317 in total current assets available to pay US$8,702,647 in total current liabilities.Rim Semiconductor Company reported a net loss of US$121,819 for the second quarter ended April 30, 2007, compared with a net loss of US$9,676,846 for the same period ended April 30, 2006.The company had no revenues for the three months ended April 30, 2007. Revenues for the three months ended April 30, 2006, were US$18,698 and were entirely from the entertainment business.The decrease in net loss is primarily due to the decrease in interest expense, the gain on the change in fair value of derivative liabilities, and the decrease in amortization of deferred financing costs. In addition, the company recorded a loss on exchange of notes payable into common stock of US$446,386 in the second quarter of 2006, absent in 2007. Total operating expenses increased 1% or US$26,295 to US$1,840,388 for the three months ended April 30, 2007, from US$1,814,093 for the three months ended April 30, 2006. Interest expense decreased 98% or US$6,498,797 to US$154,016 for the three months ended April 30, 2007, from US$6,652,813 for the three months ended April 30, 2006. The decreases are primarily due to the value allocated to the warrants related to the 2006 Debentures for the three months ended April 30, 2006, that did not occur in 2007, offset by an increase in amortization and write-off of debt discount due to increased conversions of convertible debentures during the three months April 30, 2007, as compared to the three months ended April 30, 2006. The company also recognized a gain of US$1,900,394 on the change in fair value of derivative liabilities for the three months ended April 30, 2007, a change of US$2,360,794 or 513% from US$460,400 for the three months ended April 30, 2006. The gain was due primarily to a decrease in the market price of common stock during the three months ended April 30, 2007, as compared to three months ended April 30, 2006. The amortization of deferred financing costs decreased 87% or US$283,691 to US$41,161 for the three months ended April 30, 2007, from US$324,852 for the three months ended April 30, 2006. Other expenses were also higher during the three months ended April 30, 2006, due to the loss recognized on exchange of notes payable into common stock of US$446,386.Full-text copies of the company's consolidated financial statements for the quarter ended April 30, 2007, are available for free at http://researcharchives.com/t/s?20ff About Rim Semiconductor Headquartered in Portland, Oregon, Rim Semiconductor Company (OTC BB: RSMI.OB) -- http://www.rimsemi.com/-- develops technology for telecommunications companies to deliver demanding new video and data services with lower network costs. The company's products allow data to be transmitted at greater speed and across extended distances over existing copper wire-all with the highest quality of service-for a better end-user experience.The company has operations in China, Hong Kong and Taiwan.SANMINA-SCI: Posts US$26.1-Million Net Loss for March Quarter-------------------------------------------------------------Sanmina-SCI Corporation reported a net loss of US$26.1 million for the second quarter ended March 31, 2007, compared with a net loss of US$76.1 million for the same period ended April 1, 2006. Sanmina-SCI reported revenue of US$2.61 billion, modestly down from US$2.67 billion reported in the second quarter of fiscal 2006 ended April 1, 2006.Operating income was US$14.7 million, compared to US$44.4 million in in the same period a year ago. Gross profit was US$137.7 million, compared to US$164.6 million in the 2006 quarter.On a non-GAAP basis, which exclude charges or gains relating to stock-based compensation expenses, restructuring costs, integration costs, impairment charges for goodwill and intangible assets, amortization expense and other infrequent or unusual items, net income for the second fiscal quarter of 2007 was US$793 thousand, compared to net income of US$30.5 million in the 2006 quarter. Operating income was US$40.2 million or 1.5% of revenue, compared to US$66.3 million, or 2.5% of revenue in the same period a year ago. Gross profit was US$139.2 million or 5.3% of revenue, compared to US$164.8 million, or 6.2% in the 2006 quarter.Sanmina-SCI Corporation uses these non-GAAP measures to gauge the company's core financial and operating performance. This is accomplished by eliminating certain financial items that are of a non-recurring, unusual or infrequent nature or are not related to the company's regular, ongoing business. Cash flow provided by operations was US$124.0 million for the quarter ended March 31, 2007.At March 31, 2007, the company reported US$664.1 million in cash and cash equivalents. "As previously announced, our second quarter revenues were below expectations. While the second quarter has historically been a seasonally weak quarter for us, profitability was further impacted by an unfavorable product-mix with a higher than anticipated decline in demand from the communications and high-end computing markets. Demand in the third quarter continues to be weaker than traditional levels, but we do see signs of improvement that should contribute positively in the second half of the calendar year," stated Jure Sola, chairman and chief executive officer. About Sanmina-SCISanmina-SCI Corporation (NASDAQ: SANM) -- http://sanmina-sci.com/ -- is an electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Sanmina-SCI provides end-to-end manufacturing solutions to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. The company has locations in Brazil, China, Finland, Malaysia, Mexico and Singapore, among others. * * *As reported in the Troubled Company Reporter on June 8, 2007, Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to Sanmina-SCI Corp.'s US$600 million in floating-rate notes, US$300 million of which mature in 2010 and US$300 million of which mature in 2014.SHENZHEN DEVELOPMENT: Plans to Raise CNY16 Bil. Via Bonds Issue---------------------------------------------------------------Shenzhen Development Bank plans to issue subordinated and hybrid bonds to raise up to CNY16 billion to boost its capital, Reuters reports. According to the report, the yuan-denominated subordinated bond will carry a maturity period of between 5 and 15 years in the domestic interbank market to raise CNY8 billion and will issue a hybrid bond with the same maturity as its subordinated bond to raise another CNY8 billion to boost its capital adequacy ratio.The bank's capital adequacy ratio was just 3.71% at the end of 2006, below the minimum regulatory requirement of 8%, various reports relate. The bond issuances were already approved by the bank's board but still need shareholders' votes and regulatory approval, reports add. Based in Shenzhen, Guangdong, People's Republic of China,Shenzhen Development Bank Company Ltd's -- http://www.sdb.com.cn/-- provides local and foreign currency deposits and loan services. Other activities include foreigncurrencies exchanging, foreign currency deposit and remittances,acts as an agent for issuing foreign currency value-bearingsecurities, management of letters of credit and operation ofboth an international and a domestic discounting service.The Troubled Company Reporter - Asia Pacific reported that Fitch Ratings, on August 14, 2006, affirmed Shenzhen Development Bank's individual 'D/E' and support '4' ratings.TCL MULTIMEDIA: Parent to Issue Shares to Fund LCD Project---------------------------------------------------------- Shenzhen-listed TCL Corp, parent of Hong Kong-listed TCL Multimedia Technology Holdings, plans to issue 600 million A shares to raise up to CNY2.3 billion to fund its unit's production liquid crystal display panels project, reports say. According to Reuters, the parent will issue the local currency A-shares in a private placement to 10 institutional investors where most of the proceeds go towards TCL Multimedia as well as increasing its regular working capital.The Standard relates that around CNY650 million will be injected into TCL Multimedia, and around CNY250 million of the proceeds will be used to increase the parent's working capital. The planned issue was approved by the parent's board of directors but still needed shareholders' votes, reports say. The issuance will also be subject to approval from Chinese securities regulator.Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclhk.com/-- designs, manufactures and sells electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, Internet-related information technology products,refrigerators and washing machines. Its otheractivity includes trading electronic parts and components used in the production of color television sets.On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported that TCL Multimedia Technology Holdings Limited's European operations posted a CNY763 million loss, which causedlosses of the TCL Corp. group to widen to CNY737.56 million. Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is expecting to post a loss for the full-year because first-halflosses had been so large. In the first half of 2006, TCL reported a net loss of CNY737.56 million, after a loss of CNY320.24 million in 2005.The TCR-AP recounts that in 2004, TCL acquired the TV unit of French electronics firm Thomson, which uses the Thomson brand in Europe and RCA in North America. TCL grouped all its TV businesses under TMT.TTE Europe SAS, TCL's European unit, filed a declaration of insolvency on May 24, 2007 in France after it failed to settle a number of outstanding liabilities.TTM TECHNOLOGIES: Debt Reduction Prompts S&P to Revise Outlook--------------------------------------------------------------Standard & Poor's Ratings Services revised its outlook on Santa Ana, California-based TTM Technologies Inc. to stable from negative, following rapid reduction of debt incurred to acquire the printed circuit board business from Tyco International.The 'BB-' corporate credit rating was affirmed, as was the 'BB' issue rating on TTM's secured debt. The recovery rating of '2' on TTM's secured debt, which indicates the expectation for substantial (70%-90%) recovery in the event of a payment default, remains unchanged."The 'BB-' corporate credit rating reflects challenges associated with very difficult industry conditions for TTM's PCB products and a highly competitive environment, partially offset by TTM's niche position as a manufacturer of both quick-turn and high-volume printed circuit boards and light leverage for the rating," said Standard & Poor's credit analyst Lucy Patricola.The U.S.-based PCB industry has experienced a significant contraction as production has migrated to low cost regions. Currently, about 10% of the global market for PCB revenue is produced in the U.S., with a focus on high complexity, low volume production, prototype boards, and PCBs used in military applications.Following its acquisition of the Tyco business, TTM is the largest U.S.-based manufacturer, with a respectable market presence in defense, computing, and communications. Despite TTM's leading market share, the industry remains fragmented, with hundreds of small manufacturers.The company, prior to the Tyco acquisition, has experienced some volatility in profitability. Over the last eight quarters, EBITDA margin has fluctuated between 15% and 20%. In 2005, margin slippage was caused by pricing pressure. More recently, the mix shift to lower margin commercial assembly and a bias to lower layer boards has impacted margin. The Tyco business has historically been more stable, because of its strong presence in defense markets. S&P expects the company to continue to experience modest cyclicality, given the negotiating strength of its customer base.The company has a manufacturing operation in China.========= I N D I A=========BAUSCH & LOMB: Warburg Pincus Buyout Raises Fears on Outsourcing----------------------------------------------------------------In an effort to get out of the public spotlight after federal regulators identified Bausch & Lomb lens cleaner ReNu with MoistureLoc as the alleged root cause of a potentially blinding fungal infection, the company has accepted a US$4.5 billion bid from New York City-based private equity player Warburg Pincus.Bausch & Lomb is one of the largest employers in Rochester, New York, and has been at the forefront in that city in demonstrating a commitment to workplace diversity and creating jobs with quality benefits, thus the buyout raises concerns about possible layoffs or moving manufacturing jobs out of the area or offshore.Warburg Pincus' connections and history give rise to these concerns. The firm is a major investor in India and China, and has a majority stake in WNS, the largest offshore business process company in India. In 2002, after acquiring the Town and Country Assistance, a U.K. insurance claims management company, WNS moved some of the claims processing and network maintenance work to India.In defense of that move, Warburg Pincus executive Wolfe Strouse told a Wharton interviewer, "We have seen tremendous efficiencies from both the technology enablement and also from the highly skilled labor in India ... I think you will see more such arrangements, where control and strategic level remains with the customer but the processing piece moves offshore."The private equity buyout industry, armed with more than aHalf trillion dollars of capital, is engineering financial deals that together are larger than the annual budgets of most of the world's countries. This financial juggernaut is generating hefty returns to its investors, extraordinary riches for its executives, and newly relevant questions about the impact of its business practices on American workers, businesses, communities, and the nation.The Service Employees International Union has released a set of principles designed to address the concerns of investors, the public, and workers including: -- The buyout industry should play by the same set of rules as everyone else, including providing transparency and disclosure about their businesses, supporting equitable tax rates, and eliminating conflicts of interest and other potential abuses in their transactions; -- Workers should have a voice in the deals and benefit from their outcome; and -- Community stakeholders, including consumer organizations and the public, should have a voice in the deals and benefit from their outcome.SEIU members participate in pension funds with more than US$1 trillion in assets, most of which invest 5 percent to 10 percent of their assets in private equity. SEIU is a longtime advocate of responsible corporate governance practices and an active member of the Council of Institutional Investors, an organization of more than 130 pension funds whose assets exceed US$3 trillion. About Bausch & LombHeadquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contactlens care solutions, and ophthalmic surgical and pharmaceuticalproducts. The company is organized into three geographicsegments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. Rating Agencies Take ActionAs reported in the Troubled Company Reporter on May 28, 2007, the Warburg Pincus Deal prompted Standard & Poor's Ratings Services to lower its ratings on Bausch & Lomb and placed them on CreditWatch with negative implications. Among others, S&P lowered the company's corporate credit rating to 'BB+' from 'BBB'.According to S&P, even if the transaction is not consummated,management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating.Additionally, Moody's Investors Service said it will continue its review of Bausch & Lomb's ratings for possible downgrade,including the company's Ba1 Corporate Family rating.Sidney Matti, an analyst at Moody's, stated that, "The review for possible downgrade will focus primarily on the company's post-acquisition capital structure and the likelihood that BOL's post-acquisition credit metrics would fall below the 'Ba' ratingcategory."Furthermore, Fitch maintained its Negative Rating Watch on Bausch & Lomb emphasizing that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade.Fitch also warns that the transaction would result in an IssuerDefault Rating of no higher than 'BB-'.BRISTOW GROUP: Completes US$300 Mil. Sr. Notes Private Offering---------------------------------------------------------------Bristow Group Inc. has closed its private offering of US$300 million of senior notes due 2017. The notes priced at par and will carry an interest rate of 7-1/2%. The company intends to use the net proceeds from the offering to fund additional aircraft purchases under options and for general corporate purposes. Interest is payable on March 15 and September 15, beginning Sept. 15, 2007. The notes will not initially be registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. The notes may be resold by the initial purchasers pursuant to Rule 144A and Regulation S under the Securities Act. Headquartered in Houston, Texas, Bristow Group, Inc. -- http://www.bristowgroup.com-- (NYSE:BRS), fka Offshore Logistics, Inc., provides helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, India, Mexico, Nigeria, Russia and Trinidad. The company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. * * *As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to helicopter service company Bristow Group Inc.'s US$250 million senior notes due 2017. At the same time, Standard & Poor's affirmed the 'BB' corporate credit rating and all other ratings on the company. The outlook is negative.GENERAL MOTORS: Carlyle & Blackstone In for Final Bid, FT Says--------------------------------------------------------------General Motors Corp. received final bids from two parties for its Allison Transmission business last week, including the Carlyle Group, The Financial Times reports citing sources familiar with the process. A spokesperson for GM denied the claim stating that there ismore than one bidder left, FT says. Blackstone was competing with Carlyle in the final bidding round, a source close to the United Auto Workers was cited by FT as saying. The UAW has not yet approved any deal to sell Allison, asource close to the union further told FT. According to FT, a spokesperson for Blackstone declined to comment while UAW officials could not be reached for comment. Last month, GM disclosed in a regulatory filing with the Securities and Exchange Commission that it is consideringmeasures to strengthen liquidity and focus on its core business of designing, manufacturing, and selling cars and light trucks globally.Among other items, GM said it is currently discussing thepotential sale of its Allison Transmission business with a number of potential buyers.GM management believes that a sale of Allison Transmission is probable, subject to union, regulatory, and other approvals.GM provided unaudited pro forma financial informationreflecting Allison Transmission's assets and liabilities as held for sale as of March 31, 2007, and reporting its \operations as discontinued for the three months ended March 31, 2007 and 2006, and for the years ended Dec. 31, 2006, 2005, and 2004.A full-text copy of the pro forma financial information isavailable for free at http://researcharchives.com/t/s?2038 General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry salesleader since 1931. Founded in 1908, GM employs about 317,000people around the world. It has manufacturing operations in 32countries.General Motors has Asia-Pacific operations in India, China,Indonesia, Japan, the Philippines, among others. It haslocations in European countries including Belgium, Austria, andFrance. In Latin-America, the company maintains locations inArgentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguayand Uruguay. * * *As reported in the Troubled Company Reporter on May 28, 2007,Standard & Poor's Ratings Services placed General Motors Corp.'scorporate credit rating at B/Negative/B-3.At the same time, Moody's Investors Service affirmed GM's B3Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative.As reported in the Troubled Company Reporter on May 25, 2007,Fitch Ratings downgraded General Motors Corporation's ratingsincluding the company's 'B/RR4' rated senior unsecured debt to'B-/RR5'. GM's Issuer Default Rating remains at 'B' and is still on Fitch's Negative Rating Watch.KINETIC ENGINEERING: Engine & Gearbox Unit Win Orders -----------------------------------------------------Kinetic Engineering Ltd's engine and gearbox manufacturing unit has bagged orders from automobile companies, including from Tata Motors and Force Motors, reports say.The company won an order to supply gearboxes for the forthcoming Tata Motors' panel van and Force Motors' Minidoor and Mini 4-door three-wheeler, moneycontrol.com relates citing Kinetic Engineering Joint Managing Director Sulajja Firodia Motwani.The company also reportedly received an export order to supply 50 cc engines to a Holland-based moped company to the tune of INR25 crore with annual export shipment of 30,000 engines.According to moneycontrol, Kinetic Engineering, besides coming up with engines and gearbox for the automotive industry, has also developed a petrol engine for the three-wheeler market. Currently, the company is negotiating with several domestic players for possible new orders, moneycontrol adds.Reports of the orders surged the company's shares, the Business Standard says. India-based Kinetic Engineering Ltd. --http://www.kineticindia.com/-- is an automobile manufacturer, which specializes in two wheelers. The company has sold over 6million vehicles in India. Kinetic has brought to Indiatechnologies, such as four valve engines, electric start onscooters and motorcycles, v-twin engines and upside down (USD)forks. The company offers top-end bikes, such as Comet andAquila. It has a nationwide network of nearly 450 dealers andover 1,000 service centers. Kinetic exports vehicles to theUnited States, Canada, Latin America, Europe, Africa, MiddleEast and South Asia.The Troubled Company Reporter - Asia Pacific reported onJune 15, 2007, that the company has a stockholders' equitydeficit of US$5.40 million.================= I N D O N E S I A=================ALLIANCE ONE: Restating Results for First Three Quarters of 2007 ----------------------------------------------------------------Alliance One International Inc. is restating the first three quarters of results for fiscal year 2007 to correct a cumulative understatement of income tax expense. For the quarter ended June 30, 2006, the two quarters ended Sept. 30, 2006, and the three quarters ended Dec. 31, 2006, the cumulative understatements are US$1.5 million, US$4 million and US$8.7 million, respectively. The cumulative understatement during these unaudited quarters, which management identified, has not increased the company's total expected cash taxes, and as such will not have any net effect on liquidity. The company plans to amend and restate its quarterly reports on Form 10-Q for each of these periods, and to file its annual report on Form 10-K for fiscal year 2007 as soon as practicable. The audit committee of the company's board of directors, upon the recommendation of the company's management, has concluded that the previously issued financial statements for the first three quarters of fiscal year 2007 should no longer be relied upon. The company is currently evaluating but anticipates that the errors constitute a material weakness or weaknesses in the company's internal controls over financial reporting.Separately, the company is expecting to exceed its previous underlying earnings guidance of US$0.25 to US$0.32 per share for the fiscal year ended March 31, 2007. About Alliance OneBased in Morrisville, North Carolina, Alliance OneInternational, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. * * *The Troubled Company Reporter - Asia Pacific reported onSept. 29, 2006, that in connection with Moody's InvestorsService's implementation of its new Probability-of-Default andLoss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for Alliance OneInternational, Inc., and upgraded its B2 rating on the company's US$300 million senior secured revolver to B1. In addition,Moody's assigned an LGD3 rating to notes, suggesting note holders will experience a 37% loss in the event of a default.BANK MANDIRI: Pefindo Assigns "idAA-" Corporate Rating------------------------------------------------------Pefindo assigned a corporate rating of "idAA-" with a "stable" outlook to PT Bank Mandiri (Persero) Tbk. The rating reflects strong supports from the government, the Bank's superior market position as the largest bank in the country, and the Bank's sound capitalization. However, the Bank's high non performing loans although it showed an improving trend still mitigated the rating. BMRI was incorporated in 1998 through a merger of 4 state owned banks namely Bank Bumi Daya, Bank Dagang Negara, Bank Exim, and Bapindo. As a universal bank, BMRI provides an extensive range of products and services from commercial banking to investment banking and insurance. In commercial banking services, the Bank offers varieties of products that include, among others, lending and deposits, cash management, foreign exchange and custodial services, as well as debit and credit cards. BMRI also has several subsidiaries, which focuses in investment banking (PT Mandiri Sekuritas), sharia banking (PT Bank Syariah Mandiri), and insurance (PT AXA Mandiri Insurance). BMRI's network coverage is regarded as one of the strongest in the country, comprising of 924 offices and 2,800 self owned ATM as of December 2006. The Bank ATM's is also incorporated with around 6,265 units of ATM Link, which are located all over Indonesia. The Bank currently employs about 21,000 staffs to provide banking services to its almost 6 million customers. About Bank MandiriPT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms ofassets, loans and deposits, and provides comprehensive financialservices to more than six million corporate and individualconsumers, as well as small and medium-sized enterprises inIndonesia.The Troubled Company Reporter - Asia Pacific reported on May 8,2007, that Moody's Investors Service revised some ratings ofIndonesia's Bank Mandiri as part of the application of theagency's refined joint default analysis and updated bankfinancial strength rating methodologies. The specific ratingschanges are: * BFSR is changed to D- from E+. -- This action also concludes a review for possible upgrade on the BFSR initiated on August 1, 2006. * Foreign Currency Deposit Ratings are unchanged at B2/Not Prime. * Foreign Currency Debt Rating for senior and subordinated obligations is unchanged at Ba3 -- Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlookThe bank also carries Fitch Ratings: Long- term foreign andlocal currency Issuer Default ratings at 'BB-', Short-termrating at 'B', National Long-term rating at AA(idn)', Individualat 'D', and Support at '4'. The Outlook for the ratings wasrevised to Positive from Stable.BEARINGPOINT INC: Hires John Distefano as VP & Exec. Director-------------------------------------------------------------BearingPoint, Inc., has appointed John C. Distefano as vice president and executive director of healthcare payer services in the firm's global Healthcare practice.Mr. Distefano brings more than 26 years of experience to BearingPoint and will be responsible for overseeing the growth of BearingPoint's health payer practice, which focuses on assisting U.S. health plans with improving healthcare quality and affordability through improved business performance.Mr. Distefano was most recently a partner and member of Accenture's healthcare payer industry executive leadership team, where he was responsible for leading the company's information technology solutions for its healthcare payer business. Mr. Distefano's experience also includes more than 13 years of healthcare payer business transformation and technology services at Ernst & Young and CapGemini.He has served as a columnist and contributor for prominent industry publications. He co-authored the book, "Enterprise Wireless Application Architecture," and served as executive editor of the book, "Gaining Business Value from Mobile Technologies.""I've worked with John previously in my career and have always admired his unflagging commitment to client service," said Tuck Crocker, vice president and head of BearingPoint's commercial healthcare practice. "We are excited to add his extensive experience to our rapidly-growing team.""I'm very excited to join BearingPoint, and look forward to helping healthcare payer clients enhance core business operations and improve the execution of technology delivery," said Mr. Distefano. "BearingPoint is committed to assisting clients in solving business and technology challenges and I believe this uniquely positions us to deliver superior business performance to our clients." About BearingPointHeadquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets.BearingPoint has global locations including in Indonesia,Australia, Austria, China, India, Japan, Mexico, Portugal,Singapore and Thailand. * * *Moody's Investors Service's rated BearingPoint Inc.'s 2.5% Series A Convertible Subordinated Debentures due 2024 at B3.HILTON HOTELS: Enters Into Partnership with Moet Hennessy---------------------------------------------------------Hilton Hotels Corp has entered into a partnership with Moet Hennessy Louis Vuitton, or LVMH, and Spa Chakra, Newratings.com reports. Newratings.com relates that as agreed, "Hilton Hotels will offer products and services of LVMH and Spa Chakra at many of its hotels."Hilton Hotels told Newratings.com that the partnership will affect: -- the Waldorf-Astoria Collection hotels, -- Conrad Hotels & Resorts, and -- selected Hilton hotels. Hilton Hotels said that it would associate with the Guerlain and Acqua di Parma brands of LVMH for spa treatments and related products and services. Spa Chakra will provide design and operational consulting services to Hilton Hotels, Newratings.com states.Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * *As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt.Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle.In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. INCO LTD: Steelworkers Reach Tentative Agreement w/ Contractors---------------------------------------------------------------The United Steelworkers of Inco Limited said that a tentative settlement for a first collective agreement has been reached with Ushitau and TSI, two contractors whose employees provide core work for CVRD-Inco Limited's Voisey's Bay Nickel.If ratified by USW members, the agreement would end a strike that began April 18 against TSI and April 23 against Ushitau. About Inco Ltd.Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)-- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K.Inco Limited's 3-1/2% Subordinated Convertible Debentures due2052 carry Moody's Investors Service's Ba1 rating.INDOSAT TBK: Moody's Keeps Ba1 Local Currency Issuer Rating-----------------------------------------------------------Moody's Investors Service affirmed PT Indosat Tbk's Ba1 local currency issuer rating and has also changed the outlook to stable. At the same time, Moody's has affirmed Indosat's Ba3 senior unsecured foreign currency rating. The rating outlook on the bond remains positive which is in line with the outlook on Indonesia's foreign currency country ceiling."The change in outlook to stable has been prompted by Indosat's decline in relative market share and average revenue per user. This has been because of the increasingly competitive nature of Indonesia's cellular telecommunications markets and despite their continued growth," says Laura Acres, a Moody's Vice President, adding, "Moreover, Indosat is to embark on a large capital expenditure plan over the next 3 years resulting in significant negative free cash flow. As a result, it is more appropriately positioned at the current Ba1 rating."Indosat's Ba1 rating combines: (a) the company's underlying strength derived from its sound operational and financial profile; and (b) the credit support that Moody's believes its largest shareholder, Temasek Pte Limited-owned (rated Aaa) Singapore Technologies Telemedia Pte Ltd, is likely to provide in a distress situation.Moody's ranks the company's underlying credit strength as a 12 -- equivalent to Ba2 on our global rating scale. This assessment reflects the company's established position as Indonesia's second largest cellular operator, enhanced network coverage (which positions it well to capture continued growth at both subscriber and revenue levels), and the presence of STT as the largest single shareholder -- which benefits Indosat through its involvement in management and technological issues.Notwithstanding these positive factors, the underlying credit strength also acknowledges Indosat's large capex plan and negative free cash flow position over the next 2 years; increasing competition as evidenced by the increased number of both domestic and international players; as well as country specific issues such as uncertainty surrounding Indonesia's political and economic environment and particularly regulatory uncertainty. Any deterioration in the political system or changes in the regulatory regime could have an impact on Indosat's operating profile and prospects for growth.Indosat is 40.8% owned by AMH, which is majority owned by STT, a wholly owned subsidiary of Temasek. Because of this ownership structure, Moody's overlays the company's underlying credit strength with a joint-default analysis for government-related issuers. This involves estimating the likelihood that in the event of impending failure by the company, STT/Temasek would step in and prevent default.Moody's scores STT's willingness to support Indosat as "medium", reflecting the relative importance of the Indosat investment to STT/Temasek and its track record of injecting additional capital to support growth.Medium support also reflects the effective ownership by STT and the likelihood that STT/Temasek will remain the largest single shareholder in the short-to-medium term.Upward changes for the local currency rating will primarily be driven by consistent improvement in Indosat's underlying credit strength. Specific ratios that Moody's would consider include: (EBITDA-Capex)/interest remaining above 1.5x on a consistent basis; debt/EBITDA remaining below 2.0x; and a clear flight path to positive free cash flow. An upgrade of the foreign country ceiling will trigger the upgrade of the senior unsecured bond rating.Downward pressure on the rating could emerge from a deterioration in Indosat's credit assessment or a reduction in the support level. Specifically, Moody's would look for (EBITDA-Capex)/interest being less than 1.0x on a consistent basis, and debt/EBITDA increasing above 3.0x. In addition, Moody's would be concerned if Indosat lost any further market share, or if adjusted EBITDA margins fell below 50%.In addition, any further reduction in STT/Temasek's shareholding may have negative consequences for the rating as it may impact the support level.Total consolidated revenue for 2006 was IRP12.2 trillion (US$1.3 billion) which gave rise to an EBITDA of IRP7.6 trillion (US$825 million). As of March 31, 2007, Indosat had a nationwide market share of 27% and 18 million subscribers. Approximately 95% of the subscriber base is prepaid. About IndosatPT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and serviceprovider and provides a full complement of national andinternational telecommunications services in Indonesia. Thecompany provides international long-distance services inIndonesia. It also provides multimedia, data communications andInternet services to Indonesian and regional corporate andretail customers. The company's principal cellular service isthe provision of airtime, which measures the usage of itscellular network by its customers. Airtime is sold throughpostpaid and prepaid plans. It provides a variety ofinternational voice telecommunications services and bothinternational switched and non-switched telecommunicationsservices. MIDI services include high-speed point-to-pointinternational and domestic digital leased line broadband andnarrowband services, a high-performance packet-switching serviceand satellite transponder leasing and broadcasting services.PHILLIPS-VAN: Good Performance Cues S&P's Positive CreditWatch--------------------------------------------------------------Standard & Poor's Ratings Services placed its ratings on New York City-based Phillips-Van Heusen Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The apparel company had about US$400 million in debt outstanding at May 6, 2007. "The CreditWatch action follows PVH's first-quarter results that reflected a continuation of positive operating momentum for the past several quarters," said Standard & Poor's credit analyst Susan Ding. For the latest quarter, revenue rose 17% from a year earlier, primarily due to higher royalty income from its Calvin Klein franchise, especially in fragrances, and better product mix. Operating margins also improved due to growth in royalty revenue and better sell-throughs in the wholesale dress shirt and retail businesses. PVH's credit protection measures have been improving steadily and are currently above the rating medians. Standard & Poor's will review the company's financial and operating strategies to resolve the CreditWatch listing. About Phillips-Van HeusenPhillips-Van Heusen Corporation -- http://www.pvh.com/-- owns and markets the Calvin Klein brand worldwide. It is a shirt company that markets a variety of goods under its own brands: Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co., Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole, BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael Kors, Chaps and Donald J. Trump Signature. It has operations in the Asia-Pacific region, includingIndonesia, China, Philippines, Malaysia, and Thailand.The Troubled Company Reporter - Asia Pacific reported onDec. 14, 2006, that Moody's Investors Service upgraded PhillipsVan Heusen Corporation's corporate family rating to Ba2 fromBa3. The company's senior secured notes were upgraded to Baa3 from Ba1 and the company's senior unsecured notes were upgraded to Ba3 from B1. The rating outlook is stable, reflecting Moody's expectations that the company will sustain financial metrics appropriate for the rating category.PERTAMINA: To Take Over Medco Energi's Madura Shares----------------------------------------------------PT Pertamina plans to take over PT Medco Energi Internasional's 65% share in the Madura onshore oil block, Jakarta Post reports.The report relates that Sukusen Soemarinda, Pertamina upstream director, said that the company had sent a letter to the Energy and Mineral Resources Ministry requesting the approval of its plan to take over the block.Medco Energi is in the process of returning the block to the government because it said the block was no longer considered prospective. However, Pertamina believed that the block was still prospective and economically feasible, the report says.The Post adds that Pertmina and Medco had so far spent US$16 million for exploration activities of the total investment commitment worth US$63 million. The government granted the rights to operate the Madura block for Medco and Pertamina in 1997. About PT PertaminaPT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government RegulationNo.31/2003 has changed its legal status from a special stateowned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports.In 2003, PT Pertamina finance director Alfred Rohimone disclosed that the Company's financial condition was in critical condition because its expenses had surpassed its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on the international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding.Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year.In August 2005, Pertamina's debt to United States firm KarahaBodas Company rose from IDR2.54 trillion to IDR2.99 trillion.The debt had increased when, in 2003, a U.S. court ordered theCompany to pay compensation to KBC, relating to an internationalarbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately.PERUSAHAAN LISTRIK: Moody's Puts B1 Rating on Proposed USD Bonds ----------------------------------------------------------------Moody's Investors Service assigned a B1 senior unsecured rating to PT Perusahaan Listrik Negara's proposed U.S. dollar bond issuance. At the same time, Moody's has affirmed PLN's B1 corporate family rating and A1.id national scale rating. The outlook for all the ratings is positive, which is in line with the sovereign's positive outlook.The proceeds from the bond issuance will be used primarily to fund capital expenditure requirements in connection with the Fast Track Program and for general corporate purposes.The ratings take into account: (1) PLN's stand-alone credit quality, and (2) the high likelihood of the Indonesian government providing the company with credit support in a stress situation, since PLN is 100% owned by the Ministry of State-Owned Enterprises."The stand-alone rating reflects PLN's importance as Indonesia'sonly vertically integrated electricity utility, and expectations of sustained government support through subsidies to ensure its financial viability and operational soundness. Such an expectation is underpinned by its strong links with the government, which is its 100% owner," says Moody's lead analyst for the company, Jennifer Wong, adding, "Furthermore, subsidies to PLN are part of the state budget. As such, Moody's views PLN's rating as closely integrated with, and strongly linked to, the government's credit quality.""While the stand-alone rating has incorporated the above factors, it has also taken into account PLN's modest stand-alone credit metrics due to the large gap between average sales prices and cost of supply; particularly in light of rising fuel expenses, as well as large capex requirements under the Fast Track Program," says Wong.Because PLN is 100%-owned by MSOE and is therefore a Government-Related Issuer, Moody's overlays the company's stand-alone rating on a joint default analysis for GRIs. That involves estimating the likelihood that in the event of pending failure by the company, MSOE would step in and prevent a default.Given the close integration of PLN's rating with the sovereign rating, an upgrade in the latter would trigger a rating upgrade of PLN.Similarly, a downgrade in the sovereign rating would trigger a downgrade for PLN. Furthermore, a partial privatization of PLN or any government plan to cease subsidy support -- a scenario that Moody's considers unlikely in the near-to-medium term -- would impact the support and dependence level and therefore pressure the rating.PT Perusahaan Listrik Negara is an Indonesian state-owned vertically integrated electricity utility with generation capacity of over 22,000 MW and transmission capacity of 32,844 km. It is a monopoly operator of transmission and distribution networks and is the country's largest electricity producer. The government - represented by MSOE - has complete ownership. About Perusahaan ListrikIndonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia'spopulation. The Indonesian Government decided to end PLN'spower supply monopoly to attract independents to build morecapacity for sale directly to consumers, as many areas of thecountry are experiencing power shortages.PLN posted a IDR4.92-trillion net loss in 2005, against a netloss of IDR2.02 trillion in 2004. ========= J A P A N=========AMAZON.COM: S&P Upgrades Corporate Credit Rating to BB------------------------------------------------------Standard & Poor's Ratings Services raised its corporate credit rating on Amazon.com to 'BB' from 'BB-'. The rating change is based on the company's continued strong growth, maintenance of its good market position, and improved credit protection metrics.The outlook is stable."The ratings on Seattle, Washington-based Amazon.com, one of the world's largest online retailers, reflect the risks of rapid growth, participation in the mature and highly competitive retail industry, and continued operating margin deterioration," said Standard & Poor's credit analyst David Kuntz, "tempered by the company's market position in online retailing and improving cash flow protection measures." We could consider a positive outlook if Amazon is able to show gains in operating performance with commensurate improvement in cash flow measures and a further reduction in debt leverage.Based in Seattle, Wash., Amazon.com, Inc. (Nasdaq: AMZN) a Fortune 500 company, opened on the World Wide Web in July 1995 and offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden. Amazon.com and its affiliates operate retail sites http://www.amazon.com/, http://www.amazon.co.uk/,http://www.amazon.de/, http://www.amazon.co.jp/, http://www.amazon.fr/,http://www.amazon.ca/ and http://www.joyo.com/. The company has fulfillment centers in Japan and China. Other office locations include those in Germany, India, and the United Kingdom.BOSTON SCIENTIFIC: Court Bars Motion to Disallow Some Claims ------------------------------------------------------------Boston Scientific Corp.'s motions to dismiss some product-liability claims against the company over implantable heart defibrillators has been rejected by a federal courtjudge, Reuters said on its Web site Wednesday.In his decision, the federal judge opined that Guidant Corp., which Boston Scientific bought last year, continued to sell heart rhythm-management devices after learning of possible defects, Reuters says."We are fully prepared to take the bellwether cases to trial and remain confident that when juries look into the individual facts, they will side with us," a Boston Scientific spokesman was cited by Reuters as saying. Headquartered in Natick, Massachusetts, Boston ScientificCorporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, France, Germany, and Japan, among others. * * *As reported in the Troubled Company Reporter on May 11, 2007,Moody's placed Boston Scientific Corporation's ratings includingits (P) Ba1 subordinated shelf and (P) Ba2 preferred stock ratingsunder review for possible downgrade. The rating action reflects Moody's expectation that, absent any material debt reduction, financial strength measures over the near term will be below thoseidentified for an investment grade company under Moody's GlobalMedical Products & Device Industry Rating Methodology.GOODWILL GROUP: Welcia and Wisnet Express Interest to Buy Firm--------------------------------------------------------------Drugstore chain operator Welcia Kanto Co. and nursing home operator Wisnet Co. will offer to jointly buy all of the nursing care operations of The Goodwill Group Inc., sources reveal to Japan Times. Welcia, which is an affiliate of supermarket chain operator Aeon Co., and Wisnet expressed their interest to take over Goodwill's entire nursing care operations but still has to review unprofitable services provided on remote islands and in other underpopulated areas, relates the report.Welcia, according to the report, hopes to strengthen its business to dispense medicine for the elderly through the purchase. About The Goodwill GroupJapan-based The Goodwill Group, Inc. --http://www.goodwill.com/gwg/english/index.html-- is a involved in five business segments. The Staffing segment offers recruitment services for technicians, senior workers and others. The Human Resources-related segment provides employee hiring support services to corporate clients, counseling services to workers and outplacement services to retired and retiring workers. The Nursing-care and Medical Support segment is engaged in the provision of home-care services, care services in facilities and dental examination services at home, as well as the sale of nursing-care goods and equipment, among others. The Senior Residence and Restaurant segment operates nursing home under the name THE BARRINGTON HOUSE, and also operates restaurant in both domestic and overseas markets. The Others segment is engaged in the planning, designing and management of pet care facilities, the operation of pet care shops, the operation and management of nurseries, the provision of baby-sitting services and others.The Troubled Company Reporter - Asia Pacific reported onJune 14, 2007, that The Goodwill Group is thinking of selling its home nursing-care services division after the Japanese government banned it from renewing its licenses due to its involvement in a fraud scandal.The article conveys that the firm allegedly obtained some of thelicenses for nursing-care service operators certified under apublic insurance program through fraudulent applications,including those with an inflated number of employees.NOVA CORP: Trade Ministry Bans New Contracts with Students----------------------------------------------------------Nova Corporation was ordered by the government last week to partially suspend business for six months for lying to customers about its services, reports Japan Times.According to the report, the Ministry of Economy, Trade and Industry revealed to reporters that Nova misled prospective clients by saying they can book language lessons anytime they want at any Nova school nationwide. However, clients complained that they were not able to book lessons during busy periods.METI, writes Japan Times, in its investigation, discovered that several Nova schools did not give full refunds to people who canceled lessons.In addition, METI received reports claiming that Nova deceived their clients believing their cooling-off periods had expired and they could not cancel their contracts, Japan Times relates.Under the law, private language school clients have an eight-day cooling-off period from the time they sign a contract, during which they can cancel and get a full refund. Reportedly, Nova staff told some people the cooling-off period begins on the day they register their name and address at the school, not when they sign a contract, conveys Japan Times.The article adds that METI officials banned Nova from selling long-term contracts for language lessons starting June 14, 2007.Reportedly, contracts with existing students will be allowed to be renewed.Japan Times quotes a METI official as saying that Nova "engaged in illegal acts, with the top management at its head office authorizing the irregularities. The company even compiled a manual advising staff on how to respond to claims by students."Osaka-based company, Nova Corporation-- http://www.nova.ne.jp/-- is primarily engaged in the operation of language schools. The Company has seven subsidiaries and two associated companies. The Company is involved in the teaching of languages, the creation of international environment of different languages and cultures, the provision of real time services, the development and provision of network contents, the development of hardware technology, the building of human network, as well as the organization of member groups to provide services internationally. The Company also has subsidiaries and associates, which are engaged in advertisement services, interior construction, facility and commodity sale, overseas study services, computer system services, real estate brokerage, facility leasing and installment sale, capital management, cleaning services, sanitary management, multimedia goods sale, Internet connection services, customer services and assistance to foreigners. Nova has reported two consecutive net losses for fiscal years ended March 31, 2006 and March 31, 2007 respectively.The company posted a JPY3.09 billion for March 31, 2006 and JPY2.89 billion for March 31, 2007.NOVA CORP: Plans to Issue Shares to Gain Back Public Trust----------------------------------------------------------In an effort to recover from the scandal it now faces and to regain the trust of the public, Nova Corporation is considering different options to strengthen its capital, various reports say.Among the choices the language school has considered is the issuance of new shares to other companies, Japan Times cites Nova President Nozomu Sahashi as saying.In what is considered to be Mr. Sahashi's first interview after the suspension order was imposed by the Ministry of Economy, Trade and Industry, he said that the details of the said issuance of shares plan has yet to be worked out, Japan Times relates.Mr. Sahashi expressed to Japan Times that tapping external capital is a "measure toward a next step."Meanwhile in an interview report by the Yomiuri Shimbun, Mr. Sahashi said that various industries have contacted him for a capital and business alliance and further added that the company is "considering the offers because trust in us has to be restored."Aside from the proposals the English-language school is considering selling off its properties and real estate in Osaka estimated to be worth several billion yen, writes the Yomiuri Shimbun.Mr. Sahashi revealed to the Yomiuri Shimbun that in order to get back the public's trust, they need to have a good business partner affiliation preferring companies of different industry over other English schools as he claims he can't "expect any benefits from such a partnership."The Nova president expects that they will have a tough time in the first half of this fiscal year but is positive they will improve in the second half.According to Japan Times, Mr. Sahashi stated that the management of Nova "must take responsibility" in the future, including himself.The Japan Times further reports that the Japanese government said the subsidies were no longer given starting Wednesday last week.Reportedly, the government provides subsidies for people engaged in educational training authorized by the welfare ministry to improve the abilities of the unemployed and other people. About Nova CorporationOsaka-based company, Nova Corporation-- http://www.nova.ne.jp/-- is primarily engaged in the operation of language schools. The Company has seven subsidiaries and two associated companies. The Company is involved in the teaching of languages, the creation of international environment of different languages and cultures, the provision of real time services, the development and provision of network contents, the development of hardware technology, the building of human network, as well as the organization of member groups to provide services internationally. The Company also has subsidiaries and associates, which are engaged in advertisement services, interior construction, facility and commodity sale, overseas study services, computer system services, real estate brokerage, facility leasing and installment sale, capital management, cleaning services, sanitary management, multimedia goods sale, Internet connection services, customer services and assistance to foreigners. Nova has reported two consecutive net losses for fiscal years ended March 31, 2006 and March 31, 2007 respectively.The company posted a JPY3.09 billion for March 31, 2006 and JPY2.89 billion for March 31, 2007.On June 18, 2007, Troubled Company Reporter-Asia Pacific reported that Nova Corporation was ordered by the Japanese Ministry of Economy, Trade and Industry to suspend its business for six months for lying to customers about its services.RESONA HOLDINGS: Ties Up with Dai-Ichi to Pay JPY2.3-Bil. Debt--------------------------------------------------------------Resona Holdings Inc. and Dai-Ichi Mutual Life Insurance Co. are close to striking a deal on capital and operational tie-ups as banks and insurers increasingly move to beef up business relations ahead of further deregulation, industry sources revealed to Japan Times.According to Japan Times sources, Resona, the holding company of Resona Bank and Saitama Resona Bank, plans to issue about JPY100 billion worth of preferred shares to Dai-Ichi and hopefully be able to reach an agreement by the end of July.The Yomiuri Shimbun reports that both companies are also eyeing a tie-up in the sales of Dai-Ichi's insurance products at Resona group bank branches after the full liberalization of such sales, expected in December.Resona Holdings, currently having a JPY2.3-billion balance in unpaid public funds, is hoping to boost its income base by aggressively promoting the insurance business to gain commission fees, Japan Times sources conveyed.However, Yomiuri Shimbun sources revealed that Resona hopes to issue preferred shares without voting rights to Dai-Ichi Mutual and use the raised capital to pay back part of the funds it owes.While Japan Times reports that Resona Holdings is set to issue more than JPY300 billion worth of bondlike preferred shares, of which about JPY100 billion will be allocated to Dai-Ichi, Yomiuri Shimbun sources said that Dai-Ichi will acquire preferred shares amounting to around JPY300 billion to be issued by Resona.In the article, Japan Times shares that Resona is also considering allocating the remaining JPY200 million to foreign-affiliated insurance companies, investment banks, securities firms and companies in other industries.Through the alliance, Resona will be able to enter the field of insurance sales, allowing it to earn commission fees and enhance its profitability, and Dai-Ichi would be able to expand its sales channels which previously were centered around female workers visiting homes or companies to sell its policies relates the Yomiuri Shimbun. About Resona HoldingsResona Holdings, Inc., based in Osaka, Japan, --http://www.resona-gr.co.jp/-- is a holding company. Through its subsidiaries and associated companies, the Company is engaged in general banking, trust operation, credit card and financial services. The Company is comprised of 15 domestic subsidiaries and 21 overseas subsidiaries, as well as two associated companies. It has operations in Japan, the United Kingdom, Indonesia, Thailand and the Cayman Islands. On December 13, 2005, Troubled Company Reporter-Asia Pacific reported that Rating and Investment Information, Inc gave a BBB issuer rating to Resona Holdings reflecting the group's overall creditworthiness and the financial structure of the holding company.========= K O R E A=========BIOMET INC: LVB Acquisition Commences US$11 Billion Tender Offer----------------------------------------------------------------LVB Acquisition, LLC and LVB Acquisition Merger Sub, Inc. have commenced a tender offer to acquire all of the outstanding common shares of Biomet, Inc. for US$46.00 per share in cash, or an equity value of US$11.4 billion.LVB Acquisition, LLC and LVB Acquisition Merger Sub, Inc. are indirectly owned by investment partnerships directly or indirectly advised or managed by The Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co. and TPG.Following completion of the tender offer, LVB Acquisition, LLC will complete a second-step merger in which any remaining common shares of Biomet will be converted into the right to receive the same per share price paid in the offer.The US$46.00 per share offer price represents a premium of 32.3% over the closing price of Biomet's common stock on April 3, 2006, the trading day prior to public speculation that the company was exploring strategic alternatives.LVB Acquisition, LLC will file with the Securities and Exchange Commission a tender offer statement on Schedule TO setting forth in detail the terms of the offer. Biomet today will file with the Commission a solicitation/recommendation statement on Schedule 14D-9 setting forth in detail, among other things, the recommendation of Biomet's board of directors that Biomet shareholders tender their shares into the offer.The offer is conditioned upon, among other things, there being validly tendered and not withdrawn before the expiration of the offer that number of Biomet common shares which, when added to any shares already owned by LVB Acquisition, LLC and its subsidiaries, represents at least 75% of the outstanding shares. LVB Acquisition, LLC may revise the condition regarding minimum acceptance of the offer to decrease the minimum acceptance threshold to a number that, together with shares whose holders have agreed to vote to approve the second-step merger, represents at least 75% of the Biomet common shares.The offer and withdrawal rights will expire at midnight, New York City time, on Wednesday, July 11, 2007, unless the offer is extended.The dealer managers for the offer are Banc of America Securities LLC and Goldman, Sachs & Co., and the information agent for the offer is Innisfree M&A Incorporated. About Biomet Inc.Biomet Inc. and its subsidiaries design, manufacture, and marketproducts used primarily by musculoskeletal medical specialistsin both surgical and non-surgical therapy. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries, including the Netherlands, Argentina and Korea.The Troubled Company Reporter - Asia Pacific reported on Jun 12, 2007, that Moody's Investors Service placed all of the provisional ratings of Biomet, Inc. under review for possible downgrade following the announcement that a private equity consortium has increased the price of its offer to purchasethe company to US$11.4 billion from about US$10.9 billion.Ratings placed under review for possible downgrade: * Biomet, Inc. -- Corporate family rating at (P)B2; -- Asset backed revolver at (P)Ba2, (LGD2, 14%); -- Secured cash draw revolver at (P)B1, (LGD3, 36%); -- Secured term loan at (P)B1, (LGD3, 36%); -- Unsecured senior notes at (P)B3, (LGD4, 63%); -- Unsecured PIK option notes at (P)B3, (LGD4, 63%); -- Unsecured subordinated notes at (P)Caa1, (LGD6, 93%); -- PDR at B2; -- SGL-2.DURA AUTOMOTIVE: Wants to Amend Terms of US$300MM DIP Facility--------------------------------------------------------------Dura Automotive Systems Inc. and its debtor-affiliates wants to amend the terms to a US$300 million debtor-in-possession financing entered on November 2006 to provide additional financial flexibility and a stable environment while they negotiate key elements of their Chapter 11 plan over ensuing critical months. DIP Agreements AmendedThe Postpetition Credit Agreements approved by the U.S. Bankruptcy Court for the District of Delaware entered into by the Debtors with Goldman Sachs Capital Partners L.P., General Electric Capital Corporation, and other lender parties contain various covenants and provisions that were negotiated by the Debtors in the weeks immediately preceding and following the Oct. 30, 2006 petition date. The relevant financial covenants were based on a financial budget. Given the relatively short timeframe available to secure a much needed DIP financing, the Debtors prepared the Original DIP Budget via an expedited 2007 annual planning process.Since that time, the Debtors have completed a review and re-forecast for 2007. The Debtors and their advisers haveidentified a host of additional operational restructuringinitiatives which, when combined with certain initiativesidentified before the Petition Date are projected to greatlyimprove the Debtors' future financial performance.The efforts from the combined operational restructuringinitiatives have already begun to materialize in the Debtors' and their European and other foreign affiliates' recent financial performance. The Debtors' recently formulated five-year business plan, which was developed on a "bottom-up" basis, incorporates the expected improvements from the operational restructuring initiatives. The implementation of these initiatives is expected to be complete by mid-2008.The Debtors are targeting an emergence from Chapter 11 in thelate third quarter to early fourth quarter of 2007. In additionto their operational restructuring efforts, the Debtors arecurrently pursuing a sale of their Atwood Mobile ProductsDivision, as well as rights offering to certain unsecuredcreditors.As such, the ensuing months represent the most critical period in the Debtors' Chapter 11 restructuring process. While theBusiness Plan does not project a default under any of the salient terms of the Postpetition Credit Agreements, the Debtors seek to enter into amendments to the Agreements.To that end, the Debtors have identified certain covenants andprovisions that must be modified to provide them with this needed financial flexibility. During the weeks leading up to the filing of the motion, the Debtors and Miller Buckfire & Co. LLC actively negotiated with the Postpetition Lenders to amend the Postpetition Credit Agreements. The DIP Amendments provide for these adjustments: 1. Minimum EBITDA Requirement -- Minimum Consolidated and Guarantor adjusted EBITBA requirements to be reduced for the fourth-month period from May 2007 to August 2007. The existing threshold levels for September 2007 through December 2007 will remain unchanged. 2. Non-Guarantor Receivable and Factoring and Sale- Leasebacks -- Baskets for permissible Non-Guarantor receivables factoring and sale-leaseback transactions to be combined. 3. Limited Issuance of Non-Guarantor Letters of Credit -- Authorize the non-Guarantors to obtain up to US$5,000,000 in cash-collateralized letters of credit. These letters of credit are not to be issued under the Postpetition Credit Agreements. 4. Brazilian Funds Return -- Authorize the Debtors to return US$1,450,000 of funds received from a non-debtor Brazilian affiliate as a prepayment under an existing intercompany loan. The Brazilian subsidiary made the prepayment on the loan in order to assist the Debtors with near-term cash management needs. The funds are needed by the Brazilian subsidiary to fund previously identified capital budgeting activities, and will be transferred back to the Brazilian subsidiary through a new US$1,450,000 loan.The DIP Amendments are a proactive measure to ensure the Debtorsa stable environment as they prepare to exit Chapter 11. Inaddition to the incremental headroom to be provided above certain of the Debtor's financial covenant thresholds, the Non-Guarantors will obtain additional financial flexibility, consistent with their operational restructuring efforts.In consideration for the covenant relief, the DIP Amendmentsprovide for an aggregate fee of up to US$300,000 to be paid to the DIP Lenders if all of them timely support for the DIP Amendments. On June 18, 2007, the administrative agents to the Postpetition Credit Agreements will tally the final voting results from the DIP Lenders regarding the DIP Amendments. About DURA AutomotiveRochester 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 Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel.Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities.HYNIX SEMICONDUCTOR: Moody's Lifts Rating on Good Performance-------------------------------------------------------------Moody's Investors Service upgraded to Ba2 from Ba3 Hynix Semiconductor Inc's senior unsecured bond rating and corporate family rating. At the same time, Moody's assigned a Ba2 senior unsecured bond rating for Hynix's proposed US$500 million issuance. The outlook for the ratings is stable. This concludes the review for possible upgrade commenced on May 23, 2007."The upgrade has been prompted by Hynix's improved financial profile and its ability to sustain its sound operating performance over the industry cycle, although seasonal earnings volatility is apparent," says Ken Chan, a Moody's AVP/Analyst, adding, "Hynix will maintain its strong position in the global dynamic random access memory industry over the medium term.""In addition, it will remain competitive due to its continual migration into 66nm (nanometer) processing technology and the fact that its planned 12-inch wafer production capacity in China and Korea will be coming on stream over the next 1- 2 years," says Chan, Moody's lead analyst for Hynix."Hynix also has the flexibility to switch production capacity between DRAM and NAND flash which could partially mitigate cash flow volatility," adds Chan.At the same time, Hynix is projected to generate negative free cash flows, given its need to incur large capex plans over the next few years. But it also has stronger access to banking financing and capital markets, thanks to sustainable improvements in its operating profile and capital structure.Hynix is also exposed to the volatility of global memory markets, where average selling prices -- which typically drop 30% per annum for DRAM products -- are declining. However, higher memory requirements from Windows Vista should boost DRAM demand in the long term.The stable outlook reflects Moody's view that Hynix will maintain its market position in the global DRAM and NAND flash markets, while at the same time sustaining its operating performance over the industry cycle.Upward rating pressure could arise if Hynix generates positive free cash flow through the silicon cycle. A build-up in its cash balance and the maintenance of strong balance sheet liquidity to buffer against industry cyclicality would also be positive for the rating.On the other hand, the rating would undergo downward pressure if: (1) there are material delays in its technology migration, and which negatively affects its competitiveness against its peers; or (2) a deterioration in its credit metrics occurs, due to a significant industry downturn or margin erosion, such that Debt/Cap exceeds 30-35% and EBIT/Interest falls below 5x over the cycle. About Hynix SemiconductorHeadquartered in Echon, South Korea, Hynix Semiconductor Inc.-- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, HynixSemiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies.REMY INTERNATIONAL: To File Prepackaged Chapter 11 Protection-------------------------------------------------------------Remy International Inc., said Friday that it had reached agreement with holders of approximately: * 83% of its 8-5/8% Senior Notes, * 84% of its 9-3-8% Senior Subordinated Notes, and * 75% of its 11% Senior Subordinated Notes,on the terms of a consensual financial restructuring that would reduce the company's debt obligations by approximately US$360 million.The company and the consenting noteholders have entered into a Plan Support Agreement pursuant to which the noteholders have agreed to consummate the restructuring through a prepackaged plan of reorganization."We have reached a major milestone toward achieving our goal of substantially reducing our debt burden. Once our financial restructuring is completed, Remy's capital structure will provide a foundation for sustainable profitability and better position the Company to meet the challenges of our industry head on," said President and Chief Executive Officer John Weber.A key feature of the prepackaged plan is that all trade creditors, suppliers, customers and employees will receive amounts owed to them in the ordinary course of business. The company intends to begin soliciting votes on the prepackaged plan from holders of its unsecured notes promptly following conclusion of key customer negotiations. Following the solicitation period, the company expects to commence a prepackaged Chapter 11 proceeding in order to implement the plan. The proceeding is expected to last between 45 and 60 days."This ensures trade creditors, suppliers, customers and employees see no difference in Remy's operations while we complete our recapitalization. The reorganization plan will provide for uninterrupted payment of our existing and future obligations to these constituents and provide for seamless continuation of our operations," Mr. Weber commented. DIP & Exit FinancingIn conjunction with the anticipated prepackaged restructuring, Remy is in the process of obtaining both debtor-in-possession financing and an approximately US$330 million senior secured exit credit facility, the latter to become effective upon consummation of the prepackaged plan.The company anticipates that the exit financing will consist of a term loan of approximately US$205 million, with the remainder as a US$125 million revolving credit facility.The company is making substantial progress in renegotiating certain key commercial agreements to improve margins, its other stated objective with respect to strengthening the company. "In addition to consensually improving the capital structure, I am very pleased by the cooperative nature of discussions with certain customers. The spirit of cooperation exhibited by both our noteholders and key customers are essential for Remy to continue as a strong industry player," said Mr. Weber. Terms of the Prepackaged PlanThe significant elements of the prepackaged plan include: - Repaying the Second Priority Senior Secured Floating Rate Notes in full. - Raising US$75 million in preferred equity through a rights offering to be made to holders of the company's Senior Notes and Senior Subordinated Notes. - Exchanging the company's existing 8-5/8% Senior Notes for US$100 million of new third-lien Pay-in-Kind Notes and approximately US$50 million in cash. - Converting the 9-3/8% Senior Subordinated Notes and 11% Senior Subordinated Notes into 100% of the common equity of the reorganized company. - Cancelling all of the company's existing equity interests."[Fri]day's very positive announcement is the result of extensive negotiations with our stakeholders and hard work with key customers, and we believe that it provides the highest value and best outcome for all of Remy's constituents," said Mr. Weber.In light of the agreement, Remy elected to not make the June 15 interest payment in respect of the 8-5/8% Senior Notes. About Remy International Headquartered in Anderson, Indiana, Remy International Inc. -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.Remy has operations in the United Kingdom, Brazil and Korea.=============== M A L A Y S I A===============FINISAR CORP: Audit Comm. Completes Initial Stock Grant Review--------------------------------------------------------------Finisar Corporation's audit committee has completed its initialreview of the company's stock option practices. The Audit Committee's initial key findings include: -- There was no evidence of malfeasance on the part of any present or former officer, director, or employee relating to any Finisar options grant. -- No present or former member of Finisar's board or its management engaged in self-dealing with respect to option grants. -- Options to directors and officers were properly approved and granted by the board or the board's compensation committee. -- The measurement dates for a number of option grants differed from the recorded grant dates. Those errors generally resulted from a deficient and poorly documented process as well as a lack of attentiveness and a lack of thorough understanding of relevant accounting rules on the part of the individuals involved in the granting process. However, the audit committee found administrative issues in connection with the annual grants to existing employees. The grant dates for most of these annual grants were selected before the lists of options to be granted had been finalized. In all but one year between 2000 and 2005, there was inadequate contemporaneous documentation to verify the dates selected for the annual grant, and, in one case, an earlier date with a more favorable price was selected retrospectively for the annual grant.In the case of grants to newly hired employees and employees hired in connection with Finisar's acquisitions, the audit committee found deficiencies related to the process. This resulted in a few instances where grants were delayed and a more favorable price resulted from the delay, and a few instances where an earlier date with a more favorable price was selected retrospectively for a grant. Many of these grants lacked contemporaneous evidence of grant date selection. The company personnel involved in selecting the grant dates did not benefit from these grants.Based on the results of its investigation, the audit committeeconcluded that the measurement dates for a number of stock option grants differed from the recorded grant dates for such awards and that the company will need to restate its historical financial statements to record charges for compensation expense relating to these past stock option grants and the tax impact related to such adjustments. The company's management, in conjunction with the audit committee, is in the process of finalizing revised measurement dates, determining the amount of the non-cash charges for compensation expenses, the resulting tax impact and the accounting impact on its financial statements for each fiscal period going back to fiscal 2000. The company intends to complete its assessment and announce the results at the earliest practicable date. Although the amounts of the charges have not been determined at this time, such charges will likely be material with respect to prior fiscal periods from 2000 through 2007. Background of the InvestigationOn Nov. 30, 2006, Finisar announced that, following an initial voluntary review by management of a number of stock option grants, the audit committee had commenced an investigation of the company's historical stock options granting practices. The audit committee is comprised of three independent, non-employee directors. The audit committee subsequently conducted an investigation with the assistance of independent legal counsel and an independent accounting firm engaged to provide forensic accounting services and reported its initial findings and recommendations to the board of directors.The investigation reviewed stock option grants to officers and directors, existing employees and new hires, including grants issued in connection with acquisitions, during the period from November 1999 to September 2006. The investigation involved the analysis of thousands of documents and hundreds of thousands of electronic mail and document files, as well as interviews of 32 individuals, including current and former directors, officers and employees. All company personnel cooperated fully with the investigation. Audit Committee's Remedial MeasuresThe board of directors has unanimously adopted the audit committee's recommended remedial measures that include: -- The implementation of a cross-functional training program for certain key employees concerning (i) the company's equity compensation programs and related improvements in equity compensation controls, processes and procedures, (ii) the accounting implications of the Company's equity compensation programs, and (iii) the legal implications of the equity compensation programs. -- The appointment of a designated finance department employee to be responsible for the accounting for stock options and other forms of equity compensation. -- The adoption of additional policies to assure that grants will be recorded promptly in the Company's option accounting database, and that grantees will receive prompt written notification of their grants. -- The adoption of policies to assure that there will be a specific date to complete the generation of a list of recommended equity grant amounts prior to the submission of the recommendations to the compensation committee for approval. -- Implementation of a requirement that the company's internal audit department review the company's compliance with the controls and procedures regarding equity compensation at least annually and report the results of its review to the audit committee. The audit committee and the board of directors will consider the need for additional remedial action upon completion of the audit committee's investigation and the restatement of the company's historical financial statements.In August 2006, prior to the internal review that led to the investigation, Finisar changed its policies and procedures for granting stock options to provide that all stock-based awards are generally to be granted by the compensation committee of the board of directors and, except in special circumstances, all grants are to be made at regular quarterly meetings of the compensation committee. The effective date of each quarterly grant is the later of the third trading day following Finisar's public announcement of its financial results for the preceding quarter or the date of the meeting. About Finisar CorporationHeadquartered in Sunnyvale, Calif., Finisar Corporation (NASDAQ:FNSR) -- http://www.finisar.com/-- is a technology leader for fiber optic components and subsystems and network test andmonitoring systems. These products enable high-speed datacommunications for networking and storage applications overGigabit Ethernet Local Area Networks, Fibre Channel Storage AreaNetworks, and Metropolitan Area Networks using Fibre Chanel, IP,SAS, SATA, and SONET/SDH protocols.The company's product development and manufacturing facilities are located in Texas, Malaysia, China, and Singapore. * * *As reported in the Troubled Company Reporter on Jan. 16, 2007, Finisar Corporation received a purported notice of default from U.S. Bank Trust National Association, as trustee for the company's 2-1/2% Convertible Senior Subordinated Notes due 2010. The notice asserted that its failure to timely file its Form 10-Q for the quarter ended Oct. 29, 2006, with the Securities and Exchange Commission constituted a default under the Indenture, dated as of Oct. 12, 2006, between the company and the Trustee governing the Notes.As of June 14, 2007, the company has not filed its report on Form 10-Q for the quarter ended Oct. 29, 2006. The company stated that until the audit committee's investigation on the company's stock option practices is complete, the company will be unable to file the report. FINISAR CORP: Reports Preliminary 4th Qtr.& Annual 2007 Results ---------------------------------------------------------------Finisar Corporation reported preliminary financial results for its fourth fiscal quarter and fiscal year ended April 30, 2007, on a non-GAAP basis.The company is not providing detailed GAAP or non-GAAP financial results for the quarter or fiscal year at this time. The preliminary non-GAAP financial metrics do not reflect any adjustments that may be needed as a result of the ongoing review of the company's historical stock option grants and associated accounting. These results should be considered preliminary until such time as the company files its annual report on Form 10-K for fiscal 2007. Fourth Quarter-- Revenues of US$97.3 million were within the range of US$96 million to US$98 million, as reported on May 9, 2007. These results represented a 9.5% decrease in revenues from the previous quarter and a 5% decrease from the comparable quarter of the prior year. This decrease was caused primarily by the impact of a transition by two customers to "just-in-time inventory" arrangements during the quarter and the continued utilization by certain customers of excess inventories of products designed for SAN applications.-- Revenues from the sale of optical products were US$88.4 million in the quarter ended April 30, 2007, a decline of 9.8% from US$98 million in the previous quarter and 3.9% from US$91.9 million in the comparable quarter of the prior year. Revenues from the sale of network test and monitoring products were US$8.9 million, a decline of 6.6% from US$9.5 million in the previous quarter and 15.1% from US$10.5 million in the prior year.-- Shipments of products designed for 10-40 Gb/s applications totaled US$14.9 million, up 28.5% from US$11.6 million in the previous quarter and up 172% from US$5.5 million in the comparable quarter of the prior year.-- With the decrease in total revenues to their lowest quarterly total during the fiscal year, gross margins declined sequentially from the prior quarter, but were still higher than in the first half of the year due to the effects of ongoing cost reduction efforts and a favorable shift in product mix. Non-GAAP gross margins exclude stock compensation expense, inventory reserves and certain other charges, mostly of a non-cash nature.-- Cash and short-term investments, plus other long-term investments, which can be readily converted into cash, totaled US$123.7 million at April 30, 2007, down from US$135.9 million at the end of last quarter. The decrease was primarily due to the completion of the acquisitions of AZNA LLC and Kodeos Communications Inc. during the quarter, which involved the use of about US$13.7 million in cash. The company has classified certain of its investments as long-term based on its intent to hold these securities until maturity, although they can be readily sold if required. Fiscal Year-- Revenues of US$419.2 million represented an increase of 15.1% over US$364.3 million in the prior year.-- Revenues from the sale of optical products were US$381.4 million, an increase of 17% from US$326 million in the prior year. Revenues from the sale of network test and monitoring products were US$37.8 million, a decrease of 1.5% from US$38.3 million in the prior year.-- Shipments of 10-40Gb/s optical products totaled US$40.3 million, up 123% from US$18.1 million in the prior year.-- Gross profit on a non-GAAP basis increased 29% on a 15% increase in revenues for the fiscal year due in part to a favorable shift in product mix to more profitable longer distance telecom and metro Ethernet applications and a vertically integrated business model where higher shipment levels are accompanied by a modest increase in manufacturing costs. Non-GAAP gross margins exclude stock compensation expense and certain other charges, mostly of a non-cash nature.The Audit Committee and the Board of Directors will consider the need for additional remedial action upon completion of the Audit Committee's investigation and the restatement of the company's historical financial statements."Despite year-end problems with customer supply chain and excess inventory issues, I think we made tremendous progress on a number of fronts in the last fiscal year," said Jerry Rawls, Finisar's chief executive officer. "We rolled out a number of new products for 10 Gb/s and WDM applications and strongly increased our sales to the telecom equipment industry. Revenues from the sale of 10 Gb/s and 40 Gb/s products increased 123% last fiscal year and we believe revenue growth for these products in fiscal 2008 will generally remain on that same trajectory. In addition, gross profit and gross margins were up substantially from the prior year on a non-GAAP basis."On the technology front, the acquisitions of AZNA LLC and Kodeos Communications, Inc. at year-end added unique technologies for long distance optical transmission. We believe these new technologies will enable us to develop products for long haul telecommunications, a market we haven't served in the past." About Finisar CorporationHeadquartered in Sunnyvale, Calif., Finisar Corporation (NASDAQ:FNSR) -- http://www.finisar.com/-- is a technology leader for fiber optic components and subsystems and network test andmonitoring systems. These products enable high-speed datacommunications for networking and storage applications overGigabit Ethernet Local Area Networks, Fibre Channel Storage AreaNetworks, and Metropolitan Area Networks using Fibre Chanel, IP,SAS, SATA, and SONET/SDH protocols.The company's product development and manufacturing facilities are located in Texas, Malaysia, China, and Singapore. * * *As reported in the Troubled Company Reporter on Jan. 16, 2007, Finisar Corporation received a purported notice of default from U.S. Bank Trust National Association, as trustee for the company's 2-1/2% Convertible Senior Subordinated Notes due 2010. The notice asserted that its failure to timely file its Form 10-Q for the quarter ended Oct. 29, 2006, with the Securities and Exchange Commission constituted a default under the Indenture, dated as of Oct. 12, 2006, between the company and the Trustee governing the Notes.As of June 14, 2007, the company has not filed its report on Form 10-Q for the quarter ended Oct. 29, 2006. The company stated that until the audit committee's investigation on the company's stock option practices is complete, the company will be unable to file the report.INTERPUBLIC GROUP: Provides Update on SEC Investigation-------------------------------------------------------The Interpublic Group has disclosed a development in the investigation being conducted by the staff of the Securities and Exchange Commission into the company's restatements announced in 2002 and 2005.The company has received a "Wells notice," which invites the company to make a responsive submission before the staff makes a final determination concerning its recommendation to the Commission. Under recently revised settlement procedures, such a notice is now a prerequisite to settlement negotiations with the Commission staff."Given our understanding of new procedures at the SEC, this development is not unanticipated and we believe that it moves us a step closer to resolution in this matter," said Interpublic Chairman and CEO Michael I. Roth. "We have been cooperating with the commission since the outset of its investigation in 2002 and it is our intention to share our point of view regarding settlement with them. We look forward to a prompt resolution to their deliberations." Background on 2002 and 2005 RestatementsThe company has previously made the following statements -- which continue to apply -- regarding its prior restatements and the material weaknesses that gave rise to them.In connection with the 2005 restatement, no current senior management within the operating units or in the corporate group acted inappropriately and those individuals who were found to have done so at the local level have been separated from the company. Also related to the 2005 restatement, the company has reserved against media and vendor credits and is well on its way to resolving those matters directly with its clients. The shortcomings in the company's control environment that led to the 2002 restatement to address imbalances in intercompany accounts did not involve the misuse of client funds."During the past few years, we have moved to the highest standards of transparency and corporate governance," added Mr. Roth, "We continue to be on track to complete remediation of our control environment with the filing of our 2007 10-K." About Interpublic GroupBased in New York City, Interpublic Group of Companies Inc. (NYSE: IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen and The Martin Agency.The company has operations worldwide, including in Argentina, Australia, Chile, China, India, Indonesia, Ireland, Japan, Malaysia, Panama, Spain, Thailand, the United States and Venezuela, among others. * * *As reported in the Troubled Company Reporter on May 14, 2007,Fitch Ratings has upgraded Interpublic Group's Issuer DefaultRating to 'BB-' from 'B'. Approximately US$2.3 billion in totaldebt as of March 31, 2007 is affected. The Rating Outlook isStable.LITYAN HOLDINGS: Unit Bags Tenaga's MYR57MM Worth of Contracts-------------------------------------------------------------- Lityan Holdings Bhd's wholly owned subsidiary, Impianas Sdn Bhd, has been awarded by Tenaga Nasional Berhad various contracts worth MYR57 million. In a disclosure with the Bursa Malaysia Securities Bhd, Lityan said that the contract it won from Tenaga pertains to: * Supply of Remote Meter Reading (RMR); * System Low Voltage (LV); and * Large Power Consumers (LPC) with contract duration of three years. Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services.The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines.On May 10, 2005, the Company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring itself onto stronger financial footing via aninjection of new viable businesses.Lityan Holdings Bhd's unaudited balance sheet as of March 31, 2007, went upside down with an equity deficit of MYR83.07 million, from total assets of MYR62.01 million and total liabilities of MYR145.08 million.MALAYSIA AIRLINES: Wants More Flight Out of Subang Airport---------------------------------------------------------- Malaysia Airlines asked the government for more flights out of the Sultan Abdul Aziz Shah Airport in Subang, Bernama News reports, citing the airline's managing director and chief executive officer, Datuk Idris Jala. "We have been given the go-ahead from the government to operate from Subang and effectively from now, we can fly to Kerteh, Melaka and Ipoh but the current allocation for flights out of Subang is too restrictive," Mr. Idris Jala told Bernama at the company;s extraordinary general meeting. "We are still talking to the government with regard to opening other routes beyond these three allocated to us," he added. Headquartered in Selangor, Malaysia, Malaysia Airlines --http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domesticand 86 international destinations. Of the 86 internationaldestinations, 17 were operated in collaboration with airlinespartners.The carrier posted a loss after tax of MYR1.3 billion for fiscalyear 2005, due to high fuel and operating costs, andunprofitable routes. In late February 2006, it unveiled aradical rescue plan to raise MYR4 billion to stay afloat andreturn to profitability by 2007. Under the restructuring plan,the airline pledged to cut its budget by 20% across the board,terminate many unprofitable routes, freeze recruitment exceptfor front-line staff, crack down on corruption by encouragingwhistle-blowing and stop corporate sponsorship.MEGAN MEDIA: Bank of East Asia Seeks Payment on Unit's Loan----------------------------------------------------------- Megan Media Holdings Bhd informed the Bursa Malaysia Securities Bhd that it has been served with a writ of summons pertaining to a claim by Bank of East Asia Limited amounting to SGD2,924,399.98 and US$79,500.00 in respect of banking facilities granted by the bank to its wholly owned subsidiary, MJC (Singapore) Pte Ltd, in 2006. The summon was served on June 13, 2007, and is labeled "Bank of East Asia Limited versus Megan Media Holdings Berhad"(Shah Alam High Court Suit No. MT3-22-807-2007). Megan Media told the bourse that it has obtained legal advice on this action and has engaged solicitors to defend the suit. The said action is not expected to have any financial or operational impact on the Group, the company said. Megan Media Holdings Berhad' s principal activities are manufacturing and trading data storage media products such as computer diskettes, video cassette tapes, compact disc recordable (CD-R's) and digital versatile disc recordable (DVD-R's). The Group operates in Malaysia, Singapore andother countries.The Troubled Company Reporter - Asia Pacific reported onJune 11, 2007, that the Rating Agency Malaysia has downgraded the long-term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3 (with a negative outlook) to D.The BaIDS carries a corporate guarantee from MTSB's holdingcompany, Megan Media Holdings Berhad. Concurrently, RAM haslifted the Rating Watch (with a negative outlook) that had beenplaced on MTSB on May 9, 2007, following the failure of MTSB andMJC (Singapore) Pte Ltd, another wholly owned subsidiary ofMegan Media, to repay their trade facilities amounting toMYR47.36 million.MP TECHNOLOGY: CIMB Appoints Receivers to Units----------------------------------------------- MP Technology Resources Bhd disclosed with the Bursa Malaysia Securities Bhd that some of its units received from CIMB Bank Bhd a letter containing the appointment of receiver and manager to its subsidiaries. According to the disclosure, Eng Zan Machinery & Trading Sdn Bhd and MP Tech Compounding & Extrusion Sdn Bhd respectively have received their letter from Guan & Associates on May 21, 2007, stating that Saw Eng Guan has been appointed by CIMB Bank as Receiver and Manager for the companies. The Board of Directors of each subsidiary has proceeded negotiating the settlement scheme with the Receiver, the company said. MP Technology Resources Berhad's principal activities aremanufacturing of plastic bags, plastic injection mouldings,other plastic products, rotogravure, manufacturing andreconditioning of various plastic and related equipment. Otheractivities include trading in plastic resins, compounding andrecycle materials, manufacturing in printing drums for plasticand packaging industries and investment holding.The Group operates in Malaysia.On Jan. 26, 2007, MP Technology Resources Bhd was listed as anaffected issuer to the Amended PN17 category of the BursaMalaysia Securities Bhd after posting a MYR66.7-millionshareholders' deficit for the financial year ended Nov. 30,2006.SOLUTIA INC: Court Sets July 10 Disclosure Statement Hearing------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on July 10, 2007, at 2:30 p.m. to consider approval of the disclosure statement describing Solutia Inc. and its debtor-affiliates' Amended Joint Plan of ReorganizationObjections are due on June 28, 2007, at 5:00 p.m. ET.Under their proposed Amended Plan and procedures for soliciting and tabulating votes on that Plan, the Debtors asked the Court to establish the second business day after the entry an order approving the Disclosure Statement as the record date for purposes of determining which creditors are entitled to vote on the Plan. The Debtors propose that with respect to any transferred claim, the transferee will be entitled to receive a solicitation package and, if the claim holder is entitled to vote with respect to the Plan, cast a ballot on account of the claim only if (i) all actions necessary to effectuate the transfer of the claim have been completed by the Record Date, or (ii) the transferee files by the Record Date, the documentation required by Bankruptcy Rule 3001(e) to evidence the transfer, and a sworn statement of the transferor supporting the validity of the transfer. In the event a claim, other than a Noteholder Claim, is transferred after the Record Date, the transferee will be bound by any vote or election to participate in the rights offering, as the case may be, made by the claim holder as of the Record Date. In the event a Noteholder Claim is transferred after the Record Date, the transferee of the Noteholder Claim will be bound by any vote made by the claim holder as of the Record Date. About Solutia Inc.Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)-- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia.Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Debtors' exclusive period to file a plan expires on July 30, 2007.====================N E W Z E A L A N D====================A2 CORP: Incurs NZ$5-Million Operating Loss in FY2007-----------------------------------------------------A2 Corporation Limited disclosed its preliminary results for the 2006 - 2007 financial year, adding it is ideally positioned to capitalise on recent initiatives and begin to grow international sales. These recent initiatives include the successful launch of the a2 milk into the US market, a new joint venture in the Australia market which brings key resources to grow the Australian business, as well as A2C's continued investment in intellectual property (patents and trademarks).A2C posted a 518 percent increase in operating revenue of NZ$7.590 million for the 12 months ended March 31, 2007 (NZ$1.228 million to March 31, 2006). This increase in sales is a direct result of buying back the A2 Australian business in May 2006 and the sales associated with that. A2C experienced an unaudited operating loss of NZ$5.082 million compared with NZ$925,847 for the previous financial period. This was due to a combination of the investment in the a2 milk(TM) launch in the US market as well as resuming control of the important Australian business operation.Over the last 3 years, A2C's strategy has been to license its unique technology and increase its share of the premium beverages market through alliances with key partners and other investors. A2C is now moving rapidly forward as an international FMCG company where scale and strategic partnerships, especially in the US and Australia, have started to achieve key milestones and will remain pivotal to its ongoing growth and success. Performance highlightsThe year ended March 31, 2007, saw many significant milestones being achieved by A2C as the Company begins to expand internationally with new marketing channels being opened up in the US, Australia and Asia.Cliff Cook, Chairman of A2C says that the Company represents one of the best examples of commercialising what was once only a biotechnology concept into a fully fledged FMCG product complete with unique IP and vastly scalable revenue streams."We know that consumers worldwide are willing to pay for a premium milk beverage especially where the product has additional health benefits. A2C is finding a positive response from consumers in all its key markets and we only expect this to grow as awareness and market penetration continues to grow.""A2C has turned the corner with its reinvestment in Australia and launch into the US market."Cook states that A2C is actively pursing new product opportunities other than liquid milk."We see the potential for a2 milk(TM) to be used in a wide array of functional milk-based applications such as infant formula, protein powders and dietary supplements. These additional opportunities will allow A2C to launch shelf stable, high margin products, which will provide consumers worldwide with the premium benefits of a2 milk(TM)".Cook also says that the positioning of A2C is now much stronger with the added expertise of new CEO Anthony Lawler who brings a strong FMCG skill set to the Company."We're delighted to have appointed Anthony Lawler as CEO to manage the A2 Group Companies reflecting the strong focus A2C now has on growing its share of the FMCG market." AustraliaA2C announced during the year that it was partnering with Australia's Freedom Nutritional Products Limited (htttp://www.sonaturalfoods.com.au) in a joint venture to sell a2 milk(TM) in Australia and Japan.Anthony Lawler, A2C's CEO says the FNP joint venture which commenced on June 1st 2007, is a major milestone for the Company as it provides the potential to rapidly expand the business as well as capture significant new markets."The agreement with FNP is a real vote of confidence in A2C's business in Australia and we know this new joint venture will accelerate our market share plus provide quick access into Asia," says Lawler.Lawler also adds that "A2C has already built up a strong presence in Australia with a2 milk(TM) distributed in over 1,000 stores. The new joint venture will bring FNP's significant dairy industry knowledge, retail grocery sales expertise and key relationships with retailers which will combine to improve our unit sales per store and therefore overall sales. FNP also provides access to milk supply through its majority shareholder, the Perich family, the largest single dairy milk supplier in New South Wales.FNP currently distributes an extensive range of functional foods including the brands Freedom Foods, So Natural, Paramount and Brunswick. FNP also has the exclusive rights to the Thorpedo brand of food and nutritional products which is distributed in Japan under license with Yakult Honsha.Geoff Babidge CEO of FNP (a former Managing Director of National Foods Dairy Division) says"FNP is delighted to be partnering with A2C and will bring significant value to the a2 milk(TM) brand in Australia. The a2 milk(TM) brand has a natural synergy with our existing functional foods and beverage brands such as So Natural and Freedom Foods. We also believe that consumers for both A2C's and FNP's brands are seeking healthy food options and therefore a2 milk(TM) is a natural fit for the FNP product portfolio.Babidge also states that:"FNP is looking forward to applying its expertise to help drive a2 milk(TM) sales in both Australia and other potential Asian markets". North AmericaA2C has had an active presence in the US market since 2005 through its subsidiary A2 Milk Company LLC (A2 Milk LLC) a 50 / 50 joint venture company formed with IdeaSphere Inc. (http://www.ideasphereinc.com),which specialises in healthy lifestyle solutions.Lawler says that the a2 milk(TM) launch in the Mid-West states of the United States was an outstanding achievement reflecting a well executed plan which the Company had been working on for some time with its North American partners."We knew that if the groundwork was carefully laid out with market research, consumer preference testing and the establishment of effective distribution channels before the a2 milk(TM) product was released we would be in a better position to then take A2C into even bigger consumer markets more quickly.A2 Milk LLC has an exclusive distribution agreement with Hy-Vee supermarkets (http://www.hy-vee.com)in the Mid-West. Hy-Vee ranks among the top 15 supermarket chains in the United States with 210 stores and has a focus on premium health and wellness products."A2 Milk LLC intends to take these experiences from our recent launch in Hy-vee and launch a2 milk(TM) onto a national scale in the US and the company will confidently make plans to invest in the infrastructure to support this growth."Cook notes that the US is likely to remain A2C's best revenue growth opportunity well into the foreseeable future."The US market signifies tremendous potential for revenue growth and for expanding A2C's business as the American region continues to be one of the world's biggest and wealthiest consumer and beverage markets," says Cook.Mark Fox CEO of IdeaSphere Inc., says that the a2 milk(TM) positioning in the US market through the distribution with Original Foods and Hy-Vee is just the right springboard for the company to move its products to even bigger markets."The launch of a2 milk in the US has been a real success with the product resonating with consumers from Nebraska, Iowa, Kansas, Illinois, Missouri, South Dakota, to Minnesota. We have no doubt that this has already created significant momentum for the brand and product that will drive ongoing sales and revenue for A2 Milk LLC in the US. Furthermore we are particularly excited by the potential a2 milk(TM) offers in other food forms such as milk powders and baby formulas as they represent high value opportunities," says Fox. CommercialisationA2C continued its R&D programme as part of ongoing product development and commercialisation of a2 milk(TM) products. The Company secured a further US patent relating to the testing and breeding of a2 milk(TM) producing animals, as well as patent rights in Asian territories that relate to the production and application of a2 milk.Cook says the future of A2C will depend heavily on expanding and carving out a bigger share for the Company's leading product range of value added functional foods from fresh milk to milk powder."In many ways A2C is only starting to ramp up the potential spin-offs of various a2 milk(TM) products as well as opening up new vast markets. Thus, the future is looking very bright for building a quick uptake for a2 milk(TM) as in places such as Australia, US and Asia. A2C has only really scratched the surface, and are just starting to see the first real demand."Lawler notes a key focus for A2C is the potential for the sale of new a2 milk(TM) products such as infant formula and protein powders to take advantage of the significant market opportunities in Australia, US and Asia as has been highlighted by the Company's joint venture partners. "While the opportunity in fresh milk will always be substantial, the opportunity in a2milk(TM) powders brings the economic benefit of shelf stable of products which can be manufactured in one central place and exported around the world. This central manufacturing of powders will allow for economies of scale and efficiencies," says Lawler. Capital RaisingA2C has previously indicated that it was likely that a capital raising would be undertaken in the first half of the 2008 financial year."We will soon be in a position to advise the market about the approach A2C intends to take following completion of an assessment of capital requirements based on the various projects currently under way or under investigation".Looking ahead, Lawler says that A2C is going to use the positive momentum from the last 12 months to invest additional capital to rapidly expand the business in the Australian, United States and Asian markets. About A2 CorporationNew Zealand-based A2 Corporation Ltd. --http://www.a2corporation.com/-- is engaged in the sale and production of beta-casein A2 milk products. The company ownsand licenses intellectual property that enables theidentification of cattle for the production and subsequentmarketing of A2 Milk. During the fiscal year ended March 31,2006, the company acquired A2 Australia Pty Ltd. In April 2006,the company reacquired the business of A2 Australia Pty Ltd fromF&N Dairy Investments Limited. A2 Milk Company LLC provided theCompany with a research basis for launching A2 Milk in the NorthAmerican market.The company suffered at least three years of operating losses: NZ$5.082 million in FY2007, NZ$925,847 in FY2006 and NZ$9,017,633 in FY 2005.AIR NEW ZEALAND: Extends Vancouver-Auckland Non-Stop Service------------------------------------------------------------Air New Zealand's new non-stop service between Vancouver, Canada and Auckland, New Zealand will now operate year-round, offering additional flights to those newly scheduled for the peak travel season. The increase comes in response to the strong demand from customers eager to fly directly to New Zealand.Early this year, Air New Zealand announced that its new non-stop route between Vancouver and Auckland would be available from November 2007 through March 2008, to coincide with the busiest travel season between the two countries. Since the announcement, forward bookings have been very strong, prompting the airline to extend the offer, making the service available year-round."New Zealand has always been a popular destination choice for Canadians," said Roger Poulton, Air New Zealand Vice President - the Americas. "Since our announcement of the new route in February, we've been inundated with inquiries about traveling outside of the seasonal schedule. With such great demand, it seemed logical to give customers what they wanted."With the launch of the year-round non-stop service, Air New Zealand will provide three non-stop flights each week between Vancouver and Auckland during the months of November through March and July through August. The service will be available twice-weekly for the remaining months of the year; offering Canadians access to a variety of experiences throughout the seasons."We anticipate our Canadian customers will appreciate that the service is a fast and convenient route to many Australian destinations too," said Poulton.The new route reduces travel time to a little over 14 hours, whereas previous itineraries from Vancouver to New Zealand totalled an average of 20 hours. Customers will enjoy a direct flight aboard Air New Zealand's new fleet of Boeing 777-200ERs, featuring lie-flat beds, vast entertainment options and award-winning food and wine. Star Alliance partner Air Canada will also be code sharing on this service. About Air NZBased in Auckland, New Zealand, Air New Zealand is the country'sflag air carrier, with domestic and international passenger andfreight operations, and an aviation engineering business.As reported in the Troubled Company Reporter - Asia Pacific onSept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuerrating on Air New Zealand Limited after the airline announcedits annual results for FY2005. Air NZ's rating reflected itsdominant position in the New Zealand domestic market, witharound 80% market share, and the profitability of domesticoperations following their restructuring to a low-cost networkmodel. Also supporting Air NZ's rating was its solid liquidityposition, with cash balances of NZ$1.071 billion held as atJune 30, 2005.However, while Air NZ has a solid position in New Zealand andother parts of the international network are performing well,intense competition on trans-Tasman routes has resulted in itbeing unprofitable for Air NZ. International competition alsolimits Air NZ's ability to expand. Its management is also awareof the airline's vulnerability to external shocks and theactions of key competitors.AMERICAN GREETINGS: Moody's Holds Ba1 Rating on Low Growth Rates----------------------------------------------------------------Moody's Investors Service affirmed American Greetings Corporation's Ba1 corporate family rating, but revised its ratings outlook to stable from negative. Moody's also affirmed the ratings on the company's senior secured credit facilities and senior unsecured notes. The ratings outlook revision reflects the company's stronger than expected cash flows, despite significant investments to support its strategic card initiative and additional scan-based trading rollouts. As a result, the company's credit metrics exceeded the amounts Moody's had stipulated in May 2006 as conditions for revising the outlook to stable (debt to EBITDA below 3.0 times and free cash flow to debt above 10%). The outlook revision also reflects the recent reduction in the delay draw term loan commitment to US$100 from US$300 million, which Moody's views as more conservative financial policy given the facility was put in place, in part, to support share repurchases.While no ratings changed as a result of the reduction in the delay draw term loan commitment, the LGD point estimate on the senior secured credit facilities was revised to LGD 2, 21% from LGD 2, 28% reflecting the increased proportion of subordinated debt in the capital structure. Moody's also revised the point estimate on the senior unsecured notes to LGD5, 75% from LGD5, 81%.Ratings Affirmed: -- Corporate family rating at Ba1; -- Probability-of-default rating at Ba1; -- US$350 million guaranteed senior secured revolving credit facility due 2011 at Baa3 (LGD2, 21%); -- US$100 million guaranteed senior secured delay draw term loan facility due 2013 at Baa3 (LGD2, 21%); -- US$200 million senior unsecured notes due 2016 at Ba2 (LGD5,75%); -- US$22.7 million senior unsecured notes due 2028 at Ba2 (LGD5, 75%).American Greetings' Ba1 corporate family rating is primarily driven by the significant business risks inherent in the greeting card industry that is characterized by low or declining growth rates, weak consumer branding, strong competition, and increased retailer bargaining power that is driven by consolidation. In Moody's view, the company's current investment grade-like credit metrics are not sufficient to offset these business risks. The rating also considers the company's financial policy (given its appetite for material share repurchases) which we continue to view as aggressive. Notwithstanding these concerns, the rating is supported by the company's leading and stable market position in the U.S. greeting card industry with approximately 30% to 35% market share (and a stronger position with mass merchandisers), its over 100-year operating history, the predictable demand for its products, and long-standing relationships with retail customers. Additionally, the company's long-term contracts and scan-based trading systems provide a meaningful barrier to entry.The stable outlook reflects Moody's expectation that American Greetings will maintain its solid debt protection measures, and begin to realize measurable benefits from its strategic card initiative. It also anticipates that the company will mostly fund future share repurchases with internally generated cash flows while only experiencing moderate declines in revenues, such that debt to EBITDA remains below 3.0 times, EBITA interest coverage exceeds 3.5 times, and free cash flow to debt is sustained in the mid-teen levels. Cleveland, Ohio-based American Greetings Corporation (NYSE: AM) -- http://corporate.americangreetings.com/-- manufactures social expression products. American Greetings also manufactures and sells greeting cards, gift wrap, party goods, candles, balloons, stationery and giftware throughout the world, primarily in Canada, the United Kingdom, Mexico, Australia, New Zealand and South Africa.TRUSTPOWER LTD: Net Profit Up 20% to NZ$97 Million in FY2007------------------------------------------------------------TrustPower Limited's consolidated operating surplus after tax was NZ$97.4 million for the year ended March 31, 2007, representing a 20% increase on the result for the 2006 financial year.Earnings before interest, tax, depreciation and amortisation grew by 6% to NZ$196.4 million from NZ$185.6 million in the previous year.Operating revenue of NZ$626.3 million decreased 7% on the previous year as a result of lower energy prices charged to those customers paying spot market prices. Total volume sold was 4,575 GWh compared with 4,724 GWh in the year to 31 March 2006. Customer numbers reduced slightly to 219,000 at 2007 year end versus 220,000 a year ago.The New Zealand electricity market for the early months of the 2007 financial year was characterised by lake storage levels and inflows well below average leading to higher spot electricity prices. This situation turned around in the second half of the year following high inflows across the country in November and December causing national hydro storage to rise above average levels with a consequent drop in spot electricity prices.Generation production of 1,941 GWh for the year was up 8% on the previous year but slightly down on long term average.Operating expenses including energy and line costs decreased 12% on the previous year, primarily driven by lower electricity spot prices and the increased use of the Group's own generation production. Net profit after tax, return on average shareholders' funds, was 8.6% taking into account the revaluation of generation assets at year end (last year 9.2%).Group operating cash flow was NZ$135.5 million for the 2007 financial year versus NZ$118.9 million in the previous year.TrustPower's balance sheet as at March 31, 2007, remains strong. Shareholders' funds have increased to NZ$1,371.8 million from NZ$896.5 million. Generation assets have been independently revalued as at March 31, 2007, as required by Financial Reporting Standards. The revaluation has resulted in an uplift in the value of generation assets of NZ$456 million and this is reflected in the asset revaluation reserve at balance date. The revaluation was completed by Deloitte Corporate Finance on a discounted cash flow basis. The increase in generation asset values reflects the higher earning potential of TrustPower's renewable generation assets and the likely impact on future electricity prices of higher gas input costs for gas-fired generation following the run down of Maui's gas reserves and the possible impact of carbon charging on thermal generators.Included in accounts payable and accruals is an amount of NZ$36.8 million relating to milestone payments due under the Tararua Stage III turbine supply contract. A similar amount was held in year end cash balances following settlement of foreign exchange hedge contracts matching the turbine supply contract obligations.Debt (including subordinated bonds) to debt plus equity was 27.1 % at year end 2007, being slightly lower than the 2006 year end position.TrustPower continues to maintain high levels of bank credit lines. Including subordinated bonds, the Company has NZ$710.9 million of committed debt funding in place. These debt facilities were drawn to NZ$515.0 million as at March 31, 2007.TrustPower's New Zealand generation development programme continues to progress in line with expectations. The 93 MW Stage III expansion of the Tararua Wind Farm is progressing well. At the end of April, eighteen of the thirty one 3 MW turbines were operating. Full commissioning of the wind farm is expected to occur by July 31, 2007.The 5 MW enhancement to the Waipori hydro generation scheme is well advanced and target completion is now December 2007.The resource consent hearing for the proposed 72 MW Wairau hydro generation scheme in Marlborough finished in December 2006 after a six-month hearing process. The consent decision is expected to be received shortly.A resource consent hearing for the revised 46 MW hydro generation scheme at Arnold on the West Coast has been scheduled to commence in September 2007. A resource consent hearing for the proposed 200 MW Lake Mahinerangi wind farm at Waipori in Otago is scheduled to commence mid May and is expected to take two to three weeks. TrustPower continues to hold the view that this project would be developed in 100 MW stages subject to granting of a resource consent and confirmation of satisfactory project economics.TrustPower is investigating the potential for a wind farm of up to 185 MW at Kaiwera Downs near Gore in the South Island. Land access arrangements are nearing completion and wind monitoring is currently being undertaken. A resource consent application is expected to be lodged in the last quarter of 2007.Other hydro and wind opportunities continue to be actively investigated particularly in the North Island.Good progress is being made on the development of the 88 MW Snowtown wind farm in South Australia. Landowner arrangements and key project contracts have been finalised. Civil works will commence shortly. The level of community support for the construction of the wind farm is very pleasing. Forty two 2.1 MW wind turbines are scheduled to be progressively commissioned between April and November 2008 under a fixed price Engineer Procure and Construct Contract with Suzlon Energy Australia Pty Ltd. Other opportunities are being investigated in Australia.Expensed generation development costs for the year were NZ$10.3 million compared with NZ$15.0 million in 2006. This reflects the generation development opportunities being progressed, including preliminary design, environmental investigations and resource consent application costs.The Government is currently reviewing around 3,000 submissions with respect to its draft New Zealand Energy Strategy to 2050. TrustPower has made a combined submission on the NZES and related Energy Policy documents.TrustPower supports the vision of the NZES to achieve a reliable and resilient system delivering sustainable, low emissions energy by providing a clear direction, maintaining security at competitive prices, maximising energy efficiency and adopting environmentally sustainable technologies.TrustPower has the following key concerns in relation to the NZES: i) There is an urgent need for clarity in respect to future generation alternatives and charges for greenhouse gas emissions in the energy sector. ii) The 2004 and 2005 amendments to the Resource Management Act have been ineffective. Barriers which presently exist within the RMA consenting process need to be removed. TrustPower advocates a streamlined submission process, national guidance through National Policy Statements and a voluntary mechanism for direct referral of resource consent applications to the Environment Court. iii) The Government should consider what changes are necessary within the RMA process to remove barriers to electricity generators gaining access to land, including giving electricity generators requiring authority status where there is wide community support or a project is of national importance. iv) Baseline information relating to relative costs of new demand and supply must be accurate. Some of the assumptions used in the draft NZES are incorrect, in particular the understatement of the cost of new entrant wind generation. v) The current proposal to continue to apply High Voltage Direct Current charges to existing and new South Island generators will potentially mean no South Island renewable generation is built in the foreseeable future and this will have a major impact on the ability of the Government to meet its renewable energy objectives.TrustPower's hope is that clear policy direction will be provided to the energy industry following the submission, review and consultation process on the draft NZES and that the policy direction is supportive to achieving the vision for the energy sector articulated in the draft document.In early 2006 the Commerce Commission commenced a review into the market behaviour of generator/retailers. No target completion date has been advised.The Electricity Commission is also conducting a review of the effectiveness of how the current wholesale electricity market is operating. The Commission has advised that this review will be completed by the end of 2007. These reviews create an environment of continuing uncertainty for the electricity sector.While it is too early to make predictions about the 2008 financial year, it is worth noting that the Company is currently well positioned to meet its customers' needs this winter. TrustPower's hydro storage levels are around average for this time of year and, together with contracted electricity hedges, should enable the Company to meet its electricity sales obligations within comfortable spot market purchasing risk parameters.Forecast capital expenditure in the 2008 financial year for committed generation development projects is expected to be around NZ$150.0 million.Generation development costs to be expensed in the 2008 financial year are projected to be around NZ$8.0 million.The Directors are pleased to announce a fully imputed final dividend of 14 cents per share payable June 8, 2007 (record date of 25 May 2007). This together with an interim dividend of 13 cents per share provides a total payout of 27 cents per share for the 2007 financial year compared with 23 cents per share for the 2006 financial year, representing dividend growth of 17%. About TrustPowerTrustPower Limited -- http://www.trustpower.co-- owns and operates 34 power stations and produces electricity exclusivelyfrom renewable sources. The company's power stations produceenough electricity for 260,000 Kiwi households.With assets of close to NZ$1.4 Billion, TrustPower is majorityNew Zealand owned and is listed on the New Zealand stockexchange. TrustPower's head office is in Tauranga, withregional offices in Auckland, Wellington, and Christchurch. * * *The Troubled Company Reporter - Asia Pacific, on June 12, 2007,listed TrustPower Ltd.'s bonds as distressed. The bonds havethese coupon and maturity dates: Coupon Maturity Price ------ -------- ----- 8.300% 09/15/07 8.25 8.300% 12/15/08 8.30 8.500% 09/15/12 8.70 8.500% 03/15/14 8.40===================== P H I L I P P I N E S=====================ACESITE: Annual Stockholders' Meeting Set for June 20-----------------------------------------------------Acesite (Phils.) Hotel Corp. will hold its annual meeting of stockholders at 4:00 pm on June 20, 2007, at the Nautilus Room of the Manila Pavilion Hotel, United Nations Avenue corner Maria Orosa St., in Ermita, Manila.The meeting will consider these matters, among others: * Approval of the annual report and audited financial statements; * Election of directors for 2007-2008; and * Appointment of external auditors and legal counsel.The record date for the meeting is June 1, 2007.Formerly known as Delbros Hotel Corporation, Acesite (Phils.) Hotel Corporation -- http://www.manilapavilion.com.ph/-- is a foreign-owned domestic corporation incorporated to engage in hotel operations and investing. DHC owns the Holiday Inn Manila Pavilion Hotel, a deluxe hotel situated along United Nations Avenue in Manila. The operations of the latter are being managed by Holiday Inn Worldwide. A major customer of the hotel is the Philippine Amusement and Gaming Corporation, which operates the Casino Filipino - Pavilion. Debt Default and RestructuringAn event of default occurred with respect to the Acesite's payment of its US$15 million loan with the Singapore Branch of the Industrial and Commercial Bank of China, which matured on March 31, 1998. On June 3, 2003, the loan was restructured by ICBC, which stipulated six semi-annual installment payments of principal and interest until April 2006. In July 2004, the company's new management requested for a reprieve on loan principal payments due for the period, which the company suggested to be placed at the end of the term of the Amended Agreement. The outstanding principal balance of the ICBC loan as of March 31, 2006, is US$9.18 million. Management is still negotiating with ICBC for a rescheduling of payment on the remaining principal balances. Material LawsuitsAcesite is party to a case that involves a PHP30.15 million petition for the Bureau of Internal Revenue to refund Extended Value Added Tax payments made from July 1996 to October 1997. Both the Court of Tax Appeals and then later the Court of Appeals ruled in favor of Acesite, and ordered the BIR to refund PHP30.05 million. The case is presently with the Supreme Court on further appeal by the BIR.Acesite also has a PHP5.26 million petition for the City Treasurer of Manila to refund local taxes payments made on April 19, 2002. The case is still pending with the Regional Trial Court in Manila, Branch 15APC GROUP: Clarifies News on PLDT's Acquisition of Philcom----------------------------------------------------------APC Group Inc. told the Philippine Stock Exchange that it has no knowledge of any discussion with the Philippine Long Distance Telephone Co. for the acquisition of its subsidiary, Philippine Global Communications Inc.On Friday last week, the BusinessMirror published an article that PLDT is allegedly in discussions to acquire Philcom and that the two firms have already entered into a facility management arrangement to manage the firm in Mindanao. According to the article, Philcom owes PLDT around PHP5 billion, and PLDT Chairman Michael Pangilinan said that the debt will be considered in the acquisition price. In its letter to the PSE, APC said that the supposed facility management agreement with PLDT had already expired and is being renegotiated. APC also told the PSE that Philcom's outstanding liability is about PHP2 billion pesos and not PHP5 billion.APC Group, Inc. was incorporated on October 15, 1993, with the primary purpose of engaging in oil and gas exploration and development in the Philippines. The company is 46.6% owned by Belle Corporation. APC has investments in telecommunications, a cement project, and manpower outsourcing businesses.The Troubled Company Reporter - Asia Pacific reported that the company had a capital deficiency as of September 30, 2006 and December 31, 2005 amounting to PHP8.89 billion and PHP8.70 billion respectively. Going Concern DoubtAfter auditing the company's financial statements for the year ended December 31, 2006, Marydith C. Miguel at Sycip Gorres Velayo and Co. raised significant doubts on APC Group, Inc.'s ability to continue as a going concern. The auditor cited the company's recurring losses arising principally from the losses of PhilCom and PhilCom Corporation, which affected the ability of both companies to service their maturing obligations on a timely basis. In addition, the company's consolidated current liabilities exceeded its consolidated current assets as of December 31, 2005, and 2004. Further, the restructuring of the long-term debt of the two PhilCom entities are still under negotiation with the creditors.Net loss for the year ending Dec. 31, 2006, amounted to PHP790.2million compared to PHP874.7 million in 2005.CHIQUITA: Inks Plantation Improvement Pact with Coosemupar ----------------------------------------------------------Chiquita Brands International has signed a PAB10-million accord with Panamanian banana producer cooperative Cooperativa de Servicios Multiples de Puerto Armuelles aka Coosemupar for the improvement of plantations, Jahir Lombana at Fresh Plaza reports. Fresh Plaza relates that under the agreement, Chiquita Brands must purchase Coosemupar's production. The accord expires in September 2007. From that date on, Coosemupar must negotiate with Chiquita Brands about the terms for a new pact until 2013.According to Fresh Plaza's Mr. Lombana, growers are worried on the new results, saying that for the last three years Chiquita Brands paid less than the production costs due to the system of payment. Chiquita Brands will invest some PAB6.1 million in the plantations. The financial injection from Chiquita Brands was important. Still, a fair price is needed to make the activity viable, Fresh Plaza's Mr. Lombana notes, citing Coosemupar manager Hirisnel Sucre. Oil prices affected costs of production and banana workers are afraid on the effects of the current situations to keep the company on business. There must be a new accord to regulate prices of the boxes, the Banana Workers Union Secretary Salustiano De Gracia told Fresh Plaza's Mr. Lombana.Chiquita Brands told Reuters that banana prices dropped 1% in its core European markets on a local currency basis and were flat in North America for the two-month period from April to May 2007, compared to the same period in 2006.According to Chiquita Brands' statement, banana volume sold in the core European markets fell by 4%, while the volume in North America increased 8%.RTT News notes that Chiquita Brands' banana prices in its core European markets decreased, an indication of the continued effect of the EU regulatory changes implemented on Jan. 1, 2006. The changes led to a boost in industry volume and price competition. Volume sold in the core European markets dropped by 4% due to Chiquita Brands' strategic determination to concentrate on profitable volume and maintaining its premium position in the markets. Pricing in Asia Pacific and the Middle East increased 5% year-on-year on a US dollar basis, mainly due to significant improvement in local pricing in Japan, partially counterbalanced by unfavorable dollar-yen exchange rates, RTT News relates. Meanwhile, the total volume of retail value-added salads in the Salads and Healthy Snacks segment rose 1% year-over-year.Chiquita told RTT News that due to consumer concerns on the safety of packaged salad products, it expects decreased sales and reduced margins to continue through at least the third quarter 2007.Cincinnati, Ohio-based Chiquita Brands International, Inc.(NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and otherfresh produce sold under the Chiquita and other brand names inover 70 countries including Panama, Philippines, Australia,Belgium, Germany, among others. It also distributes and marketsfresh-cut fruit and other branded, value-added fruit products. * * *As reported in the Troubled Company Reporter-Latin America onMay 16, 2007, Moody's Investors Service changed the ratingoutlook for Chiquita Brands International, Inc. to negative fromstable.Ratings affirmed: * Chiquita Brands International, Inc. (parent holding company) -- Corporate family rating at B3 -- Probability of default rating at B3 -- US$250 million 7.5% senior unsecured notes due 2014 at Caa2 (LGD5, 89%) -- US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%) * Chiquita Brands LLC (operating subsidiary): -- US$200 million senior secured revolving credit agreement at B1 (LGD2, 26%) -- US$24.3 million senior secured term loan B at B1 (LGD2, 26%) -- US$368.4 million senior secured term loan C at B1 (LGD2, 26%).CHIQUITA BRANDS: Europe Sales Volume Down 4% in April-May 2007--------------------------------------------------------------Chiquita Brands International Inc. provided an intraquarter update for the second quarter 2007, including Chiquita bananaand Fresh Express value-added salad prices and volumes for April-May 2007 in its Banana and Salads and Healthy Snacks segments, respectively. Banana Segment Year-over-Year Percentage Change (1) April-May 2007 vs. April-May 2006 % of Total CHIQUITA BANANAS Pricing Volume (2) Volume Sold Core European Markets (3) U.S. dollar basis (4) +7 % -4 % 37 % Local currency basis -1 % North America 0 % +8 % 43 % Asia Pacific and the Middle East (5) +5 % -17 % 12 % Trading Markets -11 % +293 % 8 % (1) These statistics may not be indicative of future results. (2) Total volume sold includes all banana varieties, such as Chiquita to Go, Chiquita minis, organic bananas and plantains. (3) The company's "core" European markets include the member states of the European Union (except new entrants Romania and Bulgaria, which continue to be reported in "trading" markets), Switzerland, Norway and Iceland. (4) Prices on a U.S. dollar basis do not include the impact of hedging. (5) In this region, the company primarily operates through joint ventures, and most business is invoiced in U.S. dollars.Banana prices in the company's core European markets were down 1 percent year-on-year on a local currency basis (up 7 percent on a U.S. dollar basis), reflecting the continued impact of E.U. regulatory changes implemented on Jan. 1, 2006, which have resulted in an increase in industry volume and price competition. Volume sold in the core European markets decreased by 4 percent, due to the company's strategic determination to focus on profitable volume and maintaining its premium position in these markets.North American banana pricing was flat year-over-year. While base contract prices increased, this improvement was partially offset by lower spot-market pricing and lower year-on-year surcharges linked to a third-party fuel price index. Banana volume sold in the region rose 8 percent, reflecting distribution gains at several top-25 customers as well as the company's recovery from weather-related disruptions in the previous year.In Asia Pacific and the Middle East, pricing rose 5 percent year-on-year on a U.S. dollar basis, primarily as a result of significant improvement in local pricing in Japan, partially offset by unfavorable dollar-yen exchange rates. Volume in this region fell by 17 percent year-over-year, primarily related to supply constraints in the Philippines, which resulted in loweryields of premium-quality fruit.In the company's trading markets, which consist primarily of European and Mediterranean countries that do not belong to the European Union, decreased pricing of 11 percent year-over-year reflects the transition in Turkey to a year-round service commitment in 2007, rather than opportunistic entry in thespot market. In addition, volume growth in this region was also driven by the company's year-round presence in Turkey. Salads and Healthy Snacks Segment Year-over-Year Percentage Change (1) April-May 2007 vs. April-May 2006 FRESH EXPRESS RETAIL VALUE-ADDED SALADS Net Revenue Per Case Volume North America 0 % +1 % (1) These statistics may not be indicative of future results.In the Salads and Healthy Snacks segment, total volume of retailvalue-added salads was up 1 percent year-over-year in the two-month period. Since mid-September 2006, the company's Fresh Express operations have been impacted by consumer concerns regarding the safety of fresh spinach and other packaged leafy greens in the United States, despite the fact that no confirmed cases of consumer illness were linked by the U.S. Food and Drug Administration to Fresh Express products. As noted previously, the company expects reduced sales and decreased margins to continue through at least the third quarter 2007 due to consumer concerns about the safety of packaged salad products. Net revenue per case was flat year-over-year.Cincinnati, Ohio-based Chiquita Brands International, Inc.(NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and otherfresh produce sold under the Chiquita and other brand names inover 70 countries including Panama, Philippines, Australia,Belgium, Germany, among others. It also distributes and marketsfresh-cut fruit and other branded, value-added fruit products. * * *As reported in the Troubled Company Reporter-Latin America onMay 16, 2007, Moody's Investors Service changed the ratingoutlook for Chiquita Brands International, Inc. to negative fromstable.Ratings affirmed:* Chiquita Brands International, Inc. (parent holding company) -- Corporate family rating at B3 -- Probability of default rating at B3 -- US$250 million 7.5% senior unsecured notes due 2014 at Caa2 (LGD5, 89%) -- US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%)* Chiquita Brands LLC (operating subsidiary): -- US$200 million senior secured revolving credit agreement at B1 (LGD2, 26%) -- US$24.3 million senior secured term loan B at B1 (LGD2, 26%) -- US$368.4 million senior secured term loan C at B1 (LGD2, 26%).DEL MONTE: Earns US$36.7 Million in 4th Quarter Ended April 29--------------------------------------------------------------- Del Monte Foods Company reported net sales for the fourth quarter ended April 29, 2007, of US$940.1 million, as compared with a fourth quarter net sales of US$799.2 million last year, an increase of 17.6%. Income from continuing operations for the fourth quarter fiscal 2007 was US$36.8 million, compared to US$41.7 million in the previous year. Net income for the fourth quarter fiscal 2007 was US$36.7 million, as compared with a net income of US$57.9 million for the fourth quarter in 2006.The 17.6% increase in net sales was driven by the acquisitions of Meow Mix and Milk-Bone. Growth from new products and pricing also contributed to the increase in net sales. These gains were partially offset by volume declines. Full Year 2007 ResultsThe company reported net sales for fiscal 2007 of US$3.4 billion, as compared with US$3 billion last year, an increase of 13.9%. Income from continuing operations was US$113 million, as compared with US$137 million in the previous year.The 13.9% increase in net sales was driven by the Meow Mix and Milk-Bone acquisitions. Growth from new products and pricing also contributed to the increase in net sales. These gains were partially offset by lower volume driven primarily by competitive marketing dynamics and elasticity in pet food, pricing elasticity in the Consumer Products business, overall business performance in StarKist Seafood and lower volume in vegetables.As of April 29, 2007, the company listed total assets valued at $4.6 billion, total liabilities of US$3.1 billion, and total stockholders' equity of US$1.5 billion.The company held US$13 million in unrestricted cash as of April 29, 2007, as compared with US$459.9 million in unrestricted cash and $43.3 million in restricted cash as of April 30, 2006."This quarter and full year's solid financial performance were driven by the ongoing successful execution against our strategic objectives," said Richard G. Wolford, chairman and chief executive officer of Del Monte Foods. "In fiscal 2007 Del Monte made several structural changes which substantially improved the earning potential and competitiveness of our company. The successful acquisition and integration of Meow Mix and Milk-Bone significantly enhanced the growth and earnings profile of our overall company and significantly upgraded our competitive strength in Pet Products. In addition, successful pricing actions coupled with our internal cost reduction initiatives and the transformation plan enabled us to address significant inflationary cost pressures during the year and going forward. We are extremely pleased with the performance of the pet acquisitions, which continue to exceed expectations. Overall, we continued our solid track record of generating strong cash flow well ahead of our fiscal 2007 guidance. We still however must deal with challenges, including inflationary cost pressures and our StarKist Seafood business. Despite these ongoing headwinds, we believe we have the foundation in place to deliver strong [fiscal 2008] performance." First Quarter and Fiscal 2008 OutlookFor the fiscal 2008 first quarter, the company expects to deliver sales growth of about 5% to 7% over net sales of US$674.1 million in the first quarter of fiscal 2007. For fiscal 2008, the company expects sales growth of 5% to 7% over fiscal 2007 net sales. Fiscal 2008 net sales growth is expected to be driven primarily by growth across the company's portfolio, in particular the Meow Mix and Milk-Bone acquisitions. During the fourth quarter, the company announced additional pricing actions effective April 30, 2007, in Pet Products in response to higher raw ingredient costs related to the demand for ethanol. In fiscal 2008, the company expects cash provided by operating activities, less cash used in investing activities to be about $180 million to US$200 million. The company's adjusted cash flow in fiscal 2007 was US$195.9 million, which compares favorably to its fiscal 2007 guidance of US$150 million to US$170 million, both of which excluded the purchase of Meow Mix and Milk-Bone. About Del Monte FoodsBased in San Francisco, California, Del Monte Foods Company(NYSE: DLM) -- http://www.delmonte.com/-- produces and distributes processed vegetables, fruit and tomato products, andpet products. The products are sold under Del Monte, Contadina,S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone. TheGroup has food-processing plants in South America and hassubsidiaries in Venezuela, Colombia, Ecuador and Peru. Theproduction facilities are operated in California, the Midwest,Washington and Texas, as well as 7 distribution centers. The company also has operations in the Philippines and India. * * *Del Monte Foods Company continues to carry Standard & Poor's BB- long-term foreign and local issuer credit ratings and B1 short-term foreign and local issuer credit ratings. The ratings outlook remains negative.The company also carries Fitch's BB- long-term issuer default rating.IPVG CORP: Annual Stockholders' Meeting Set for July 26-------------------------------------------------------IPVG Corp. will hold its annual stockholders' meeting on July 26, 2007, at 10:00 am, at the company's principal office at Tower II of the RCBC Plaza, in Ayala Avenue, Makati City.Under the company's by-laws, the meeting should be held every last Friday of June. However, during a special meeting of the Board of Directors held last June 13, the Board decided to postpone the meeting to make sure that all relevant materials are prepared and sent to stockholders within the time allowed by the Securities and Regulations Code. The record date for the meeting is July 1, 2007. About IPVG Corp.IPVG Corporation -- http://www.ipvg.com/-- is engaged in the information technology and communications business with interests in Information Technology and Telecommunications; On-line Gaming; and Business Process Outsourcing. IPVG reaches its customers through collaboration with international corporations that have proven to be market leaders in their respective geographic markets and industries. Its current partners include Fortune 1000 companies listed on the New York Stock Exchange, such as Pacific Century Cyberworks Inc. and IDT. The company can offer established product and proprietary business knowledge to the Philippine market by pairing each of its business subsidiaries with strategic partners. The TCR-AP reported on May 15, 2007 that the corporation posted a net loss of PHP102.1 million for the year ended Dec. 31, 2006, the company's third consecutive annual net loss after PHP43.0 million in 2005 and PHP6.2 million in 2004.PHIL. BANK OF COMMS: Posts PHP234.93-Million Net Income for 2006----------------------------------------------------------------Philippine Bank of Communications posted a PHP234.93-million net income for the year ended December 31, 2006, up 167% from the PHP87.89-million net income posted for the year 2005.For the year 2006, the company earned a net interest income of PHP2.66 billion, on PHP3.55 billion interest income and PHP2.62 billion interest and finance charges, and operating income of PHP2.66 billion. The company also incurred total operating expenses of PHP2.11 billion for 2006.As of December 31, 2006, the company had total assets of PHP55.79 billion and total liabilities of PHP45.7 billion, resulting in a total equity of PHP10.08 billion. Total Assets grew 6.34% to P55.790 billion as of December 31, 2006, a PHP3.326 billion increase from the reported PHP52.463 billion at year-end 2005. The net effect of the increases on investments in government securities and other peso and dollardenominated sovereign bonds by PHP4.55 billion, demand deposit account with BSP by PHP1.3 billion, ROPA by PHP541 million and the reduction in the bank's Inter-bank lending, Loans and Other receivables, Due from Other Banks, Other Assets- deferred charges by PHP1.017 billion, PHP946 million, PHP417 million and PHP693 million respectively accounted for the growth. Funding the growth in assets was a PHP1.62 billion and PHP1.12 billion increase in total deposits and deposit substitutes.The company's 2006 annual report can be downloaded for free at:http://www.pse.com.ph/html/ListedCompanies/pdf/2007/PBC_17A_Dec2006.pdf About PBComHeadquartered in Makati City, Philippines, Philippine Bank of Communications -- http://www.pbcom.com.ph/-- provides different products and services through its different divisions and it has a broad range of credit facilities, which are either denominated in local currency or foreign. Its Trust Division handles common trust funds, investment advisory accounts and employee benefit trusts. Aside from these, the bank also offers money market placements and traditional products such as peso deposits. Fitch Ratings gave Philippine Bank of Communications an Individual Rating of 'D/E.'PHIL. LONG DISTANCE: In Discussions to Acquire Equity in Philcom ----------------------------------------------------------------The Philippine Long Distance Telephone Co. revealed to the Philippine Stock Exchange that it is in talks with Philippine Global Communications Inc. for a possible acquisition of equity interest in the firm. Specifically, PLDT told the PSE that it is willing to convert into equity its receivables from Philcom Corp., which, along with Philippine Global Communications, owed a principal amount of PHP2.2 billion since December 31, 2001.Philcom and Philippine Global Communications comprise the Philcom Group. Last Friday, the BusinessMirror published an article stating that PLDT is discussing with Philippine Global Communications' shareholders for possible acquisition, and is also seeking to close a similar deal with a firm from the Philippine Association of Private Telephone Companies. The article also quoted PLDT chairman Michael Pangilinan saying that Philcom owes the company about PHP5 billion and that the debt is being considered in the acquisition price. The company told the PSE that it has a facilities management agreement with Philippine Global Communications since 2003 to help improve Philcom's operations. About PLDTBased in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * *The Troubled Company Reporter - Asia Pacific reported that on November 3, 2006, Moody's Investors Service affirmed Philippine Long Distance Telephone Company's Ba2 senior unsecured foreign currency rating and changed its outlook to stable from negative. At the same time, Moody's has affirmed PLDT's Baa3 domestic currency issuer rating. The outlook for this rating remains positive.Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. Standard & Poor's also affirmed its 'BB+' foreign currency rating on the company with a stable outlook.SAN MIGUEL: Employees' Pension Fund Brings Holdings to 15.76%-------------------------------------------------------------SMC Retirement Plan has acquired an additional 5.5% stake or 176.128 million shares in San Miguel Corp. from the Social Security System, bringing its total holdings to 496.578 million shares or 15.76% of SMC's outstanding shares, the Manila Standard reports.SMC Retirement Plan, a pension fund owned by SMC's employees, bought the shares during a special block sales at the Philippine Stock Exchange held last weekend. The fund now holds a "substantial shareholder" status in SMC, in order to avoid a hostile takeover by other major shareholders.According to the article, DBP Daiwa Securities SMBC Philippines Inc. and the First Resources Management and Securities Corp. handled the transaction, a fact confirmed by Vivian Yuchengco, head of First Resources, through a text message. However, she declined to mention the other sellers and buyers. Before the sale, SSS held a 5.6% stake in SMC, followed by Kirin Brewery Co. Ltd. of Japan with a 20% holding in SMC. SM Investment Corp., which is owned by business tycoon Henry Sy, owns 10.8% of the company. About San MiguelHeadquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The company also manufactures glass, metal, plastic, paper and composites packaging products.A Troubled Company Reporter - Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating.Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non-voting, perpetual preferred shares to be issued by San Miguel Capital Funding.* Moody's Issues Annual Report on the Philippines-------------------------------------------------In its annual report on the Philippines, Moody's Investors Service says its B1 foreign- and local-currency government bond ratings reflect the country's relatively high sovereign debt burden, which leaves government finances and the external accounts vulnerable to shocks.The B1 foreign-currency bond rating, and Moody's assessment of a moderate risk of a payments moratorium in the event of a government bond default, lie behind the Philippines' Ba3 foreign currency country ceiling for bonds."Progress made in revenue reform and fiscal consolidation in 2006, and prospects for sustainable gains over the near term, support a stable ratings outlook," said Moody's Vice President Thomas Byrne, author of the report. "Debt management has lengthened the average tenor and helped to narrow spreads, but effective tax administration and prudent expenditure policies are needed for the long-run stability of the country's finances."He pointed out that the Philippines' public-sector debt ratios have receded from their historic peak, but remain relatively high compared to the country's rating peers. The government's revenue base cannot yet support higher spending to meet major needs in public infrastructure, in part because of large interest payments on debt.Support to the balance of payments is provided by a flexible exchange rate policy, a stable export production base in which foreign firms play a large role, and sizable remittance inflows from overseas workers, said the analyst."Foreign direct investment in the country has picked up, but more progress in the privatization of the power sector would add to inflows and also catalyze investment in other sectors," said Byrne. "These factors have boosted official international reserves to record levels."He said overall weaknesses in the Philippines' investment climate are reflected in lagging fixed capital formation which, as a share of GDP, has declined to one of the lowest levels among emerging market economies."Philippine economic policy has yet to translate its initial successes in fiscal consolidation to improved underlying performance in the economy," said Byrne.Moody's report, "The Philippines: 2007 Credit Analysis," is a yearly update to the markets and is not a rating action.================= S I N G A P O R E=================INTERPOOL: Commences Tender Offer for US$230MM of 6% Sr. Notes--------------------------------------------------------------Interpool, Inc. has commenced a tender offer for all of US$230 million principal amount of its outstanding 6.0% Senior Notes due 2014.In connection with the tender offer, consents are being solicited from noteholders to make certain proposed amendments to the indenture governing the Notes.Pursuant to the terms and subject to the conditions set in the Offer to Purchase and Consent Solicitation Statement datedJune 13, 2007, the company is offering to purchase all of the outstanding Notes at a price of US$1,015.00 per US$1,000 principal amount of the Notes. The Total Consideration includes US$20.00 per US$1,000 principal amount of Notes payable only in respect of Notes validly tendered with consents on or prior to the Consent Date. In addition, holders who validly tender and do not validly withdraw their Notes in the tender offer will receive accrued and unpaid interest from the last interest payment date up to, but not including, the date of payment for the Notes, if the Notes are accepted for purchase pursuant to the tender offer.The tender offer is scheduled to expire at 8:00 a.m., New York City time, on July 19, 2007, unless extended. Holders who tender their Notes after 5:00 p.m., New York City time, on June 26, 2007, unless extended, will not be eligible to receive the Consent Payment. Any holder validly tendering Notes after the Consent Date will, if such Notes are accepted for purchase pursuant to the tender offer, receive the Tender Offer Consideration, plus accrued but unpaid interest to, but not including, the date of payment for the Notes so tendered.The proposed amendments to the indenture governing the Notes would, among other things, eliminate substantially all of the restrictive covenants, certain events of default and certain other provisions contained in the indenture.Completion of the tender offer is subject to the satisfaction of certain conditions, including, but not limited to, receipt of valid tenders and consents from a majority in principal amount of outstanding Notes, receipt by Interpool of the funds necessary to make all payments required to complete the tender offer, including interest and other costs and expenses related to the tender offer, and the satisfaction or waiver of all conditions precedent to the consummation of the merger of Interpool and Chariot Acquisition Sub, Inc., an indirect wholly owned subsidiary of funds managed by affiliates of Fortress Investment Group LLC, and the expectation that the Merger will be consummated immediately following the Expiration Date. Consummation of the tender offer is not a condition to the Merger, and Chariot expects that its ability to finance the transactions contemplated by the Merger and pay related transaction fees and expenses will not be impaired if the tender offer is not consummated.The exclusive dealer manager and solicitation agent for the tender offer is Bear, Stearns & Co. Inc. About InterpoolInterpool, Inc. (NYSE: IPX) is a supplier of equipment and services to the transportation industry. It is a lessor of intermodal container chassis and a world-leading lessor of cargo containers used in international trade. The company has operations in Barbados, Basel and Singapore. * * *As reported in the Troubled Company Reporter on Apr. 26, 2007,Interpool announced that it had entered into a definitive agreement to be acquired by certain private equity funds managed by affiliates of Fortress Investment Group LLC pursuant to a merger in which all IPX stockholders would receive US$27.10 in cash for each share of IPX common stock that they hold. The total transaction value, including assumed debt, is approximately US$2.4 billion.Fitch placed the ratings of Interpool and its related subsidiaries on Rating Watch Negative on Jan. 17, 2007. The action reflected Fitch concerns regarding the underlying financing structure of a proposed acquisition offer led by its current chief executive officer, Marty Tuchman for US$24 per share of common stock.LEAR CORP: European Commission Clears US$5.3 Billion Icahn Deal---------------------------------------------------------------European Union regulators approved the purchase of Lear Corporation by American Real Estate Partners, L.P., an affiliate of Carl C. Icahn, for approximately US$2.8 billion, the Associated Press relates.According to the report, the European Commission did not identify any antitrust problems that will result from the mergernor received any complaints from rivals within the stateddeadline.Under terms of the agreement, Lear shareholders would receive US$36.00 per share in cash. The agreement also sees AREP assuming about US$2.5 billion in debt. Closing is expected to occur by the end of the second quarter of 2007.Mr. Icahn holds a 16% stake in the company, which makeshim Lear's largest shareholder.J.P. Morgan Securities Inc. served as a financial advisor to the deal and Winston & Strawn, LLP served as legal counsel to a Special Committee of Lear's Board of Directors. Bank of Americaprovided AREP with debt financing commitments for thistransaction.The agreement is subject to the affirmative vote of the holdersof a majority of the outstanding shares of Lear common stock,regulatory filings and approvals and other customary closingconditions. Upon the closing of the transaction, shares of Learcommon stock will no longer be listed on the New York StockExchange or publicly-traded. About American Real EstateHeadquartered in New York City, American Real Estate Partners,LP (NYSE:ACP) -- http://www.arep.com/-- a master limited partnership, is a diversified holding company engaged in avariety of businesses. The company's businesses currentlyinclude gaming, oil and gas exploration and production, realestate and home fashion. The company is in the process ofdivesting its Oil and Gas operating unit and their Atlantic Citygaming property.The company owns a 99% limited partnership interest in AmericanReal Estate Holdings Limited Partnership. Substantially all ofthe assets and liabilities are owned by AREH and substantiallyall of the company's operations are conducted through AREH andits subsidiaries. American Property Investors, Inc., or API,owns a 1% general partnership interest in both the company andAREH, representing an aggregate 1.99% general partnershipinterest in the company and AREH. API is owned and controlledby Mr. Carl C. Icahn. About Lear Corp.Southfield, Mich.-based Lear Corp. (NYSE: LEA) --http://www.lear.com/-- is a global supplier of automotive interior systems and components. Lear provides complete seatsystems, electronic products, electrical distribution systems,and other interior products.Lear also operates in Argentina, Austria, Belgium, Brazil,Canada, China, Czech Republic, United Kingdom, France, Germany,Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,Netherlands, Philippines, Poland, Portugal, Romania, Russia,Slovakia, South Africa, South Korea, Spain, Sweden, Thailand, Tunisia, Turkey, Venezuela and Singapore. * * *In May 2007, Moody's Investors Service has assigned a B2 corporate family rating to AREP Car Acquisition Corp., the corporate entity that will be established to affect the consummation of the proposed acquisition and subsequent merger of Lear Corporation into a subsidiary of American Real Estate Partners, L.P.At the same time, the rating agency confirmed Lear's existingratings consisting of: -- a B2 corporate family rating; -- B3 senior unsecured notes; and -- B2 secured bank term loan.The rating outlooks for, and revised Lear and Lear Newco'soutlook to, are stable from ratings under review for possibledowngrade. As reported on Feb. 13, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on Southfield, Mich.-based Lear Corp. to 'B' from 'B+ and placed its ratings on CreditWatch with negative implications following Lear's announcement that it had agreed to be acquired by Carl Icahn-controlled American Real Estate Partners, L.P.LEE TUNG: Wind-Up Petition Hearing Set for July 9-------------------------------------------------A petition to wind up the operations of Lee Tung Company (Private) Limited will be heard before the High Court of Singapore on July 9, 2007, at 10:00 a.m.The petition was filed by Chow Kwok Chi on April 27, 2007.Chow Kwok's solicitor is: Chow Kwok Chi Drew & Napier LLC 20 Raffles Place, #17-00 Ocean Towers Singapore 048620NEWENT INVESTMENTS: Placed Under Voluntary Liquidation------------------------------------------------------At an extraordinary general meeting held on June 7, 2007, the members of Newent Investments Pte Ltd agreed to voluntarily liquidate the company's business and appointed Teh Kwang Hwee as liquidator.The Liquidator can be reached at: Teh Kwang Hwee c/o Tan & Teh 7 Maxwell Road MND Complex Annexe B #05-07 Singapore 069111PETROLEO BRASILEIRO: In Talks with Producers on Ethanol Price-------------------------------------------------------------Brazilian state-owned oil firm Petroleo Brasileiro SA Chief Financial Officer Almire Barbassa told reporters that the company is negotiating with producers to set a price range for ethanol.Mr. Barbassa said in a press conference in Rio de Janeiro, "We're discussing fixing a maximum and minimum value for ethanol prices. One of the most complex issues is establishing a price that does not negatively affect buyers and sellers." Mr. Barbassa told Business News Americas that Petroleo Brasileiro's main goal is to guarantee that ethanol producers will get a fair price. The firm also aims to ensure supply.Petroleo Brasileiro said it is creating a seal of quality for ethanol shipped from Brazil, BNamericas relates.BNamericas notes that Petroleo Brasileiro wants to ensure quality and make sure that suppliers comply with labor laws."Petrobras [Petroleo Brasileiro] is a socially aware company. The ethanol we sell will come with a seal of quality," Mr. Barbassa told BNamericas.Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SAaka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces,refines, transports, markets, distributes oil and natural gasand power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore.Petroleo Brasileiro SA's long-term corporate family rating israted Ba3 by Moody's.Fitch Ratings assigned these ratings on Petroleo Brasileiro'ssenior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+Fitch upgraded the foreign currency rating of Petrobras to BB+from BB, with positive outlook, in conjunction with Fitch'supgrade of the long-term foreign and local currency IDRs of theFederative Republic of Brazil to BB, from BB- on June 29, 2006.PETROLEO BRASILEIRO: Mulls Hiring Regasification Vessel-------------------------------------------------------Brazilian state-run oil firm Petroleo Brasileiro SA Chief Executive Officer Jose Sergio Gabrielli told reporters that the company is considering hiring another liquefied natural gas regasification vessel.According to Business News Americas, Mr. Gabrielli said during a speech in Brasilia that the vessel would add to two liquefied natural gas storage and regasification vessels hired from UK independent operator Golar LNG.Mr. Gabrielli explained to BNamericas that the third vessel would have regasification capacity of 14 million cubic meters per day.BNamericas relates that the first vessel will start operating in the first half of 2008 in Ceara. The second vessel will operate in 2009 in Rio de Janeiro.Mr. Gabrielli didn't tell BNamericas where the third vessel would be used.Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SAaka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces,refines, transports, markets, distributes oil and natural gasand power to various wholesale customers and retail distributorsin Brazil. Petrobras has operations in China, India, Japan, andSingapore.Petroleo Brasileiro SA's long-term corporate family rating israted Ba3 by Moody's.Fitch Ratings assigned these ratings on Petroleo Brasileiro'ssenior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+Fitch upgraded the foreign currency rating of Petrobras to BB+from BB, with positive outlook, in conjunction with Fitch'supgrade of the long-term foreign and local currency IDRs of theFederative Republic of Brazil to BB, from BB- on June 29, 2006.PETROLEO BRASILEIRO: Argentina Fines Firm for Fuel Insufficiency----------------------------------------------------------------Argentine reporters say that the Argentine government has fined the local units of Royal Dutch Shell (RDSA) and Brazilian state oil company Petroleo Brasileiro SA for allegedly failing to sufficiently supply diesel fuel.According to Dow Jones Newswires, government officials were unable to confirm the news.A Petroleo Brasileiro spokespeson told Dow Jones that he couldn't immediately confirm the reports. Royal Dutch representatives weren't immediately available.Dow Jones notes that farm groups have been carping on diesel shortages in recent weeks as "farmers wrap up record corn and soy harvests and move to plant wheat."Diesel shortage complaints have become chronic in recent years, causing the government to threaten and fine firms. The government sent Royal Dutch 23 fines of ARS1 million each in December 2007 for allegedly failing to meet demand.Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SAaka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces,refines, transports, markets, distributes oil and natural gasand power to various wholesale customers and retail distributorsin Brazil. Petrobras has operations in China, India, Japan, andSingapore.Petroleo Brasileiro SA's long-term corporate family rating israted Ba3 by Moody's.Fitch Ratings assigned these ratings on Petroleo Brasileiro'ssenior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+Fitch upgraded the foreign currency rating of Petrobras to BB+from BB, with positive outlook, in conjunction with Fitch'supgrade of the long-term foreign and local currency IDRs of theFederative Republic of Brazil to BB, from BB- on June 29, 2006.STATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good Performance--------------------------------------------------------------Moody's Investors Service upgraded STATS ChipPAC's corporate family rating and foreign currency debt ratings to Ba1 from Ba2. This concludes the review for possible upgrade which began on March 1, 2007. The outlook for all the ratings is stable."The rating upgrade reflects STATS ChipPAC's improved operating and financial profiles with continued free cash flow generation on the back of favorable industry fundamentals," says Wonnie Chu, lead analyst for STAT ChipPAC, adding "the company maintains its strong market position with a more diversified customer base."At the same time, the support level for STAT ChipPAC from its parent, Singapore Technologies Semiconductors Pte Ltd which is in turn 100%-owned subsidiary of Temasek, has also been changed to Medium from Low under Moody's joint default analysis for government related issuer.This follows the completion of the voluntary conditional cash offered by STS to buy the remaining shares and convertible subordinated notes due in 2008 of STATS ChipPAC. STS now owns 83.1% of STATS ChipPAC and US$134.5m of its convertible subordinated notes.The Ba1 rating take into account: (1) STATS ChipPAC's stand-alone credit fundamental, and (2) the likelihood of Temasek (rated Aaa/Stable), through STS, providing the company with credit support in a stress situation.Moody's ranks the company's underlying credit fundamental as "11-13" equivalent to Ba1-Ba3 on our global rating scale. This assessment reflects STATS ChipPAC's strong market position as the fourth largest player in the OSAT industry, its positive free cash flow generative status and sound debt maturity profile.At the same time, it also takes into account STATS ChipPAC's continued exposure to average sales price erosion and price fluctuations for raw materials, which are a major cost in the assembly process.Moody's overlays the company's stand-alone credit fundamental on a joint default analysis approach. That involves estimating the likelihood that in the event of pending failure by the company, Temasek - through STS - would step in and prevent a default.The medium support reflects STATS ChipPAC's importance within Temasek, which through STS, owns 83.1% of STATS ChipPAC's issued shares.The ratings could experience upward pressure if: (1) a track record emerges of maintaining profitability and achieving projected results over the semiconductor cycle; (2) an ability to generate free cash flow for permanent debt reduction emerges, such that total debt/total cap < 25% and (EBITDA-Capex)/Int > 4.5-5.0x on a sustained basis; and (3) cash holdings are built up and strong balance sheet liquidity is maintained to provide a buffer against industry cyclicality.In addition, evidence of financial support from Temasek would be positive for the rating as it would improve the support level.On the other hand, downward ratings pressure could evolve if: (1) asset utilization falls, reducing profitability and cash flow-generating abilities; (2) an industry downturn emerges, and which materially impairs the company's debt-servicing ability; or (3) its balance sheet gears up due to a large capital expenditure or investment program, such that total debt/total cap > 40% and (EBITDA-Capex)/Int < 1.5-2.0x over the cycle.Furthermore, a significant reduction in STS's controlling stake which weakens the support level, a scenario is considered unlikely in the near term, would be negative for the rating.STATS ChipPAC Ltd is a back-end semiconductor assembly and test company. It provides full-turnkey solutions to semiconductor businesses, including foundries, integrated device manufacturers and fabless companies in the U.S., Europe and Asia. It ranked fourth in the global outsourcing semiconductor assembly and test industry as of end-2006. In fiscal year 2006, packaging revenue accounted for 74% of sales, and test and other revenues the balance. The communications segment accounted for 57% of sales. The company's offices outside the United States are located in Singapore, South Korea, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom.SYSTOME THERAPEUTICS: Accepting Proofs of Debt Until July 16------------------------------------------------------------Systome Therapeutics Pte. Ltd., which is in liquidation, requires its creditors to file their proofs of debt by July 16, 2007.Failure to prove debts by the due date will exclude a creditor from sharing in the company's dividend distribution.The company's liquidators are: Kon Yin Tong Wong Kian Kok Aw Eng Hai c/o 47 Hill Street #05-01 Singapore Chinese Chamber of Commerce & Industry Building Singapore 179365=============== T H A I L A N D===============ASIA HOTEL: Postpones Extraordinary General Shareholders Meeting----------------------------------------------------------------Asia Hotel PCL's board of directors, during a meeting on June 12, has agreed to postpone the company's extraordinary shareholders' general meeting for the approval of the renewal of a contract between its subsidiary, Zeer Property Co. Ltd., and Don Muang Grand Plaza Co. Ltd. The contract covers land and structure leased by Don Muang to Zeer Property. The meeting will also approve a separate contract for leasing additional land between Zeer Property and Don Muang through the transfer of land owned by Asia Airport Hotel Co. Ltd. to Don Muang. Since information on the transaction has not yet been completed, the Board of Directors decided to postpone the meeting until the information has been furnished.Headquartered in Bangkok, Thailand, Asia Hotel Public Company Limited -- http://www.asiahotel.co.th/-- was incorporated on March 24, 1964, and has been publicly listed since 1989. The company and its two subsidiaries, Asia Pattaya Hotel Company Limited and Asia Airport Hotel Company Limited, are involved in the hotel business, with its principal activities consisting of room service and operating restaurants. Another subsidiary, Zeer Property Company Limited is primarily involved in the construction and the building of shopping complexes.After auditing Asia Hotel PCL's consolidated financial statements for the three months ended March 31, 2007, Mr. Atipong Atipongsakul at ANS Audit Co. Ltd. raised doubt about the company's ability to continue as a going concern after finding a shareholder deficit of THB986 million in the company's balance sheets.BANK OF AYUDHYA: Warrants Exercise Date Set for June 29-------------------------------------------------------The date for exercising warrants issued by Bank of Ayudhya PCL to institutional investors and shareholders will be on June 29, 2007.Warrants to be exercised are those that the Bank allocated to institutional investors and special investors who subscribed for commmon shares of the bank at August 19-22, 2003 and to shareholders of record as of August 28, 2003.Warrant holders are required to make a notification of their intent to exercise from June 22 until June 28, 2007, with intent forms available at any of the bank's branches nationwide, or at its head office located at 1222 Rama III Road, Bang Phongphang Subdistrict, Yan Nawa District, Bangkok. Contact numbers for the main office are 0-2296-4442, 0-2296-4453, 0-2296-4454. Holders are also required to prepare and submit these documents and evidence to the bank: * Accomplished intent form * Certificates or the substitution forms of warrant to be converted * Payment as per the conversion amount made either in cash, cheque, draft or money order. Cheques dated on the submission day must be crossed and made payable to "Bank of Ayudhya PCL for share subscription." Cheques must also be within the same clearing area and the conversion will be completed only when the Bank receives such payment.Warrant holders who intend to buy ordinary shares may notify the bank of their intent by submitting a complete request form for issuance of warrant certificates or the substitution form to their brokers. It is the broker's responsibility to notify the Thailand Securities Depository Co. Ltd. and request for issuance of warrant certificates, or permission to use the substitution form as evidence for rights exercise to buy ordinary shares in the bank. The bank will not issue ordinary shares to foreign individuals or entities if it constitutes a violation of its articles of association on foreign shareholding limits. About Bank of AyudhyaHeadquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. * * * On May 4, 2007, Moody's Investor Services affirmed its D- bank financial strength rating for Bank of Ayudhya. The Foreign Currency Deposit Ratings are unchanged at Baa3/P-3. The outlook for all ratings is stable.The Bank carries Standard and Poor's Rating Services' BBB-/A-3 Credit Rating with a stable outlook.The Troubled Company Reporter - Asia Pacific reported on June 7, 2007 that Fitch Ratings has affirmed Bank of Ayudhya Public Company Limited's (BAY) Foreign Currency Issuer Default Rating at 'BBB-' (BBB minus) with Stable Outlook, Short-term Foreign Currency rating at 'F3', Individual rating at 'C/D', Support rating at '3' and its subordinated debt rating at 'BB+'.The bank's Support Rating Floor remains unchanged at 'BB'. Meanwhile, Fitch Ratings (Thailand) has also affirmed BAY's National Long-term Rating at 'A+(tha)' with Stable Outlook, its National Short-term Rating at 'F1(tha)' and its National subordinated debt rating at 'A(tha)'.COMPASS EAST: Turns Around w/ THB277,394 Net Income for 1st Qtr.----------------------------------------------------------------Compass East Industry (Thailand) PCL and its subsidiaries posted a consolidated net income of THB277,394 for the three months ended April 30, 2007, a turn-around from the previous loss of THB97.44 million reported for the same period in 2006.For the quarter ended April 30, 2007, the group earned sales of THB50.74 million and THB14.34 million in other income from operations, while incurring cost of sales of THB61 million, selling and administrative expenses of THB20.24 million and interest expenses of THB136,692. The group also recorded THB18.9 million in reversal of allowances for diminutions in value of inventories, and a THB2.32 million loss from sales equipment and mould. As of April 30, 2007, the group had total assets of THB802.93 million and total liabilities of THB118.36 million, resulting in a total shareholders' equity of THB684.57 million.Thailand-based Compass East Industry (Thailand) Public Company Limited -- http://www.ceifan.com/-- is a manufacturing company primarily engaged in the production and distribution of ceiling fans under the brand names Sunlight and Aire Royale. Its operation activities include original equipment manufacture (OEM) and original design manufacture (ODM). The company distributes its products in both domestic and overseas markets. Headquartered in Bangkok, Compass East Industry (Thailand) operates a production site in Samutprakan Province with a full production capacity of 1 million units per annum. The company has two subsidiaries, Air Royal Industries Company Limited and Air Breeze Company Limited in China. Going Concern DoubtSusan Eiamvanicha at SP Audit Company Limited, the company's independent auditors, raised significant doubt on the company's ability to continue as a going concern, saying that as of January 31, 2007, the group and company incurred accumulated losses of THB29.87 million and THB34.62 million, respectively. She adds that the company's ability to continue as a going concern will be dependent on ability in the profit making of the company in the future.DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of Trust---------------------------------------------------------DaimlerChrysler AG has elected to redeem the term assets of the trust on June 29, 2007, at a redemption price equal to par plus a make-whole amount to be determined two business days prior to the Redemption Date. The company has notified the U.S. Bank Trust National Association, as Trustee, under the Base Trust Agreement dated as of May 21, 1998, as supplemented by the Series C 1998-6 Supplement dated as of May 21, 1998, between Structured Products Corp. and the Trustee.If the Trustee receives the redemption payment on the Redemption Date, then the Amortizing Certificates issued by the TIERS Corporate Bond-Backed Certificates Trust C 1998-6 will be redeemed in full on the Redemption Date at a price equal to 55.49314% of the redemption payment received by the Trustee and the ZTF Certificates issued by the Trust will be redeemed in full on the Redemption Date at a price equal to 44.50686% of the redemption payment received by the Trustee. If the Amortizing Certificates are redeemed in full on the Redemption Date, no interest will accrue on the Amortizing Certificates after the Redemption Date. If the Trustee does not receive the redemption payment, the certificates will not be redeemed.For more information about these redemptions, please contact Janet O'Hara of U.S. Bank Trust National Association at 212-361-2527.Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services.The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia.The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand.The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses.In order to improve the earnings situation of the Chrysler GroupAs quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well.DAIMLERCHRYSLER: Chrysler to Invest US$450MM in Kenosha Plant-------------------------------------------------------------Chrysler Group disclosed plans to invest US$450 million in its Kenosha Engine Plant in Wisconsin for a comprehensive retooling in preparation for the launch of a new family of fuel-efficient V-6 engines. The investment and retooling are part of an extensive powertrain offensive that will commit a total of US$3 billion to develop and launch the new engines -- known as Phoenix engines -- in addition to a dual-clutch transmission joint venture with German parts maker Getrag and new common axle family. All are part of Chrysler Group's commitment to advanced powertrain technologies and the first step to more fuel-efficient vehicles.Scheduled to begin production in January 2011, the plant will have an annual Phoenix production capacity of 400,000 units when it reaches full volume.The event, held at the 1.9 million square-foot plant, marks another significant milestone in the progress of the Chrysler Group's Recovery and Transformation Plan. Wisconsin Gov. Jim Doyle; Kenosha Mayor John Antaramian; Richard Chow-Wah, Vice President - Powertrain Manufacturing, Chrysler Group; Kenosha Engine Plant Manager Kevin Sell; and UAW officials participated in the news event."This retooling investment will allow us to build an entirely new, globally competitive family of V-6 engines," Mr. Chow-Wah said. "The Chrysler Group Recovery and Transformation Plan is focused on new products, and the news supports a long-term commitment to new vehicle components that support consumer demand for refined, economical-to-operate vehicles for many years to come.""Chrysler Group has had a 20-year-long presence in Kenosha and even longer factoring in American Motors' storied past," Mr. Sell said. "With this new tooling and this new engine line, we're demonstrating the commitment of Chrysler Group to support economic development and invest in the communities where it does business.Retooling for the Kenosha Phoenix Engine Plant will begin in June 2010."Wisconsin is one of America's leading manufacturing economies. This US$450 million commitment by Chrysler to our state demonstrates that we continue to attract important investments that provide high paying jobs for our workforce," Wisconsin Gov. Jim Doyle said. "This shows what can happen when state and local governments work together to create a business-friendly environment."The Governor said that Chrysler Group would receive an incentive package of Kenosha County, City of Kenosha and State of Wisconsin funds totaling US$16.8 million. Once the plant is fully operational, Kenosha Phoenix Engine Plant will employ 700 full-time workers."This is an important day for the future of the UAW and Chrysler Group, and in particular for the continued competitiveness of our team here in the State of Wisconsin," General Holiefield, UAW Vice President, who directs the union's DaimlerChrysler Department, said. "We have a vision to see this company and our union grow this business and transform Chrysler Group into a stronger company that will be competitive for the long run. The investment we announce today proves that we are investing in this vision."Chrysler Group has had a presence in Kenosha since 1987, when American Motors Corp. was acquired by Chrysler Corporation. The company's current 2.7-liter V-6 has been produced there since 1997. The company's 3.5-liter V-6 was launched in 1999, part of a US$624 million modernization of the plant. The plant was built in 1917. Over the long term, the Phoenix family of V-6 engines will reduce manufacturing complexity by paring the company's four current V-6 engine architectures to one. Kenosha becomes the third Phoenix engine plant announced by Chrysler Group since April 2007, joining previously announced plants in Trenton, Michigan and Saltillo, Mexico. The company will also construct an all-new plant in Marysville, Michigan to build a new line of corporate axles.Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand.The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses.In order to improve the earnings situation of the Chrysler GroupAs quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well.DAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say----------------------------------------------------------------DaimlerChrysler AG's Chrysler Group, General Motors Corp. andFord Motor Company are in talks to create an independent health-insurance fund to trim their combined US$114 billion in futureretiree healthcare obligations, Bloomberg News reports, quotingfive people with direct knowledge of the talks as saying.According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said.The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals.Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates.The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of US$1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time US$1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states.The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four-year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said.The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent.Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21% to US$64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about US$19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market-share losses to Toyota Motor Corp. and Honda Motor Co.GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non-union employees, retirees and dependents. About General Motors Corp.General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. About Ford Motor Co.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. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services.The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia.The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand.The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses.In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well.* BOND PRICING: For the Week 11 June to 15 June 2007----------------------------------------------------Issuer Coupon Maturity Currency Price------ ------ -------- -------- -----AUSTRALIA &NEW ZEALAND-----------Ainsworth Game 8.000% 12/31/09 AUD 0.80Alinta Networks 5.750% 09/22/10 AUD 6.62APN News & Media Ltd 7.250% 10/31/08 AUD 5.02A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.60Arrow Energy NL 10.000% 03/31/08 AUD 2.73Babcock & Brown Pty Ltd 8.500% 12/31/49 NZD 8.00Becton Property Group 9.500% 06/30/10 AUD 0.81BIL Finance Ltd 8.000% 10/15/07 NZD 9.75Capital Properties NZ Ltd 8.500% 04/15/07 NZD 8.50Capital Properties NZ Ltd 8.000% 04/15/10 NZD 9.50Cardno Limited 9.000% 06/30/08 AUD 5.60CBH Resources 9.500% 12/16/09 AUD 0.39Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.02Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 1.29Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.57Evans & Tate Ltd 8.250% 10/29/07 AUD 0.52Fletcher Building Ltd 8.600% 03/15/08 NZD 9.10Fletcher Building Ltd 7.800% 03/15/09 NZD 8.75Fletcher Building Ltd 7.550% 03/15/11 NZD 9.00Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.50Geon Group 11.750% 10/15/09 NZD 8.95Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 9.50Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 9.75Hutchison Telecoms Australia 5.500% 07/12/07 AUD 0.65IMF Australia Ltd 11.500% 06/30/10 AUD 0.80Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 NZD 8.80Infratil Ltd 8.500% 11/15/15 NZD 8.20Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.17Metal Storm 10.000% 09/01/09 AUD 0.14Minerals Corporation Ltd 10.500% 09/30/07 AUD 0.97Nuplex Industries Ltd 9.300% 09/15/07 NZD 8.75Primelife Corporation 10.000% 01/31/08 AUD 1.04Salomon SB Aust 4.250% 02/01/09 USD 7.58Sapphire Sec 7.410% 09/20/35 NZD 7.43Sapphire Sec 9.160% 09/20/35 NZD 9.12Silver Chef Ltd 10.000% 08/31/08 AUD 1.08Software of Excellence 7.000% 08/09/07 NZD 2.50Speirs Group Ltd. 10.000% 06/30/49 NZD 65.00Structural Systems 11.000% 06/30/07 AUD 1.70TrustPower Ltd 8.300% 09/15/07 NZD 8.25TrustPower Ltd 8.300% 12/15/08 NZD 8.30TrustPower Ltd 8.500% 09/15/12 NZD 8.70TrustPower Ltd 8.500% 03/15/14 NZD 8.40CHINA-----China Tietong 4.600% 08/18/15 CNY 60.00Jiangxi Investment 4.380% 09/11/21 CNY 56.84JAPAN-----Japan Funi Muni Ent 1.700% 10/30/08 JPY 2.31JNR Settlement 2.200% 02/15/08 JPY 1.68Nara Prefecture 1.520% 10/31/14 JPY 9.83KOREA-----Korea Development Bank 7.350% 01/27/21 KRW 48.85Korea Development Bank 7.450% 10/31/21 KRW 48.83Korea Development Bank 7.400% 11/02/21 KRW 48.81Korea Development Bank 7.310% 11/08/21 KRW 48.77Korea Development Bank 8.450% 12/15/26 KRW 70.49Korea Electric Power 7.950% 04/01/96 USD 56.83MALAYSIA--------Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.83Asian Pac Bhd 4.000% 12/21/07 MYR 0.30Berjaya Land Bhd 5.000% 12/30/09 MYR 1.08Bumiputra-Commerce 2.500% 07/17/08 MYR 1.51Camerlin Group 5.500% 07/15/07 MYR 2.20Crescendo Corporation Bhd 3.000% 08/25/07 MYR 1.51Denko Industrial Corp. Bhd 5.000% 03/15/07 MYR 0.69Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.86Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 0.73Equine Capital 3.000% 08/26/08 MYR 2.31EG Industries Bhd 5.000% 06/16/10 MYR 0.60Greatpac Holdings 2.000% 12/11/08 MYR 0.20Gula Perak Bhd 6.000% 04/23/08 MYR 0.43Hong Leong Industries Bhd 4.000% 06/28/07 MYR 0.81Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.52I-Berhad 5.000% 04/30/07 MYR 0.75Insas Bhd 8.000% 04/19/09 MYR 0.78Kamdar Group Bhd 3.000% 11/09/09 MYR 0.44Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.53Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.96Kumpulan Jetson 5.000% 11/27/12 MYR 0.68LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.77LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.77LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.77Media Prima Bhd 2.000% 07/18/08 MYR 1.80Mithril Bhd 8.000% 04/05/09 MYR 0.24Mithril Bhd 3.000% 04/05/12 MYR 0.61Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.66Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.29Pelikan International 3.000% 04/08/10 MYR 1.80Pelikan International 3.000% 04/08/10 MYR 1.97Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.88Ramunia Holdings 1.000% 12/20/07 MYR 1.09Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.89Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.90Rhythm Consolidated Bhd 5.000% 12/17/08 MYR 0.23Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.30Senai-Desaru Exp 3.500% 06/07/19 MYR 74.25Senai-Desaru Exp 3.500% 12/09/19 MYR 72.87Senai-Desaru Exp 3.500% 06/09/20 MYR 71.49Senai-Desaru Exp 3.500% 12/09/20 MYR 70.14Senai-Desaru Exp 3.500% 06/09/21 MYR 68.77Southern Steel 5.500% 07/31/08 MYR 1.60Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.28Tradewinds Corp. 2.000% 02/08/12 MYR 1.01Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 1.10TRC Synergy Berhad 5.000% 01/20/12 MYR 1.44WCT Land Bhd 3.000% 08/02/09 MYR 2.48Wah Seong Corp 3.000% 05/21/12 MYR 5.65YTL Cement Bhd 4.000% 11/10/15 MYR 2.06SINGAPORE---------Sengkang Mall 8.000% 11/20/12 SGD 1.18 ********* 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 firstname.lastname@example.com'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., FairlessHills, Pennsylvania, USA, and Beard Group, Inc., Frederick,Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding,electronic re-mailing and photocopying) is strictly prohibitedwithout prior written permission of the publishers.Information contained herein is obtained from sources believedto 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 samefirm for the term of the initial subscription or balancethereof are US$25 each. For subscription information, contactChristopher Beard at 240/629-3300. *** End of Transmission ***