/raid1/www/Hosts/bankrupt/TCRAP_Public/080715.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, July 15, 2008, Vol. 11, No. 139
Headlines
A U S T R A L I A
ACN 000 963 600: To Declare Dividend on August 22
ADHEATH PTY: To Declare Dividend on July 29
BABCOCK & BROWN LTD: ASB Bank Suspends Margin Lending
BABCOCK & BROWN LTD: S&P Holds Unit's 'BB+' Long-Term Rating
CANARY CANDLES: To Declare Dividend on August 22
LA MIRAGE: Proofs of Debt Due on July 17
PAN PHARMACEUTICALS: To Declare Dividend on July 16
SMARTPAK (AUSTRALIA): To Declare Dividend on August 15
SOUNDTRACK FASTENERS: To Declare Divided on July 17
TIFAM INVESTMENTS: To Declare Dividend on July 22
TIFAM TRADING: To Declare Dividend on July 22
WESTERN DISTRICTS: Final Meeting Slated for July 17
WILLETTS CONTRACTING: To Declare Dividend on August 6
WILLIAMS ENTERPRISES: To Declare Dividend on August 6
C H I N A
AGRICULTURAL BANK: May Delay Taking in Foreign Investors
CHINA SOUTHERN: Citigroup Suggests "Sell" on Operating Losses
* CHINA: China National's Fuel Hike Puts Pressure on Airlines
H O N G K O N G
ASCENTRAL HONG KONG: Members' Final Meeting Set on August 8
BANUDON COMPANY: Appoints New Liquidator
BILLION NICE: Creditors' Fist Meeting Set Today
BIZARRO SUN: Appoints New Liquidator
BOLIN INVESTMENT: Appoints New Liquidator
BOOFUN COMPANY: Appoints New Liquidator
CARRY SHINE: Appoints New Liquidator
CHEER KENT: Appoints New Liquidator
DANUBIO COMPANY: Appoints New Liquidator
DUNRISE LIMITED: Appoints New Liquidator
EXCEL INT'L: Creditors' Fist Meeting Set Today
HERCULES: Merges With Ashland to Build US$3.3BB Chemical Firm
HERCULES INC: Moody's May Cut Ba1 Rating on Ashland Merger
PO FAT: Members' Final Meeting Set on August 4
SINO STARES: Creditors' Proofs of Debt Due on July 20
TRANSFUL LIMITED: Commences Liquidation Proceedings
UNIVERSAL VENTURE: Liquidators Quit Post
I N D I A
DOLPHIN OFFSHORE: Bullish on Expansion Despite Tough FY2008
RANBAXY LABORATORIES: DOJ Probe May Affect US Market Share
SPICEJET: Chairman Quits, Stock Tumbles to 3-Month Low
J A P A N
CBO ALL JAPAN: S&P Lowers Rating on Class B Notes to 'CCC-'
SHINSEI BANK: Inks JPY580 Bil. Acquisition Deal With GE Japan
* JAPAN: Shinsei Bank CEO Sees Recovery From 2-Year Slump
* JAPAN: Investors Focus on Long-Term as Credit Prices Rise
M A L A Y S I A
N.T. HUAT KEE: Khor Ah Bah Files Wind-Up Petition Against Co.
PECD BERHAD: Court Sets Aug. 1 Meeting for Scheme Creditors
N E W Z E A L A N D
646 VICTORIA: Commences Liquidation Proceedings
BARDELL NEW ZEALAND: Wind-Up Petition Hearing Set for Aug. 6
DOVER HOLDINGS: Court Appoints Liquidators
FRESCO SEAFOODS: Court Appoints Liquidators
FRESCO TRADING: Court Appoints Liquidators
PETKOVDEN COMPANY: Commences Liquidation Proceedings
POLE STAR: Commences Liquidation Proceedings
REZ 24/7: Commences Liquidation Proceedings
ZENITH CONTRACTS: Wind-Up Petition Hearing Set for Aug. 5
* NEW ZEALAND: Motor Vehicles Pull Down Retail Sales
* NEW ZEALAND: Widespread Fall in Property Values
P H I L I P P I N E S
STEEL CORP: Court of Appeals Terminates Proposed Rehabilitation
* PHILIPPINES: DBCC Reviewing Operations of 6 Ailing Companies
* PHILIPPINES: Govt. Debt Declines to PHP3.872 Tril. as April
S I N G A P O R E
DURABEAU CONSTRUCTION: Pays Second and Final Dividend
EASTMAN CHEMICAL: Requires Creditors to File Claims by August 11
ENZER CORPORATION: Auditor Expresses Going Concern Doubt
INFORMATICS EDUCATION: Unit Inks Tenancy Agreement With Berjaya
JLOC XXX: Fitch Affirms 'BB' Ratings on JPY 9.3BB Mezzanine TBIs
RINOL SINGAPORE: Creditors' Proofs of Debt Due on July 24
T A I W A N
AU OPTRONICS: Cuts Production on Small/Medium-Sized Panel Output
QUANTA COMPUTER: Fitch Assigns 'BB' LT Local Currency ID Rating
T H A I L A N D
TOTAL ACCESS: S&P Affirms 'BB+' Rating with Stable Outlook
X X X X X X X X
* Fannie Mae and Freddie Mac Get Loan Commitment from Gov't
* BOND PRICING: For the Week July 7 - July 11, 2008
- - - - -
=================
A U S T R A L I A
=================
ACN 000 963 600: To Declare Dividend on August 22
-------------------------------------------------
ACN 000 963 600 Pty Limited fka Grandview Aluminum Pty Limited
will declare dividend on Aug. 22, 2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in the company's dividend distribution.
The company's liquidator is:
Peter P. Krejci
GHK Ferrier Green Krejci Silvia
Level 13, 1 Castlereagh Street
Sydney NSW 2000
Australia
ADHEATH PTY: To Declare Dividend on July 29
-------------------------------------------
Adheath Pty Ltd will declare dividend on July 29, 2008.
Creditors are required to file their proofs of debt today,
July 15, 2008, to be included in the company's dividend
distribution.
The company's liquidator is:
D. A. Turner
PKF Chartered Accountants
GPO Box 5099
Melbourne VIC 3001
Australia
BABCOCK & BROWN LTD: ASB Bank Suspends Margin Lending
-----------------------------------------------------
ASB Bank Limited has suspended margin lending against seven
Babcock & Brown companies as millions of dollars have been wiped
off their market value in the past month, triggering a review of
its bank loan arrangements, Denise McNabb of The Independent
reports.
According to the report, there are 20 listed and unlisted funds
under the Babcock & Brown umbrella, each run as a separate
entity to the main company.
Stocks suspended by ASB as of July 11 were Babcock & Brown Ltd
and the other companies (Infrastructure, Power, Communities,
Japan Property Trust, Wind Partners Group and Capital), the
Independent says citing ASB manager of intermediary services
David Le Breton.
About ASB Bank
Headquartered in Auckland, New Zealand, ASB Bank Limited --
http://www.asb.co.nz/-- is a wholly owned subsidiary of the
Commonwealth Bank of Australia.
About Babcock & Brown Ltd
Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- is engaged in the
creation, syndication and management of investment products for
itself, as a principal, and its investor clients; management of
specialised listed and unlisted funds, and advising and
arranging leasing, project financing and structured finance
transactions. It has five segments: real estate, which engages
in principal investment and investment management activities in
the real estate sector; infrastructure, which engages in
financial advisory, principal finance and funds management
activities in the infrastructure and project finance sector;
corporate and structured finance, which is engaged in the
origination, structuring and participation in and management of
equity and debt investments, and operating leasing, which is
engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment. In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.
* * *
As reported in the Troubled Company Reporter-Asia Pacific
on June 16, 2008, Standard & Poor's Ratings Services lowered its
ratings on Babcock & Brown International Pty Ltd. to 'BB+/Watch
Neg/B' from 'BBB/Watch Neg/A-3' following a continued rapid
slide in the share price of its listed parent Babcock & Brown
Ltd. The ratings remain on CreditWatch with negative
implications, where they were initially placed on June 12, 2008.
Babcock & Brown said the downgrade was not based on any
information provided to S&P by Babcock & Brown or the facility
lenders. The change in S&P rating, the company says, does not
constitute a review event or event of default, or otherwise
entitle any lender to require a prepayment of any financing
facility with the Babcock & Brown Group. The downgrade
according to Babcock & Brown was consistent with S&P's move to
downgrade other financial related stocks around the world.
BABCOCK & BROWN LTD: S&P Holds Unit's 'BB+' Long-Term Rating
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
and 'B' short-term issuer credit ratings on Babcock & Brown
International Pty Ltd. (BBIPL), a subsidiary of Babcock & Brown
Limited (ASX:BNB), and removed the ratings from CreditWatch
negative, where they were initially placed on June 12, 2008. At
the same time, a stable outlook was assigned to the long-term
rating.
"The CreditWatch removal and rating affirmation follow BBIPL
banks' waiver of the "review event" and finalization of a
revised bank facility, where the market capitalization clause
was removed. These developments have significantly eased
BBIPL's short-term funding and liquidity risks," Standard
& Poor's credit analyst Sharad Jain said. "Although the banks
have increased the interest margin by 50 basis points, its
impact on the company's earnings is not expected to be
significant for the rating. BBIPL has also agreed to
strengthen the company's liquidity. Furthermore, the company
plans to reduce its leverage by decreasing the facility size to
AU$2.4 billion through an orderly and planned sale of assets."
In the short-to-medium term, business growth and earnings are
likely to face pressure due to the company's plans to reduce
leverage and damage to the franchise in the recent months.
Furthermore, Standard & Poor's believes that BBIPL may face
challenges in retaining key staff. Nevertheless, if BBIPL were
successful in implementing its plans to reduce leverage and
other balance-sheet risks, the company's credit risk profile is
likely to improve due to a more sustainable business growth, a
more stable business model, and less volatile earnings profile.
The outlook on the rating is stable. However, the rating could
be raised within the next two years if the company were able to
satisfactorily restore investor confidence, retain its key staff
through the challenging period, strengthen the capital structure
by completing an orderly sale of assets, and sustain its
business and earnings capabilities.
Conversely, given the current unstable financial and business
environment, the rating could come under pressure if asset sales
do not proceed as expected, or the damage to the company's
franchise hampers the sustainability of its business model. The
rating is also likely to come under pressure if there is damage
to the company's franchise triggered by a serious operational
lapse, a perceived conflict of interest, increase in risk
appetite, or underperformance by an asset under management.
Babcock & Brown International Pty Ltd. was incorporated in 2004
and is based in Sydney, Australia. Babcock & Brown
International Pty Ltd. operates as a subsidiary of Babcock &
Brown Limited.
CANARY CANDLES: To Declare Dividend on August 22
------------------------------------------------
Canary Candles Pty Ltd will declare dividend on Aug. 22, 2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in the company's dividend distribution.
The company's liquidator is:
J. P. McLeod
McLeod & Partners
Level 1, 215 Elizabeth Street
Brisbane QLD 4000
Australia
Telephone: (07) 3004 0800
LA MIRAGE: Proofs of Debt Due on July 17
----------------------------------------
La Mirage Pty Ltd will declare dividend on July 31, 2008.
Creditors are required to file their proofs of debt by July 17,
2008, to be included in the company's dividend distribution.
The company's liquidator is:
C. P. White
HLB Mann Judd
Chartered Accountants
Level 1, 160 Queen Street
Melbourne VIC 3000
Australia
PAN PHARMACEUTICALS: To Declare Dividend on July 16
---------------------------------------------------
Pan Pharmaceuticals Limited will declare dividend on July 16,
2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in company's dividend distribution.
The company's liquidator is:
A. G. McGrath
McGrathNicol
Level 9, 10 Shelley Street
Sydney NSW 2000
Australia
Website: www.mcgrathnicol.com
SMARTPAK (AUSTRALIA): To Declare Dividend on August 15
------------------------------------------------------
Canary Candles Pty Ltd will declare dividend on Aug. 15, 2008.
Creditors have until July 16, 2008, to file their proofs of debt
to be included in the company's dividend distribution.
The company's liquidator is:
Anthony Milton Sims
SimsPartners
Level 5, 55 Hunter Street
Sydney NSW 2000
Australia
SOUNDTRACK FASTENERS: To Declare Divided on July 17
---------------------------------------------------
Soundtrack Fasteners Pty Limited will declare dividend on
July 17, 2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in company's dividend distribution.
The company's liquidator is:
Peter P. Krejci
GHK Ferrier Green Krejci Silvia
Level 13, 1 Castlereagh Street
Sydney NSW 2000
Australia
TIFAM INVESTMENTS: To Declare Dividend on July 22
-------------------------------------------------
Tifam Investments Pty Limited will declare dividend on July 22,
2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in the company's dividend distribution.
The company's liquidator is:
John Gibbons
Keiran Hutchison
Ernst & Young
Ernst & Young Centre
680 George Street
Sydney NSW 2000
Australia
Telephone: (02) 8295 6590
TIFAM TRADING: To Declare Dividend on July 22
---------------------------------------------
Tifam Trading Pty Limited will declare dividend on July 22,
2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in the company's dividend distribution.
The company's liquidator is:
John Gibbons
Keiran Hutchison
Ernst & Young
Ernst & Young Centre
680 George Street
Sydney NSW 2000
Australia
Telephone: (02) 8295 6590
WESTERN DISTRICTS: Final Meeting Slated for July 17
----------------------------------------------------
Western Districts Security Pty Ltd will hold a joint meeting for
its members and creditors at 10:00 a.m. on July 17, 2008.
During the meeting, the company's liquidator David G. Young at
Pitcher Partners, will provided attendees with property disposal
and winding-up reports.
The liquidator can be reached at:
David G. Young
Pitcher Partners
Level 22, MLC Centre
19 Martin Place
Sydney NSW 2000
Australia
WILLETTS CONTRACTING: To Declare Dividend on August 6
-----------------------------------------------------
Willetts Contracting Pty Limited will declare dividend on
Aug. 6, 2008.
Creditors have until today, July 15, 2008, to file their proofs
of debt to be included in the company's dividend distribution.
The company's liquidator is:
Richard William Buckby
KordaMentha (NQ)
Level 1, 150 Walker Street
Townsville QLD 4810
Australia
WILLIAMS ENTERPRISES: To Declare Dividend on August 6
-----------------------------------------------------
Williams Enterprises Pty Limited fka David Williams Auto
Electrical will declare dividend on Aug. 6, 2008.
Creditors are required to file their proofs of debt today, July
15, 2008, to be included in the company's dividned distribution.
The company's liquidator is:
Richard William Buckby
KordaMentha (NQ)
Level 1, 150 Walker Street
Townsville QLD 4810
Australia
Telephone: (07) 4724 5455
Facsimile: (07) 4724 5405
=========
C H I N A
=========
AGRICULTURAL BANK: May Delay Taking in Foreign Investors
--------------------------------------------------------
The Agricultural Bank of China is considering suspending a
plan to take in strategic foreign investors prior to an
initial public offering, XFN-ASIA News reports, citing South
China Morning Post.
The bank, the report relates, is likely to put off the plan
until after a listing amid renewed criticism that stakes in the
other big-four banks were sold cheaply to foreign investors.
The other major state-owned banks - Industrial and Commercial
Bank of China, China Construction Bank and Bank of China - all
sold shares to global investors during their restructuring prior
to their listings, the report notes.
About Agricultural Bank of China
Agricultural Bank of China -- http://www.abchina.com/-- is the
mainland's fourth largest bank. It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.
* * *
In May 2008, a Xinhua News report said Agricultural Bank of
China's non-performing loan (NPL) ratio increased 0.07
percentage points to 23.5% last year as it assessed bad loans
more strictly to prepare for a share-holding reform.
The bank, the report relates, reported its NPLs at CNY817.97
billion (US$116.9 billion) as of the end of 2007 in its annual
report.
The Bank carries an 'E' Individual rating from Fitch Ratings.
CHINA SOUTHERN: Citigroup Suggests "Sell" on Operating Losses
-------------------------------------------------------------
Citigroup has maintained its "sell" rating for China Southern
Airlines, with a projected first-half profit likely supported by
non-operating earnings, XFN-ASIA News reports.
According to the report, Citigroup said, "we expect the airline
to have made a CNY527 million net profit in the first half,
thanks to CNY2.5 billion forex gains on a 6.4% appreciation (in
the Chinese currency), but earnings quality may have sharply
deteriorated."
The report says Citigroup noted that on a recurring basis, the
airline company is expected to have made a net loss of CNY1.1-2
billion in the first half, with the forex gains "saving the
day."
Meanwhile, XFN-ASIA relates that Citigroup said traffic has
shown a steady decline, with expectations that it will worsen in
the second half, on fuel increase and the slow appreciation of
China's local currency.
About China Southern
Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2008, Fitch Ratings affirmed China Southern Airlines
Co. Ltd.'s "B+" Long-term Foreign Currency and Local Currency
Issuer Default Ratings. The Outlook on the ratings is Stable.
* CHINA: China National's Fuel Hike Puts Pressure on Airlines
-------------------------------------------------------------
China National Aviation Fuel Group Corporation, China's state-
owned major jet oil provider, has raised the aviation oil price
by US$103 a tonne, a move that adds pressure on ailing airlines,
Businesses Standards reports.
According to the report, China National's hike, that would bring
the domestic aviation kerosene price to more than US$ 1019.9 per
tonne from July, comes close on the heels of National
Development and Reforms Commission, China's top economic
planner, raising jet fuel prices by US$ 218.55 a tonne from
June 20.
The government, the report relates, allowed an increase in fuel
prices in the last eight months aiming to bring some relief to
refineries reeling from losses. Jet oil providers have
incurred losses due to soaring oil prices in the international
market and a relatively low government-regulated domestic price
that hinders them to pass on the increased costs to buyers, the
report notes.
Ma Xiaoli, a CITIC Securities Co researcher told XFN-ASIA that
the rising aviation oil price had put great operational pressure
on the airlines as it contributed a major part of the cost.
Expenditure of domestic airlines on aviation oil might rise by
30% if the price remained at a high level, Zhang Xun, an analyst
with the CITIC, also said.
China Southern Airlines Chairman Liu Shaoyong, XFN-ASIA relates,
said airliners faced tough times on rising fuel prices. Jet
fuel costs accounted for more than 40% of China's Southerns
total cost and its operation cost shot up by US$2.18 billion in
a year because of oil price rises, he added.
===============
H O N G K O N G
===============
ASCENTRAL HONG KONG: Members' Final Meeting Set on August 8
-----------------------------------------------------------
The members of Ascentral Hong Kong Limited will have their final
general meeting on August 8, 2008, at 8th Floor and 10-13th
Floor of PCCW Tower, Taikoo Place, 979 King's Road, Quarry Bay,
in Hong Kong to hear the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidators can be reached at:
Chan Wah Tip, Michael
Ho Man Kei, Keith
8th Floor and 10-13th Floor of PCCW Tower
Taikoo Place, 979 King's Road
Quarry Bay, Hong Kong
BANUDON COMPANY: Appoints New Liquidator
----------------------------------------
The members of Banudon Company Limited appointed Sandy Yung
Sheung as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
BILLION NICE: Creditors' Fist Meeting Set Today
-----------------------------------------------
The members of Billion Nice Industries Limited will have their
final general meeting today, July 15, 2008, at Room 202 of Duke
of Windsor Socail Service Building, 22nd Floor, No. 15 Hennessey
Road, Wan Chai, in Hong Kong to hear the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator can be reached at:
Chris Ball
Alexandra House, 27th Floor
18 Charter Road, Central
Hong Kong
BIZARRO SUN: Appoints New Liquidator
------------------------------------
The members of Bizarro Sun Company Limited appointed Sandy Yung
Sheung as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
BOLIN INVESTMENT: Appoints New Liquidator
-----------------------------------------
The members of Bolin Invetments Limited appointed Sandy Yung
Sheung as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
BOOFUN COMPANY: Appoints New Liquidator
---------------------------------------
The members of Buofun Company Company Limited appointed Sandy
Yung Sheung as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
CARRY SHINE: Appoints New Liquidator
-----------------------------------
The members of Carry Shine Limited appointed Sandy Yung Sheung
as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
CHEER KENT: Appoints New Liquidator
-----------------------------------
The members of Cheer Kent Limited appointed Sandy Yung Sheung as
the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
DANUBIO COMPANY: Appoints New Liquidator
----------------------------------------
The members of Danubio Company Limited appointed Sandy Yung
Sheung as the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
DUNRISE LIMITED: Appoints New Liquidator
----------------------------------------
The members of Dunrise Limited appointed Sandy Yung Sheung as
the company's liquidator.
The liquidator can be reached at:
Sandy Yung Sheung
Sun Hung Kai Centre, 45th Floor
30 Harbour Road, Hong Kong
EXCEL INT'L: Creditors' Fist Meeting Set Today
-----------------------------------------------
The members of Excel International Holdings Limited will have
their final general meeting today, July 15, 2008, at Room 202 of
Duke of Windsor Socail Service Building, 22nd Floor, No. 15
Hennessey Road, Wan Chai, in Hong Kong to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidator can be reached at:
Chris Ball
Alexandra House, 27th Floor
18 Charter Road, Central
Hong Kong
HERCULES: Merges With Ashland to Build US$3.3BB Chemical Firm
-------------------------------------------------------------
Hercules Inc. and Ashland Inc. have entered into a definitive
merger agreement under which Ashland would acquire all of the
outstanding shares of Hercules for US$18.60 per share in cash
and 0.093 of a share of Ashland common stock for each share of
Hercules common stock. The total transaction value is
approximately US$3.3 billion, or US$23.01 per Hercules share
based on Ashland's July 10 closing stock price and including
US$0.7 billion of net assumed debt. The transaction, which would
create a major, global specialty chemicals company, is expected
to close by the end of calendar 2008.
With sales in more than 100 countries, Ashland is a manufacturer
of specialty chemicals, a leading distributor of chemicals and
plastics, and a provider of automotive lubricants, car-care
products and quick-lube services. Hercules is a leader in
specialty additives and ingredients that modify the physical
properties of water-based systems and is one of the world's
leading suppliers of specialty chemicals to the pulp and paper
industry.
Upon the transaction's close, Ashland will have pro form a
combined revenue for the 12 months ended March 31, 2008, of more
than US$10 billion, including approximately US$3.5 billion
generated outside North America. For the same period, Ashland
generated earnings before interest, taxes, depreciation and
amortization (EBITDA) of US$365 million excluding certain items,
while Hercules reported ongoing EBITDA of US$392 million
excluding certain items. Specialty chemicals, which on a pro
forma basis represents approximately 75 percent of total EBITDA,
will serve as Ashland's primary platform for future growth.
Ashland Chairman and Chief Executive Officer James J. O'Brien
said, "The acquisition of Hercules fulfills our objective to
become a leading specialty chemicals company. It creates a
defined core for Ashland composed of three specialty chemical
businesses with strong market positions and promising global
growth potential: specialty additives and ingredients, paper and
water technologies, and specialty resins. In addition, we expect
our financial profile to be enhanced significantly through
reduced earnings volatility, improved profitability and stronger
cash flow generation."
Hercules President and Chief Executive Officer Craig A. Rogerson
said, "We are enthusiastic about the opportunity to combine
Hercules with Ashland. Our companies share proud and similar
histories of nearly 100 years of innovation, dedication and
service. Hercules shareholders will receive a significant
premium over the current trading price for their shares and,
through their ownership of Ashland shares, the opportunity to
participate in the upside potential of the combined company. We
look forward to working with Ashland to bring these two great
companies together."
In specialty additives and ingredients, Hercules' Aqualon
business is one of the most recognized and admired specialty
chemical brands in the world and brings Ashland a significant
market position in rheology modifiers, which alter the physical
properties of water-based systems. These additives are used
across a wide range of industries to make everything from
adhesives and paints to foods, pharmaceuticals and personal care
products. Nearly all of Aqualon's additive products are water
soluble polymers derived from renewable materials. The combined
company generates, on a pro forma basis, approximately one-third
of EBITDA from bio-based or renewable chemistries.
"We will combine the paper and water businesses of each company
to create one global paper and water technologies business with
annual revenue of US$2 billion," said O'Brien. "In particular,
Hercules' leadership position in pulp and paper technologies
bolsters our participation in one of the world's largest water
treatment markets. The combined businesses will provide the
scale to leverage opportunities in other key water treatment
markets including municipal, industrial and marine.
"The third business within our new core – specialty resins – is
one where Ashland has long enjoyed a strong reputation for
innovation and service. A broader international footprint will
offer the specialty resins business expanded global growth
opportunities in key building and construction markets,
including infrastructure and wind energy. In addition, our
Distribution and Valvoline businesses provide complementary
capabilities and share similar markets with the specialty
chemical businesses," said O'Brien.
Ashland expects to realize annualized run-rate cost savings of
at leastUS$50 million by the third year following the
transaction's close by eliminating redundancies and capturing
operational efficiencies. In the first year following the
transaction's close, while the combination is modestly dilutive
to earnings per share on a reported basis, it is expected to be
significantly accretive to Ashland's earnings per share
excluding merger costs and noncash depreciation and amortization
charges resulting from the transaction.
O'Brien continued, "We are extremely impressed with the quality
of the Hercules people and we look forward to welcoming them
into the Ashland family. Our companies share a common desire to
live up to our own high expectations, and those of our
customers, shareholders and the communities in which we operate.
We are also very pleased that John Panichella, president of
Hercules' Aqualon Group, and Paul Raymond, president of
Hercules' Paper Technologies and Ventures Group, have agreed to
join Ashland after the close of the transaction, reporting
directly to me. In addition, we expect to maintain a
significant presence in Wilmington, Del., where Hercules is
headquartered.
"An integration team with members from both organizations will
determine how best to utilize the strengths and scale of the
combined company worldwide. We will work with the Hercules team
to ensure a smooth transition," concluded O'Brien.
Transaction Details
The merger is conditioned upon, among other things, the approval
of Hercules' shareholders, the receipt of regulatory approvals
and other customary closing conditions. Assuming the
satisfaction of these conditions, the transaction is expected to
close by the end of calendar 2008.
The cash portion of the consideration will be funded through a
combination of cash on hand and committed debt financing from
Bank of America and Scotia Capital, subject to customary terms
and conditions. Ashland plans to use the cash flows of the
combined organization to pay down debt with a goal of attaining
investment-grade credit ratings within two to four years after
closing the transaction.
Under the terms of the definitive merger agreement, Hercules
would be required to pay Ashland a fee of US$77.5 million under
certain circumstances including if Hercules terminates the
merger agreement to accept a superior offer, and Ashland would
be required to pay Hercules a fee in the same amount if the
transaction is not completed due to a failure to obtain
financing at the time the conditions to the merger have been
satisfied.
Citigroup Global Markets Inc. acted as financial advisor, and
Squire, Sanders & Dempsey LLP acted as legal counsel, to
Ashland. Credit Suisse Securities (USA) LLC acted as financial
advisor, and Wachtell, Lipton, Rosen & Katz acted as legal
counsel, to Hercules.
About Ashland Inc.
Ashland Inc. -- http://www.ashland.com/-- is a diversified
global chemical company. A FORTUNE 500 company, it operates
through four divisions: Ashland Performance Materials, Ashland
Distribution, Valvoline and Ashland Water Technologies.
About Hercules Inc.
Hercules Incorporated is a leading global supplier of specialty
chemicals and related services for the paper, paint, consumer
products, construction materials and energy markets. Hercules
operates through two business segments the Paper Technologies
and Ventures segment and the Aqualon Group and owns a minority
interest in FiberVisions, a maker of polyolefin staple fibers,
fibers, and yarn as well as polypropylene fibers for the use in
such products as personal care, diapers, and wipes. The company
had revenues of US$2.2 billion for the LTM ended March 31, 2008.
Outside the United States, the company has subsidiaries in
Argentina, Bahamas, Belgium, Brazil, Hong Kong, India, Indonesia
and France.
HERCULES INC: Moody's May Cut Ba1 Rating on Ashland Merger
----------------------------------------------------------
Moody's Investors Service placed the Ba1 corporate family rating
and other debt ratings of Hercules, Inc. (Hercules) under review
for possible downgrade. The reviews are prompted by the
announcement that the Boards of Ashland, Inc. (Ashland - CFR
Ba1) and Hercules approved a definitive merger agreement under
which Ashland would acquire all of the outstanding shares of
Hercules in the form of US$18.60 per share in cash and 0.093 of
a share of Ashland common stock for each share of Hercules
stock. The total transaction value would be approximately
US$3.3 billion, or US$23.01 per Hercules share based on
Ashland's July 10 closing stock price and including US$0.7
billion of net assumed debt. Ashland will be the surviving
entity in the merger. Hercules' LGD assessments are not under
review and these assessments and point estimates are subject to
change as a function of the new capital structure of the merged
entities. Moody's expects all of the Hercules debt to be
refinanced as a result of the merger with the exception of the
6.5% junior subordinated deferrable interest debentures due
2029.
While Ashland has almost no debt currently, the acquisition will
result in the merged companies taking on a material amount of
debt that will put the current Ashland Ba1 corporate family
rating under negative pressure and would likely result in a one
notch downgrade in the corporate family rating to Ba2, provided
there is no change in the purchase price and other deal and
financing terms, as announced, and assuming no material changes
to the outlook for the merged companies raw material costs and
end markets. Upon the transaction's close, Ashland/Hercules will
have pro form a combined revenue for the 12 months ended
March 31, 2008, of more than US$10 billion and earnings before
interest, taxes, depreciation and amortization (EBITDA) ofUS$757
million excluding certain items.
The merger is conditioned upon, among other things, the approval
of Hercules' shareholders, the receipt of regulatory approvals
and other customary closing conditions. Assuming the
satisfaction of these conditions, the transaction is expected to
close by the end of calendar 2008.
Moody's rating review will consider the nature and structure of
the acquisition financing, as well as focus on the strategic
benefits of the transaction, potential synergies, the cash flow
anticipated from the combined businesses, the combined company's
financial flexibility and liquidity and how management's long-
term plans will impact the company's credit measures.
Ratings placed on review for possible downgrade:
Hercules, Inc.
* Corporate Family Rating, Ba1
* Probability of Default Rating, Ba1
* Senior Secured Bank Credit Facility, Baa2, 15% - LGD2
* Senior Secured Regular Bond/Debenture, Baa2, 15% - LGD2
* Senior Unsecured Regular Bond/Debenture, Ba1, 62% LGD4
* Junior Subord. Regular Bond/Debenture, Ba2, 92% - LGD6
* Subord. Conv./Exch. Bond/Debenture, Ba2, 92% - LGD6
Outlook Action: Outlook, Changed To Rating Under Review From
Positive
About Hercules Inc.
Hercules Incorporated is a leading global supplier of specialty
chemicals and related services for the paper, paint, consumer
products, construction materials and energy markets. Hercules
operates through two business segments the Paper Technologies
and Ventures segment and the Aqualon Group and owns a minority
interest in FiberVisions, a maker of polyolefin staple fibers,
fibers, and yarn as well as polypropylene fibers for the use in
such products as personal care, diapers, and wipes. The company
had revenues of US$2.2 billion for the LTM ended March 31, 2008.
Outside the United States, the company has subsidiaries in
Argentina, Bahamas, Belgium, Brazil, Hong Kong, India, Indonesia
and France.
PO FAT: Members' Final Meeting Set on August 4
----------------------------------------------
The members of Po Fat Company Limited will have their final
general meeting on August 4, 2008, at 38th Floor of Tower One,
Lippo Centre, 89 Queensway, in Hong Kong to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator can be reached at:
Kenneth Raymond Deayton
38th Floor of Tower One
Lippo Centre, 89 Queensway, Hong Kong
SINO STARES: Creditors' Proofs of Debt Due on July 20
------------------------------------------------------
The creditors of Sino States Development Limited are required to
file their proofs of debt by July 20, 2008, to be included in
the company's dividend distribution.
The company's liquidators are:
Andrew George Hung
Yau Sun Yu, Sonia
16th Floor of Grand Centre
Room 1603, 8 Humphrey Avenue
Tsimshatsui, Hong Kong
TRANSFUL LIMITED: Commences Liquidation Proceedings
---------------------------------------------------
Transful Limited's members agreed on June 27, 2008, to
voluntarily liquidate the company's business. The company has
appointed Lee King Yue to facilitate the sale of its assets.
The liquidator can be reached at:
Lee King Yue
72-76th Floor of Two International Finance Centre
8 Finance Street, Central, Hong Kong
UNIVERSAL VENTURE: Liquidators Quit Post
----------------------------------------
On June 24, 2008, Natalia Seng Sze and Cynthia Wong Tak Yee
stepped down as liquidators for Universal Venture Development
Limited.
=========
I N D I A
=========
DOLPHIN OFFSHORE: Bullish on Expansion Despite Tough FY2008
-----------------------------------------------------------
Dolphin Offshore Enterprises India Ltd is considering buying
marine assets worth about US$100 million and already has bid for
Rs 2,000-crore contracts for seven upcoming sub-sea projects,
Archana Shukla of Daily News & Analysis reports.
According to DNA, Dolphin Offshore has submitted its bid to Oil
and Natural Gas Corporation Ltd. (ONGC) for three tenders for
turnkey contracts that are expected to be valued in excess of Rs
600 crore and is also close to finalising two sub-contracts with
Punj Lloyd for sub-sea installation of platforms and a pipeline
by August this year.
As part of the consortium led by Larsen & Toubro, Dolphin
Offshore is also eyeing three other contracts — two for revamp
of process platforms and one Smart Instrumentation programme,
the report adds.
DNA says the company also plans to buy construction barges,
cargo barges and tugs and anchor handling tug supply vessels.
Dolphin currently has a fleet of 12 vessels and has two
workboats and a construction barge under construction, which
will be delivered by November this year and March 2009,
respectively.
Business Standard relates that Dolphin is aiming to increase its
overseas revenues by over twenty-five times to Rs 500 crore in
three-four years as demand for offshore services rises.
The company, Business Standard says, is eyeing a total revenue
of Rs 1,000 crore in the same period, up from Rs 227 crore in
2007-08. It recorded a 10.6 per cent growth in revenues in
2007-08 over the previous year, with contribution from overseas
operations at 10 per cent.
Meanwhile, Ramkrishna Kashelkar of The Economic Times reports
that despite a boom in offshore exploration, Dolphin Offshore
had a tough FY08 due to unpaid dues by its key customer, weak
dollar and adverse weather. The Times said outstanding dues
from a couple of ONGC’s contracts increased its debt burden,
while adverse weather cut the offshore working season to 5.5
months, against the normal 7-8 months, leading to delays.
Profit growth mainly came from extraordinary profits from sale
of two vessels, the Times added.
About Dolphin Offshore
India-based Dolphin Offshore Enterprises India Ltd. is engaged
in providing services, such as diving and underwater services,
marine operations and management services, turnkey marine
construction services, topside/fabrication services, inspection,
maintenance, repairs and modification of offshore structures and
ship repair services. The company’s customers include Larsen &
turbo Ltd., Engineers India Ltd. and EPTM. It is providing ROV
services to ONGC on board their drill ships Sagar Vijay and
Sagar Bhushan. In August 2006, the company acquired Procyon
Offshore Services Pvt Ltd (Procyon). Procyon's main business
activity is ship owning, and it has a fleet of seven tugs and
one utility vessel.
RANBAXY LABORATORIES: DOJ Probe May Affect US Market Share
----------------------------------------------------------
The U.S. Department of Justice is seeking court permission to
access privilege records of Ranbaxy Laboratories' internal
audits and operations citing evidence that suggests the
drugmaker used active pharmaceutical ingredients (API) from
unapproved sources, blended unapproved API with approved API,
and used less-than-approved API at its Paonta Sahib (Himachal
Pradesh) plant in its drugs, resulting in the sale of
‘subpotent, super potent or adulterated medicines’ in the US
market, Khomba Singh of The Economic Times reports.
Court papers cited by the Times say the DOJ is investigating
Ranbaxy and certain employees concerning violations of federal
laws including the Federal Food, Drug, and Cosmetic Act through
the introduction of adulterated and misbranded products in the
US.
The investigations also involve allegations of conspiracy, false
statements and healthcare frauds, the Times adds.
Ranbaxy has denied the charges.
”To the extent that Ranbaxy was previously aware of these
(unapproved API) allegations, it has investigated them and has
found no evidence of truth,”
a Ranbaxy spokesperson told the Times.
According to the Times, the US market accounted for around 23%
of Ranbaxy’s total revenues of US$1.6 billion in 2007 and if the
US government is able to prove its charges, it could have a
severe impact on the company’s operations in that country and
possibly elsewhere too.
Meanwhile, the Times says, Japanese drug major Daiichi Sankyo
Co., which announced the takeover of Ranbaxy last month, may
also have reasons to be concerned, although the Indian company
is disputing most of the allegations.
However, Daiichi Sankyo spokesman Mamoru Tsunoda told Bloomberg
News that the investigation doesn't affect the agreement they
reached last month.
According to Bloomberg News, Ranbaxy fell 8 percent, or 42.15
rupees, to 490 rupees in Mumbai trading at 9:57 a.m. local time
on news of the DOJ action while shares of Daiichi Sankyo fell
175 yen, or 5.5 percent, to 2,985 yen on the Tokyo Stock
Exchange after falling as much 5.9 percent at 2,975 yen.
Ranbaxy Laboratories Limited -- http://www.ranbaxy.com/-- along
with its subsidiaries and associates operates as an integrated
international pharmaceutical organization with businesses
encompassing the entire value chain in the production, marketing
and distribution of dosage forms and active pharmaceutical
ingredients. It has manufacturing facilities in 11 countries,
namely Brazil, China, India, Ireland, Japan, Malaysia, Nigeria,
Romania, South Africa, the United States of America and Vietnam.
Its major markets include the United States of America, India,
Europe, Russia / CIS, Brazil and South Africa. The major
products include, inter alia, Simvastatin, CoAmoxyclav,
Amoxycillin, Ciprofloxacin, Isotretinon and Cephalexin. Its
research and development activities are principally carried out
at its facilities in Gurgaon, near New Delhi, India. RLL’s
segments include Pharmaceuticals and Other businesses. During
the year ended December 31, 2007, RLL acquired 24.91% of Shimal
Reasearch Laboratories Limited.
SPICEJET: Chairman Quits, Stock Tumbles to 3-Month Low
------------------------------------------------------
SpiceJet Ltd. shares fell 13 percent to 28.05 rupees at 10:27
a.m. in Mumbai, its lowest in more than three months, after
Executive Chairman and CEO Siddhanta Sharma said he will quit
the company due to personal reasons, Vipin V. Nair writes for
Bloomberg News.
“It's not a great sign to see an existing team move out at this
point of time, when they are in the middle of all this,” Nikhil
Vora, a Mumbai-based analyst at IDFC-SSKI Securities Pvt told
Bloomberg News. “This is really a tough time for low-cost
airlines to survive in this market.”
The Economic Times says the SpiceJet board of directors has
accepted the resignation of Mr. Sharma even as the talks between
the low-cost carrier and financial investors are on for fund
infusion.
Reports say the airline is seeking at least US$100 million
(Rs431 crore) to boost its working capital and has appointed
merchant bankers Rothschild for the transaction.
SpiceJet has also reserved an option of merger to raise funds,
Keshav Seth of TopNews says.
With the ever mounting losses, the Economic Times relates, it
was reported that SpiceJet was either look at a merger with
Kingfisher Airlines , which is promoted by liquor baron Vijay
Mallya, or a possible infusion from US distress fund Wilbur
Ross, which is willing to pump in money.
According to The Hindu Business Line, SpiceJet is learnt to be
keen on accepting the offer from WL Ross as the company is known
to be a turnaround specialist -- something the airline needs
badly after three straight years of losses.
Goldman Sachs has also expressed interest in acquiring equity in
SpiceJet, the Business Standard reports citing unnamed sources.
SpiceJet Limited -- http://www.spicejet.com/-- is an airline
carrier in India. During the fiscal year ended May 31, 2007
(fiscal 2007), the company increased its fleet size to 11
aircrafts covering 14 destinations and operating 83 daily
flights. The aircrafts acquired during fiscal 2007, were the
next generation Boeing737-800. The company has also integrated
with Tata AIG Insurance Company Limited to commence travel
insurance sales, which was launched in May 2007.
* * *
Spicejet incurred net losses for at least two consecutive years
-- INR414.2 million in the year ended May 31, 2006, and
INR287.05 million in the year ended May 31, 2005. The company
changed its financial year from June-May to April-March. For
the ten months ended March 31, 2007, the airline carrier booked
a net loss of INR707.43 million.
The Hindu Business Line reported that SpiceJet posted a loss of
Rs 133.51 crore during 2007-08, which was about 98 per cent more
than the previous year.
=========
J A P A N
=========
CBO ALL JAPAN: S&P Lowers Rating on Class B Notes to 'CCC-'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the
class B notes issued under the CBO All Japan Tokutei Mokuteki
Kaisha series one transaction to 'CCC-' from 'B-'. At the
same time, Standard & Poor's removed the rating from CreditWatch
with negative implications. Standard & Poor's meanwhile affirmed
its ratings on the class A, C, and D notes.
As of the end of June 2008, the bond administrator reported a
cumulative default amount of JPY6.68 billion (the default amount
of the underlying asset pool, comprising private placement bonds
issued by Japanese small or midsize enterprises, or SMEs), and a
cumulative amount of recoveries from defaulted underlying bonds
of about JPY190 million. At this point, the cumulative excess
spread used as credit enhancement is approximately JPY1.56
billion. Assuming no further defaults, the excess spread should
accumulate to about 2JPY.17 billion in aggregate by the
underlying bonds' maturity date of March 2009. Meanwhile,
the initial subordinated portion of the class B notes stands at
JPY4.45 billion, that of the class C notes at JPY3.75 billion,
and that of the class D notes at JPY3.45 billion.
Full redemption of principal on the class B notes would be
required to limit the net loss increase (future cumulative
defaults less recoveries from defaulted SME bonds) to about
JPY130 million by maturity. Accordingly, as the class B notes
have become vulnerable to principal losses at maturity, Standard
& Poor's lowered its rating on the class B notes. In addition,
avoiding any principal losses on the class C and D notes at
maturity would require that:
(1) additional recoveries from past defaulted underlying
bonds exceed JPY570 million (class C) and JPY870 million
(class D), and there are no further defaults on
underlying bonds; or
(2) the total amount of recoveries exceeds the combined
amount of future defaults and required additional
recoveries from past defaulted bonds as indicated by
point (2).
Since Standard & Poor's structured finance ratings only address
the full payment of principal by the final legal maturity date,
they do not incorporate any assessment of principal recovery
post default of the rated notes.
Although Mizuho Bank's bond administration reinforcement program
has had some positive effects on the transaction's performance,
Standard & Poor's analysis suggests that the credit quality of
the underlying SME portfolio has been deteriorating, reflecting
the difficult macroeconomic environment for Japanese SMEs. In
addition, defaults from the real estate sector, which accounts
for about 22.3% of the initial outstanding balance of the asset
pool, have been increasing recently. There had been no such
defaults up to the end of January 2008. Standard & Poor's views
these real estate defaults as an additional risk factor for the
transaction's future performance.
Rating Lowered, Removed from Creditwatch
CBO All Japan Tokutei Mokuteki Kaisha JPY88.1 billion fixed-rate
series one notes:
Class To From Issue Amount Final maturity date
----- -- ---- ------------ -------------------
B CCC- B-/Watch Neg JPY83.1 bil. July 2009
Ratings Affirmed
Class Rating Issue amount Final maturity date
----- ------ ------------ -------------------
A AAA JPY4.0 bil. April 2009
C CCC- JPY0.7 bil. July 2009
D CCC- JPY0.3 bil. July 2009
SHINSEI BANK: Inks JPY580 Bil. Acquisition Deal With GE Japan
-------------------------------------------------------------
Shinsei Bank Limited has signed an agreement with GE Japan
Holdings, the consumer financial services unit of General
Electric Company, to acquire its high-quality Japanese consumer
finance business, GE Consumer Finance Co. Ltd., and its
subsidiaries for an all cash consideration of JPY580 billion
from internal funding sources.
Under the terms of the agreement, Shinsei Bank will acquire the
total assets of the personal loan portfolio that operate under
the well-established Lake brand, as well as the credit card and
mortgage businesses. Shinsei expects the acquisition to be
immediately EPS accretive.
This transaction reflects a unique strategic opportunity to
redefine and modernize the Japanese consumer finance industry by
adding an experienced, highly-regarded management team and a
robust brand representing 2.2 million new accounts from 1,138
branches and total loans outstanding of JPY884 billion [as of
December 31, 2007] to Shinsei's award-winning retail bank and
existing consumer finance platform. In particular, the Lake
brand brings to Shinsei a business with strong credit
performance and low default rates. Shinsei expects to realize
significant synergies with its existing businesses, including:
-- Financial synergies based on the combination of our retail
banking and consumer finance businesses under one management
structure;
-- Mid- to long-term synergies from a customer and revenue
perspective, and;
-- Operational and cost based synergies – e.g., secure, low-
cost and highly flexible IT platform
In December 2006, the Japanese Diet made legislative changes
regarding consumer loan interest rates that have had a
significant impact on the consumer finance industry. Through
the integration of retail and consumer finance businesses into
one strategic pillar, Shinsei is well-positioned to redress the
compressed margins and funding challenges created by legacy grey
zone liabilities. Through the addition of GE Consumer Finance
to its portfolio of businesses, Shinsei is solidifying its
position as a leader in consumer finance, providing a bank-
sponsored lending model that is sustainable for both lenders and
borrowers.
As part of the acquisition, Shinsei Bank is managing risk by
containing legacy grey zone liabilities through a combination of
substantial reserves and a seller's indemnification clause in
the purchase agreement that limits exposure to potential loss
positions. According to the indemnity arrangement, Shinsei Bank
will assume the initial first loss position of up to JPY203
billion. Shinsei will then share with GE potential losses from
JPY203 billion to JPY260 billion, after which GE will cover any
additional losses. Shinsei intends to fully provision for its
share of grey zone liabilities, including a small portfolio
not covered by the indemnity at the closing. Shinsei Bank's
maximum grey zone liability for assets subject to the indemnity
is JPY206 billion and will be fully provisioned for at the
closing.
Thierry Porte, President and CEO of Shinsei Bank, commented on
the transaction: "This acquisition is a critical next step in
our pioneering approach to redefine consumer finance in Japan.
We're acquiring a high-quality portfolio with a great management
team, solid customer base built on a strong brand while also
providing value to our shareholders. By integrating GE's
consumer finance business into an innovative model that is
buttressed by our award-winning retail bank, best-in-class
corporate governance, compliance, risk management and IT
expertise, Shinsei is uniquely positioned to be a game changer
in this industry."
The transaction is subject to closing conditions, including
regulatory approvals, and is expected to be completed in the
second quarter ending September 30, 2008.
About Shinsei Bank
Headquartered in Tokyo, Japan, Shinsei Bank Ltd --
http://www.shinseibank.com/-- is a financial institution
providing a full range of financial products and services to
both institutional and retail customers based on a three-pillar
strategic business model comprising institutional banking,
consumer and commercial finance and retail banking. The Bank
has total assets of 11.5 trillion yen (US$115 billion) on a
consolidated basis (as of March 2008) and a network of 41
outlets that includes 35 Shinsei Financial Centers, 2 Platinum
Centers and 4 BankSpots in Japan.
* * *
Shinsei Bank Ltd continues to carry a "BB" Subordinated Debt
rating, which was placed by Mikuni Credit Ratings on October 25,
2006.
* JAPAN: Shinsei Bank CEO Sees Recovery From 2-Year Slump
---------------------------------------------------------
Shinsei Bank Ltd. Chief Executive Officer Thierry Porte said the
industry is about to recover from its two-year slump, Takahiko
Hyuga and Susan Li of Bloomberg News reports.
Mr. Porte told the news agency that "I think we are arriving at
the bottom, and we can expect to move from here."
The report notes that three of Japan's four biggest consumer
lenders have sold convertible bonds this year to raise capital.
Promise Co., the second-largest by market value, fell the most
in six years on July 9 after scaling back a convertible bond
sale by 30%, citing "unstable"markets.
Shinsei's existing consumer-finance units Shinki Co. and Aplus
Co. returned to profit in the year ended March 31 after both
posted losses the previous year, Bloomberg News relates.
* JAPAN: Investors Focus on Long-Term as Credit Prices Rise
-----------------------------------------------------------
Japan's real estate investors, such as Morgan Stanley and
Blackstone Group LP, are focusing on longer-term investments as
financing becomes more expensive due to global credit crunch,
Shanghai Daily News reports.
The report relates that Marcus Merner, managing director at
Morgan Stanley Capital K.K. in Tokyo, said Morgan Stanley's real
estate fund, which doesn't hold assets for more than five years,
may consider holding on to properties for longer as borrowing
costs rise.
"From an underwriting perspective, our hold term is definitely
longer. I would love to say that we are going to be out of this
thing for the next 12 to 18 months, but I think Wall Street has
a while to go," Mr. Merner was cited by the Daily News as
saying.
===============
M A L A Y S I A
===============
N.T. HUAT KEE: Khor Ah Bah Files Wind-Up Petition Against Co.
-------------------------------------------------------------
N.T. Huat Kee Fisheries Sdn. Bhd. had been served with a wind-up
petition by Khor Ah Bah, who holds 150,000 ordinary shares of
MYR1.00 each representing 5% of the total issued and paid-up
capital of the company.
Khor Ah Bah states in the petition that:
* It was alleged that the Directors in control of the
management of N.T. Huat have acted in the affairs of the
company in their own interest rather than in the interest
of the members as a whole and/or in a manner which is
unfair and unjust to other members within the meaning of
Section 218(1)(f) of the Companies Act, 1965;
* it was alleged that with the breakdown of the mutual
confidence and underlying trust, which formed the basis of
the company, it would justify the winding up of the company
on the just and equitable principle within the meaning of
Section 218(1)(i) of the Act;
* the company be wound up by the Court Order under the
provisions of the Act;
* the Official Receiver be appointed as the Provisional
liquidator for the purpose of the winding up;
* such other order as the Honourable Court thinks fit; and
* the company bears the costs of the petition.
The Petition is scheduled for hearing on November 17, 2008, at
the High Court of Malaya at Penang.
As at the date of this announcement, the issued and paid-up
capital of the company is MYR3,000,000 divided into 3,000,000
ordinary shares of MYR1.00 each.
The company is currently seeking legal advice from its legal
adviser on the appropriate course of action to be taken to
vigorously defence the Petition.
N.T. Huat Kee is 75% owned by Cab Cakaran Corporation Berhad.
The company is principally involved in processing of fresh and
frozen fishes, prawns and other marine products and distribution
of marine products.
NTHK has incurred losses since its financial year ended
September 30, 2006. As a result of such winding-up, and should
such winding-up be carried out, the assets of NTHK may need to
be written down to their current recoverable amounts and
provisions be made for unamortized goodwill of MYR4,306,739,
inter-company advances as well as costs associated with the
winding-up proceeding which is expected to be MYR1,394,202. The
contingent liabilities in respect of the corporate guarantee
extended to NTHK for its banking facilities is MYR21,063,000.
PECD BERHAD: Court Sets Aug. 1 Meeting for Scheme Creditors
-----------------------------------------------------------
The Court of Appeals directed separate meetings for the Scheme
Creditors of PECD Berhad and PECD Construction Sdn. Bhd. On
August 1, 2008, at 9.00 a.m.
The agenda for the Meetings are:
-- to table the Initial Proposed Scheme of Arrangement
pursuant to Section 176(1) of the Companies Act, 1965 as
exhibited in the affidavit filed with the High Court of
Malaya on March 5, 2008, in support of the application for
these Meetings;
-- to propose modifications to the Initial Scheme as stated
in the Explanatory Statement;
-- to table the Initial Schemes as modified for the approval
of the Scheme Creditors;
-- entertain question; and
-- for voting on all the motions
The Court has also directed that the company's Chief Executive
Officer Rosman bin Abdullah and BinaFikir Sdn. Bhd.'s director
Amirul Feisal bin Wan Zahir be the financial advisers of the
Companies, and to act as Chairman of the Meetings and to report
the results of the Meetings to the Court.
About PECD Berhad
PECD Berhad is engaged in investment holding and provision of
management services. The company operates in four business
segments: construction, EPCC oil and gas, property development
and others. Its wholly owned subsidiaries include Peremba
Construction Sdn. Bhd., which is engaged in general construction
and investment holding and Wong Heng Engineering Sdn. Bhd.,
which is engaged in investment holding and engineering,
procurement, construction and commissioning emphasizing in the
oil and gas, as well as the power sectors. PECD Berhad's 70%-
owned subsidiary is Peremba Jaya Holdings Sdn. Bhd., which is
engaged in property development, construction and investment
holding.
* * *
Malaysian Rating Corp. Bhd downgraded PECD Berhad's
MYR200-million serial fixed rate bonds to BB+ from BBB-.
The rating outlook remains negative.
The downgrade reflects the major operational and strategic
challenges currently faced by PECD as well as continued
deterioration in its credit metrics, and recognizes the
increased execution challenges confronting management as it
pursues its turnaround strategy.
The Troubled Company Reporter-Asia Pacific reported on
March 7, 2008, that the company was classified as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' equity deficit reached MYR914.9 million
as at December 31, 2007.
====================
N E W Z E A L A N D
====================
646 VICTORIA: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Hamilton held a hearing on June 30, 2008, to
consider an application putting 646 Victoria (Hamilton) Limited
into liquidation.
The application was filed on May 19, 2008, by Kathryn Anne
Phillips.
The plaintiff's address for service is at:
Bogers Scott Shortland
221 Collingwood Street
Hamilton
Simon Francis Scott, is the plaintiff's solicitor.
BARDELL NEW ZEALAND: Wind-Up Petition Hearing Set for Aug. 6
------------------------------------------------------------
The High Court at Auckland will convene a hearing on Aug. 6,
2008, to consider an application putting Bardell New Zealand
Limited into liquidation.
The application was filed on April 28, 2008, by BDO Spicers.
The plaintiff's address for service is at:
Kensington Swan
18 Viaduct Harbour Avenue
Auckland
B. D. Gustafson,, is the plaintiff's solicitor.
DOVER HOLDINGS: Court Appoints Liquidators
-------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
High Court has appointed David Donald Crichton and Keiran Anne
Horne, chartered accountants of Crichton Horne & Associates
Limited, as liquidators of Dover Holdings Limited.
Creditors who were not able to file their proof of debts by July
9, 2008, were excluded from any dividend distribution.
Creditors and shareholders may direct their inquiries to:
Marie Inch
Crichton Horne & Associates Limited
Old Library Chambers
109 Cambridge Terrace (PO Box 3978)
Christchurch
Telephone: (03) 379 7929
Website: www.cha.co.nz
FRESCO SEAFOODS: Court Appoints Liquidators
-------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
High Court has appointed David Donald Crichton and Keiran Anne
Horne, chartered accountants of Crichton Horne & Associates
Limited, as liquidators of Fresco Seafoods Limited.
Creditors who were not able to file their proof of debts by
July 9, 2008, were excluded from any dividend distribution.
Creditors and shareholders may direct their inquiries to:
Marie Inch
Crichton Horne & Associates Limited
Old Library Chambers
109 Cambridge Terrace (PO Box 3978)
Christchurch
Telephone: (03) 379 7929
Website: www.cha.co.nz
FRESCO TRADING: Court Appoints Liquidators
-------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
High Court has appointed David Donald Crichton and Keiran Anne
Horne, chartered accountants of Crichton Horne & Associates
Limited, as liquidators of Fresco Trading Company Limited.
Creditors who were not able to file their proof of debts by
July 9, 2008, were excluded from any dividend distribution.
Creditors and shareholders may direct their inquiries to:
Marie Inch
Crichton Horne & Associates Limited
Old Library Chambers
109 Cambridge Terrace (PO Box 3978)
Christchurch
Telephone: (03) 379 7929
Website: www.cha.co.nz
PETKOVDEN COMPANY: Commences Liquidation Proceedings
----------------------------------------------------
The High Court at New Plymouth held a hearing on July 8, 2008,
to consider an application putting Pole Star Entertainment
Limited into liquidation.
The application was filed on May 5, 2008, by the Commissioner of
Inland Revenue.
The plaintiff's address for service is at:
Inland Revenue Department
Legal and Technical Services
1 Bryce Street (PO Box 432)
Hamilton
Telephone: (07) 959 0373
Facsimile: (07) 959 7614
Kay S. Morgan, is the plaintiff's solicitor.
POLE STAR: Commences Liquidation Proceedings
--------------------------------------------
The High Court at New Plymouth held a hearing on July 8, 2008,
to consider an application putting Pole Star Entertainment
Limited into liquidation.
The application was filed on Feb. 25, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at:
Inland Revenue Department
Legal and Technical Services
1 Bryce Street (PO Box 432)
Hamilton
Telephone: (07) 959 0373
Facsimile: (07) 959 7614
Kay S. Morgan, is the plaintiff's solicitor.
REZ 24/7: Commences Liquidation Proceedings
-------------------------------------------
The High Court at Auckland held a hearing on July 2, 2008, to
consider an application putting Rez 24/7 Limited into
liquidation.
The application was filed on May 20, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at:
Inland Revenue Department
Legal and Technical Services
17 Putney Way (PO Box 76198)
Manukau, Auckland 2241
Telephone: (09) 985 7274
Facsimile: (09) 985 9473
Sandra Joy North, is the plaintiff's solicitor.
ZENITH CONTRACTS: Wind-Up Petition Hearing Set for Aug. 5
---------------------------------------------------------
The High Court at Gisborne will convene a hearing on Aug. 5,
2008, to consider an application putting Zenith Contracts
Limited into liquidation.
The application was filed on May 2, 2008, by SI-Lodec (NZ)
Limited.
The plaintiff's address for service is at:
Sandford & Partners, Lawyers
Atlantic House
1208 Amohia Street (PO Box 99)
Rotorua
Email: law@sandfordpartners.co.nz
P. Sandford, is the plaintiff's solicitor.
* NEW ZEALAND: Motor Vehicles Pull Down Retail Sales
----------------------------------------------------
Seasonally adjusted total retail sales fell 1.2 percent (NZ$69
million) in May 2008, following a 1.2 percent rise in April
2008, Statistics New Zealand said.
The decrease was led by the motor vehicle retailing industry,
which has a strong influence on the total sales movement due to
its large size and volatility, down 14.8 percent (NZ$102
million). However, core retail sales, which excludes the
vehicle-related industries, rose 0.7 percent (NZ$27 million).
Following the motor vehicle retailing fall was furniture and
floor coverings, down 15.6 percent (NZ$21 million) in May 2008
after a rise of 8.4 percent in April 2008.
Of the industries that had the largest sales increases,
supermarket and grocery stores rose 3.0 percent (NZ$35 million),
followed by automotive fuel retailing, up 3.2 percent (NZ$19
million).
Fourteen of the 24 industries had modest sales movements, not
increasing or decreasing more than NZ$3 million.
The total retail sales trend has flattened since December 2007.
Among the regions, the largest decrease in May 2008 was recorded
for Canterbury, down 3.5 percent (NZ$26 million); followed by
Auckland, down 1.4 percent (NZ$24 million); and the Waikato,
down 2.8 percent (NZ$14 million).
* NEW ZEALAND: Widespread Fall in Property Values
-------------------------------------------------
June statistics for the residential property market report a
0.1% growth in national property values over the past year
(calculated over the three months ending June 2008 in comparison
to the same period last year), down on the 2.4% growth reported
in May. The average New Zealand sale price increased slightly
to NZ$392,436.
“Property values are clearly on the decline across most of New
Zealand’s major cities and main urban areas” said Glenda
Whitehead QV Valuations. “The Wellington region, parts of the
Auckland region, and some provincial areas are keeping the
national figure positive, but at a meagre 0.1% growth. The long
anticipated correction in the market, following the years of
boom times, is with us” said Ms. Whitehead.
“With market activity slowing dramatically, consumer confidence
knocked by increasing interest rates, fuel and food prices, we
expect the trend of falling property values to continue. The
traditional upsurge in activity in the spring market may reverse
the mood of the winter market, however the issue of home
affordability may dampen any resurgence in the market for a
while to come” said Ms. Whitehead.
“QV’s House Price Index indicates that property values are now
less than the same time last year in many areas even though
average sales prices have increased. Our index methodology
removes distortions created by averages and medians where there
is higher activity in one part of the market” said Ms.
Whitehead.
Across the Auckland area property values are 1.0% down compared
to the same time last year, driven by a 2.4% year on year
decline in Auckland City, and a 0.4% decline in both North Shore
and Manukau. There are still annual value increases of 1.5% in
Waitakere and 0.6% in Papakura, although this rate of growth has
been steadily decreasing in recent months. Hamilton City’s
values are 2.5% down on the same time last year, and Tauranga
1.2% down. The Wellington region is still showing a slight
increase on last year at 1.1%, although this is down from the
3.4% reported last month. Christchurch property values are
-0.2% compared to last year, and Dunedin has declined further to
-4.3%.
All of the main provincial centers are showing annual growth
rates less than those reported last month. Property values in
Whangarei 1.1%, Rotorua 1%, Wanganui 1% and Invercargill 9.9%
are all still above last year, but continue to trend downwards.
Gisborne -3.2%, New Plymouth -3.8%, Palmerston North -1.5%,
Nelson -0.1% and Queenstown Lakes -1.6% are now showing
declining year on year property values.
=====================
P H I L I P P I N E S
=====================
STEEL CORP: Court of Appeals Terminates Proposed Rehabilitation
---------------------------------------------------------------
The Court of Appeals has terminated the proceedings for the
rehabilitation of the Steel Corporation, Business World reports.
According to a 34-page decision cited by Business World,
Associate Justice Juan Q. Enriquez, Jr. said the rehabilitation
plan approved by a Batangas trial court seems to have failed to
resolve the quarrel.
"The rehabilitation suit having been unduly prolonged and the
plan not having been implemented at all, the question arises
whether such plan still remains feasible and whether adjustment
or modification can be made by the [trial court]," the order
said as quoted by Business World.
The report also noted the ruling stating that it would not seek
to modify the terms of the rehabilitation plan being questioned
by the parties.
The report added that according to the ruling, capital infusion
would not have helped since it would only have been good for a
few years, and would not have been enough to cover its
expenditures.
As reported by the Troubled Company Asia-Pacific on May 27,
2008, Steel Corp.'s financial trouble started in 1996 when it
obtained Php3.1 billion in both foreign and local loans for the
construction of a plant in Balayan, Batangas.
Payment on the loan was stalled by several factors particularly
the Asian financial crisis. In 2001, the company asked
creditors for an extension.
Accordingly, creditor bank, Equitable PCI Bank Inc., sought
rehabilitation of the company, which Steel Corp. wanted the
appellate court to deny arguing that the bank wanted to take
over the company's operations.
About Steel Corporation
Established in 1996, Steel Corporation of the Philippines
provides coated steel products for use in a diverse range of
applications including automotive, architecture, construction,
furniture and cans.
Steel Corp. is currently the Philippine's sole licensee of
GALVALUME 55(TM), the world's most durable coated steel product
and having the first galvanizing line in the world to achieve
200 meters per minute in 55% aluminum / zinc sheet production.
* PHILIPPINES: DBCC Reviewing Operations of 6 Ailing Companies
--------------------------------------------------------------
The Development Budget Coordination Committee is reviewing the
operations of six ailing government-owned and controlled
corporations to protect public finances, Manila Standard
reports.
The report, citing Government sources, says that the six
agencies under review are:
* Home Guaranty Corp.;
* Light Rail Transport Authority;
* Philippine National Railway;
* National Development Co.;
* National Electrification Administration; and
* National Food Authority.
* PHILIPPINES: Govt. Debt Declines to PHP3.872 Tril. as April
-------------------------------------------------------------
As of April 2008, the National Government debt decreased by
0.2% or PHP9 billion from the March 2008 level. Total
outstanding debt stood at PHP3.872 trillion of which, PHp1.570
trillion or 41% is owed to foreign creditors and PHP2.302
trillion or 59% to domestic creditors, a data by National
Treasury shows.
The domestic debt increased by 0.6% or PHP15 billion from the
recorded end April 2008 level arising from net issuances of
government securities.
On the other hand, the drop in NG’s foreign debt of
PHP24 billion or 1.5% from the level as of end March 2008 was
due to the PHP17 billion net repayments and PHP20 billion
appreciation the third currencies against the US dollar.
However, the depreciation of the peso against the US dollar
increased the foreign debt by PHP13 billion.
The contingent debt of the National Government, composed mainly
of guarantees issued by the National Government, declined to
PHP512 billion from end March level of PHP520 billion. This is
a decline of PHP8 billion resulting from the combined effects of
the PHP2 billion net repayments, PHP10 billion net appreciation
the third currencies against the US dollar and PHP4 billion
depreciation of the peso against the US dollar.
=================
S I N G A P O R E
=================
DURABEAU CONSTRUCTION: Pays Second and Final Dividend
-----------------------------------------------------
Durabeau Construction Pte Ltd, which is in liquidation, paid the
second and final dividend to its creditors on July 11, 2008.
The company paid 4% to all admitted ordinary claims.
The company's liquidators are:
Chee Yoh Chuang
Lim Lee Meng
c/o Stone Forest Corporate Advisory Pte Ltd
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
EASTMAN CHEMICAL: Requires Creditors to File Claims by August 11
----------------------------------------------------------------
Eastman Chemical Regional Pte Ltd, which is in voluntary
liqudation, requires its creditors to file their proofs of debt
by August 11, 2008, to be included in the company's dividend
distribution.
The company's liquidator is:
Aaron Loh Cheng Lee
c/o One Raffles Quay
North Tower, 18th Floor
Singapore 048583
ENZER CORPORATION: Auditor Expresses Going Concern Doubt
--------------------------------------------------------
Baker Tilly TFWLCL said it has significant doubt on Enzer
Corporation Limited's ability to continue as a going concern
citing the liquidation of Enzer Electronics Pte Ltd, a major
subsidiary of the Enzer group of companies, resulting in the
discontinuance of the group's electronics components and
consumer products business.
According to the auditing firm, the closure of these businesses,
which contributed 95% of the Group’s 2007 revenue, left the
Group with only its retail distribution represented by the
continuing activities of two subsidiary companies, both of which
incurred losses totaling SG$434,395 for the year and had capital
deficiency totaling SG$2,647,679 at March 31, 2008.
Arising from the liquidation of Enzer Electronics, the company
has made a provision of SG$6,230,000 in its financial statements
in respect of corporate guarantees given to financial
institutions for facilities extended to Enzer Electronics. The
Group incurred a net loss of SG$5,929,529 for the year ended
March 31, 2008. At March 31, 2008, the Group and company’s
liabilities exceeded its total assets by SG$5,123,772 and
SG$4,019,033 respectively.
The company has entered into an agreement with a potential
subscriber to raise capital funds up to SG$150 million for
working capital and investment purposes by way of issue of
convertible bonds subject to fulfillment of conditions
precedents.
The company has also entered into agreements to invest in
certain projects in China subject to fulfillment of conditions
precedents.
The auditing firm notes that the validity of the going concern
assumption depends on whether the bond issue is successful and
new business is introduced into the Group.
The auditors warned that in the event of failure to secure
additional adequate capital funds, the Group and company will no
longer be able to continue as going concerns and may not be able
to realize their assets and discharge theirs liabilities in the
normal course of business.
About Enzer Corporation
Enzer Corporation Limited operates in three business segments:
electronic components, consumer products and retail
distribution. The electronic components segment supplies
electronic components to a spectrum of industries, which
includes computer hard disk makers, integrated circuits module
makers and medical equipment makers. The electronic components
supplied include capacitors, inductors, integrated circuits,
relays, switches, printed circuit boards and liquid crystal
display modules. In the consumer products segment, Enzer
supplies home entertainment system, boom box, mini hi-fi,
compact disc players, digital versatile disc players, speaker
systems and digitally enhanced cordless telephones to retailers
and distributors worldwide under its own house brand ENZER. The
retail distribution segment is an integrator and reseller of hi-
fi systems and home entertainment systems. In August 2007, the
Company acquired 51% stake in Shanghai Jianhua Telecommunication
Satellite Co., Ltd.
INFORMATICS EDUCATION: Unit Inks Tenancy Agreement With Berjaya
---------------------------------------------------------------
Informatics Education Ltd.'s wholly owned subsidiary,
Informatics Education Malaysia Sdn Bhd, has entered into a
tenancy agreement with Berjaya Times Square Sdn Bhd, a
subsidiary under the Berjaya Group, for leasing of shop/office
premises at Berjaya Times Square, Kuala Lumpur, Malaysia for a
term of three years.
Berjaya Group is a substantial shareholder of the company.
The rental for the premises was based on the prevailing market
value. The Audit Committee has reviewed the transaction and is
satisfied that the transaction is carried out on normal
commercial terms and is not prejudicial to the interests of the
company and its minority shareholders.
Total value of the transaction is MYR902,016/ being the
aggregate rent for the next three years of the interested person
transactions.
About Informatics Education
Singapore-based Informatics Education Ltd. is engaged in
investment holding, and franchising for computer and commercial
training centres. It also operates as an examination
facilitator. The company operates under the names Informatics
International, Informatics Academy, Informatics Consulting,
Thames Academy, Thames International, Informatics Higher
Education, Informatics Corporate Learning and Informatics Uni.
It operates in three segments: the Global Higher Education
segment, which offers diploma, advanced diploma, degree, masters
and doctorate qualifications in a range of business, engineering
and technological subjects, to college going students and life
long learners; the Informatics Professional Skills Development
segment, which provides training and skills upgrading and
enhancement to the general workforce, in both technical and non-
technical areas, and the e-Learning segment, which offers
courses through online virtual campus platform for e-learners.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Ernst & Young LLP has expressed significant doubt
on Informatics Education Ltd.'s ability to continue as a going
concern citing the company's financial statements wherein
Informatics and its group of companies incurred a net loss of
SG$3,604,000 (2007: SG$5,815,000) for the financial year ended
March 31, 2008, and as at that date, the Group's total current
liabilities and total liabilities exceeded its total current
assets and total assets by SG$7,488,000 (2007: SG$21,827,000)
and SG$4,798,000 (2007: SG$17,664,000) respectively.
Ernst & Young warned that if the Group and the company are
unable to continue its operational existence for the foreseeable
future, the Group and the Company may be unable to discharge
their liabilities in the normal course of business and
adjustments may have to be made to reflect the situation that
assets may need to be realized other than in the normal course
of business and at amounts which could differ significantly from
the amounts at which they are currently recorded in the balance
sheets.
In addition, the auditing firm said the Group and the Company
may have to reclassify non-current assets and liabilities as
current assets and liabilities. No such adjustments have been
made to the financial statements, it noted.
JLOC XXX: Fitch Affirms 'BB' Ratings on JPY 9.3BB Mezzanine TBIs
----------------------------------------------------------------
Fitch Ratings has affirmed JLOC XXX Satellite Trust's mezzanine
Trust Beneficiary Interests due April 2014, and assigned
Outlooks as:
-- JPY8.3 billion Class 1 Mezzanine TBIs: affirmed at 'BB';
Outlook Stable; and
-- JPY1.0 billion, Class 2 Mezzanine TBIs: affirmed at 'BB';
Outlook Stable.
*as of 10 July 2008
The rating affirmations are based on the fact that the
performance of the majority of the properties has been within
Fitch's expectations.
This transaction is a securitisation of specified bonds backed
by 24 properties and TBIs in their respective trusts under the
trust structure closed in May 2006. Ratings have been assigned
to mezzanine TBIs.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to
June 2008. Unlike a Rating Watch which notifies investors that
there is a reasonable probability of a rating change, rating
Outlooks provide forward-looking information to the market and
indicate the likely direction of any rating change over a one-
to two-year period.
RINOL SINGAPORE: Creditors' Proofs of Debt Due on July 24
---------------------------------------------------------
Rinol Singapore Pte Ltd, which is in voluntary liquidation,
requires its creditors to file their proofs of debt by July 24,
2008, to be included in the company's dividend distribution.
The company's liquidator is:
Timothy James Reid
8 Robinson Road
#12-00 ASO Building
Singapore 048544
===========
T A I W A N
===========
AU OPTRONICS: Cuts Production on Small/Medium-Sized Panel Output
----------------------------------------------------------------
AU Optronics Corp is cutting production of its small-to medium-
sized liquid crystal display panels due to weak prices, XFN-ASI
reports, citing the Commercial Times.
As reported by the Troubled Company Reporter - Asia Pacific on
July 7, 2008, the company will cut production of liquid crystal
display (LCD) panels when necessary in order to stabilize market
supply and prices. Company Executive Vice President Paul
Peng said that his company does not rule out cutting production
to adjust inventory.
Higher inventory levels have dampened LCD panel prices recently.
The company, the report relates, has reduced capacity
utilization at its four plants using 3.5-generation technology
to 70% from 100%.
About AU Optronics
Taiwan-based AU Optronics Corp. -- http://www.auo.com/--
designs, develops, manufactures, assembles and markets flat
panel displays. The company's principal products are thin-film
transistor liquid crystal display (TFT-LCD) panels.
* * *
The com[any continues to carry Fitch Ratings upgraded Taiwan-
based AU Optronics Corporation's Long-term foreign and local
currency Issuer Default ratings to 'BB+' from 'BB', and its
National Long-term rating to 'A-(twn)' from 'BBB+(twn)'. The
Outlook is Positive.
QUANTA COMPUTER: Fitch Assigns 'BB' LT Local Currency ID Rating
---------------------------------------------------------------
Fitch Ratings has affirmed Taiwan-based Quanta Computer Inc.'s
Long-term foreign currency Issuer Default rating at 'BB', its
National Long-term rating at 'BBB+(twn)', and assigned a Long-
term local currency IDR of 'BB'. The Outlook has been revised
to Positive from Stable.
The ratings reflects QCI's leading industry position in original
design manufacturing services of notebook personal computers,
supported by its strong technological expertise and enduring
close customer relationships with the world's top NBPC brand
vendors. The ratings also reflect QCI's limited operating
volatility supported by intermediate-term positive momentum for
the NBPC ODM sector, which Fitch anticipates will experience
shipment growth of over 25% in 2008 and 2009. In 2007 QCI
achieved a material reduction of its financial risks, including
lowered leverage, strengthened interest/fixed charge coverage,
and free cash flow that turned positive.
Fitch notes that QCI's ratings are constrained by the
concentration of its business portfolio on NBPCs, and a low
operating EBITDAR margin (3.1% in 2007) which is pressured by
peer competition and swings in the outsourcing orders of major
brand NBPC vendors. QCI's attempts to diversify its product
portfolio have yet to have a material impact on its
profitability and cash flow, as NBPC still accounts for nearly
80% of its revenues.
"The Positive Outlook reflects Fitch's expectation that
continuous revenue growth, a stabilised operating margin, and an
enhanced level of working capital efficiency are likely to
support QCI's ability to generate positive free cash flow on a
sustainable basis," says Kevin Chang, Associate Director in the
agency's Asia-Pacific Telecom, Media and Technology team. Fitch
believes a strong market position and its core competence should
help QCI weather operating volatility.
Fitch notes that QCI management has shifted its focus to
operating efficiency from revenue growth in order to enhance
profitability and cash flow. "Greater vertical integration of
upstream components and more diversified revenue mix capturing
the demand growth of consumer electronics offers opportunities
for the company to improve its operating margins, " adds Mr.
Chang.
Fitch points out that QCI's leverage in terms of adjusted net
debt/EBITDAR fell to a very low 0.02x at end-2007 from 1.13x at
end-2006, reflecting higher operating profits and repayment of
debt, although its operating EBITDAR margin declined to 3.1% in
2007 from 4.0% in 2006. QCI's liquidity is well-supported by
its strong cash position which, at end-2007, covered all debts
due within a year.
QCI is a major beneficiary of manufacturing outsourcing by
information technology vendors and holds a leading position in
the ODM industry. In 2007, QCI's shipments of NBPC represented
a 30% global market share and continuously ranks No.1 globally.
QCI's consolidated sales rose 44.6% yoy to TWD777.4 billion in
2007 with 66% increase in NBPC shipment. Its revenues rose
32.4% yoy in the first half of 2008.
===============
T H A I L A N D
===============
TOTAL ACCESS: S&P Affirms 'BB+' Rating with Stable Outlook
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' corporate
credit rating on Total Access Communication Public Co. Ltd.
(DTAC) with a stable outlook before withdrawing the rating at
the company's request, following full repayment of US$300
million of debentures.
DTAC is Thailand's second-largest cellular provider, with about
one-third market share. At March 2008, the company's
subscribers grew 25% to 16.7 million, from 13.3 million in
March 2007, due largely to continual network coverage expansion.
With wireless penetration rate of about 80% in 2007 and an
expected 95% by end of 2008, competition remains intense and
operators face slowing revenue growth.
The company's EBITDA margin declined to about 29% for the fiscal
year ended December 2007 (due to inclusion of interconnection
settlement) before recovering to 32.4% in March 2008, compared
with its three-year (2005-2007) average of 35%.
"DTAC's profitability and cash flows remain exposed to tight
competition and high regulatory costs, including revenue sharing
and access charges" said Standard & Poor's credit analyst Lay
Peng Tan.
===============
X X X X X X X X
===============
* Fannie Mae and Freddie Mac Get Loan Commitment from Gov't
-----------------------------------------------------------
The Board of Governors of the Federal Reserve System granted the
Federal Reserve Bank of New York on Sunday authority to lend to
Fannie Mae and Freddie Mac should such lending prove necessary.
Any lending would be at the primary credit rate and
collateralized by U.S. government and federal agency securities.
The authorization is intended to supplement the Treasury's
existing lending authority and to help ensure the ability of
Fannie Mae and Freddie Mac to promote the availability of home
mortgage credit during a period of stress in financial markets.
The Wall Street Journal's James R. Hagerty, Deborah Solomon and
Sudeep Reddy report that the United States Treasury said it
plans to seek approval from Congress for a temporary increase in
a long-standing Treasury line of credit for Fannie and Freddie.
Treasury's 3-Part Plan
In a statement on Sunday, Treasury Secretary Henry M. Paulson,
Jr. said that he has consulted in recent days with the Federal
Reserve, the Office of Federal Housing Enterprise Oversight, the
Securities and Exchange Commission, Congressional leaders of
both parties and with the two companies to develop a three-part
plan for immediate action:
1. As a liquidity backstop, the plan includes a temporary
increase in the line of credit Fannie and Freddie have
with Treasury. Treasury would determine the terms and
conditions for accessing the line of credit and the
amount to be drawn.
2. To ensure Fannie and Freddie have access to sufficient
capital to continue to serve their mission, the plan
includes temporary authority for Treasury to purchase
equity in either of the two GSEs if needed. Use of
either the line of credit or the equity investment
would carry terms and conditions necessary to protect
the taxpayer.
3. To protect the financial system from systemic risk going
forward, the plan strengthens the GSE regulatory reform
legislation currently moving through Congress by giving
the Federal Reserve a consultative role in the new GSE
regulator's process for setting capital requirements and
other prudential standards.
"The President has asked me to work with Congress to act on this
plan immediately," according to Mr. Paulson.
Mr. Paulson said, "Fannie Mae and Freddie Mac play a central
role in our housing finance system and must continue to do so in
their current form as shareholder-owned companies. Their
support for the housing market is particularly important as we
work through the current housing correction."
"GSE debt is held by financial institutions around the world.
Its continued strength is important to maintaining confidence
and stability in our financial system and our financial markets.
Therefore we must take steps to address the current situation as
we move to a stronger regulatory structure."
"I look forward to working closely with the Congressional
leaders to enact this legislation as soon as possible, as one
complete package."
The Wall Street Journal notes that Fannie's and Freddie's lines
of credit are currently capped at US$2,250,000,000 each. The
Treasury, the Journal notes, didn't say to what level they would
be increased. It's also not clear what role the Fed might play,
the Journal adds.
New Housing Bill
WSJ says the Senate late on Friday passed a housing package that
would create a new, stronger regulator for Fannie Mae, Freddie
Mac and the 12 Federal Home Loan Banks. The House passed a
similar bill in May, but the process since then has been fraught
with unexpected complications, WSJ says.
WSJ says the bill could pick up speed now as lawmakers only need
to resolve a few differences, and potentially add the changes.
Daniel H. Mudd, Fannie Mae's President and CEO, said, "Fannie
Mae appreciates [the Federal Reserve and U.S. Treasury]
announcements and the expressions of support for the GSEs as
shareholder-owned companies that play a critical role in the
U.S. housing finance system. We are grateful for the leadership
of Secretary Paulson and Chairman Bernanke. We also look
forward to working with Treasury, OFHEO and Congress on swift
passage of the new legislative proposals, as well as the
important initiatives underway to assist homeowners and help
restore stability to the housing market. We continue to hold
more than adequate capital reserves and maintain access to
liquidity from the capital markets. Given the market turmoil,
having options to access provisional sources of liquidity if
needed will help to strengthen overall confidence in the market.
We will continue to do our part to provide liquidity, stability
and affordability to the housing market now and in the future."
Richard F. Syron, chairman and CEO of Freddie Mac, said, "We are
heartened by [the Federal Reserve and U.S. Treasury]
announcement and the steps outlined by the U.S. Department of
the Treasury and the Federal Reserve Board. This affirmation of
the important role of the GSEs, and that we should continue to
operate as shareholder-owned companies, should go a long way
toward reassuring world markets that Freddie Mac and Fannie Mae
will continue to support America's homebuyers and renters. I
applaud Secretary Paulson and Chairman Bernanke for their
leadership and encourage Congress to act quickly to pass the new
legislative proposals."
BankruptcyLaw360 says Freddie Mac and Fannie Mae are not likely
to be nationalized, according to experts. It has long been
assumed that the U.S. government would step in to bail out
Fannie Mae and Freddie Mac rather than have them file for
bankruptcy, but exactly what steps it would take remain to be
seen, according to BankruptcyLaw360.
Fannie & Freddie Adequately Capitalized
As reported by the Troubled Company Reporter on July 11, 2008,
James B. Lockhart, director of the Office of Federal Housing
Enterprise Oversight, issued a statement assuring that Fannie
Mae and Freddie Mac are adequately capitalized, after the
companies' stocks tumbled to the lowest in 17 years in New York
trading when:
-- former St. Louis Federal Reserve President William Poole
said both may need a government bailout; and
-- UBS AG analysts cut their price target for Freddie Mac
stock.
Mr. Poole had said:
1. Freddie Mac owed US$5,200,000,000 more than its assets
were worth in the first quarter, and was insolvent based
on fair value accounting measures; and
2. the fair value of Fannie Mae assets fell 66% to
US$12,200,000,000 and may be negative next quarter.
Mr. Lockhart, the TCR related, said Fannie Mae and Freddie Mac
have large liquidity portfolios, access to the debt market and
more than US$1,500,000,000,000 in unpledged assets. Mr.
Lockhart added that OFHEO has been monitoring and continues to
monitor closely Fannie Mae, Freddie Mac and the mortgage and
financial markets.
Bloomberg News' Dawn Kopecki reports that Fannie Mae and Freddie
Mac own or guarantee about half the US$12,000,000,000,000 in
U.S. home loans outstanding. Ms. Kopecki, citing Bloomberg data,
says Fannie Mae also has US$831,000,000,000 in company bonds
outstanding, while Freddie Mac has US$644,000,000,000.
WSJ says Fannie and Freddie own or guarantee about
US$5,200,000,000,000 of U.S. home mortgages, nearly half of all
mortgages outstanding:
_________________________________
| |
| US$3,000,000,000,000 Fannie Mae |
|_________________________________|
| US$2,200,000,000,000 Freddie Mac|
|_________________________________|
| |
| |
| US$6,000,000,000,000 all others |
| |
| |
|_________________________________|
Chuck Greener, Senior Vice President at Fannie Mae, confirmed on
Friday the GSE's capital adequacy, pointing out that Fannie Mae
raised US$7,400,000,000 of additional capital in May, for a
total of more than US$14,000,000,000 in new capital since
November of 2007. "Our capital level is substantially above
both our statutory minimum capital and the OFHEO-required 15
percent surplus over minimum capital. In fact, we have more
core capital, and a higher surplus over our regulatory
requirement, than at any time in this company's history," Mr.
Greener said.
Mr. Greener also noted that Fannie Mae has access to ample
sources of liquidity, including access to the debt markets. The
company issued more than US$24,000,000,000 in debt last week,
including a US$3,000,000,000 Benchmark Notes(R) sale that was
oversubscribed.
"Fannie Mae remains well equipped to fulfill our critical role
in the housing finance system, today and in the future. We will
provide a full financial update and outlook when we report
second-quarter results in early August," Mr. Greener added.
Freddie Mac also confirmed Friday that is adequately
capitalized. Freddie said it is in the process of finalizing
its results, and it estimates that at June 30, 2008, it will
have a substantial capital cushion above the 20% mandatory
target surplus established by OFHEO and a much greater surplus
above the statutory minimum capital requirement.
Freddie Mac said in a statement it is not under any mandate to
raise capital in the near term. Freddie also noted that there
are a number of options to manage its capital position.
According to Freddie, the average rate of run-off on its
retained portfolio is currently about US$10,000,000,000 per
month, and not replacing that run-off would free up
approximately US$250,000,000 of capital per month. Over the
course of a year, this would free up approximately
US$2,500,000,000 to US$3,000,000,000 of additional capital if
the run-off rate remains constant, Freddie explained.
Freddie Mac is also could consider reducing its common stock
dividend. Freddie's current annual common stock dividend is
roughly US$650,000,000.
Freddie Mac also indicated that its liquidity position remains
strong as a result of the combination of:
-- access to the debt markets at attractive spreads; and
-- an unencumbered agency MBS portfolio of roughly
US$550,000,000,000 which could serve as collateral for
short-term borrowings.
WSJ also notes that Freddie has announced plans to raise
US$5,500,000,000 by selling common and preferred shares, but it
is likely to wait for a calmer market.
Impact on Asia
Asian central banks and financial institutions are major holders
of U.S. debt and are believed to own substantial portions of
debt for Fannie Mae and Freddie Mac, The Wall Street Journal
says.
According to U.S. Treasury Department data cited by WSJ,
foreigners owned 21.4%, or USUS$1.3 trillion, of the total
outstanding long-term debt issued by U.S. government agencies as
of June 2007, with China and Japan being the largest investors
in such securities, holding USUS$376 billion and USUS$229
billion, respectively.
About Freddie Mac
The Federal Home Loan Mortgage Corporation -- (FHLMC) NYSE: FRE
-- commonly known as Freddie Mac, is a stockholder-owned
government-sponsored enterprise authorized to make loans and
loan guarantees. Freddie Mac was created in 1970 to provide a
continuous and low cost source of credit to finance America's
housing.
Freddie Mac conducts its business primarily by buying mortgages
from lenders, packaging the mortgages into securities and
selling the securities -- guaranteed by Freddie Mac -- to
investors. Mortgage lenders use the proceeds from selling loans
to Freddie Mac to fund new mortgages, constantly replenishing
the pool of funds available for lending to homebuyers and
apartment owners.
About Fannie Mae
The Federal National Mortgage Association -- (FNMA) (NYSE: FNM)
-- commonly known as Fannie Mae, is a shareholder-owned U.S.
government-sponsored enterprise. Fannie Mae has a federal
charter and operates in America's secondary mortgage market,
providing mortgage bankers and other lenders funds to lend to
home buyers at low rates.
Fannie Mae was created in 1938, under President Franklin D.
Roosevelt, at a time when millions of families could not become
homeowners, or risked losing their homes, for lack of a
consistent supply of mortgage funds across America. The
government established Fannie Mae to expand the flow of mortgage
funds in all communities, at all times, under all economic
conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by the U.S. Congress as a
shareholder-owned company, funded solely with private capital
raised from investors on Wall Street and around the world.
Fannie Mae is the U.S. largest mortgage buyer, according to The
New York Times.
* BOND PRICING: For the Week July 7 - July 11, 2008
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.65
A&R Whitcoulls Group 9.500% 12/15/10 NZD 10.95
Allco Hit Ltd 9.000% 08/17/09 AUD 18.50
Antares Energy 10.000% 10/31/13 AUD 0.62
Avoca Resources 6.000% 05/14/12 AUD 6.99
Babcock & Brown Pty Ltd 9.010% 09/15/16 NZD 29.00
BBI Ntwrks NZ Limited 8.000% 11/30/12 NZD 20.00
Becton Property Group 9.500% 06/30/10 AUD 0.55
Bounty Industries Limited 10.000% 06/30/10 AUD 0.07
Capital Properties NZ Ltd 8.500% 04/15/09 NZD 13.50
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 11.00
China Century 12.000% 09/30/10 AUD 0.61
Cit Group Au Ltd 6.000% 03/03/11 AUD 74.85
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.00
Fletcher Building Ltd 7.550% 03/15/11 NZD 10.00
Fletcher Building Ltd 7.550% 03/15/09 NZD 13.00
Heemskirk Consolidated
Limited 8.000% 04/29/11 AUD 3.00
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 10.25
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 15.00
Infrastructure & Utilities 8.500% 09/15/13 NZD 9.90
Jem Warehouse 3.000% 08/01/14 AUD 71.61
LongReach Group Limited 10.000% 10/31/08 AUD 0.35
Nylex Ltd. 10.000% 12/08/09 AUD 1.50
Macquarie Comm 2.500% 08/23/13 AUD 72.54
Metal Storm Ltd 10.000% 09/01/09 AUD 0.10
Minerals Corp 10.500% 09/30/08 AUD 0.77
Publ & Broad Fin 6.280% 05/06/11 AUD 9.67
Record Funds Man 11.000% 09/01/10 AUD 46.60
Speirs Group Ltd. 13.160% 06/30/49 NZD 55.00
South Canterbury 10.430% 12/15/12 NZD 0.98
St. Laurence Prop 9.250% 07/15/01 NZD 50.21
TrustPower Ltd 8.300% 12/15/08 NZD 11.00
TrustPower Ltd 8.500% 09/15/12 NZD 11.00
TrustPower Ltd 8.500% 03/15/14 NZD 9.00
CHINA
-----
Baoshan Iron 8.000% 06/20/14 CNY 74.75
China Govt Bond 4.860% 08/10/14 CNY 0.00
Cosco Shipping 0.800% 01/28/14 CNY 72.32
GD Power Develop 1.000% 05/07/14 CNY 72.75
Gezhouba 0.600% 06/26/14 CNY 68.74
Kangmei Pharm 0.800% 05/08/14 CNY 70.28
Tsingtao Brewery 0.800% 04/02/14 CNY 71.36
INDIA
-----
Ghcl Ltd 1.000% 03/21/11 USD 67.12
India Gov't 5.640% 01/02/19 INR 72.61
India Gov't 5.870% 08/28/22 INR 70.87
India Gov't 5.970% 09/25/25 INR 68.33
India Gov't 6.010% 03/25/28 INR 66.50
India Gov't 6.130% 06/12/23 INR 67.40
India Gov't 6.170% 06/12/23 INR 72.26
India Gov't 6.300% 04/09/23 INR 73.47
INDONESIA
---------
Indonesia Gov't 9.750% 05/15/37 IDR 73.61
JAPAN
-----
Nichielei Co Ltd 1.750% 03/31/14 JPY 60.06
NIS Group 2.730% 92/26/10 JPY 74.49
Pacific Management 2.370% 03/16/10 JPY 64.89
Pacific Management 2.370% 03/15/12 JPY 64.87
Shinsei Bank Ltd. 5.625% 12/29/49 GBP 73.30
Zephyr Co Ltd 2.940% 06/21/10 JPY 36.92
KOREA
-----
Korea Dev. Bank 7.310% 11/08/21 KRW 44.23
Korea Dev. Bank 7.350% 10/27/21 KRW 44.33
Korea Dev. Bank 7.400% 11/02/21 KRW 44.28
Korea Dev. Bank 7.450% 10/31/21 KRW 44.29
Korea Dev. Bank 8.450% 12/15/26 KRW 69.52
MALAYSIA
--------
Advance Synergy Berhad 2.000% 01/26/18 MYR 0.04
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.92
Berjaya Land Bhd 5.000% 12/30/09 MYR 3.90
Bumiputra-Commerce
Holdings Bhd 2.500% 07/16/08 MYR 1.13
Eastern & Orient 8.000% 07/25/11 MYR 2.48
EG Industries Berhad 5.000% 06/16/10 MYR 0.25
Equine Capital 3.000% 08/26/08 MYR 1.63
Greatpac Holdings 2.000% 12/11/08 MYR 0.12
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.35
Insas Berhad 8.000% 04/19/09 MYR 0.40
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.22
Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.17
Kumpulan Jetson Berhad 5.000% 11/27/12 MYR 0.51
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.30
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.70
Media Prima Bhd 2.000% 07/18/08 MYR 1.16
Mithril Bhd 3.000% 04/05/12 MYR 0.50
Mithril Bhd 8.000% 04/05/09 MYR 0.10
Nam Fatt Corp 2.000% 06/24/11 MYR 0.35
Pelikan International 3.000% 04/08/10 MYR 1.31
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.09
Plus Spv Bhd 2.000% 06/27/17 MYR 68.75
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.79
Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.11
Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.60
Silver Bird Group 1.000% 02/15/09 MYR 1.10
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 0.90
Tradewinds Corp. 2.000% 02/08/12 MYR 0.50
Tradewinds Plantation Berhad 3.000% 02/28/16 MYR 1.61
TRC Synergy Berhad 5.000% 01/20/12 MYR 1.21
Wah Seong Corp. 3.000% 05/21/12 MYR 4.16
Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.45
YTL Cement Bhd 4.000% 11/10/15 MYR 1.31
SRI LANKA
---------
Sri Lanka Govt 7.500% 08/15/18 LKR 54.67
Sri Lanka Govt 6.850% 04/15/12 LKR 69.10
Sri Lanka Govt 6.850% 10/15/12 LKR 68.45
Sri Lanka Govt 7.000% 10/15/11 LKR 61.32
Sri Lanka Govt 8.500% 07/15/13 LKR 73.69
Sri Lanka Govt 8.500% 07/15/13 LKR 72.52
Sri Lanka Govt 8.500% 07/15/18 LKR 66.92
Sri Lanka Govt 8.500% 02/15/13 LKR 66.36
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Marites M. Claro, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Marie Therese V. Profetana, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2008. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***